Best/worst advice you’ve gotten as a new investor ?

39 Replies

Wondering what kind of advice you all have gotten after sharing your desire to become a real estate investor with others.

I’ll go first!

My husband asked his uncle (who’s owned several rentals) for some insight into investing and he tells him, “don’t bother, it’s too risky” he then suggested that he’d be more successful buying old bikes, fixing them and selling them on the internet!

I think I’m just looking for some encouragement at this point. Instead of trying to network I tend to think twice before sharing our goals with people.

@Christine Sierra I wouldn't take advice from the uncle, either he's really good at fixing bikes or he's not doing rental real estate right.  Best advice is to know that you'll make mistakes on the first few and get more efficient and profitable over time as you find good places for insurance, management companies, vendors etc.  Also find out where to check property tax rates in your county.

Getting started in real estate the first year I was told. "Quit your job and follow your dream".
 

Two months later

Bank: Um, we won't lend to you. LOL!

Always wait till you build business credibility before pulling the plug on your W2. I learned the hard way! No regrets though! Work hard, it will pay off.

Originally posted by @Sharon Steenbergen :

Getting started in real estate the first year I was told. "Quit your job and follow your dream".
 

Two months later

Bank: Um, we won't lend to you. LOL!

Always wait till you build business credibility before pulling the plug on your W2. I learned the hard way! No regrets though! Work hard, it will pay off.

 LOL. Nice!

Best advice: don't take advice from people who are unsuccessful at what you are trying to become successful at. Also, start ASAP. You're not immortal and it's difficult to make up for lost time.

Worst advice: way too much to even list. 

Originally posted by @Sharon Steenbergen :

Getting started in real estate the first year I was told. "Quit your job and follow your dream".
 

Two months later

Bank: Um, we won't lend to you. LOL!

Always wait till you build business credibility before pulling the plug on your W2. I learned the hard way! No regrets though! Work hard, it will pay off.

Great advice!

Thank you

 

Originally posted by @JD Martin :
Originally posted by @Sharon Steenbergen:

Getting started in real estate the first year I was told. "Quit your job and follow your dream".
 

Two months later

Bank: Um, we won't lend to you. LOL!

Always wait till you build business credibility before pulling the plug on your W2. I learned the hard way! No regrets though! Work hard, it will pay off.

 LOL. Nice!

Best advice: don't take advice from people who are unsuccessful at what you are trying to become successful at. Also, start ASAP. You're not immortal and it's difficult to make up for lost time.

Worst advice: way too much to even list. 

I will definitely be taking this advice!  If we would've listened to the unsuccessful people I wouldn't even be on this forum. Thank you!

And I'm sure my list of bad advice will continue to grow as well lol

The worst advice I was given was to only invest near where I live and never use property management. Here I am years later and I have literally made hundreds of thousands of dollars on out of state investments.

@Christine Sierra

Worst: if your buying cheap properties......(this was 2012 and we could buy quads for 20-30k). You don’t need insurance. You’ll pay more for insurance than you did the property. Made sense lol!

Result: 2nd property I bought which was a 6 unit for 21k and needed 40-50k rehab burnt to the ground 2 mornings after I closed with no insurance. I still pay taxes on the green space to this day. I could get that donated off to city and stop paying taxes, but every 6 months I want a reminder to how I failed so I don’t do it again.

My advice: attach your carriage to the fast horses and be a sponge to what they are doing. Overcoming fear is the first step! You will face adversity and you need to be prepared to handle it. Real estate done right will provide a life for you and your family with financial freedom that many dream of! When you see a speed bump, jump over it......when you face a brick wall, break that S$*^ down and when your feeling down about something lean on other successful investors for encouragement and direction to overcome and accelerate forward!

You got this and you can do it, but you are the only one that can stand in your way!

Originally posted by @Todd Pultz :

@Christine Sierra

Worst: if your buying cheap properties......(this was 2012 and we could buy quads for 20-30k). You don’t need insurance. You’ll pay more for insurance than you did the property. Made sense lol!

Result: 2nd property I bought which was a 6 unit for 21k and needed 40-50k rehab burnt to the ground 2 mornings after I closed with no insurance. I still pay taxes on the green space to this day. I could get that donated off to city and stop paying taxes, but every 6 months I want a reminder to how I failed so I don’t do it again.

My advice: attach your carriage to the fast horses and be a sponge to what they are doing. Overcoming fear is the first step! You will face adversity and you need to be prepared to handle it. Real estate done right will provide a life for you and your family with financial freedom that many dream of! When you see a speed bump, jump over it......when you face a brick wall, break that S$*^ down and when your feeling down about something lean on other successful investors for encouragement and direction to overcome and accelerate forward!

You got this and you can do it, but you are the only one that can stand in your way!

I just read this and got goosebumps. Best advice so far!

 

Originally posted by @Anthony Gayden :

The worst advice I was given was to only invest near where I live and never use property management. Here I am years later and I have literally made hundreds of thousands of dollars on out of state investments.

Thank you! I will be listening to your episode later today.

 

Worst advice: buy OOS , leverage as much as possible, follow the herd


best advice: buy where you know, buy in college towns (maybe not so good now!!),  and watch what the successful people like you, do.....   

@Christine Sierra Best advice. Sister in laws parents told us having one rental property isn't worth the hassle, you need 3 to make it worth your while. Now they didn't say run out and buy three but I have found that adding a couple more forced me to create a systematic approach. A pm here in town personally uses 15 year mortgages so I refinanced our first into a 15 year and bought the rest using 15 year notes. I don't think that is necessarily the best method for young people but for someone nearing retirement it is a good way to create an income stream in a shorter time.

Bad advice was me telling someone not to buy a house as prices had gotten too high...they're higher now. (but you do make your money on the buy.)

Originally posted by @Christine Sierra :

Wondering what kind of advice you all have gotten after sharing your desire to become a real estate investor with others.

I’ll go first!

My husband asked his uncle (who’s owned several rentals) for some insight into investing and he tells him, “don’t bother, it’s too risky” he then suggested that he’d be more successful buying old bikes, fixing them and selling them on the internet!

I think I’m just looking for some encouragement at this point. Instead of trying to network I tend to think twice before sharing our goals with people.

I see another epic thread in the making!

Worst advice ever: Don't buy condos because they don't appreciate and the HOA dues will cut into your profit. Well, the condos I purchased with minimal money have been life-changers for me and my family. As for the HOA dues, I just think of them as the equivalent of money you will spend on repairs and maintenance of the structure, utilities, gardening, etc on an SFR or stand-alone multi-unit.

Best advice ever: Never get too attached to a property. When the numbers and market tell you it's time to sell, then it's time to sell.

Mine wasn't advice but a referral for a property management company from someone I worked with who owned 5 rentals and had used them for years. They were terrible and cost me thousands. After the fact she admitted they didn't do a great job for her either.

What I have since learned is that it's important to learn how to manage your own properties, even if you're going to hire someone to do it so that you know how it should be done. Brandon/Heather Turner's book on managing rental properties via BP Bookstore and Landlording on Autopilot by Mike Butler should be mandatory for all new rental investors.

Also take referrals with a grain of salt and consider the source that's providing them.

I aM going to amplify - manage your own properties - if at all possible. No one will do a better job as long as you take it seriously and apply yourself. 

Example: prop management co listed one of my units - no showings in 3 weeks! I listed same unit, raised the price $100 and had it rented in a week! 

This has happened 3 times in the last 2 months! 

@Christine Sierra

I got the best advice from books and the worst advice from friends , family and coworkers.

Worst advice is, real estate is too risky.

The reality is it so too risky to not have real estate in your wealth generation portfolio.

The best advice I give people on advice is, don’t take advice from people your not willing to trade places with in the space that they are providing the advice in. Example would be, your not going to take marriage advice from a friend that has a terrible marriage! You probably wouldn’t take health advice from a heavy smoker and drinker... So if your not willing to trade financial places with the person giving the advice , don’t even listen to it.

To be honest every single person I knew tried to talk me out of real estate. Now 11 years and 8 million dollars in real estate later, many of those same people are asking for advice , consultations or to invest along side of me.

So I will give you my best advice. Don’t wait to buy real estate, buy real estate and wait.

Cheers.

@Christine Sierra

Best advice: (when looking to move to our forever home from our starter home) - see how much you can borrow if you sell this home, see how much you can borrow if you keep this house, it would be a great rental

And here I am now!

Worst advice: not really advice- just negativity from a family member we love- why would you do that, you don’t have the time, you have so much else on your plate, wait until you have more time and money

@Christine Sierra

Best advice- buy right, buy smart, do your homework.

Worst advice (not really advice)- given to me by my mother when I was 24 buying my first house- “you have no business buying a house, you know nothing about owning a house” I made $45,000 on that house in 2.5 years. I showed her!

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