What is (or was) your biggest challenge when investing in RE?

Question

As the saying goes: smart people learn from their mistakes, wise people learn from other's mistakes.

I'd love to hear some of the challenges and hardships people face (or have faced) when investing in real estate.

I'm looking forward to what everyone has to say!

Alex Olson · Answer

My biggest challenge is and was having the equity to be able to out the required 20 or 25% down. Takes me a long time to build up that money. Hope that helps!

Filipe Pereira · Answer

The biggest challenge beyond buying the first deal was/is not stooping to the level of some of the tenants we've inherited. Some of these tenants are the most petty, rude and disrespectful people I've come across. In my younger days I would have dropped to their level and played ball, but I've done a 180 and "take the high road" now that I operate CT Property Management. There's no space for that these days. These days it's "yes sir, no ma'am" with no BS in between. Tenants will be rude, but that doesn't mean I have to give it back. I've learned that the fire goes out much quicker if you don't feed it.

Michael Noto · Answer

Once you find something that checks most of the boxes, pulling the trigger with no hesitation. Those who can't either never land a deal or never land a good deal because they hesitate and it gets scooped up. Will you trust your research and preparation when that time comes? That's a big part of it.

Craig Sloan · Answer

Biggest challenge was just having the guts to make the first deal. A lot of people do all the research but never take the plunge.  I mostly buy-and-hold.  If you do your homework and have good numbers, it really is pretty simple. Run the numbers. The numbers don't lie.

Account Closed · Answer

@Matthew Daniel Langner

Honestly, my biggest challenge was me. The mental adjustment it took to be able to take a risk and step outside my comfort zone was rough at first.

Avery Carl · Answer

Actually pulling the trigger on the first one is the hardest part. You can become the best deal analyzer in the world and still never pull the trigger on the first deal!

Philip Williams · Answer

Funding was our biggest challenge when we started off. Finding the right bank is not as easy as it sounds, banks will make you jump through hoops then not fulfill their end of the bargain. It was ridiculously frustrating as a new investor.

Kenneth Garrett · Answer

@Matthew Daniel Langner

Most beginners and I’ll add myself to the list are as follows:

1. Lack of equity

2. Pure fear

3. Are my numbers correct

I studied for a year watching what other people did.  Both flipping and buy n holds.  I did my research, trusted my numbers, found a private lender and took the plunge.  Don’t get me wrong there was a ton of anxiety.  First project was a BRRRR, a few hiccups but went pretty smooth.  6 week rehab (thought it would be 4), found tenant in 2 weeks (that went really smooth, although with screening you never know), refinance 8 weeks (don’t really understand what takes so long but it went fine). I didn’t have a heart attack or go bankrupt.  You will survive and the next one is so much easier, much less stress and anxiety.

Patrick Snyder · Answer

Accepting that others will not treat your property, or watch out for your financial welfare, the way you do.

Lee Ripma · Answer

@Matthew Daniel Langner

I thought it was capital when I started but I realized it was actually deals that were the limiting factor. I think the biggest issue I see with new investors is knowing when a deal is a deal. They think they want off market leads but the skill isn’t off market leads, it’s knowing when a deal is good, FOR YOU. If it’s a deal for you jump on it!

What is (or was) your biggest challenge when investing in RE?

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