Real Estate Myths

[John Williams]

What is something that you thought was true about the real estate industry / investing, but turned out to be different  / not true once you actually gained the experience?

[Chris Williams]

I thought real estate was only for the super duper rich. I never thought an average person could scale up a company. I grew up with landlords as a kid and also thought they were super rich and living in mansions. Then I learned about the industry and learned how anyone can start and scale a business. 

[Jay Hinrichs]

That you can make a ton of money with no money and by wholesaling  total myth. 

[Chris Williams]

Quote from @Jay Hinrichs:

That you can make a ton of money with no money and by wholesaling  total myth. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

[Jay Hinrichs]

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

That you can make a ton of money with no money and by wholesaling  total myth. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

Gurus are just following their fulfillment companies play book its all based in MLM from decades past same presentations same tugging at heartstrings  exact same terminologies etc.

[Chris Williams]

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

That you can make a ton of money with no money and by wholesaling  total myth. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

Gurus are just following their fulfillment companies play book its all based in MLM from decades past same presentations same tugging at heartstrings  exact same terminologies etc.

 Glad I am able to get out of the trap. I have friends who are still stuck in the guru trap and swear by it. Maybe God can help them, but I give up lol 

[Jay Hinrichs]

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

That you can make a ton of money with no money and by wholesaling  total myth. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

Gurus are just following their fulfillment companies play book its all based in MLM from decades past same presentations same tugging at heartstrings  exact same terminologies etc.

 Glad I am able to get out of the trap. I have friends who are still stuck in the guru trap and swear by it. Maybe God can help them, but I give up lol 

its like any of these deals  about 10% of folks that pay gurus actually do venture out and succeed. With wholesalers on their own with or without guru training I would say maybe 2 or 3 out of 100 actually build a sustainable bizz..  I mean I close a ton of deals with little assignment fees on them little daisy chains 2k to this guy 1500 to this one etc. But hey its money whether its a living is another matter

[Chris Williams]

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

That you can make a ton of money with no money and by wholesaling  total myth. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

Gurus are just following their fulfillment companies play book its all based in MLM from decades past same presentations same tugging at heartstrings  exact same terminologies etc.

 Glad I am able to get out of the trap. I have friends who are still stuck in the guru trap and swear by it. Maybe God can help them, but I give up lol 

its like any of these deals  about 10% of folks that pay gurus actually do venture out and succeed. With wholesalers on their own with or without guru training I would say maybe 2 or 3 out of 100 actually build a sustainable bizz..  I mean I close a ton of deals with little assignment fees on them little daisy chains 2k to this guy 1500 to this one etc. But hey its money whether its a living is another matter

For the future I am switching to the buy it off the market and put it on the MLS with a realtor method. That seems to be the least confusing way to do things. Also when you put things on the MLS you make more money. There is no "business partners" who need to come into the property. There is no "what is this on the HUD". I can't retire on these small assignments. I can retire actually in 100 years with daisy chain deals haha. The new regulations will make my offers even more competitive. I can pay more than a wholesaler, high EMD, and close sooner. I could even make the EMD nonrefundable if I am feeling bold. There is no 30 day close with a 21 day inspection period haha

[Jay Hinrichs]

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

That you can make a ton of money with no money and by wholesaling  total myth. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

Gurus are just following their fulfillment companies play book its all based in MLM from decades past same presentations same tugging at heartstrings  exact same terminologies etc.

 Glad I am able to get out of the trap. I have friends who are still stuck in the guru trap and swear by it. Maybe God can help them, but I give up lol 

its like any of these deals  about 10% of folks that pay gurus actually do venture out and succeed. With wholesalers on their own with or without guru training I would say maybe 2 or 3 out of 100 actually build a sustainable bizz..  I mean I close a ton of deals with little assignment fees on them little daisy chains 2k to this guy 1500 to this one etc. But hey its money whether its a living is another matter

For the future I am switching to the buy it off the market and put it on the MLS with a realtor method. That seems to be the least confusing way to do things. Also when you put things on the MLS you make more money. There is no "business partners" who need to come into the property. There is no "what is this on the HUD". I can't retire on these small assignments. I can retire actually in 100 years with daisy chain deals haha. The new regulations will make my offers even more competitive. I can pay more than a wholesaler, high EMD, and close sooner. I could even make the EMD nonrefundable if I am feeling bold. There is no 30 day close with a 21 day inspection period haha

ya I fund a few buys that have that exact model it does work well but they do have to pay me of course. 

[Chris Williams]

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

That you can make a ton of money with no money and by wholesaling  total myth. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

Gurus are just following their fulfillment companies play book its all based in MLM from decades past same presentations same tugging at heartstrings  exact same terminologies etc.

 Glad I am able to get out of the trap. I have friends who are still stuck in the guru trap and swear by it. Maybe God can help them, but I give up lol 

its like any of these deals  about 10% of folks that pay gurus actually do venture out and succeed. With wholesalers on their own with or without guru training I would say maybe 2 or 3 out of 100 actually build a sustainable bizz..  I mean I close a ton of deals with little assignment fees on them little daisy chains 2k to this guy 1500 to this one etc. But hey its money whether its a living is another matter

For the future I am switching to the buy it off the market and put it on the MLS with a realtor method. That seems to be the least confusing way to do things. Also when you put things on the MLS you make more money. There is no "business partners" who need to come into the property. There is no "what is this on the HUD". I can't retire on these small assignments. I can retire actually in 100 years with daisy chain deals haha. The new regulations will make my offers even more competitive. I can pay more than a wholesaler, high EMD, and close sooner. I could even make the EMD nonrefundable if I am feeling bold. There is no 30 day close with a 21 day inspection period haha

ya I fund a few buys that have that exact model it does work well but they do have to pay me of course. 

 Can we talk more in private message? I am always open to learning more. That's the point of BP is to come to a place and learn from more experienced investors than myself. 

[V.G Jason]

Since I got onto the REI boards, and actually went the SFR REI route I learned that there's more charlatans, more under-capitalized folks and more delusional folks than in any area I have invested in.

[Eric James]

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

That you can make a ton of money with no money and by wholesaling  total myth. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

Gurus are just following their fulfillment companies play book its all based in MLM from decades past same presentations same tugging at heartstrings  exact same terminologies etc.

 Glad I am able to get out of the trap. I have friends who are still stuck in the guru trap and swear by it. Maybe God can help them, but I give up lol 

its like any of these deals  about 10% of folks that pay gurus actually do venture out and succeed. With wholesalers on their own with or without guru training I would say maybe 2 or 3 out of 100 actually build a sustainable bizz..  I mean I close a ton of deals with little assignment fees on them little daisy chains 2k to this guy 1500 to this one etc. But hey its money whether its a living is another matter

For the future I am switching to the buy it off the market and put it on the MLS with a realtor method. That seems to be the least confusing way to do things. Also when you put things on the MLS you make more money. There is no "business partners" who need to come into the property. There is no "what is this on the HUD". I can't retire on these small assignments. I can retire actually in 100 years with daisy chain deals haha. The new regulations will make my offers even more competitive. I can pay more than a wholesaler, high EMD, and close sooner. I could even make the EMD nonrefundable if I am feeling bold. There is no 30 day close with a 21 day inspection period haha

 If you're going to do that become an agent yourself so you can list your own properties.

[Chris Williams]

Quote from @Eric James:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

That you can make a ton of money with no money and by wholesaling  total myth. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

Gurus are just following their fulfillment companies play book its all based in MLM from decades past same presentations same tugging at heartstrings  exact same terminologies etc.

 Glad I am able to get out of the trap. I have friends who are still stuck in the guru trap and swear by it. Maybe God can help them, but I give up lol 

its like any of these deals  about 10% of folks that pay gurus actually do venture out and succeed. With wholesalers on their own with or without guru training I would say maybe 2 or 3 out of 100 actually build a sustainable bizz..  I mean I close a ton of deals with little assignment fees on them little daisy chains 2k to this guy 1500 to this one etc. But hey its money whether its a living is another matter

For the future I am switching to the buy it off the market and put it on the MLS with a realtor method. That seems to be the least confusing way to do things. Also when you put things on the MLS you make more money. There is no "business partners" who need to come into the property. There is no "what is this on the HUD". I can't retire on these small assignments. I can retire actually in 100 years with daisy chain deals haha. The new regulations will make my offers even more competitive. I can pay more than a wholesaler, high EMD, and close sooner. I could even make the EMD nonrefundable if I am feeling bold. There is no 30 day close with a 21 day inspection period haha

 If you're going to do that become an agent yourself so you can list your own properties.

 Maybe I have considered it but I will probably be able to get reduced commission from the agent I work with. We have talked some things over. 

[Jordan Tinning]

@John Williams that being a buy and hold investor would provide “passive income” lmao 🤣

[Account Closed]

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

Quote from @Chris Williams:

Quote from @Jay Hinrichs:

That you can make a ton of money with no money and by wholesaling  total myth. 

 Yes I fell into this trap. Gurus make a great living on selling and cashing out on pipe dreams that newer investors have. I am glad that I am starting to actually look to operate an actual business since I am focused on saving up start up capital. 

Gurus are just following their fulfillment companies play book its all based in MLM from decades past same presentations same tugging at heartstrings  exact same terminologies etc.

 Glad I am able to get out of the trap. I have friends who are still stuck in the guru trap and swear by it. Maybe God can help them, but I give up lol 

its like any of these deals  about 10% of folks that pay gurus actually do venture out and succeed. With wholesalers on their own with or without guru training I would say maybe 2 or 3 out of 100 actually build a sustainable bizz..  I mean I close a ton of deals with little assignment fees on them little daisy chains 2k to this guy 1500 to this one etc. But hey its money whether its a living is another matter

For the future I am switching to the buy it off the market and put it on the MLS with a realtor method. That seems to be the least confusing way to do things. Also when you put things on the MLS you make more money. There is no "business partners" who need to come into the property. There is no "what is this on the HUD". I can't retire on these small assignments. I can retire actually in 100 years with daisy chain deals haha. The new regulations will make my offers even more competitive. I can pay more than a wholesaler, high EMD, and close sooner. I could even make the EMD nonrefundable if I am feeling bold. There is no 30 day close with a 21 day inspection period haha

How many investors you know who buy from MLS , fix & flip or fix and rent? I actually know one, she gets homes on MLS at 1/3 of ARV (really FUBAR homes), spends another 1/3 on rehabbing and then sells for retail to profit. But it's rare model and very risky for the investor. Why? Because she is competing with hundreds of others who are hooked to MLS and pay highest amount to get that property (they are not in hot market and in horrible condition, lots of unnecessary risks involved). She says she has a permanent crew who shows up on time and gets things done for her in 3 months, but this is not how it usually goes. I don't know of other investors who get the job finished in 3 months.. A lot of other investors who go the same path will be burned and stuck under water once it's ready to sell. And they will have to pay all cash for acquisition, HML won't finance those deals that seem fantastic to you as a seller on MLS, because HML has seen hundreds of flips and won't risk to overpay for distressed property in hard to sell area. Should rehabber fail HML wants to make sure they will get their money back in foreclosure, which can't happen if you overpay for the house and give seller more than what the wholesale value of the house is. There is a reason why investors look for properties that are NOT listed on MLS. And there is a reason why HMLs won't fund those deals. Once in a blue moon you can find a unicorn on MLS, but that's not how investor can scale their business. And wholesaling is all about catering to INVESTORS, not REA or Brokers who will get most commission out of the transaction.

[Ross Paller]

Real Estate Agent = Real Estate Expert

All General Contractors = Rehabbers

All Wholesalers are sleazy

HGTV is real

Banks are the best lender

Cash is king

[Rick Bassett]

Myth: You never have to worry about getting your rent when you have section 8 tenants.

Reality: rent payments can get suspended if the unit fails annual inspection, even if the items that caused it to fail are the tenants fault.

Reality: the tenant portion of the rent is never guaranteed.

Reality: if a tenant wants to leverage you for an upgrade, like a new stove or a new refrigerator, they can cause housing payments to get suspended by filing a complaint with their caseworker.

[Dave Van Horn]

The biggest is that Real Estate Investing is always passive. 

That's probably tied with the myth that real estate always goes up in value!

[Rick Albert]

Price per square foot metric is one of the WORST metrics ever.

Using that logic, two homes next to each other that are 3,000 square feet each should be the same value, right? Wrong. What if one is a 3 bed/2 bath and the other is a 4 bed/3 bath? That changes the value.

Plus the PPSF is based on the value of the entire property. That means the structure AND the land. So when people are saying, "values are $500/square foot so if I add 100 square feet I just added $50,000 in value." That's not accurate because even though you added 100 square feet to the house, you didn't add 100 square feet of land.