All Forum Posts by: Jonathan Greene

The Snowflake Investor is a problem, mainly to himself or herself. The Snowflake Investor gets so emotionally attached to a deal that they can't see the forest for the trees. And just so BP doesn't break again, yes, we have all done this. It's not a personal slight on anyone who gets emotionally invested in a deal. I have done it WAY too many times, but it is very bad for your future profit margin. Caring about a deal is not becoming obsessed with it and we all know what happens when we obsess on a single deal. We overpay, we undercompensate, we overgive, and eventually, we lose money that we should have earned.

But the Snowflake Investor also only wants to hear yes to everything. They want continued back pats and compliments to make them feel good about their real estate decisions even though they aren't based on sound logic and correct statistical analysis. The Snowflake Investor just wants positive feedback and participation trophies, but real estate as a whole is not that kind. It will wait for a market downturn and break your 3rd place trophy over it's shrinking profit margins.

The Snowflake Investor thinks everyone can be a real estate investor, and also right now. It's just money to buy real estate. It doesn't take any skill or advanced knowledge. You just think about if you are willing to pay it and if you are, you are a real estate investor. The Snowflake Investor is not limited to new or old investors but thinks that they know better than both no matter the experience level and is never open to dialogue about the deal or business that could disprove their theory.

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I was once a Snowflake Investor. I partnered with a flipper many years ago. I was the money, they were the design and work. We would split the profits. Really, I thought they were cool and I wanted to be more like them so I just went in. Every disaster that followed was all my fault and every time someone else tried to warn me, I went off telling them I knew what I was doing and they didn't understand. They ended up using the LLC credit card to go to the spa, take their kids out to eat, etc. Instead of facing the facts that I made all the bad decisions to work with them because I wanted to do what they did, I went to a lawyer. Because I was a snowflake. I wanted to sue them for stealing, which they were, but it's because I had no process and wasn't watching. I was just going around telling everyone I was flipping like a douche.

I thought I was different and unique. I thought since I was the money in the deal I was entitled to make decisions and act like I knew everything when I did not at all. Every time there was something I didn't like or someone warned me, I reacted emotionally, trying to protect my deal that was all my decision and all my fault. Someone would say a word about the flipper or one tile and I was offended. I could not listen to anyone else.

Somehow, I escaped from the sale breaking even. That was a miracle. I was way too emotionally invested in the deal. We all become the Snowflake Investor, but we need someone in our investor circle to knock the ice off of us and wake us up. Check yourself on all those deals you won't let go of because you might just become a Snowflake Investor and it won't be a pretty exit.

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Note: Snowflake is a 2010s derogatory slang term for a person, implying that they have an inflated sense of uniqueness, an unwarranted sense of entitlement, or are overly-emotional, easily offended, and unable to deal with opposing opinions.

@Account Closed find that quote in my posts, please, that no one who overpays is a willing buyer. 

@Jefferson Sanchez I appreciate that, thanks.

@Sam Josh I am not trying to solve a problem. I am neither on BP as a teacher or a student. It's a satirous and sarcastic observation about what pops up in the forums. I don't compete with Bros for deals. I have an off-market deal flow, all of the deals are just me. It's just what people, clients, are up against when Bros big. But sure enough, it's not just Bros, a lot of people are up-bidding to win. It's just that Bros, in general, like to beat their chest about it. It's an intentional generalization. I find it confusing that everyone thinks these forums are so serious all the time. There are so many garbage posts every day it's nice to have a laugh, even if it's at Bros expense. Anyone who think it's about them it putting that on themselves, I don't know them.

It's a little bit shocking to me that so many people find the first post on this thread negative. It's clearly sarcastic and satire although based on facts gleaned from these forums every day. My guess is that, even though the post is directed at no one in particular, some people aren't solid on their investment strategy or knowledge so they interpret the post to be about them.

The even weirder part is actually real-life Bro culture to a tee. Even though they have not been personally called out, Bro steps up and comes back with personal attacks in an Internet forum which of course are going to get flagged. But that's a Bro flex. An investor discussion would be, like many of the others in here, where it's a debate about the realities of the situation and why people are buying RE without enough knowledge right now.

The culture of Bro-ness these days is about everyone agreeing and not challenging each other and just being a good Bro, but that leads to terrible decisions because no one feels like they can call anyone out and be honest. Anyone who will be a good long-term real estate investor has to learn how to tell, on the spot, what a good deal is and what it isn't and you don't get there by everyone telling you that you are so smart and cool just for showing up.

Coaches hold people accountable and don't listen to their brags on one end or their excuses on the other end and that is why some Bros are hard to coach. People who think the forums are for beginners only and everyone should not ever challenge them to see what they know don't really want to help anyone, they are just looking for Bros, friends, or deal partners, or to sell the new investors a new class or something else that won't hold any value.

The more leads you have, the more leveraged you can make your system. I have VAs who do the initial follow up to all responses to our post cards or mailers. They have a script and get as much information as they can and put it into the system (Podio). Once they have made contact (they also repeatedly call back hang ups because we get their number) and gotten in touch with the seller, the contact is marked for me to call if they are receptive. If they are uninterested and say it's ok (permission-based as @Greg Dickerson said) we ask if it's ok to check back in six months and the set that task. If they ask to be removed, we remove them and mark them as dead. Once I call, I will call once a week until I get them. I hope that helps.

We use texts when we know it's a cell phone, but only once they have responded to a postcard by calling. A hang up gets one text plan and a message gets calls right away.

@Jay Hinrichs agree on that all. It's just that the smaller markets adjust both ways much quicker and with much more of an effect on all owners.

@Nikki Cuozzo in my opinion, all sellers who are still owners and present should do the removal. No one will buy an on-market, market price deal with an underground tank. The risk is too high and tank insurance does not cover as much as people think.

@Kyler Cook the sign of a Bro Investor is resorting to personal attacks or internet flexing. Nice job, bro. If you read several other follow ups I talked about making early mistakes all the time, but fixing them. Also, the only time I talk about how long I've been doing it is in response to posts like "good luck being negative on BP, your business will suck."

I am not on BP to get business. If anyone actually really reviewed the forums they would see the million posts of me responding to first-timers, when they don't Bro, with advice but not holding their hand and burping them just because they are ready to invest right now.

@Account Closed that quote that David pulled out was about wholesaling. My contention is that non-distressed off-market sellers who do not HAVE to sell can get turned off selling by an inexperienced wholesaler who does everything wrong. Then the other wholesalers in the market have to either try to clean up their mess or wait. And sure, that's all business, but that was the point of that one quote.

I also made this point in multiple follow-ups, it's not about supply and demand. Of course, the market itself dictates the sale. Specifically for bro investors and the original post, they sometimes are acting and buying on bravado and false information so even though that creates a current market value, it was inflated based on lack of knowledge. And when that happens, the value comes back down and jams up everyone else on the block who thought they were going up only to realize the overpayment prices were not sustainable and it comes back down.

So many people are buying RE now as a flex and ignoring signs of bad investments. I know it's stupid, but it happens every day. That was all a part of the OP. I see it in every market. People want to win, they want to be a REI, they can get the financing so they go up, but there are trickle down effects to constant overbidding in a market. It can't sustain overvaluation. Supply and demand shifts and then everyone is pissed.

@Jonathan R McLaughlin thanks and I agree. My relationships with all sellers are very good because I am always there for them when they want to talk about the offer again, but I always stay honest and straightforward and sure of my analysis. Sometimes it takes a month, sometimes it takes six months, sometimes they think they have another deal and when it fails because the buyer lies about no repair requests and then makes ten, they call me. Good point to to give them an option of presenting whatever they want. I have done that and had information there to show them that they were off.