Rental Property Investor · Louisville, KY · Member since 2019 · 37 posts · 61 votes
So recently I've been incredibly excited about this new journey of REI. I've been looking at properties in the Indianapolis/Louisville markets and have found some places I'm interested in. No one in my family has any experience in REI and quite frankly have been very discouraging in their remarks about my goals. I'd love to start in a duplex/triplex/fourplex using house hacking, however when I tell family that I get looks like I'm crazy. Any hints/facts I can give family that would help them see the upside that is REI? Thanks!
Huntsville, AL · Member since 2018 · 577 posts · 864 votes
6y
My wife thought I was insane when my business partner and I got a contract accepted on our first investment property. She pointed out everything that could go wrong, noted how I "didn't have time for this", and was afraid of how much money we would lose on the endeavor.
So what did I do? I completely ignored her and proceeded. And with time, she has even admitted it was a wise decision.
Rental Property Investor · Cape Girardeau, MO · Member since 2019 · 8 posts · 5 votes
6y
@Jeff Byrne Jump in and get started. The only way to quiet a nay sayers is to show them your success. Even then, they may not understand but that doesn’t matter. The only person you need to convince is yourself.
Investor · Charlotte, NC · Member since 2017 · 112 posts · 83 votes
6y
@Jeff Byrne don’t give up. I haven’t faced family obstacles, but I’ve faced health issues, personal fears, self-doubt, and failure many times. Still on my journey. I’m happy to hop on a call anytime just to mastermind/strategize/encourage each other. Send me a message anytime.
Rental Property Investor · Greenville, TX · Member since 2014 · 3 posts · 2 votes
6y
@Jeff Byrne
I had a similar experience where family would tell me horror stories of people they knew getting burned by renters ruining their properties. After a few of those comments, I decided to keep my cards to my chest and became selective of whom I would talk with on the topic of REI. You come to realize that if they aren't living it, then they can't really speak into it with any helpfulness. I promptly hired a mentor and didn't tell anyone about my first flip because if I was going to fail, I wanted to do it quietly. I have kept the same philosophy as I've grown my business. I answer questions, but don't offer up information freely. You get to where you can tell if people are genuinely interested in the topic to learn.
My advice to you: keep your cards close to your chest. You can talk REI with people who are living it or genuinely interested. No matter who it is, keep all of your future plans to yourself. Only talk about what you are currently working on & only if it's necessary. If they want to know more, set up a separate private meeting/coffee date. Never share your playbook (until you've done the play's & someone is paying you for them). Next, get a mentor & get out there. You can do it. Got to REI events to surround yourself with encouragement & opportunities. Best wishes!
Developer · Houston TX · Member since 2018 · 423 posts · 400 votes
6y
@Jeff Byrne
Advice or opinions from those not doing what you want to do shouldn’t discourage you. Surround yourself with likeminded individuals as those doing what you want to do so you can learn the game. Who you hang out with affects your mindset.
Family can be more critical on their loved ones than strangers. Win them by going out and doing with your action and results. Once they see you killing it they will come on board.
Northeast Ohio - Akron Area · Member since 2019 · 17 posts · 12 votes
6y
Originally posted by @Account Closed:
@Robert Angle can you elaborate more on your first REI? As much as I love hearing success stories, I am far more interested in the ones that causes you to grow grey hairs.
What obstacles you faced?
How did you recover?
What did you learn from your experience with your first rental that will make getting back into REI this time easier?
In 2004 my interest in real estate investing soared. In looking for pre-approval funding, a lender called my landlord whom I had put down on the application as a reference. When he caught wind that I was looking to buy, he offered me the triplex I was living in (1909 house converted to 3 unit, with a one bedroom and efficiency downstairs, and us living in the 2 bedroom upstairs). The price was good and I bit.
However, I was friends with the people living in the one bedroom. They had been there for 20 years and never saw a rent increase. When I tried to bump it a mere $25, they didn't wanna talk to me very much after that. Then, the efficiency was had a high turnover rate. I had one tenant destroy it, and after I fixed it up the next tenant (also a friend) decided that they didn't need to pay me at all.
During the same time, I was quickly offered a 2nd mortgage. I used it to consolidate my bad debt.
Then 2008 hit, and my real business in construction took a major hit. I made 1/2 of what I made in 2007 that year and even less in 2009, thus drying up all my reserves and running up my bad debt all over again. I let everything go in 2010.
I moved and spent the next several years pumping life into my main business, the focus of which had to switch from new construction to residential remodels. The economy gradually improved and I started hiring and growing again and today I am doing very well.
It's time to get back into real estate.
So while I was largely a victim of the 2008 market crash, I do feel that I learned from the experience. This time around, I will not likely rent to friends. I have no desire to live in one of the units, as I want it to be completely self-sustaining. I will never accumulate bad debt again (except for a car payment), eliminating any need to ever just let it all go. If I choose to get a 2nd mortgage or HELOC, I will use it to buy more property instead. My wife is working now, which has bolstered hour household income. Back then she was at home raising the kids.
I'm more determined than ever. I've registered my LLC and am scouring for properties and lenders while I bring my real estate investing knowledge from a decade+ ago to today.
Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
6y
My family and friends were very discouraging when my father and I told them we were partnering up and getting into REI. We simply stopped talking about it and proved them wrong with our success. It felt GREAT and was quite motivating.
Specialist · Lexington, KY · Member since 2019 · 6 posts · 0 votes
6y
Hi there!
Just remember that family loves you and ultimately would hate to see anything bad happen to you. They are your protectors not mentors. Most families and friends, even with the best intentions, have little to no knowledge on how to be successful let alone how to make you successful. Fear and unsupportive peers are what keep you from development. I wouldn't even bother forcing them to accept your ideas or goals. Don't waste your time trying to explain or rationalize your goals to them. Just show them and keep emotions out of the play. They may never think you are not crazy, and they may never stop worrying about you but eventually it will be hard to argue with you.
Real Estate Investor · Iowa City, IA · Member since 2016 · 4 posts · 0 votes
6y
The energy and time you are wasting trying to convince people who will never be convinced is better spent on making your deal happen. Similarly to capital, energy must be properly allocated.
Investor · CT · Member since 2019 · 67 posts · 15 votes
6y
I’ve experienced the same thing. First I’d realize that your family’s response comes from love and fear. They want to protect you. Having said that, my strategy is to get educated, get the encouragement you need from the BP family. Then move forward with your plans. After you start to have some success, your family will get on board.
@Steve Richardson in your experience, has family came to you for investment help or asked to partner with you on a deal?
I have a large family and only 1 relative that I would even consider being involved with on a business level. Some of my relatives ask me questions on occasion, but there hasn't been any action steps taken as of yet.
Chicago, IL · Member since 2018 · 546 posts · 227 votes
6y
For starters, congrats on getting things moving, Jeff, and I'm sorry to hear that family hasn't been all that supportive but a lot of times people fear that which they don't know; since it sounds like many of them don't have experience in REI, it is easy to think of the ways in which it could fail especially when they haven't been versed in the different success metrics and strategies for succeeding long term. In regards to your ambitions in Real Estate, as long as you've done your due diligence, and the numbers pan out, that is your ammo. There are always going to be those who are a bit more pessimistic when you bring up things that aren't really in their wheelhouse/something they haven't bothered to understand. In this instance, sometimes the ones you'd expect support from the most can become your biggest obstacle. Still, your education on the industry, but more specifically, your strategy and your numbers, that's what matters. If they're worried about the rental management process, tell them there are definitely some tools out there that can even help you to automate the rental management process. Best of luck to you on your journey!
So recently I've been incredibly excited about this new journey of REI. I've been looking at properties in the Indianapolis/Louisville markets and have found some places I'm interested in. No one in my family has any experience in REI and quite frankly have been very discouraging in their remarks about my goals. I'd love to start in a duplex/triplex/fourplex using house hacking, however when I tell family that I get looks like I'm crazy. Any hints/facts I can give family that would help them see the upside that is REI? Thanks!
Dealing with the negative almost 3 years. I haven't stopped though. Keep Going Bud!!!