What’s the most important thing you’ve learned over the past year

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What’s the most important thing you’ve learned over the past year

Julio GonzalezPro Member
Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes

These past 12 months have shown us:

✅ We can’t predict the future.

✅ We can be nimble and flexible.

✅ We are resilient.

✅ Teams can work remotely.

✅ Real Estate can be toured and purchased virtually.

✅ Relationships can continue to be fostered remotely.

Within challenges, there are opportunities and learning experiences!

What’s one of the most important things you’ve learned over the past year?

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y

How easily people are manipulated.

In the real estate realm, I learned how lucrative self storage can be so I bought my first facility and I already love it!

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    How easily people are manipulated.

    In the real estate realm, I learned how lucrative self storage can be so I bought my first facility and I already love it!

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  • Joseph SchommerPro Member
    Handyman · Brattleboro, VT · Member since 2019 · 83 posts · 46 votes
    5y

    I'm not shooting high enough. I 'fell' into a flip that wasn't part of my plan and thought was out of my league. It's not...I just didn't know what league to play in! I was dinking around with smallish rentals under $100k, and now am doing flips and new builds that are selling for $500+. This market is nuts and a strategy change and reevaluation of my knowledge was necessary!

    4Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y

    What I've learned especially well in the last twelve months is just how cruel and careless this country is to its elderly. When the chips are down, the elderly are expected to die and decrease the surplus population. Screw 'em. I've spent months wondering what kind of dark, malignant childhoods half of the people I talk to went through to develop such towering contempt for their parents and grandparents.

    In real estate, it's been working on my refinancing chops.

    4Reply
  • Julio GonzalezPro Member
    OP
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    5y

    @Nathan Gesner Congrats on your first self storage investment, that's very exciting!

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  • Julio GonzalezPro Member
    OP
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    5y

    @Joseph Schommer That's incredible. Fear of the unknown holds so many of us back, so huge congrats on stepping out of your comfort zone this year! This market is definitely keeping us all on our toes.

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  • Julio GonzalezPro Member
    OP
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    5y

    @Jim K. It's been a very interesting year to say the least. Refinancing has definitely benefited a lot of real estate investors and homeowners this year.

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  • Joseph SchommerPro Member
    Handyman · Brattleboro, VT · Member since 2019 · 83 posts · 46 votes
    5y

    Thanks So much @Julio Gonzalez!  This thread got dark really quickly!  It's been a tough year for everyone in one way or another... and I was looking forward to a little lightness from what people have learned throughout.  lessons to carry forward etc... Oh well.  Happy to connect!

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Joseph Schommer:

    Thanks So much @Julio Gonzalez!  This thread got dark really quickly!  It's been a tough year for everyone in one way or another... and I was looking forward to a little lightness from what people have learned throughout.  lessons to carry forward etc... Oh well.  Happy to connect!

    Only issue I have right now with new builds is the freaking lumber  :( as long as your able to raise your price accordingly that works.

    in some markets were you simply cant raise it there are going to be some folks get really jammed up.. 

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  • Joseph SchommerPro Member
    Handyman · Brattleboro, VT · Member since 2019 · 83 posts · 46 votes
    5y

    @Jay Hinrichs YES!  Lumber prices are absurd right now!  Esp where I live in the North Bay. The builder I'm working with bought lumber in mega-bulk numbers a while ago and stores it in a warehouse in INDY.  Even then, the numbers still only really work for premium homes. 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Joseph Schommer:

    @Jay Hinrichs YES!  Lumber prices are absurd right now!  Esp where I live in the North Bay. The builder I'm working with bought lumber in mega-bulk numbers a while ago and stores it in a warehouse in INDY.  Even then, the numbers still only really work for premium homes. 

    Indy as in INdianapolis  ?? does he truck it in or rail ?

    are you buying lots in the north Santa Rosa fire area .. or Fountain grove ?  I used to live at Silverado CC and there was a number of high end homes burnt there 2 to 6 million per .. I looked at lots but touch to compete when owners are rebuilding using insurance company money like many of my friends did..  I just sold a 4 acre parcel I owned next to the Graton Casino .. Have not check on what they are doing with it thinking MF though. 

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  • Diana Dorantes
    Rental Property Investor · Channahon, IL · Member since 2018 · 161 posts · 103 votes
    5y

    @Julio Gonzalez 

    Things I have learned in the last 12 months or so:

    Too many people rely on what others say, but don't do their own research.

    Love and hold on to our families and close friends.

    In Real Estate, don't settle.  Stretch you are capable of more.  

    Enjoy life, you don't know what tomorrow brings.

    1Reply
  • Joseph SchommerPro Member
    Handyman · Brattleboro, VT · Member since 2019 · 83 posts · 46 votes
    5y

    @Jay Hinrichs Yes. Indianapolis.  I don't know how he gets it in... I'll find out.

    Re: Buying in Santa Rosa fire area...no.  I'm not doing it.  I almost got into it but looked at three past fire maps which look almost identical.  I kinda think we should just stop building where we KNOW the fire is gonna burn, but that's not preventing anyone as far as I can see.  A deal is a deal...even if it belongs at the Graton Casino ;-D 

    I'm not really doing any deals in Sonoma just yet.  Honestly, I'm kind of intimidated by the market around here.  It's so expensive and the houses aren't actually that nice.  For now, I'm filling my coffers in OOS Investing and looking for land deals on the East Coast to integrate into my Christmas Tree selling business. 

    Congrats on selling that Acreage near Graton Casino.  That's a rapidly developing area for sure! easy access to everything in an area that NEEDS more housing

    0Reply
  • Morgan Finley
    Rental Property Investor · Santa Rosa, CA · Member since 2020 · 3 posts · 3 votes
    5y

    @Joseph Schommer Oh jeeze I totally agree with you. Every time I drive over Fountaingrove I wonder who in their right mind would rebuild up there. Always liked the neighborhoods near Coffey Park but even there is iffy now. I have friends who have rebuilt and they are extremely on edge during fire season.

    My whole life there have been very few houses come up for sale on my road... this year I lost count how many people are selling and we aren’t even near a fire area. Schools merging/closing because young families can’t afford to live out here so there’s not enough kids.

    It’s just a hot mess lol

    2Reply
  • Julio GonzalezPro Member
    OP
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    5y

    @Jay Hinrichs Agreed, the price of lumber is definitely having an impact on the profit margin for new builds. I read an article from NAHB that said the price of lumber has increased 130% since spring 2020 which has increased the cost of new builds by an average of $24k. Hopefully we'll start to see a decline in lumber prices soon.

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  • Julio GonzalezPro Member
    OP
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    5y

    @Diana Dorantes Those are such great points! So very true that people must do their own research rather than rely on the word of others, especially in real estate. Making investments out of your comfort zone starts with having a solid foundation and understanding of the industry.

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  • Jake KnightPro Member
    Property Manager · Indianapolis · Member since 2017 · 303 posts · 146 votes
    5y

    From a property management perspective, having the right tools and technology are essential.  Obviously, staffing always plays a big role too but without our technology I don't think we could have weathered the C19 storm so well. 

    2Reply
  • Neil Henderson
    Specialist · Carolina Beach, NC · Member since 2016 · 390 posts · 496 votes
    5y

    Document and delegate!

    If you find yourself doing a $15 hour job over and over again. STOP! Take some time to figure the process you are using to do it, then document it and delegate to someone else so you can focus on the higher earning tasks. 

    3Reply
  • Diana Dorantes
    Rental Property Investor · Channahon, IL · Member since 2018 · 161 posts · 103 votes
    5y

    @Neil Henderson You are soooo right! I have learned my lesson.

    0Reply
  • Julio GonzalezPro Member
    OP
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    5y

    @Jake Knight That's a great point. C19 was especially challenging for any companies that still used more manual paper/pen methods. Do you have any specific software that you would recommend to any project managers just starting out or trying to transition to new technology?

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  • Julio GonzalezPro Member
    OP
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    5y

    @Neil Henderson Couldn't agree more! This is great advice for business owners in any industry!

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    5y

    I don't know if there's a *1* most important thing I've learned over the past year but there are some things that have either been introduced, reinforced or rediscovered:

    1. Having cash on hand is really important.

    2. Don't always assume there's another "great deal" just down the road from this one. This might be the deal you're looking for.

    3. No one cares about your self interest more than you.

    4. Timing is more important than most people will admit, even in real estate.

    5. When you really know something in your gut, act on it. Don't let fear posing as over analysis get in the way of making good decisions.

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  • Julio GonzalezPro Member
    OP
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    5y

    @JD Martin These are great. Thank you for sharing! You make a great point about having cash on hand. Especially for real estate investors this past year where quite a few tenants weren't able to make their lease payments. Having that extra cash on hand can make a huge difference.

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  • Melissa Geissinger
    Investor · Santa Rosa, CA · Member since 2021 · 6 posts · 5 votes
    5y
    Originally posted by @Morgan Finley:

    @Joseph Schommer Oh jeeze I totally agree with you. Every time I drive over Fountaingrove I wonder who in their right mind would rebuild up there. Always liked the neighborhoods near Coffey Park but even there is iffy now. I have friends who have rebuilt and they are extremely on edge during fire season.

    My whole life there have been very few houses come up for sale on my road... this year I lost count how many people are selling and we aren’t even near a fire area. Schools merging/closing because young families can’t afford to live out here so there’s not enough kids.

    It’s just a hot mess lol

    I lost my home in Coffey Park and rebuilt, so I have a unique perspective here. For me, I had only owned my home for a couple of years so I did not have an over-abundance of equity built in it. When you get insurance payouts, they only give you so much money to rebuild or replace. It can go over that amount by a certain percentage in different categories, but they only pay out on those overages if you actually rebuild, not if you replace by buying a new property. So if you owned less of your house at the time of the fires, financially it made more sense to rebuild. When it's your own home, emotions also play more into it. That being said, would I ever invest in property in high fire risk areas? Big fat no. It's all a gamble, barrier of entry aside. 

    *meanwhile, researches investing in areas with tornadoes and hurricanes*

    1Reply
  • Samuel Proctor
    Rental Property Investor · Flagstaff, AZ · Member since 2017 · 34 posts · 24 votes
    5y

    Always have a contingency plan for you contingency plan!

    1Reply
  • Justin Rockitter
    New to Real Estate · Long Island, NY · Member since 2020 · 28 posts · 6 votes
    5y

    @Julio Gonzalez The importance of persistence. It has been tough out there with such heavy demand and limited supply. I’ve definitely had to remind myself why I do this and keep going, analyzing and looking at deals.

    1Reply
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