Making a Difference in Peoples Lifes: Expectation vs Reality
When I made a career change and decided to be a full-time real estate investor I had many reasons for wanting to go into real estate. I wanted to make my own hours, be my own boss, and make more money. I am accomplishing these things but I think you can achieve these in any business you own. A reason I chose real estate specifically was to make a difference in people’s lives. How awesome is it to buy a house from someone who is in a bad financial situation or has had bad luck? It feels wonderful to be able to help people who really need to sell their house whether it's because of divorce, an inherited house, or a need to downsize. There are a lot of people that have a bad house that they need out from underneath of.
However, I have realized many of these people have waited too long to get help and I just can’t help them. People that owe way more than their house is worth and their only option is foreclosure. People that have a house that have a house in such rough condition you wouldn’t make money on it if they gave you their house for free.
I wish I could help these people. I wish I could help every single one of these people.
But I can’t. And probably won’t ever be able to.
So what is an investor to do if they can’t help everyone out?
This is going to sound selfish but remember you are a real estate investor who makes their livelihood out of this business and not a charity. My wife often has to remind me of this.
Focus on those you can help. Every house you buy and flip helps two families. The family you bought the house from by giving them the money they needed for whatever life situation they were in and the family that bought the house as a new home for their family. Or if you do rentals think about the family you rent to and made your property available to be their home. A home where that family will celebrate holidays and make memories.
Don’t get too sucked into the emotions though. A few months after the family that lives in your rental celebrated their first Christmas there you may have to evict them for not paying rent.
You can’t help anyone if you can’t even pay your own bills. Be a good person to your tenants, but don’t be a doormat.
My wife often tells me, “Only help those who help themselves. Only give people a hand up not a hand out”. In other words, help people out who are trying to improve their life, not those who only want a “get out of jail free card”.
Fellow investors, you’re not going to be able to buy every house from every family who is in need that you meet. Some people are going to be too far under water to do anything but do a foreclosure. Other people will have houses in such rough shape or in such rough areas that even if you got the house for free there isn’t any profit to be made. Focus on the ones you can help. Focus on the ones you have helped.