Are NEW Real Estate Investors LAZY???

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Are NEW Real Estate Investors LAZY???

Rick Pozos
Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes

Why is it that almost all new investors want to know the best way to find deals, the best way to find private lenders, the best way to find wholesalers, the best way to do everything and make 300k+ per year without doing too much and not really knowing anything about real estate???

It seems that people these days want the easy way to get everything done. Tell me how to get deals so that I can go and make 30k-50k per deal so that I can quit my job that I hate. I only want to do 10 deals per year.

REALLY??

If real estate investing was that easy, I guess everyone would be doing it. I guess it is all the TV shows that make it seem that easy. There really is a bunch of work and knowledge that you have to have to thrive in any business. Real estate is no exception. I am in San Antonio, Texas. Some people use the TREC (texas real estate commission) contract, some use their own, but you have to know how to fill out a contract. Also, you have to know repair costs. When you see a property how do you know if it is a deal?? Well, you have to know something about construction and repairs and if certain items do in fact need to be repaired or replaced.

Dont even get me started with marketing. Everybody tells me "I need a deal by the end of this month so that I can flip it to build capital". I usually ask, "How are you marketing to find the deals". Usually I get a blank stare. You have to put in lots of time and YES MONEY into your business just to get it going. Dont get me wrong, I started with very little down, but it has taken quite a while to really get some momentum. Hard work and dedication to your business is what will make you successful in the long run.

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Tim Macy
Real Estate Agent · San Antonio, TX · Member since 2014 · 311 posts · 176 votes
10y

I will say one thing in defense of the ones you're talking about; it's not completely their fault.  They read books, go to workshops, even listen to the BP podcast and hear how ANYONE can do it.  The fact is, this game really isn't for everyone.  When you spend your last $2500 in the bank on marketing and get 3 phone calls from old people angry that you're sending them mail, your perspective on the previous material tends to shift.  I think there is a large percentage of the population that is meant to punch a clock and bring home a salary.  The amount of time and effort you have to put it before you see anything that even smells like a paycheck isn't worth it for a lot of personalities.  

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  • Seth TeelPro Member
    Investor · San Antonio, TX · Member since 2012 · 596 posts · 587 votes
    10y

    The local wholesalers are even lazier. All I see is a constant barrage of the same properties with umpteen different prices from these new guys.  It's as if the wholesalers don't even contract their properties anymore.   Sounds like all you have to do to make money in San Antonio is work and hustle...because few people are. 

    3Reply
  • Brandon Lashley
    Tampa, FL · Member since 2015 · 14 posts · 6 votes
    10y

    i appreciate this article. As a new investor, I want to make sure I do it correctly and not look at this as a "get rich quick" thing. As someone with a public relations degree, I definitely get the need for advertising.

    0Reply
  • Patrick Keely
    San Angelo, TX · Member since 2016 · 12 posts · 2 votes
    10y
    I hear the worlds smallest violin playing a song........ But in all seriousness I think it's just the overwhelming easy access to "real estate investing". Between tv shows, podcasts, books, Twitter, Instagram, BIGGER POCKETS, etc etc you can see people that have had "overnight" success in real estate. Some inherited, some took decades to become overnight successes, some rent everything and aren't as rich as they seem to be, some get flat out lucky. Let's not forget all the gurus that go around holding conferences and selling their books and programs. Aren't we all looking for wealth? Why not want it quickly? Most of the ones that actually expect it to be that easy won't make it and will drop off but with the easy access to successful people they will be heard from more often.
    0Reply
  • Brandon Lashley
    Tampa, FL · Member since 2015 · 14 posts · 6 votes
    10y

    how do I go about doing it correctly to properly invest my time and money?

    0Reply
  • Dennis Boboc
    Investor · Phoenix, AZ · Member since 2013 · 110 posts · 23 votes
    10y

    @Rick Pozos YOU ARE MY HERO RICK!!!! Thank you for posting that...as well as the other comments to this post...I run into this issue everyday with new investors. It took me 15+ years to get where I'm at. 

    @Brandon Lashley 

    I'd be happy to help you figure those things out....let's connect.

    Thanks guys!

    2Reply
  • Cedric Lynum
    San Antonio, TX · Member since 2016 · 9 posts · 2 votes
    10y

    As a new investor, I definitely don't want to fall in this trap. Yes, I see the potential in real estate but I also know that it will not happen overnight. I'm so glad that I found BP so that I can gain insight from those that are doing it. I have so much to learn!!

    1Reply
  • Michael Fortier
    IT Director/Service Manager · Lubbock, TX · Member since 2015 · 87 posts · 24 votes
    10y

    @Rick Pozos

    I must be in the wrong place, I thought this was an open forum where people could ask for advice. I have been researching on this site and many others for the past 6 months trying to figure out what route to take. Not every new investor is looking for the overnight success, they are trying to avoid mistakes that others have made. Perhaps you can tell us the "best way" to ask questions on the site?

    2Reply
  • Tim Macy
    Real Estate Agent · San Antonio, TX · Member since 2014 · 311 posts · 176 votes
    10y

    I will say one thing in defense of the ones you're talking about; it's not completely their fault.  They read books, go to workshops, even listen to the BP podcast and hear how ANYONE can do it.  The fact is, this game really isn't for everyone.  When you spend your last $2500 in the bank on marketing and get 3 phone calls from old people angry that you're sending them mail, your perspective on the previous material tends to shift.  I think there is a large percentage of the population that is meant to punch a clock and bring home a salary.  The amount of time and effort you have to put it before you see anything that even smells like a paycheck isn't worth it for a lot of personalities.  

    4Reply
  • Ayodeji Kuponiyi
    Investor · King of Prussia, PA · Member since 2014 · 1k+ posts · 339 votes
    10y

    @Rick Pozos Are NEW real estate investors lazy? yes 70% and no 30%. As you mentioned if this business was easy everyone would be doing it and that's just it, people think it's easy from what they see on tv, read on BP, and hear on podcasts. 

    RE investing isn't rocket science yet at the same time it takes time, research, and planning. RE investing can be easy once one has mastered a spefic niche and is making money but that person doesn't become lazy, they become even more motivated. To end, struggle is good and will make RE investing worthwhile on many areas. 

    NOTHING IN THIS WORLD WORTH HAVING, COMES EASY ;)

    3Reply
  • Rick Pozos
    OP
    Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    10y

    @Michael Fortier This is the best forum ever!! Lots of exchange of FREE info. I give lots of FREE info all the time, everyday. SOME people, I am sure not you, want to be spoon-fed each step of how to develop a business, how to acquire product, how to everything before even trying to do anything. Try something first, then ask for help. Initiative. That is all I am saying.

    Questions should come from getting stuck in the process. This is what I am doing, how can I improve. I have tried this, but is this better? I am about to sign a contract, but I am not sure if it is a deal. Those types of questions will keep you from making big mistakes. But you know what? You will still make mistakes and that is OK. I still make mistakes. 

    1Reply
  • Leland Barrow
    Investor · San Marcos, TX · Member since 2015 · 272 posts · 360 votes
    10y

    My two part answer for your question....

    When everyone is attracted to real estate including lazy people then it may be time to evaluate the market. I don't know that your question is the root issue. I would assume that the root issue is why are so many inexperienced investors attracted to real estate?

    The second answer is why wouldn't they be? Who is more intelligent the guy that is paving a road in golden bricks one sweaty brick at a time, or the guy skipping behind him on a nice new path of golden bricks? The inherent issue with developing a successful path in life is that others are going to come behind you and contribute far less work for the same reward. BP throws the gates wide open and welcomes all down that path, while gurus and the like see value in controlling who skips down their path of golden bricks. If you throw the gates wide open then you will get people that will ask you to keep making that path easy for them.

    Do you think about the guys who built the bridge that you drive over...probably not, most likely you just wonder why they didn't make the bridge wider. It is just nature for one monkey to see another monkey being successful at fishing ants out of hill with a stick and then emulating that behavior. I doubt the first monkey ever got credit for such a revolutionary idea as fishing ants out of hole with a stick.

    3Reply
  • Michael Fortier
    IT Director/Service Manager · Lubbock, TX · Member since 2015 · 87 posts · 24 votes
    10y

    I understand some of what you are saying. I think society as a whole is lazy, everything is instant now, hard work is not looked at in a way it used to be and everyone wants immediate gratification. 

    I have posted a handful of questions on this forum so far, some have got great answers some have got no answers. Maybe the posts with no or almost no answers were not formatted in a way that made me sound knowledgeable on the subject or maybe I annoyed people because I am so new. Who knows.

    I think posts like this do a disservice to the site and make new users less likely to post questions. I think the site needs both new users and experienced users to function properly. I appreciate everything this site has to offer, from the podcasts to the excellent advice from experienced people and everything in between. The reason I signed up for a pro account is because I thought it was the least I could do to help support such a great place to share knowledge. 

    Thanks 

    2Reply
  • Ryan Dossey
    Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    10y

    I think what it really comes down to is.... You really don't know till you ask. They have no way of knowing or gauging how hard or easy this is. 

    My piece of advice is just to take action daily. Do something to improve your business, knowledge, or connections. 

    Real Estate truly is a people business. Who you know, how you treat people, and what you devout your time to will determine your outcome. 

    1Reply
  • Dio Donnie
    Des Moines, IA · Member since 2016 · 17 posts · 7 votes
    10y
    I can relate to what you are saying when I heard about real estate I thought that in a few weeks I would get $10,000. With that in mind i basically waited for that to happen without doing any work. 2 months passed by and I did not have the $10,000 in my bank account then I heard the quote "you reap what you sow" so I asked myself what have I sowed? The answer was nothing so I had to start sowing something so I paid $225 for an online lead generating service. The catch was that I had to call the sellers instead of the sellers calling me. I did that for 2 more months and now I have a contract signed. the thing that kept me motivated was a podcast I was listening to called "the real estate rich and famous" in most of the episode they kept saying take action take action take action over and over again and that's what made me take the action to go look at a house and have a contract signed
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Ryan Dossey I learned RE from my Dad.. and he had one tenant ITS a belly to belly business.. but again this is the 60 and 70's when he was teaching me.. and pre internet and all. and MLS was still in books.. etc.

    I look at the BP as phenom  were all of a sudden people with zero knowledge or experience in RE can ask questions form many who have years of experience and knowledge.. just depends on how the experienced folks want to engage.. and of course there are a thousand ways to make money in RE and much of the profits come from folks that do it there way in their specific markets its not a one size fits all industry.

    So as it relates to what I see on BP there are two camps.

    1. I have no money experience and I have read a bunch and it seems that being a wholesaler is the easiet way to go about it or create revenue... In my day you simply got a RE licnese and made commissions that's what I did.  But many of these folks couch themselves as RE investors when in fact they are not investors at all..  They are simply trying to engage in sales and marketing.. BP has very limited sales and marketing advice at least as it relates to first class sales training.. Other than hey buy yellow letters and mail them out.. Just like all newbies do.. its those that take the extra steps and understand sales and marketing that make it those that just read this send some letters out and have no clue as to handle people belly to belly they fail.

    2. Then you have what I call a true investor.. IE they have money they have credit . they have a well paying job... that's an investor. they buy for generally cash flow or to fix and flip.. etc etc. not nearly as important to have sales and marketing skills. and one can shop from home and I guess can be lazy I mean its not tough to cruise the internet looking for deals.

    3. then yo have the folks that want to actually make this a living and they do that by getting into the business in an organized manner going to work with a RE brokerage.. or lending brokerage or a developer or some organized company that is generating millions of dollars a year in revenue.

    Between late night TV and BP in my mind has created much of what you see here.. in the old days you learned the trade  today you just post questions.. to some they are silly because they are so Naïve and to others its the only way they know to try to get info and knowledge.. RE is a very fractured industry.. with all different levels of bar's to entry.. Look at the guys running the Hedge funds buying up hundreds of thousands of properties  I have met and talk with many  .. Wharton school of business Harvard Stanford you get the drift... LOL  yet I do business in my work a day world with HIgh school graduates that do very well buying and flipping homes mainly because they know how to work belly to belly and make deals.

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  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @rick pozos

    Hi Rick

    I tend to agree with your premise, but I think many people are becoming complacent, especially with the instant gratification generation.  I can't blame them, you can get instant info just by typing in a few words.

    I think life is simple.  Whatever you put in, is what you will get out.  Real estate is just like any other business.  You need to immerse yourself and study it.  Is it no wonder why the majority of businesses fail within the first 5 years.

    Gino

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  • Chris Hardwick
    Rowlett, TX · Member since 2016 · 15 posts · 2 votes
    10y

    We live in a changed world. Information is readily available, whether via your smart phone, PC at home, tablet, you name it. There are countless "I got rich in real estate" stories out there. Look around on BP.com and you'll find all sorts of success stories, "I'm 19 and I have 20 doors in less than 6 months and I only invested $36". And you've got this: How to Quit Your Job Webinar Yes, I'm signed up.

    As long as successful people are telling their success stories and so many people are willing to get on forums like this one, write blogs, etc. to share what they've learned, you're going to have people trying to take advantage and make money immediately. Will it happen for everyone? Of course not. Are there people out there that will "get rich quick", sure.

    As a newcomer looking to augment and eventually replace my current gig, I can't say I'm upset at the new guys coming in looking for information that so many are readily willing to share.

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    10y

    I have written a couple of blogs about this very subject if you look me up. Yes, I think there's a proliferation of that kind of stuff right now. Some people would say that is the black swan you see right before the market crashes. Personally, I believe markets and economies are mostly local, so I don't worry too much about that, but I will say there's more people I'm competing with right now than even a year ago. 

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  • David Nolan
    Professional Property Investor · Brisbane, Queensland · Member since 2015 · 165 posts · 160 votes
    10y

    @Rick Pozos You are right in your view about people wanting it easy. That has always been the way for many of those less inspired to do what you do. People who work from inspiration find all the ways to do things and will do the hard yards so to speak. Those who have a temporary motivation want it easy and when the going gets tough they walk away. They have a view that is a delusion rather than being illuminated in what they want.

    Why so many people fail in this business is not because of lack of information, just look at how much information is here on BP alone! It is usually because they do not value money. How do I know that? Because they will quite often say, "I have little or no money". How can you have a value around money and have none? It is not possible. People who value money always have money. They collect it, cherish it, value it and want more of it. They don't waste it on trivial things, they don't waste it on depreciating assets or lifestyle choices. They understand the value of money, how it works and how to make it work for them.

    Learning about money is paramount to making money. It is money that makes the real estate business work, but so many people do not learn about money. How to make it, manage it, make it grow, protect it and value it over time. In my 40 plus years of business and investment I can honestly say that for the vast majority of the people I have met that want an easy solution they will never succeed at creating wealth from real estate investing because, unlike you, they will not do the work that is required to understand what it is all about. People listening to others on how to do things will always struggle to succeed. Knowledge alone is not enough. One must UNDERSTAND what is happening and then take positive action before they will truly succeed. You clearly understand what is required of you to succeed. That is what will continue to make you money in this business.

    So, for anyone who reads this post and wants to really make money, start by learning about money  and investing. One of the best places to start that I am aware of is to read a little book called, "The Richest Man in Babylon" by Geroge. S. Clason. However, don't just read it, read it until you understand it, then practice what it teaches and you will be on your way to financial independence.

    2Reply
  • Jason V.
    Investor · Rochester, NY · Member since 2016 · 477 posts · 426 votes
    10y

    @Rick Pozos As I read this post, I'm also staring at an advertisement for the next BP webinar that starts in 1 day, 14 hours and 10 minutes: How to QUIT YOUR JOB Through the Power of Real Estate Investing! 

    ...So why do you think people think they can start investing in real estate and immediately make a million dollars and quit their jobs?

    But seriously, I think people who post/do things like that fall into a couple of camps: 

    1. Get Rich Quick Schemers. Once they realize what REI is all about, they'll go away.

    2. Earnest people who are scared, because REI is freaking scary.

    3. Tire Kickers that are too lazy to actually search the forums or connect locally with anyone. They want someone to hand them the answer on a plate with a cookie. Not exclusive to us, but definitely an issue with the up and coming generation. 

    I've heard it said many times on Podcasts and in articles that something like 90% of people who listen to the BP podcast and participate on the forums are not, and never will be real estate investors. So that has to be really frustrating for folks that have been around a while. But if it wasn't for BP, I wouldn't be waiting to close on my first multi-family deal - because there's no way I could have scraped together the confidence to do this without all of the shared knowledge and experience on offer here. 

    So feel free to take your frustrations out on us new folks as much as you want - it'll help weed out the ones who are going to stick around that much faster :-)

    0Reply
  • Hugh Ayles
    Cedar Park, TX · Member since 2015 · 377 posts · 200 votes
    10y

    @Rick Pozos

    It is as simple as the Internet.  There is so much information available right now.

    Then the gurus flood radio and internet with "make $20k per month just by attending my seminar."

    Some newbies don't realize this is actually a business and not investing.  By that I mean with stocks you spend some time researching, you buy a fund or stock, and you quickly start making money.

    In real estate there are many moving parts.

    My first deal closes in a couple weeks and we will net a tidy sum that many would like to make in a year.  I am an overnight success 25 years in the making.  In other words I have 25+ years of commercial construction experience, I have owned a business for 7 years, my wife has been a Realtor for over 10 years, and we put in many hours to make this happen.

    My advice to newbies is to find a way to work for a company involved in real estate in some form to gain experience.  I did not go the guru route but I know a few people who have and are doing quite well for themselves.  They are hard working people.  By reading this forum it is obvious you really must do some due diligence before going the guru route.

    In another thread it was said that colleges and gurus are liars because both entities say you will make money by attending.

    I think that comment was wrong.  Both entities will give you the tools to succeed but YOU have to do the work and use the tools.

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  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    10y

    I don't think people are more lazy now than they were 10 years ago.  Usually when you see an influx of people in the state of mind you mention, it means a top is near.  Too many people that won't make it in the game are trying to get in.  This is just something I noticed when the 2008 crash happened.  Not a hard indicator by any means, just an observation.

    0Reply
  • Lesley Resnick
    Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
    10y

    The truly big money has been made already this cycle.  If you had money in 2009 and bought, you look great.  Just a few years earlier 2007 and you are not in great shape at all.  We are in a long cycle capital intensive business.  I agree that once the idea hits the TV and Vanilla Ice has a flip it show, we are no longer on the upswing.

    We are seeing a lot of new people come into the market.  It is a good thing, it brings liquidity to an otherwise non-liquid vehicle.  The stock market is a scary place right now and RE is looking a whole lot better.  As PT Barnum used to say" A fool and his money are soon parted" 

    There is room and opportunity for people who want to learn and work hard.  There is no quick and easy path to success.  

    0Reply
  • Rich Hupper
    Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
    10y

    my advice for anyone starting out print 30 flyers that are short and sweet, discussing how you buy houses with cash. pick a market you like and would like to learn more about. Then drive that market all day until you find 30 houses that look like the owners have lost interest im their property. Then knock on those doors and see if they would consider selling for a cash offer in as is condition. Leave the flyer with them or in the door. Then record that address somewhere so you can add it to your mailing list. I would recommend doing this on weekends.

    This is a great way to learn your territory and talk to people. You most likely will not get anyone who says yes i am interested in selling.  But the value is finding hidden off market deals. And understanding property values.

    1Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    10y

    @Rick Pozos you are right that people are lazy. I am amazed at how many people come on this forum asking simple questions. They don't even take the time to search the forum for an answer. Or search Google? Maybe I am old school, but if I am looking for an answer to an IRS tax question, I will google it and look for IRS publications discussing it. The danger is that sometimes people ask questions here and get incorrect answers. Usually someone hops on to correct or offers an alternate view point. Don't get me wrong, this is a great community to support people, but people need to be careful not to take the easy way out. It ultimately hurts them.

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