"Boring" Investors Like Charles Roberts

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Just finished listening to podcast #278 in which Charles Roberts was interviewed.  He said he was a "boring" investor.  I really connected with his style of buying and paying off real estate.  (As opposed to flips or wholesaling.)  

What are some other "boring" real estate investors that have been interviewed that I can listen to?

I’m a boring investor, and a proud one at that. More and more I’m seeing threads on BP asking about “creative” ways to start REI. We all saw the guy asking how to get that 96 unit under contract lol. When I hear the word “creative” I immediately translate that as “I’m too lazy to work really hard and save money, so please tell me there’s another way.” I know there are investors that get deals without using any of their own money, but let’s be honest the vast majority have to put skin in the game, especially when we’re starting out. The creative guys are usually better connected and have paid their dues already. Getting rich isn’t sexy.

I’m not the most qualified person to critique other people’s strategies. I only have one property. I don’t want to come across like I know a lot, because I don’t. But I can say I’m closing in on my second in the next few months. My fiancé and I are saving 50% of our net income. I’m working 60-70 hours a week. I see her about 5 days a month (she’s a flight attendant). I wouldn’t be where I am if I had spent the last few years looking for the cool new way to invest. Boring has been working for me so far, so I’m going to stick with it.

In the years running up to the 2008 meltdown, some instructors were advocating the regular refinancing of appreciated real estate to raise the down payment needed to buy more real estate. Spreadsheets showed how thousands could be converted into millions in a few years. As long as real estate kept appreciating aggressively (which it did during the NINJA lending era), the approach worked.

These same instructors would complain about how stupid their own relatives were for taking the buy, hold, pay off, buy another, hold, pay off approach to real estate. The ability to survive financial storms is in my opinion a factor that should never be overlooked.

Roger Steciak I agree. The crash was only ten years ago and we’re already starting to see some of the same behaviors. We can’t afford to be short sighted in this business. My plan is to buy each property with 25% equity minimum at the start. Whether that’s thru a down payment, value add, BRRR, or a combination I want to start with a 25% spread as a cushion. From that point I don’t plan on ever pulling cash out to buy another deal. I know it’s not a sophisticated method, but that’s what I’m comfortable with. When I’m old I want my wealth to be as deeply rooted as possible.

@Alan Davidson You really only see the get rich people on TV making a ton of money in real estate the "sexy" way. It does not happen. Most people build their portfolio one brick at a time. Drive cars that are less expensive than their tenants and keep it "low-key". The people that you see pounding their chest about all of the get rich quick success end up with nothing in a few years. 

I am definitely a "boring" investor, and it is treating me very well.  Now that people see that I have some wealth under my belt, I'm begginning to get "shiny objects" waived at me.  No thanks, I'm going to continue the grind and use the  more secure method of buy, hold, pay off.  I don't think a lot of the podcast interviews can be considered boring.  Possibly Chad Carson's.  The Money Show, however, has very "boring" approaches to building wealth.  Happy investing.

@Jonathan Hulen I got over 10 upvotes on that thread lol.

Save money, invest the difference and do that forever you’ll be rich. I should ask my dad (who works in investments) what he thinks of “investing” with no money. I think he’d find that hilarious. Not sure when that started in real estate but you need money. Lots of it.

Glad to see this thread. I try to find properties that need work so I can add value, but of course it still takes money to buy and rehab. I will go after the painful deals, such as short sales or houses with bad floor plans, because there is less competition, but it's still the same strategy: Run your numbers, buy if the deal makes sense, and collect rent while you wait for the debt to get smaller. But I wouldn't call it boring. In fact, having very little money in the bank for those months right after a purchase can really bring your blood pressure up and make your heart race. And then there's the thrill of wondering how long you will have to carry a property before you actually get any money from it. Boring? I don't think so. Creative? Maybe for some :-)

“how to invest in real estate with lots of money and zero debt” a best seller coming to a store near you! 

Fellow boring investor!

Admittedly, I have done 3 deals no money down and even walked away with a check upon closing on my last property, but that comes with experience.  People loan me money because I have a track record.  

I recently saw a bp article about financing your first property is the easiest.  I disagree.  Your first is the toughest as you have not contacts.  I have relationship with 2 lenders and my preferred lender called me to remind me to think of him when I do my next deal. (I think he though I forgot about him as I haven't done a deal in 3 months.)  He had financed my last 4 properties and my last refi.  In the last 6 months, he had done 3 loans for me.  

My last 2 deals were brought to me.  One from a retiring landlord I previously purchased from and the second by my realtor who had a listing on the MLS that was more of a wholesale type house.  She asked me to look at it and offer the seller (an old widow) a fair price.  My realtor knew if I made an offer, I could close and that I won't throw out an extreme lowball $25k offers on a house needing $25k in repairs and an ARV of $125k like the fly by night investors she sees. ( I bought it for $59k).

The other thing no money down would be investors don't realize is that buying the property is the easy and cheap part. Once you have the property, you have to manage you business where you have a PM or not if you are going to make any money.  Additionally, repairs and CAPX will hit you hard and unexpectedly especially when you are unprepared.  I had to replace an HVAC and repair a roof in the same week earlier this year.  Not sure how the no money guys handle that! 

I also set my goals modest.  I am the mother of 2 year old twin boys.  Raising and spending time with them is more important to me than growing a real estate empire.  I took a part time work from home job for the parent company of the pre-babies employer.  I make about half of what I made before, but work about a third of the hours, all from home.  The 50% rule has been pretty accurate for me.  My goal is to accumulate a rent roll of about $150 annually.  Which means once paid off, my units would generate $75k annually.  5 of my units are condos and can be paid off very quickly.  Right now, I'm a little over half way there.  

Originally posted by @Joseph M. :

Wonder if there is demand for for a new book title
The BiggerPockets Guide to Boring Investing in Real Estate 🏡

 I don't know if that would sell well, but I would buy;)

Originally posted by @Frankie Woods :

I am definitely a "boring" investor, and it is treating me very well.  Now that people see that I have some wealth under my belt, I'm begginning to get "shiny objects" waived at me.  No thanks, I'm going to continue the grind and use the  more secure method of buy, hold, pay off.  I don't think a lot of the podcast interviews can be considered boring.  Possibly Chad Carson's.  The Money Show, however, has very "boring" approaches to building wealth.  Happy investing.

I've listened to Chad Carson on various podcasts but didn't know he had his own podcast.  I'll look it up.  Thanks for the tip.

Encouraging to read the posts.  I'm "boring" too.  I own 4 SFHs.  2 are paid for the other 2 will be paid off in about 3 years.  I would rather make $4,000 a month from 4 paid for houses than $4,000 a month from 40 leveraged homes.

Trying to resurrect a thread for us "boring" people.... 

I'm in the early stages of being boring, with the exception of my primary home. I rent out my primary as two separate Airbnb listings that cover all expenses (PITI as well as utilities and landscaper). I think the cool kids are calling it "house hacking" now, but it gives me a free place to live and leaves the vast majority of my income to invest.

I own a property I bought with cash that I call "a structure" and the fiancee calls "the crack house" that is undergoing renovations, but was only $25k to buy it and should be worth $85k after about $20k is put into it. It has a great location to be a student housing unit for UTK, being only 2 miles from campus and along a rec path that leads straight there.  I'm cash flowing the rehab from my primary job.

I sold my old primary home that was in the Denver CO area after that market went crazy the past 5 years and am turning that money around and buying a property closer to where I live now with cash. I came across a deal because my parents happened to be talking to the owners and they mentioned wanting to move but a Realtor told them it would be best if they could sell their home first so they could make a non contingent offer. I got in touch with them and negotiated to buy it and rent it back to them on a month to month basis. It's a good deal, not a grand slam, but will give a decent ROI on day one (literally on the day we close on the house they'll pay me rent). When they move out a few cosmetic things like cleaning, new carpet and fresh paint will boost the rental income substantially. Turns out, as this process has been going on, they were talking with friends who told them to let them know how it goes with me because they might be interested in doing the same thing. Now... if the price is right for the next deal, maybe I'll simply wholesale it since I likely won't have the cash.

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