Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
In this business (at least, being a landlord), you're often dealing with people at their worst, or else there's at least mutual distrust among various parties. While it's true that this can happen in a corporate environment too, that often seems to be at arm's length, while this is more in your face. While that's good in some ways because it can make someone more savvy, it can also make someone very jaded about human beings in general. I was wondering what other people thought about this.
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
15y
I haven't been doing this as long as many of the people here, but I've learned a lot.
I've had tenants skip, sue me, destroy things, cuss at me, and threaten me.
I've had very good tenants, who pay rent, take care of the apartment, and are pleasant to speak with. Unfortunately, that is not the majority of the class of people my company deals with. In 6 years, I have NEVER had a single person catch up rent payments after being more than a month behind. I have over $26,000 in collections from tenants that have skipped out and never paid (including over $1k from a BP member.)
It is very easy to become jaded. I do believe I treat people very differently than I did when I first started. However, as long as you continue to be fair, and treat each personal as an individual, I think it is better to protect yourself. The sooner you learn not to trust, the sooner you can save yourself loads of money. If you can't be hard on your tenants, they'll walk over you. It may be best to get a PM.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
15y
After you hear your fair share of sob stories you start to grow thick skin. It is just part of the business of dealing with people that are irresponsible and want to blame the world for their problems. I used to get aggravated about it, but now it just slides right off my back. You're running a business. Those that treat their business like a charity will soon need charity!
Commercial Real Estate Broker · Memphis, TN · Member since 2010 · 151 posts · 82 votes
15y
This is one of the biggest reasons many people use a property manager, so they don't have these dealings. The best advice I can give is to always work with people who Honest and up front with you. Those that aren't and lie have to be dealt with. When starting out, we inherently feel sympathetic for people. After a few times of being lied to you learn to handle these situations. When people apply the golden rule toward me I return the favor, when the don't you leave me no option but to act accordingly.
Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
15y
If you are really close to the day to operations - sometimes you need to take a break and get away from it all for stress relief. There are some property managers that are so cold you do not even feel comfortable talking with them. The average realtor trying to be a property manager will run your property into the ground so avoid these also.
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
15y
I haven't been doing this as long as many of the people here, but I've learned a lot.
I've had tenants skip, sue me, destroy things, cuss at me, and threaten me.
I've had very good tenants, who pay rent, take care of the apartment, and are pleasant to speak with. Unfortunately, that is not the majority of the class of people my company deals with. In 6 years, I have NEVER had a single person catch up rent payments after being more than a month behind. I have over $26,000 in collections from tenants that have skipped out and never paid (including over $1k from a BP member.)
It is very easy to become jaded. I do believe I treat people very differently than I did when I first started. However, as long as you continue to be fair, and treat each personal as an individual, I think it is better to protect yourself. The sooner you learn not to trust, the sooner you can save yourself loads of money. If you can't be hard on your tenants, they'll walk over you. It may be best to get a PM.
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
15y
not sure how to prevent becoming cynical when everyone is out to screw you...lol just playin... :mrgreen:
seriously though, i am skeptical of everybody..i don't think this is a bad thing..i used to trust people, then i got stuck with a 300 heating bill from a tenant who also didn't pay the rent, yada, yada..there's tons of stories out there...i have just learned my lesson on trusting peole and keep up my "im not buyin it" stare
Real Estate Investor · Milwaukee, WI · Member since 2008 · 1k+ posts · 671 votes
15y
I was not nice to begin with so that helped (my smile in my profile picture is fake lol). The problem is, you have to turn off or hide your pitbull rent collection side when you are showing units, dealing with vendors, and dealing in your personal life. Sometimes I find this hard and people catch me acting in a way that is not normal. This business is not a friendly win-win type and you have to be ready to makes some changes in your life and view of the world.
Rental Property Investor · Omaha, NE · Member since 2008 · 62 posts · 14 votes
15y
I like the term "jaded" that you used. When I first entered real estate I couldn't believe the investor meetings that I went to. Everyone seemed really friendly to each other, but you could tell how grumpy everyone was. I know that you have to have thick skin in this business, but everyone seemed so cynical and unhappy. Almost as if they stressed every minute about who the next person or group was going to be after their Lucky Charms. I heard about the success stories of most them and admired their businesses, but they all seemed successful, wealthy, and miserable.
The good news is that most of them were very helpful. When I “chose†my mentor, I didn’t want to learn from the most successful business person, I wanted to learn from someone who had a passion for their business and still was able to live off of the income. I was very lucky and happened to find just the right mentor. He absolutely loves what he does. Hopefully, when my business is my main day job, I will have the same attitude.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
15y
It goes with the territory I think. Most experienced people enter real estate deals wondering how someone will screw them or what the worst case could be. You hope for the best and realize that it is likely to happen, but after getting burned and seeing the nastiness of the business you learn how to protect yourself as much as possible too.
I have seen people flush their whole life savings, lend money without knowing what they were doing and get screwed, screw over their partners, etc. It is a nasty world out there unfortunately and I don't know how to keep from getting jaded. Jaded to one person is cautious and business savvy to another.
Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
15y
The moment you go soft and "lose your edge" is the day you need to get out of the real estate business, IMO.
Due to the large sums of money involved, from the price of real estate itself, the availability to leverage, financing, legal, and others, you have to stay on your toes or you stand to lose a lot of money since the money itself will attract snake-oil salesmen and con artists.
You must assume everything is a lie, whether you're a landlord, a potential buyer on a house, etc.
Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
15y
There's no doubt that it takes certain unique skill sets to maintain one's equanamity in this racket.
But speaking from experience, I know there are worse ways to earn a nickel, and worse people to deal with than evil tenants, mendacious lawyers, petty civil servants, obstreperous bureaucrats, dishonest vendors, thieving contractors, lying business partners and ......
Landlord · Wethersfield, CT · Member since 2010 · 2 posts · 2 votes
15y
I'm in agreement with everyone here. Real Estate Investing can wear and tear people down and turn them into cold mistrusting individuals who assume the worst. For me, it was the stress of trying to do it all myself, and it almost killed me... literally! But that doesn't mean you can't do it. You just have to be totally honest with yourself. Not a pit bull, get a property manager that is. Need a contractor, get references.. ect. That is the beauty and the beast about this business. You'll get blindsided time and time again because money brings out the worst in people, BUT when you find those people who help you, work with you, and are honest, they become some of your closest members of your team.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
15y
Originally posted by NC Mark:
There's no doubt that it takes certain unique skill sets to maintain one's equanamity in this racket.
But speaking from experience, I know there are worse ways to earn a nickel, and worse people to deal with than evil tenants, mendacious lawyers, petty civil servants, obstreperous bureaucrats, dishonest vendors, thieving contractors, lying business partners and ......
Geez, maybe I better rethink this whole thing.
Plus 1 for using equanimity, mendacious, and obstreperous in the same post.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
15y
I try to tell people to be a skeptic, but to avoid becoming a cynic. Explore the definitions of these two words to understand the difference.
Definitions:
skeptic : 1. Someone who habitually doubts beliefs and claims presented as accepted by others, requiring strong evidence before accepting any belief or claim.
2 Someone undecided as to what is true.
cynic : 1. A person who believes that all people are motivated by selfishness.
2. A person whose outlook is scornfully negative.
A skeptic basically is careful when it comes to trusting somebody; a cynic has a negative outlook toward all people - and a cynic usually is unwilling to reconsider the position they have taken.
Commercial Real Estate Broker · Moreno Valley, CA · Member since 2008 · 72 posts · 30 votes
15y
In dealing with people in this industry; tenants, contractors, other investors, etc. at times can cause you to wonder about the human race. But you can't let that stop you or make you cynical.
Before you get to the cynical stage, stop and remember why you choose this business. Remember the goals you created when you started. And relieve that you can control how you respond to others, but you can not control how others respond to you.
Homeowner · Burleson, TX · Member since 2008 · 756 posts · 376 votes
15y
For every jerk I have met in this business, tenant or otherwise, I have met several awesome people. If you just focus on the negative you won't be aware of all the positives around you.
And, yes, I have been a REI and landlord for 4 years. Also, a school teacher.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
15y
Yes, it's true - you will meet many mistrustful people in this business. For me, if I can't trust the person - I just won't do business with them. Period. Hope that helps! :D