Discouraged After Speaking With Active Investors

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Discouraged After Speaking With Active Investors

Jonathan Giglio
Member since 2021 · 9 posts · 28 votes

January 1st I jumped in to the world of real estate investing. While I have made a ton of progress over the past three weeks (Thanks 12-Week Year), I am a bit concerned with some feedback I have been getting. I have spoken with five investors in my area (Southern NH, just north of Boston, MA) and every single one of them has said something to the effect of "Oh so exciting you are getting into investing. What a terrible time to start, however. You should wait a few years for the market to cool down."

Inventory is very low in my area and sales happen within days (sometimes hours), so there is definitely merit to what they are saying.

- Keep pushing. Analyze, make offers (if possible...inventory is VERY low), repeat.

- Continue networking with investors and try to find one that wants to help me out and sell me a property vs listing it

- Invest in other areas of the country. However, this seems so risky to me as I've never bought a rental property before. It's hard enough navigating this process in the area you live in, never mind a couple of thousand miles away.

I know this process won't be easy, and I am by no means giving up, just a bit discouraging to have 100% of investors tell you this is a horrible time to get into the game. 

End rant :)


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Curtis YoderPro Member
Rental Property Investor · Tulsa, OK · Member since 2014 · 241 posts · 187 votes
5y

You cannot time the market. If you are waiting for the "right time" to buy you will never buy. Might as well forget about REI. Go out and meet people, knock doors, send postcards, post on social media. Let your world know you are buying and deals will come to you. Do your homework and be ready to pull the trigger when a profitable deal comes your way. Jump in and start swimming, there will never be a better time than right now! You will look back years from now and wish you had started even sooner.

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  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    Well, you're going to need to get your contact list (ie targets) together.  So I'd keep calling, you can always find deals.  

    You may not find as many good deals if we're at peak, but you want to do this, you need to be persistent and the only way to hone your skills is thru practice.

    Besides best time to buy is when no one else wants to.

    8Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    5y

    There is never a bad time to buy, only a bad time to sell. That being said, you must ALWAYS BUY RIGHT.

    23Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    Look for deals where the numbers make sense.  You have no idea what is going to happen down the road.

    3Reply
  • Curtis YoderPro Member
    Rental Property Investor · Tulsa, OK · Member since 2014 · 241 posts · 187 votes
    5y

    You cannot time the market. If you are waiting for the "right time" to buy you will never buy. Might as well forget about REI. Go out and meet people, knock doors, send postcards, post on social media. Let your world know you are buying and deals will come to you. Do your homework and be ready to pull the trigger when a profitable deal comes your way. Jump in and start swimming, there will never be a better time than right now! You will look back years from now and wish you had started even sooner.

    26Reply
  • Erickson Sainval
    Investor · San Diego, CA · Member since 2019 · 326 posts · 266 votes
    5y
    Originally posted by @Curtis Yoder:

    You cannot time the market. If you are waiting for the "right time" to buy you will never buy. Might as well forget about REI. Go out and meet people, knock doors, send postcards, post on social media. Let your world know you are buying and deals will come to you. Do your homework and be ready to pull the trigger when a profitable deal comes your way. Jump in and start swimming, there will never be a better time than right now! You will look back years from now and wish you had started even sooner.

     I think Curtis hit the nail on the head here. When you buy right, do your due diligence, there is no need to worry about timing.

    5Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    In a few years it might be easier to start, but prices will be $100k higher then. So, pick your poison. 

    [email protected]301-893-4635Podcast Guest on Show #192
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    22Reply
  • Damaso Bautista
    Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes
    5y

    @Jonathan Giglio

    It seems like you are locking yourself down to your geographical area.

    Widen your scope because there are still places where you can buy rental properties and come out ahead.

    3Reply
  • Jeremy Wirths
    Auburn, NH · Member since 2016 · 234 posts · 207 votes
    5y

    @Jonathan Giglio if you buy right it doesn't matter where/when you buy. I am an agent and have found some great deals for other investors on and off the MLS in the past year. Know your numbers and be patient until you find one where the numbers work and then move fast.

    6Reply
  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    5y

    @Jonathan Giglio what’s you’re investment strategy and how many hours per week are you investing in real estate? I have over 10 investor focused agents on my team and we get good deals under contract for investors and for ourselves every single week. Deals are hard to find but they’re out there especially for the value add buy and hold investors and flippers. 

    [email protected]978-710-8611
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    2Reply
  • Kevin Purvis
    Developer · Orange County, CA · Member since 2020 · 42 posts · 23 votes
    5y

    Depends on your strategy.  Generally there is no timing the market.  This is doubly true if you are a buy and hold investor.  Rents do not experience shocks similar to the magnitude of home prices.  If you are long term, then timing doesn't matter.

    2Reply
  • Dennis Wayne
    Member since 2020 · 339 posts · 356 votes
    5y

    Geez man ,You need to widen your circle of influence because your investing friends don’t have a crystal ball anymore than any of us do and they are offering you bad intel because they lack knowledge of the future . The most expensive advice is usually free advice ! Waiting for the right time to take action is like sitting in your driveway waiting for all the lights in town to turn green at same time before you go . Remember Rome wasn’t built over night This is a long term play we aren’t day trading stocks here !

    7Reply
  • Stephen DeThample
    Real Estate Agent · Las Vegas, NV · Member since 2020 · 459 posts · 305 votes
    5y

    There are always deals out there, be resourceful.  Prices will be higher in 20 years than they are now, so buy something you would like to own for that amount of time and you should be happy with it.

    Good Luck!

    0Reply
  • Ladd Brunner
    Rental Property Investor · Twain Harte, CA · Member since 2019 · 20 posts · 20 votes
    5y

    @Jonathan Giglio

    As many have indicated, it is always the right time to buy if you get the right deal. It also depends on if you’re long term or not. There’s always many threads on here about timing the market, the bubble, etc. One recent comment that made me think and reflect was that in 10 years, you’re going to look back at 2021 and wish you would have bought more RE when it was “cheap”. Might be some truth to that and of course real estate is local. Good luck 👍.

    3Reply
  • Zachary Beach
    Specialist · Los Angeles, CA · Member since 2018 · 291 posts · 231 votes
    5y

    @Jonathan Giglio what kind of investors are they? Most 95%+ of real estate investors are what I call non value add investors meaning they buy a property maybe put paint and carpet and rent it out and try to make cash flow. Nothing wrong with that and for that type of investors most markets are not great right now. For flip and brrr investors most markets are great right now. RE returns are at all time highs and with inflation and interest rates I believe it will stay that way this year. In Most LTR markets cash flow on the other hand is very hard to come by if you are buying now. So many people know that if you borrow at 3% on a 5 cap 75% down your return is 11% plus 4X appreciation which has been 35% averages for US in the last 5 years and over time rents go up. Cash flow is getting harder to find in LTR because enough people don’t need it or at least don’t think they need it to get the Return they want.

    My rule is Run my numbers for 0% growth be ready for 25-50% drop and hope for growth. last year we got 20% + appreciation in my market and 58% rent increase but I would have been very profitable at 0% and been able to hold 50% decrease.

    3Reply
  • Avihay Ohana
    New York, NY · Member since 2016 · 53 posts · 33 votes
    5y

    @Jonathan Giglio

    @Jonathan Giglio

    Quick encouraging story:

    I put 20+ (serious, above asking price) offers on properties in Charlotte NC.

    One of the listings was for $200K, I offered $215K and the seller got 53+ offers ended up countering at $250K. I, of course, skipped.

    At this point realized I need to find off market deals.

    Joined Facebook groups, contacted brokers, and googles wholesalers in the area.

    I closed on one deal last week and closing on another one tomorrow.

    There are always deals to be found and this is by far the best time to invest. Interest rates have never been so low. Money is almost free! I highly recommend you start look for wholesalers in your area. Great way to start!

    5Reply
  • Cole Simpson
    Rental Property Investor · Columbia, SC · Member since 2020 · 302 posts · 186 votes
    5y

    Just to continue on what @Avihay Ohana was saying, another option is to consider other markets and other strategies.  There is always a way to invest, you just have to find the best way for the current market.

    2Reply
  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    @Jonathan Giglio of course not many deals aren't just sitting there in open ground. Ask yourself: "what problems do I have the ability to solve"? Either for the seller or with the property. Look at the usual pain points for owner occupant buyers: old systems, scary repairs, septics, lead paint blah blah....if you are comfortable fixing one or more of those you are already ahead. Zoning, parking, estate sales, things that have been on the market a while. They are out there.

    1Reply
  • Mark Beeson
    Rental Property Investor · Wichita, KS · Member since 2017 · 31 posts · 15 votes
    5y

    We feel your pain. Many keep saying we will have a major RE downturn this year - so far hasn't happened. Keep looking and don't give up. Deals are hard to find and it's hard to pull the trigger when you are inexperienced - like us! We figured out that a good deal is always a good deal and waiting is not a good option. Purchased a SF home last August - my wife and I rehabbed it. We are only 70. The house turned out AMAZING! COC = 11%. Cash flow $407/mo (1150 rent minus PITI $571 minus vacancy repair capx $172 = $407) Ok, this is actually our 4th SFH and we did a 1031 exchange and added $20K. For your first buy you don't have to get a perfect deal - just get going.

    2Reply
  • Carlos Paz
    Real Estate Broker · Concord, NC · Member since 2019 · 74 posts · 42 votes
    5y

    One day, or Day one, you decide!

    6Reply
  • Jack R.
    Flipper/Rehabber · Las Vegas, NV · Member since 2014 · 124 posts · 35 votes
    5y

    @Jonathan Giglio I read your rant. And the first thing I think of if you really want to invest in real estate why are you listening to other people? Unless they are giving you solid practical advice that you could apply to your trade craft; you should close your ears.

    In 2012 with the real estate Crash still crashing, I met with some hedge funds in Newport Beach. All those guys kept telling me was don’t talk to me about real estate. Really? Meanwhile this investor out of Scottsdale Arizona was buying up ready to build lots at 12 cents on the dollar. Do you think he’s making money now? There is never a wrong time or a right time to get into anything. So when the market is skinny and deals are tough to find does that mean you’re gonna go wait on tables at a restaurant? Or, will you continue to work at finding deals? Just just means that the pie became smaller and you have to become more efficient and work harder and smarter than everybody else that’s all don’t listen to all those stupid ****s!

    0Reply
  • Ash Fields
    Member since 2020 · 301 posts · 80 votes
    5y

    @Jonathan Giglio.  There's never a good or perfect time to start anything.  You're here now, and that's great!!!  Welcome to The Show!!!

    Everyone has an opinion. Filter out the ones that add no value, and look for people who can help you.  Even better, see how you can add value to others.  Keep going.

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y

    @Jonathan Giglio five years ago active investors were telling new investors it was a bad time to get in and they should wait until the market cools off. In hindsight that was bad advice. They may be well intentioned, but nobody knows what the market will do in the future. I am sure "their gut" is telling them something, but I would be more interested in factual data to support their claims. When I ask, all I hear is "prices are high" or "prices can't go up forever" or "market goes in cycles". 

    3Reply
  • Jonathan StonePro Member
    Rental Property Investor · Camas, WA · Member since 2020 · 284 posts · 202 votes
    5y

    @Jonathan Giglio

    I think what everyone is in agreement on is:

    There is no bad time to buy only bad deals.  Some periods require a lot of sifting through bad deals to find a good one.

    Also if you don't feel comfortable widening your search to a different type of investment or a different location, don't do it.  I think most people here on the BP forums would agree they are here to grow and stretch themselves, but when it comes to money it is important that you not feel emotionally uncomfortable with your decisions.  My wife and I have many discussions around this.  As you hear when people talk about the stock market or other volatile assets, you lose money when you make irrational emotional decisions.

    Good Luck, Persistency and Consistency win the day.

    2Reply
  • Ericka Velez
    Wholesaler · Member since 2021 · 7 posts · 1 vote
    5y

    @Jonathan Giglio

    First of all, congrats on starting this new journey ! I myself just started as well. I am no expert BUT my coach tells me that there is ENOUGH for everyone !

    People sometimes can say things to discourage you because the last thing that they need is another “investor” and sometimes it can even be out of “good” will, BUT it is not the “appropriate” thing to say.

    They should KNOW very well that we need to be positive in this game, because it’s all about our mindset.

    If you believe you will succeed or fail, it starts there!

    And these same types of people maybe haven’t been very successful? And perhaps they speak from their own experience 🤷‍♀️

    A real investor knows that whether a market is up or down they still can be successful and make things happen!

    Anyway my point is, find positive people in your circle to encourage you rather than discourage you.

    Think positive and stay the course, you will reap those benefits, even if you may not see it yet, perhaps you do already. :)

    Errrm excuse my long post lol.. rooting for ya!

    1Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    Dude, I want to quit real estate every day, yes I said it, every day!

    But then I wake up the next day and here I am replying to you on a Real Estate Investing platform, *** I could be passively [not replying] but looking at "beautiful" real estate pictures on Instagram. 

    So you ask Why? Because I love it so much! Love what? What I do in Real Estate! The pursuit, the ability to keep going and paying attention to the minuscule success along the way. 

    Real estate investing is a long game, just like anything that promises wealth and riches at the end of a long toil. We need to say this more on BP. 

    It's your third week, you have at least 30 years more to go! Same time as a mortgage! Don't be discouraged, be mentally prepared. You will need it! 

    2Reply
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