“Everyone I know who has invested in rental properties – that numbers at least 100 – lives a hellish life of problems, 24 hour issues, misery, loss of value, and sometimes bankruptcy. That’s 100% of those I have met. So does anyone actually make money in real estate?”R. Blouch
I was inspired when I was a teen ager by Nickerson’s book —-How I made a million while working full time for the telephone company. I did much better than he did & then I retired For fun, I wrote my own version -Think Like A Tycoon. A get rich slow book.
From the letters I got from readers, one loser who asked for my help and got me to take a look at her situation stands out—a lady who bought an apartment building; then did not bother to take care of necessary repairs, collect rents or pay her mortgage. She would have been a failure at any business. If your 100 friends, Ron, are like her, of course they will lose money. Real estate is a business: You need to pay attention to it. This lady “solved” her problems by going to “retreats” and meditating. Of course her property investment went down the drain.
My experience with dozens of real estate guys has not been the same as yours. Everybody I know is quite successful, some spectacularly so. Of course to be successful in property, you need to understand and use your noggin:
You always make money on the buy (buying well below market) —It is a numbers game ::: If you look at 100 FISBO properties you will get at least 3 super bargains) . Don’t expect any super deals from brokers. They take them for themselves. FISBO= For Sale By Owner. In my book TLAT I give hundreds of hints like this.
2) You must vet your tenants. You do not take in meth-heads, unemployed drunks or other losers.You are not running a charity.
3) Of course you must make needed repairs promptly & keep accurate records for the IRS, etc..
4) You can seldom sell at above the market price — so besides bargains you must buy only bargains in top locations. With a very good job market so your tenants & new buyers. can afford your property.
5) You must manage your own property; buy & only sell DIRECT, the 6% to 10% commission you save is most of your profit.
I want a Sweat Shirt from Quora. I will keep trying to contribute what they want till I get what I want. Because I am persistent I will get it. I only have 3 million viewers now. When I have 100 million viewers it will be hard to refuse me. If I wrote one question & one answer & then quit, the odds of me getting my jacket would be zero. But I have a positive attitude. I will never give up on anything. My odds of success are 100% . I will only fail if I die trying. Bottom Line- You need expertise, persistence & a positive attitude to succeed in real estate or anything else.
I just met a trans-sexual who runs a dungeon in London. “She” says there are hundreds of “passives” for every one innovative dominatrix-person in her business or any business. I found that to be true. The vast majority of people would rather buy a lottery ticket or a bitcoin and then sit on their butts and wait for it to win or their armchair investment to ”go up.” Only a tiny minority will make things happen with their own skill, innovations, hard work. They are the 1%. That is why some people are rich, and others are poor.