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

27 Replies

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?

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!

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!

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.

@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.

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!

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.. 

 

@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. 

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. 

 

@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.

@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

@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

@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.

@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.

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. 

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. 

@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?

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.


@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.

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*

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