I knew I was a real estate investor when.....

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I knew I was a real estate investor when.....

Jeff Rabinowitz
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes

    A lot of people here call themselves real estate investors and most are but, can we be honest for a moment? If you haven't actually done a deal you are not yet a real estate investor. At this point you have aspirations to becoming a real estate investor. That is fine (every investor was once in your position) and if that is your situation you have found a great site. Bigger Pockets can help you become an investor. 

     For those of you who are real estate investors, how would you complete this sentence:
"I knew I was a real estate investor when....

    For me, I knew I was a real estate investor when I no longer needed the income from the profession I trained for to pay my bills.

     I knew I was a real estate investor when I could tie up a deal with a phone call, before any paperwork was signed or earnest money changed hands. That my word was respected enough to be sufficient.

     Your turn. Complete the sentence:

      I knew I was a real estate investor when....
   

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Natalie KolodijBusiness Member
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Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
10y

I was thrilled to buy a property that was filled with actual poop. 

Podcast Guest on Show Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies
Kolodij Tax & Consulting
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  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    10y

    I was thrilled to buy a property that was filled with actual poop. 

    Podcast Guest on Show Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies
    Kolodij Tax & Consulting
    WebsiteView Page
    6Reply
  • Jonathan Schell
    Norristown, PA · Member since 2015 · 15 posts · 1 vote
    10y
    Originally posted by @Natalie Kolodij:

    I was thrilled to buy a property that was filled with actual poop. 

    I was doing a walk through on a failed deal a few years ago. The inspector said, "Well, that's not good." I asked, "Is that coming falling out of the wall?" He said, "That's not mortar.

    Do what?

    The size of the pile equal to about 30 one-gallon milk jugs swept into the corner of the basement. And it certainly wasn't mortar.

    0Reply
  • Account Closed
    Investor · West Los Angeles, CA · Member since 2014 · 230 posts · 239 votes
    10y

    I guess I'm the opposite.  I've been involved in 4 deals and I still don't feel like a real estate investor.  I'm now at the point where I need to make business cards specifically for real estate investing and it feels a bit false.  Mostly because I've had mentors every step of the way.  I'll truly feel like a real estate investor when I can complete a deal from beginning to end with minimal oversight. 

    3Reply
  • Orlando Roche
    Marysville, WA · Member since 2015 · 136 posts · 19 votes
    10y
    Originally posted by @Account Closed:

    I guess I'm the opposite.  I've been involved in 4 deals and I still don't feel like a real estate investor.  I'm now at the point where I need to make business cards specifically for real estate investing and it feels a bit false.  Mostly because I've had mentors every step of the way.  I'll truly feel like a real estate investor when I can complete a deal from beginning to end with minimal oversight. 

    Jeanette that is a humble answer. I like when people don't have big heads :)

    2Reply
  • Orlando Roche
    Marysville, WA · Member since 2015 · 136 posts · 19 votes
    10y

    I don't really consider my self a real estate investor yet, I'm more of a builder even though I have done a few real estate deal, they have involved lots and new construction. I cant wait to do my first flip or rental  

    0Reply
  • Linval T.
    Investor · Bay Shore, NY · Member since 2014 · 1k+ posts · 688 votes
    10y

    @Jeff Rabinowitz

    I knew I was a real estate investor when....I started to treat REI as a business and

    began to pay attention to the intricacies involved in running it as such.

    I knew I was a real estate investor when.....

    • I don't rent to friends or family
    • I manage from my head and not the heart
    • I understand that friendship and business can be toxic
    • I treat tenants with respect and am not overly friendly with them
    • I let tenants know that if they are unable to pay, they can't stay
    • I effect timely repairs and am not a slumlord
    • I watch the bottom line carefully and only do transactions that garner a positive ROI
    • I found BiggerPockets and got exposed to thousands with my mindset, vigor and drive for REI.
    5Reply
  • Michael Boyer
    Investor · Juneau, AK · Member since 2015 · 980 posts · 741 votes
    10y

    Like this topic and I know it will vary for everyone based on their real estate angle (buy and hold or flip, etc) and their own background...  Ok, enough wind up... 

    Mine would have been at some point, maybe year five, six or seven years in, when my prior bad feeling (not quite dread but discomfort) about a tenant moving on turned to a more confident peaceful one. 

    Early on in landlording, I rather disliked the fear and uncertainty around a vacancy, the work involved in a turnaround (cleaning, painting, minor repairs), showings and screening.. 

    Then it began to change at some point years in, to a no worries approach, and even a firm acceptance and confidence that I had a very strong product and, barring an local economic collapse, I will have far more qualified applicants than units every time...

    Plus, I now look forward to getting in to survey and improve units, hardening them, and a chance to do the painting, deep cleaning, and into all the nooks and crannies, and wear points, with no people, pets, permission. Add in an ideal time to incrementally raise rents (if the markets justify it) and you have me as real estate investor when I felt positive about the opportunities in a unit turn around...

    2Reply
  • Marcia Maynard
    Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    10y

    When seasoned pros in our local rental association asked me to be a mentor to those new to the field.

    When I realized I was starting to identify with the roles of Real Estate Investor and Landlord and understood the responsibilities inherent in such.

    When I realized the positive contribution we were making to the community.

    When I realized we (myself and my husband/business partner), in addition to our own home, were maintaining: 11 roofs, 11 gutter/drainage systems, 34 exterior doors, 130 interior doors, 54 windows, 16 toilets, 35 sinks, 174 light fixtures, 16 refrigerators, 16 ranges w/hoods, 8 dishwashers, 3 garbage disposals, 4 washer/dryer sets, 32 baseboard/wall electric heaters, 9 gas furnaces, 1 oil furnace, 17 water heaters, 2 garage doors, 9 chimneys, 12 fences, and 1 deck.

    2Reply
  • Leigh C
    Brooksville, FL · Member since 2012 · 429 posts · 220 votes
    10y

    When my accountant informed me it isn't capital gains that i was a dealer.   

    1Reply
  • Roy N.Pro Member
    Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
    10y

    @Jeff Rabinowitz

    I just returned home from putting 1" of R7 rigid insulation (polyisocyanurate) along with two new 93 x 63 triple glazed windows (U-value 1.15, SHGC 0.45, ER 39) - everything taped and air sealed.   Tomorrow I'll put the siding on.

    So, at this point, I would say I am still more of a landlord and energy efficiency retrofitter than pure investor - which in my mind will be the point when I no longer need to do any of my own work.

    1Reply
  • Jeff Rabinowitz
    OP
    Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
    10y

    @Roy N., I suspect you don't really need to do your own work now. You still like to. I never really liked to do my own work and learned early on that there are serious downsides to letting my tenants see me make repairs. When I realized I was deducting all the money I paid others to do the work but couldn't deduct anything for my time doing repairs (unless I formed a business)--that was the last time I did my own repairs.

    1Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    10y

    Technically it was when I bought my first investment, a live in duplex.

    But I knew that I was an investor long before that. My parents owned and managed several rentals for as long as I can remember, but it was when I went to college and started paying rent for crummy apartments that I realized WHY they were landlords. That is when I knew that I would become an investor.

    1Reply
  • Roy N.Pro Member
    Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
    10y

    @Jeff Rabinowitz

    You may be on to something ;-) My carpenter is forever telling me the same.  

    Truth be known, I really only like to do the work that involves implementing new energy efficiency measures, designs or materials for the first time - it's the engineer in me, I need to know how it all goes together and works.

    Today, was the start of the retrofit on our student rooming house and we insulated and replaced windows in one end of the 80 ft long building.  Over the next 18 to 24-months, we are going to replace all windows w/ triple glaze (Energy Star rated); add an additional R7 of insulation to the exterior (including foundation); install two heat pumps (one in each unit); add R20 (6") of insulation to the attic.   I have already converted the lighting to LED in both units and updated the appliances (Energy Star tier III).   

    During the course of this work we will also be moving two bedrooms & adding one in the lower unit to allow for the addition of a second bathroom and the enlargement of the living room.  We also have a retaining wall to replace (will leverage that need to insulate the foundation on that side of the building).

    When all is done, we expect to have spent $35 - 40K, but if our modelling is correct, our energy costs will be reduced by 40 - 50% (~350/month average) and the extra bedroom will add $450/month in revenue.   That is $9600/year performance improvement (at today's energy costs) which means a payback of 4-years.

    2Reply
  • Jim C.
    Investor · IN · Member since 2012 · 263 posts · 168 votes
    10y

    I knew I was a real estate investor when.... I didn't know what day of the week it was! It's nice to be able to take off and do whatever, whenever. Not having to celebrate Fridays because every day can be a Friday!

    3Reply
  • Tanya F.
    Rental Property Investor · Madison, WI · Member since 2013 · 629 posts · 339 votes
    10y

    I'm also more of a landlord/energy efficiency person than an investor. But I'll complete your sentence. . . .

    When I realized how much I enjoyed making our properties into pleasant places to live, and having great tenants who really appreciate that. We just re-rented to an old tenant who moved out in 2005. She'd left us to buy a house, now she sold that house and is renting from us again. No ad needed to be placed. 

    When I realized that our gross rental income will (from now on) be more than my day-job scientist income.

    2Reply
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