If you had to do it over again...what would you do differently?

Tampa, FL · Member since 2014 · 169 posts · 164 votes

Whether you've been at REI for one year or twenty, if you were able to talk to yourself when you first started out, what advice would you give?

Very much looking forward to see where this thread goes... ;)

Mark...

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Scott K.

Real Estate Investor · Madison Heights, MI · Member since 2014 · 693 posts · 216 votes

11y

not get married...........but that is getting fixed lol

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Mark J.
I would have not listened to my mother about buying McCuen condo's in San Jose CA. for 5 to 7k a door 500 down FHA that rented for 250.00 they are worth 300k a door today.
And I could have bought a bunch of them even though I was only 18,19 at the time I was selling RE already making 4 to 6k a month.. So I could have swung a bunch of them.
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Ryan Billingsley
Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes
11y
@Mark J. My only regret is not getting started with real estate sooner. As the old saying goes, "If I only knew now what I knew when I was younger." They say the windshield on a car is six feet wide and the rear view mirror is 6 inches wide for a reason. Watch where your going not where you been!
1 Reply
Dennis Gavilanes
Investor · Chicago, IL · Member since 2013 · 26 posts · 8 votes
11y
I will say getting more education when it comes to real estate, and be able to use it to your advantage with solid investments
Thanks, Dennis
2 Reply
Elizabeth Colegrove
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
11y
I wish we hadn't put both of our names on all the homes. Had we split our names up we would have been able to qualify for the homes easier (less debt on each name) and been able to get 20 houses instead of 16 (each name has a limit of 10 houses!)
2 Reply
Brandon Hicks
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
11y
Not buy ANY single family houses.
Start sooner.
Network for private money.
Not get involved with the sales side of real estate (not get licensed at all)
1 Reply
Steve M.
Realtor · Gallatin, TN · Member since 2009 · 292 posts · 164 votes
11y
Memphis ....
*enough said
Once I was fully out of Memphis, I was finally able to sleep soundly.
Deals are abound, but terrible tenants and blood sucking PM's and so called "Investment Firms" abound as well.
Sticking to what I know, in area's I know, is what I'm all about now. I will never be a long distance investor .... Luckily, I escaped with my pride and a majority of my funds still in tact :)
2 Reply
Account Closed
Investor · Antioch, CA · Member since 2014 · 97 posts · 37 votes
11y
I would've educated my self before jumping in. I also would've leveraged my cash and not flopped it down in Detroit. Lessons well learned!
2 Reply
Scott K.
Real Estate Investor · Madison Heights, MI · Member since 2014 · 693 posts · 216 votes
11y
not get married...........but that is getting fixed lol
4 Reply
Eva Salas
Real Estate Investor · Silicon Valley, CA · Member since 2012 · 169 posts · 52 votes
11y
Not sold a rental SFR because of an $80 neg monthly cash flow only to miss out on $400k in appreciation in a few short years...
2 Reply
Derek Dombeck
Real Estate Consultant · Wittenberg, WI · Member since 2014 · 572 posts · 572 votes
11y
Start a local networking group or REIA right away. When you run a group, alot of deals will come your way by default because you are the perceived expert in the room.
Happy Investing
Derek Dombeck
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
11y
Get started sooner and NEVER buy into a bad deal regardless of how well a broker or sellers sells the investment potential.
Today I hold my ground and do not buy. If it is not painful enough for them to sell I go buy something else and I will come back to the property if their motivation becomes more intense down the road.
Make time your friend....... : )
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KJ D'Costa
Investor · Atlanta, GA · Member since 2014 · 40 posts · 18 votes
11y
@Brandon Hicks At the risk of hijacking this thread, what happened with your SFHs? Feel free to PM, if you prefer.
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Brandon Hicks
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
11y
I still have 4 of the 5 Singles...flipped the 5th.
I just don't like 3 bedroom houses as rentals. Sure there is a demand, but it costs way more on a turnover than a one bed apt. 3 of the 4 houses lost money last year. I just prefer small multi's.
@KJ D'Costa
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K Arnett
Houston, TX · Member since 2013 · 11 posts · 7 votes
11y
Listened more often to wise, educated people who have my best interests in mind.
Gave RE advice only when asked specifically.
Made new goals of happiness as each level of success was passed.
2 Reply
Rejean Julien
Investor, Landlord and Entrepreneur · Phoenix, AZ · Member since 2010 · 27 posts · 15 votes
11y
I would have spent more time building the business side of my company. I should have also treated each department of real estate as a separate company and built them accordingly with the proper systems. That would have made life alot easier and i should have been able to grow faster.
Real estate is a business and the same principles that drive a fortune 500 company to the top can also work for a small company. I should have hired more professionals and leveraged their expertise instead of trying to educate myself so that i could do it. Wasted alot of time.
Actually, the best advice i would give myself is to go find a mentor as soon as you need help and have questions. I waited years before i got the proper help and it made everything take alot longer.
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James DeRoest
Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
11y
Originally posted by @Mark J.:

Whether you've been at REI for one year or twenty, if you were able to talk to yourself when you first started out, what advice would you give?
Very much looking forward to see where this thread goes... ;)
Mark...
No property managers (self manage instead) and learn how to rehab much earlier rather than ever rely on contractors.
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Mark J.
OP
Tampa, FL · Member since 2014 · 169 posts · 164 votes
11y
Thanks James. Absolutely agree about becoming more self-reliant during rehab. I started rehabbing my own house-- 100 years old-- so there was always something to do. I had ZERO experience doing my own work on anything and was totally reliant on others. As far as I was concerned, if someone asked me how water came out of my faucet, I'd probably have answered, "Um, magic?"
I know a little more now. :) But the main lesson I learned was that none of it is terribly complicated and to not be afraid. It's not as difficult as you may think-- although I never mess with electrical (beyond installing a fixture or outlet) and will only do basic plumbing. I leave stuff that can kill me or destroy my house to the pros! There are so many fantastic resources...and you can find a tutorial on pretty much anything on YouTube.
That knowledge is critical during discussions with trades folk, Home Depot staff, and protecting yourself/your business from scammers.
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Jeremiah Perry
Tucson, AZ · Member since 2015 · 68 posts · 8 votes
11y
Not jumping into the market mere months before the crash would have completely changed my life...... also I think it would have been great to owner occupy a duplex when I was single and didnt really care about living in less idea neighborhoods....
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Tim Crumley
Simpsonville, SC · Member since 2015 · 25 posts · 4 votes
11y
As a former homebuilder that fell victim to the collapse I will be watching the dollar much more closely this time around. It is easy to overbuild thinking that it will make your home sell faster than the competition. It doesn't. Most homeowners aren't even aware of the "upgrades". I frequently found myself in friendly competition with other builders in the neighborhood by building in expensive custom components. This was a pride issue that generally had a poor return because the sales price is capped by what the neighborhood could support price wise. The last house I sold I had to take a $60k loan to close the deal. The house sold for $60k less than it cost me to build. Obviously the time frame had a lot to do with it but the hit wouldn't have been as hard had I been a little more frugal.
Hoping to build a new business in the flipping industry using the lessons learned. Watch the dollar because they go quickly.
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James DeRoest
Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
11y
Originally posted by @Mark J.:

That knowledge is critical during discussions with trades folk, Home Depot staff, and protecting yourself/your business from scammers.
Thoroughly agree.
Right now I'm changing windows on our new property (for us to live in) - how easy is that? Someone showed me how to do one, and that's that, I'm doing them all (don't need a permit).
The other thing I would do differently is buy a good work truck from the start. I didn't to start with because I couldn't decide if rehabbing was something I wanted to do in the long term.
But a few years later we bought a 2008 F250, 8' bed, XL poverty trim, white work truck. Very anonymous, but can be a little imposing (if parked properly).
The number of comments it gets from contractors is quite amazing, and the number of times a contractor has verbally mentioned the truck and then reduced a quote because of it is also quite amazing. You don't screw with the guy who turns up in a decent work truck.
Perception is truth.
(Ironically, I don't use the F250 all the time, instead I rock around in an old Ranger, but if we're meeting a contractor or a seller, out comes the F250. Got to look the part. People overlook the importance of looking the part.)
1 Reply
Josh Bakhshi
Real Estate Agent · Atlanta, GA · Member since 2015 · 359 posts · 158 votes
11y
think about appreciation more than just cash flow. A house that goes up 10% is better than one with a 10 cap
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Stephen Hundley
Realtor · Lafayette, LA · Member since 2011 · 296 posts · 175 votes
11y
screen tenants like crazy!!!!
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Tim Crumley
Simpsonville, SC · Member since 2015 · 25 posts · 4 votes
11y

The other thing I would do differently is buy a good work truck from the start. I didn't to start with because I couldn't decide if rehabbing was something I wanted to do in the long term.
But a few years later we bought a 2008 F250, 8' bed, XL poverty trim, white work truck. Very anonymous, but can be a little imposing (if parked properly).
The number of comments it gets from contractors is quite amazing, and the number of times a contractor has verbally mentioned the truck and then reduced a quote because of it is also quite amazing. You don't screw with the guy who turns up in a decent work truck.
Perception is truth.
(Ironically, I don't use the F250 all the time, instead I rock around in an old Ranger, but if we're meeting a contractor or a seller, out comes the F250. Got to look the part. People overlook the importance of looking the part.)
I use this same strategy on my day job but a little differently! I am a property adjuster for a large insurance company. I frequently meet with contractors/sales men. They show up in their loud trucks and hop out in their tennis shoes and shorts. I get out of my truck in in work boots and long pant and put on my giant tool belt complete with suspenders. Looking the part tends to make the conversation much easier when the contractor and I dont agree.
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Linda WeygantPro Member
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
11y
Originally posted by @James DeRoest:

The other thing I would do differently is buy a good work truck from the start. I didn't to start with because I couldn't decide if rehabbing was something I wanted to do in the long term.
I so need to do this. While you might be amazed at the amount of paint, wood, tools, buckets, supplies, ladders and tile you can get into a VW Jetta, I really do need something a bit more sturdy.
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