Non-believers

Homeowner · Del Rio, TX · Member since 2014 · 11 posts · 1 vote

Im trying to prepare myself to make my first real estate investment, mostly financially. But during this time, i have a lot of negative feedback from family/friends about all the things that could go wrong. from bad or dead beat tenants to dumping tons of money on repairs. I whole heartedly believe that real estate investing ultimatly is the way for me to achieve financial freedom......But what do you tell these non-believers. Not that i need their approval or anything but at least to make them understand this is not as bad as they may think. I just dont have the words to explain myself. I've read many books and feel totaly confident in what im persuing, just would like to be able to explain my decisions a bit better. Any help would be greatly appreciated. Thank you!

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NA Jones

Flipper · Port Deposit, MD · Member since 2014 · 280 posts · 171 votes

11y

You don't have to tell them anything... show them with your success! :)

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NA Jones
Flipper · Port Deposit, MD · Member since 2014 · 280 posts · 171 votes
11y
You don't have to tell them anything... show them with your success! :)
9 Reply
Joey Vasquez
OP
Homeowner · Del Rio, TX · Member since 2014 · 11 posts · 1 vote
11y
i guess their input has me second guessing / questioning my decision is all.
0 Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
11y
@NA Jones put so well, you'll "show them with your success!"..then they'll be the first ones asking you to show them.
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6 Reply
Anna Shaver
South Lake Tahoe, CA · Member since 2014 · 111 posts · 37 votes
11y
@Joey Vasquez If you buy quality properties, know your market costs, buy at a good price going in, know your rents, and build a good team you will be fine and real estate is a very positive experience.
Have a buffer so if you do have repairs you need to take care of it won't be a stressful situation. When you have a little extra you make different decisions.
If you also work with a quality property manager starting out you will get the benefit of their experience as well. You can start out with them and self manage later if you wish. You can also ask them what areas they get better rents to property values keeping in mind you would like longer term stable tenants.
1 Reply
Joey Vasquez
OP
Homeowner · Del Rio, TX · Member since 2014 · 11 posts · 1 vote
11y
@Anna Shaver That's exactly what I've thought. Making better decisions going in and really doing your homework, make for a better overall experience. Thank you for the reinforcement!
0 Reply
Mark Del Grosso
Rental Property Investor · Lockport, NY · Member since 2014 · 119 posts · 109 votes
11y
Being a landlord is often done by people who put very little thought into it. It seems so easy at first. Then when there are problems and they jump out and tell everyone that Real Estate is a bad idea. They are NEVER going to admit that THEY didn't prepare through education for the issues that come up.
Stick around people who have done it and overcame the negatives.
You'll be fine.
6 Reply
Daniel Alegre
Homeowner · Burlington, NJ · Member since 2014 · 58 posts · 15 votes
11y
@Joey Vasquez when my wife and I started taking about buying our first home we had already decided that we were going to buy a multifamily and we would live in one unit and rent the other. Well when we told our family they told us everything you were told plus more since we were going to live there also.
What I learned is that most of the time these fears people have can not be reasoned with and the only way they will change their minds is if they see your success. It is hard for people to break their employee/self employed mindset and to think like a business owner/ investor.
Now that we have our first tenants and everything is going smoothly one of our biggest detractors (my father inlaw) now wants to help us look for our next property and even is trying to convince his gf to do what we did.
Be brave, be prepared and follow through and those voices will change their tunes.
4 Reply
Rachel H.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
11y
@Joey Vasquez Many times, the advice from these types of folks can be from first hand experience or those they know. One of the keys to success is to surround yourself with like-minded people. Being part of the community here on BP is a step in the right direction.
Best of luck!
4 Reply
Ophelia Nicholson
Involved In Real Estate · Hyattsville , MD · Member since 2011 · 298 posts · 256 votes
11y
I love listening to Jim Rohn on youtube and he has this saying "What if your all negative relatives turned positive?- What would that do for your financial situation or your life" -The answer is NOT MUCH.
So my advice would be to spend less time worrying about things that really will not make much difference in your financial situation and work on the things that will make a difference which is ultimately you and only you.
When I first started years ago I remember being told by relatives that flipping houses would never work. Now these same relatives would love to invest a few thousand with me but I'm not interested because the fact that they now believe means NOT MUCH.
4 Reply
Richard D.
Investor · Fort Worth, TX · Member since 2013 · 309 posts · 150 votes
11y
@Joey Vasquez there will always be negative attitudes from people. It doesn't matter if they are friends, relatives or strangers. What does matter is what you believe and how confident you are in what you believe. As many have saidon this thread, find like minded people, the ones who have gone through the same thing you want to get in. Not the ones who tried and weren't prepaired, then failed. But the ones who tried and succeeded, they can show you what to do right when something goes wrong.
They will also be the ones who will want to invest with you first, not after you have been successful for years. They don't ride coat tails, they make the coat! These are the type of people who you need to contact, and get to support you, and make a part of your team.
Remember life is too short to spend thinking about the what ifs; instead, ACT! Then ask what's next? Good luck.
0 Reply
Greg F.
Real Estate Investor · Richmond, TX · Member since 2014 · 48 posts · 22 votes
11y
4 Reply
Curtis BidwellPro Member
Rental Property Investor · Olympia, WA · Member since 2014 · 777 posts · 744 votes
11y
Listen to them in order to understand what their concerns are. Then answer the concerns so that you are convinced -even if they are not.
Their concerns may have validity. That doesn't mean you shouldn't do it, it just means that you should know the real-life response so that you can deal with that circumstance when it really does come up. How are you going to handle a dead-beat tenant? How are you going to handle various repairs? Those things really do happen. You need to plan for them. So, make a plan, and execute the plan!
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4 Reply
Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
11y
Hi Joey,
While optimism is great a dose of realism is also needed.
You have over optimists on one side and very negative people looking for everything to go wrong on the other. Your life doesn't have to be (either/or) but can be a nice balance in the middle.
A lot of people here are saying just do it etc.
We do not know your personal situation. You could have 30,000 for your first property or 3 million. If 30k is all you have and you have a family to support with limited income coming in then if that 30k investment went south you could be in a world of hurt.
So you need to make sure you can comfortably pay all your bills and if your investment doesn't turn out to be what you hoped for you are still okay. If it's just you and nobody else and you can live in a box etc. if it doesn't work and rebuild then that is different from having a family etc.
When people call me and ask about buying properties that are much larger in size my response varies based on their situation. If someone has 1 million and invest 100k and loses 50k and sells at a loss then they can easily recoup that 50,000 while they have the 950k. If it's they have 50k and they spend 40k then the gravity of the purchase and implications goes way up. One can be a cheap education on a small level and the other can take you under.
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6 Reply
Jack Tucker
Real Estate Investor, Flipper, PM, vacation rental, Wholesaler · Athens, GA · Member since 2013 · 260 posts · 210 votes
11y
At the end of the day, the decision is yours, not theirs.
The gain or loss will be yours.
The change in life will be yours.
The learning will be yours.
You will gain experience from this because all I can guarantee is that everything will not go as planned. After all, "Experience is what you get when you don't get what you want."
They can keep their words. @Joey Vasquez You do you, for better or worse.
0 Reply
Jason Farmer
Corona, CA · Member since 2014 · 154 posts · 100 votes
11y
@Joey Vasquez
Listen to what @Joel Owens just told you...
Very very very sound advice...
1 Reply
Joey Vasquez
OP
Homeowner · Del Rio, TX · Member since 2014 · 11 posts · 1 vote
11y
I can't begin to thank everyone enough for all your support and responses. The support BP is amazing! Thank you!
0 Reply
Michael Olesky
Investor · Indialantic, FL · Member since 2013 · 111 posts · 76 votes
11y
Hey @Joey Vasquez , i second joel's comments. Make sure you are comfortable with your decision and where you are financially. If you need input on whether or not you are in a good place to start investing then ask the question here, among a like minded community.
I have noticed that no matter what you want to do, at least half the people you tell will be negative about it. Family and friends seem to be the worst since they actually care about you. I remind these people that I appreciate their concern, but i've done my homework and am prepared for the worst case scenario so I'm comfortable with the risk, not much they can say to that.
I dont usually try to justify my decision with any facts, i just leave it as "I'm comfortable with my decision".
Keep at it Joey, you're heading in the right direction!
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J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
11y
Give me any profession, and I can give you 100 reasons why that profession might not work out for you. But, the fact that others have been successful at real estate should indicate that it's possible. The question is, "Is it possible for you?"
Are the nay-sayers saying that investing is bad, in general? Or are they saying that YOU will have trouble being successful?
If they are against investing, in general, there is enough evidence out there that they are wrong (e.g., every successful investor on the planet). If they are saying that YOU will have trouble being successful, you should listen to their concerns and see if they are making any good points...investing isn't for everyone. But, once you listen to their feedback, you need to make a decision and move forward, and don't look back.
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1 Reply
Jonna WeberPro Member
Moderator
Investor · Boise, ID · Member since 2011 · 1k+ posts · 736 votes
11y
The favorite line I got was "you might as well throw all your money away" when someone close to me heard we had purchased a property. This is after the purchase. It happens to everyone.
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Chris K.Pro Member
Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
11y
Don't tell them anything, just prove them wrong by doing.
1 Reply
Jennifer T.Pro Member
Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
11y
People are afraid of the unknown. I bet if you ask the majority of the population if they would want to be a landlord, the overwhelming response would be, "No". So I think that might be where the negativity from your friends/family are coming from.

And that is fine and understandable. It is not for everyone.

I actually had/have the opposite reaction when I first bought my duplex and when I tell people currently that I own a duplex. It has been more of a "Wow, what a great idea." "That is so smart", etc. Maybe it is the way I presented it from the onset?

When I was first buying the house, I was overwhelmingly positive and excited about it and talked about my purchase that way. Like, "Oh, I'm specifically looking for a duplex so I can rent out the other side. It will be great to have that additional income and pay down my principal faster!"

And now, like other PPs have said, people can't argue with success. Buying a duplex was the best financial decision I ever made and I will tell people that when the subject comes up.
2 Reply
Hunter Allen
Contractor · Nampa, ID · Member since 2014 · 20 posts · 3 votes
11y
@Joey Vasquez Simply put, don't fail because of, succeed in spite of.
I faced the same nay sayers when starting my own journey. And you know what's funny? Is now that they are starting to see the potential this has and now they're all trying to jump on my band wagon.
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Mark Del Grosso
Rental Property Investor · Lockport, NY · Member since 2014 · 119 posts · 109 votes
11y
Somewhere about my fifth property they stopped with the negative. Now when I meet someone and the subject turns to Real Estate and they start with the a horror story I just put on a big SMILE.
1 Reply
Jennifer T.Pro Member
Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
11y
@Hunter Allen's "jumping on the bandwagon" comment reminded me, although not necessarily REI related, I had a lot of negativity and pushback from friends when I told them 15ish years ago that I was moving from beautiful SO CA to NOLA.

We were all in our early 20s...single and carefree...at the time and everyone looked at me with a scrunched face and confusion and basically said, "Why are you doing that? It's so great here!" One of the reasons I gave for wanting to move was the outrageous costs of real estate...both renting and buying.

Fast forward 5-10 years and those same friends...now married, with kids, and wanting to buy their first home...have now moved out of state also or have at least talked about it many times.
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Blake C.
Investor · Amarillo, TX · Member since 2013 · 139 posts · 51 votes
11y
I have stopped asking for and taking advice from people that aren't in the position that I want to be in. If they aren't achieving what I want to achieve, what do I have to learn from them.
Wisdom tell you that you become like those that you are close to. Some of my family and friends do not manage their money or time in a way I wish to do. Therefore, I love and respect them, but I don't discuss these matters with them. Even if you aren't a Christian, the words of wisdom of the Bible state, "Do not speak to a fool, for he will scorn the wisdom of your words." Proverbs 23:9. While they may be stating truth, they also may not fully understand the truth. Find the truth in their concern, run it by someone who has the full wisdom and experience to help you accurately evaluate the situation.
Be wise. Think before you act. Find the truth in all criticism. Do what you can to eliminate risk. Seek advice... but the right advice. And at some point you have to stop letting the fear of striking out keep you from playing the game.
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