Are you earning money or not in real estate?

Question

Are you earning money or not in real estate?

Forget the followers and the subscribers and the going viral and the tv shows. If you're not earning money then it was all for nothing.

There's so many times I see a real estate agent get happy about one of their Instagram post getting 100k-500k views but then if you ask them, "Did you get any leads, money or referrals?" and they say no then they clearly didn't capture the attention properly.

I see this most on Facebook. Agents are posting things that don't matter. That don't tell a story as to how the agent can help me or my situation. They may do a "just sold" post but that doesn't help me whatsoever.

What was the story behind that listing? How did you help the buyer negotiate the deal? What was unique about the sale?

It's great to capture attention and get views. But only if you monetize every one of those views.

Chris Seveney · Answer

Question I ask, is are they making money in real estate or selling their courses? As someone who operates full time in real estate and runs a company, I can easily tell who is really making money in real estate vs. selling their courses based on where they are spending their time. Nothing more evident than some recent scuttlebut about a guru superstar losing tens of millions.

Stuart Udis · Answer

I will approach this from a different angle. The $750 appraisal suggesting the BRRRR property now has 20–25% equity above what was spent to buy and renovate it is often misleading, especially with lower-priced properties. Many investors treat that equity as if it can easily be turned into cash, but that is rarely the case. Those appraisals mainly reflect what the appraiser can see. It does not fully account for expensive capex items that were put off during the renovation, such as roofs, plumbing, electrical systems, foundations, windows, or other major repairs.  Alternatively, the work that was completed incorrectly by inexpensive unlicensed laborers. Instead, the value increase is often driven by cosmetic improvements like paint, flooring, kitchens, and bathrooms. Therefore, there's a gap between what these properties appraise for and what they trade for on the open market once a buyer performs home inspections and thorough due diligence.

Another place where I see investors misrepresent their revenue is when they are extremely hands on. The investor who performs every remedial task down to shoveling the snow and mowing the lawn who claims to be making XYZ cash flow a month or the investor who made $30,000 on a flip and suggests it was a XYZ return on their investment when they not only oversaw the entire project but painted the house, patched holes etc etc.

Akinpelumi Akinbolade · Answer

That's an interesting question. In my opinion, consistency and having systems that build trust make a huge difference. A lot of opportunities are lost because prospects don't get the information they need quickly enough.

Are you earning money or not in real estate?

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