Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
I often mention to people that I don't invest in real estate because I want to be ridiculously rich. I invest in real estate because I love the opportunity to problem solve and renew what once was, thus producing safe and beautiful spaces that people can be proud to call home...even if they are renting. The wealth and cash flow I am building is just a wonderful consequence that allows me to build wealth for others and enjoy my family.
So, BP Community...what is your biggest problem you struggle with right now? I want to lend a hand, or just a shoulder. I know there will be others who jump on here wanting to toss around creative solutions...I think its the most fun part of being an investor. So lay it on me. Where are you stuck?
Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
9y
I love your point about investing in real estate as the opportunity to problem solve and build beautiful homes. It's so satisfying to see the after, and think "wow, I did that!" Especially if you do low income, and you contribute to the betterment of the community, it's a very satisfying feeling! One of our neighbors came over and was like "Can you buy and fix the house I'm renting next?" :)
My biggest frustration with real estate, has been bad contractors. From people not showing up, to doubling the original bid price, to having stuff go missing, dealing with crappy contractors is the worst. Luckily we only have good ones now, but the bad ones caused so much unnecessary stress. Other than firing them, and warning others about them, not sure what other solutions there are. I try and recommend the good contractors out, as quality work and quality people are a dime a dozen!
Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
9y
I love your point about investing in real estate as the opportunity to problem solve and build beautiful homes. It's so satisfying to see the after, and think "wow, I did that!" Especially if you do low income, and you contribute to the betterment of the community, it's a very satisfying feeling! One of our neighbors came over and was like "Can you buy and fix the house I'm renting next?" :)
My biggest frustration with real estate, has been bad contractors. From people not showing up, to doubling the original bid price, to having stuff go missing, dealing with crappy contractors is the worst. Luckily we only have good ones now, but the bad ones caused so much unnecessary stress. Other than firing them, and warning others about them, not sure what other solutions there are. I try and recommend the good contractors out, as quality work and quality people are a dime a dozen!
Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
9y
@Meghan McCallum A long time ago, I thought my problem was money, but now I realize it is time. I am too busy with my demanding career to focus on RE investing.
Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
9y
@Anthony Gayden I agree. NONE of us have enough time. To me. it is the GREATEST resource we have. So, have you found a solution? To me, the answer sounds like a partner. What have you done to solve the lack of time?
Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
9y
@Linda S. do you belong to a real estate investor's group yet? We are starting one where we use all info sharing over google drive. This will allow everyone to share contractors they liked and it shows who in our group used them so we could then contact that specific investor to ask about their experience.
My biggest frustration in this business is when an individual takes an opportunity to take advantage of others. My team and I actively invest in out of state apartment complexes. As a result of us not being on the grounds everyday, it's an opportunity for a maintenance person or someone within property management to take advantage and charge for things that were never fixed OR not in the most efficient way possible. Unfortunately no matter how well you treat people, they don't always treat your buildings as their own. While we have systems in place that always audit these things, it happens from time to time.
I think you were on a podcast before right? Good stuff! Hope you are doing well.
Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
9y
Hi @Steve Kontos, I was on one of @Joe Fairless's podcasts. If you haven't listened to his podcasts yet...you have a lot of making up to do. Joe has the longest running DAILY real estate investing podcast called The BEST EVER Real Estate Investing advice. It is the perfect length of time to throw on for a daily walk or cardio session. His guests range from newbies to the likes of Barabra Corcoran and Robert Kiosaki.
Steve, in regards to those who hurt, rather than help...sounds totally against my principles in loving help others, but...I will follow through legally as far as I have to to get any theft of failure to complete work as I have to to get every person their just desserts.
1) You can always gain my forgiveness but I won't give anyone permission to walk on me. The money I earn is in essence my children's. The time it takes to make it and care for our investments...that's mine. I can't make more time so, anyone who steals money from my kids or time from me makes sure they don't do it again. (One contractor currently in jail, one facing two felony counts)
2) Also, you can always drop anything you start. The word quickly gets around that you are not a company that gets messed with. As a woman owned company I was told that we for sure got targeted. We don't any longer. I have a GREAT lawyer who was a childhood friend. She gives me friend and family prices and she has a background in construction law. I know everyone doesn't have that friend...but...you can always ask your local lawyers if anyone would be interested in taking on some "off hours" extra work. Perhaps find one interested in investing and mentor them. What we are limited to doing is based on the creativity we focus on problem solving and networking. :)
3) Loyalty, you can't buy it and its not free. I find that if you can solve someone else's problem or give them something they needed but wouldn't ask for...you can come close. I suggest finding that "someone" to pay special attention to where ever you invest (employee, tenant, local investor). Ask them for something in return to be your eyes and ears. Be creative.
You are absolutely right! I have gained a reputation for no-non sense as well. It's a shame what some people would do though but it is what it is. Having a good lawyer is extremely important and thankfully my company has one as well. I am so happy to hear you doing well and dotting your i's and crossing your t's. I hope we can talk further in the mere future!
In regards to the podcast, yes I have been bad with all that. I have actually met Joe before early on in his career in New York City. I was thinking about reaching out to him soon to see about possibly being a guest myself.
Investor · New York, NY · Member since 2016 · 224 posts · 333 votes
9y
My top 3 struggles are:
1) Deal flow - developing consistent access/visibiilty to quality B & C class multifamily opportunities in DFW, Atlanta, and Phoenix where the numbers make sense
2) Broker relationships - developing relationships with brokers who understand the investor's mindset/values and share quality opportunities with their clients
3) Capital - gaining access to additional pools of patient/permanent capital to invest in quality B & C class multifamily opportunities
Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
9y
@Elizabeth Wilson, who are you as an investor, better...who are your husband and you as a team? Everything is shiny and new because everyone in real estate writes about what THEY do. So, it all seems interesting and its likely that you can do it, but...its not your story. So, what is? What do you like to do outside of investing. There are so many ways to invest in real estate that the most import question to answer is who are you outside of it. This is your competitive advantage. Be most like who you are in your investments and you will be successful.
Jersey City, NJ · Member since 2017 · 11 posts · 3 votes
9y
my problem is funding to get started, I have money in a 401k but not sure I want to tap into that money. would like to know any creative strategies you can advise me on.
Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
9y
My biggest issue is probably the local governments and their insanely inconvenient and dumb regulations. getting permits is a pain, ordering inspections is a pain. I could think of 1000 different ways to make them more efficient but they are all just old hotheads stuck in 1940's way of thinking. They've cost me tons of time and thousands of unnecessary $$.
I really want to be rich enough one day to pay the mayor or whoever to just fire and replace them. Every investor/contractor in the area knows they are a pain to work with. Several bids came back blank because they didn't want to work in my specific municipality.
@Anthony Gayden I agree. NONE of us have enough time. To me. it is the GREATEST resource we have. So, have you found a solution? To me, the answer sounds like a partner. What have you done to solve the lack of time?
There are no easy solutions. I travel a lot for my job (I have been out of town 7 weeks so far this year). When I am at home I work 60+ hour work weeks. I love my job, but it really has made it difficult to invest the way I would like to invest.
Right now I have my girlfriend out searching for deals for me. Not only does she know the Omaha area far better than I do since she was born here, but she has the free time to look at deals while I am away.
For the properties that I already own, I use property management. I also take 30-60 minutes a day to look through MLS listings. The market is competitive with a lot of investors out there fighting for a few scarce deals.
Investor · Oceanside, CA · Member since 2016 · 91 posts · 38 votes
9y
As someone with less than a year in REI based out of So Cal, I would also say that finding great deals is still a big challenge for me. I think I'm incrementally getting better at it and I have an out of state strategy in place that should help me reach my goals, but I know I can improve on this a lot and so I keep chipping away at it. Learning, networking, taking action, etc.
Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
9y
@Daniel Godbout are you working with an out of state partner or a turnkey company?
@Sam Shueh Liquidity, I hear yah. I'm actually selling off most of my single family and MF investments and cashing out the appreciation. I HATE the stock market, it is HYPER inflated right now by the banks giving loans to companies to buy their own stock back. 75% of stock sold were by this play. The Boomers are going to have to put off retirement once it busts. At that time we will see more money go into bonds...this SHOULD then drop RE investment rates AGAIN. Folks, our economy isn't doing so well. Don't listen to the gov't.
The Industrial age is over. We are in a technology age...so why would our market that we invest in be an industrial one......]Dow Jones Industrial Average ...no thanks.
I have found that if you buy well, at the right time, its never hard to liquidate. Especially if you put the time into networking with other investors.
Profits in this field are about data, control, and cycles.
Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
9y
Hello and welcome to BP! Your question is a good one. I found BP about 20 months ago while I was at home and medically recovering from a bad experience. I do not have much experience at this. My biggest problem would be with a dishonest person or group telling me something that is not be true. Many people have learned how to take advantage of others. Though types of people have been attracted to real estate and are making much money over the internet because of all the money in real estate learning and they specialize in emotional salads of stuff you do not really need.
Since I still do not walk or am employed I spend much time on the Internet (about 10 hours a day 7 days a week) and I see those types all the time and I am more aware of their acting. You need to be more aware of them and many of them use address numbers that are not correct and unfortunately they are getting away with this.
You already have a few good comments from other people. I would agree that outsourced contractors, good ones, are hard to find. Do not use the one's that are the lowest or highest. Experienced contractors for you needs to have a good history and are properly screened like tenants.
I feel like you have some experience and does not need to be called a newbie. I hope that you get more comments that I could read and get further education from educated people.
Investor · Oceanside, CA · Member since 2016 · 91 posts · 38 votes
9y
@Meghan McCallum it's kind of both. My first duplex I purchased solo with some local assistance, but not a partner. It definitely would have made the process a lot easier and increased the potential if I had that in place for sure. That's probably where I should focus my efforts.
I'm working with a Turn Key provider now and it's been a good experience so far. I do want to continue that strategy, but it would be fantastic if I could mix in some higher ROI deals/projects either locally or with a remote partner.
Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
9y
@Ed Diaz, I would transfer your money into a self directed 401K. That way you could invest in ANYTHING (including property) with it. The profits are tax free until you go to cash out. I'm not the best resource on this. But, you can also have a self directed HSA, Roth, and 401K that allows these types of investments.
Specialist · CHICAGO · Member since 2015 · 680 posts · 650 votes
9y
@David Zheng, damn! They didn't bid your project because of local government? I'd go make the people in that office my best friends. That way you have a personal relationship of respect and smiles (sound dumb...local government can be your best friend or worst enemy). Pretend you are seeking them out as an advisor foe a "new and young investor that just wants to be sure you do things by the books and you see the city as a teammate". Used this multiple times saved my *** EVERY TIME I had an inspection. They see less and advise more. Once you have that relationship with them you can now offer that "teammate" extension to the contractor you want but doesn't want to because of the area. I have also head from my team mates that they will cold shoulder the contractors who have burned good people in the town. They hear everything. The city officials are who I use for referrals for work now!
Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
9y
@Meghan McCallum Ive tried to use that route so many times and they simply just suck. This weekend, they came to my place to check on closing an electrical permit (which btw was never closed on a $23,000 project because I had dried PAINT on a couple plate covers) and somehow made their way into my bathroom sink. They had no business in there but came out and slapped a requirement to fix two of my unit's sinks to the tune of $2000!
I argued it because when I had multiple plumbing and occupancy inspections and my walls were open and I didn't have tenants, NONE of it was mentioned then. So now they want me to reopen the walls while I have occupants because they failed to catch those things?
Anyways, one day I hope I get big enough I have influence over the local government and fire all of them cause that's simply what they deserve. and yes I am not afraid of spouting this in public, because as mentioned, Many many people HATE working with this municipality.
my problem is funding to get started, I have money in a 401k but not sure I want to tap into that money. would like to know any creative strategies you can advise me on.
I have a guy locally who specializes in helping people tap into their 401k and IRA. They can be found all over, but he specializes in investing in Arizona. Ken