How do you guys handle all the negativity? I mean, I’m going to take the next step and get into the rentals, but there is so much negativity. Firstly, I have many people telling me not to get into the business (parents, wife, etc.). Do they say this because of all the horror stories they heard, are they really looking out for my best interest, or are they limited to their way of thinking and have no experience to back it up?
Secondly, you have the personalities of so many negative / victimized tenants that attract more negative behavior (evictions, damaged property, etc.). But doesn’t all of this get to you or do you surround yourself with bigger picture people. How to you handle it…Maybe this is why the rewards can be so handsome.
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All I can tell you is why I do it even with all the negativity from my family. Even though I have no intentions of quitting my 9-5 I realize that I will not be able to retire ever. I want to spend more time with my family while we are still youngish and able to enjoy it. Do I want to be rich, yes I do. Will I be rich working for someone else, no. I know that this is going to be hard work and even harder without my family support but I will win them over when my deals prove a positive cash flow. I do this or will be doing this because I know it is the right path for me. I can ignore the negativity and I do look foward to the hard work that lies in my future but mostly I look foward to the school plays and carnivals that I won’t miss because I will not have to work 2 jobs.
My mom owned a 2 family for over 10 yrs and had hardly any tenant problems and she still tells me not to do it. Oh well, not everyone will agree with your life choices but its your life.
Here we go again… negativity. Let’s talk about a person’s POWER. We each have our own POWER over our lives and the decisions we make. We decide what we want to do and that’s it. When we start listening and believing all of our beloved friends and family telling us how bad of an idea rei is we give them our POWER.
It has been said on this forum over and over and over again how nobody really understands what we do because they don’t do it. We take risks, we think outside the box, we don’t want a J-O-B!!! At the same time why do we feel the need to share this with others? Keep it close to the vest, do what you are going to do without needing other’s approval, or in other words…
Throughout the day I’ve been thinking about this topic, and I guess it comes down to having a support system. My support system will be my wife and this forum (everyone else really won’t matter).
I don't know that I would call it negativity, but there will be a ton of people with different values and beliefs, and they will have NO idea why you are getting into real estate. Why do you work so hard? What about this weekend? Don't you ever take vacations? Blah blah blah....
If I essentially lose a few years getting a business going, but then I retire ten years early, I look at it as gaining ten years, not losing a few.
Many of the horror stories you hear about are pretty easy to deal with if you continue your own education and learn about landlording before you take the plunge...
Your still dealing with people who have no money or bad credit or both, and the chore of dealing with tenants who either trash the place or call you with every nit picking little detail that they dont like about their rental unit...
People can complain about any profession, you just have to ask yourself if this is something you would like.
Just my opinion...
“If you become an employee of this firm, you will make your first million within three years. Okay? I’m gonna repeat that. You will make a million dollars within three years of your first day of employment at J.T. Marlin. There is no question as to whether or not you’ll become a millionaire working here. The only question is how many times over. You think I’m joking? I am not joking. I am a millionaire. It’s a weird thing to hear, right? I’ll tell ya. It’s a weird thing to say. I am a fking millionaire. I am a fking millionaire. And guess how old I am. Twenty-seven. You know what that makes me here? A fkin’ senior citizen. This firm is entirely comprised of people your age, not mine. Lucky for me, I’m very fking good at my job, or I’d be out of one. You guys are the new blood. You’re gonna go home with the kessef. You are the future big swinging dks of this firm. Now, you all look money hungry, and that’s good. Anybody tells you money is the root of all evil doesn’t fkin’ have any. They say money can’t buy happiness? Look at the fkin’ smile on my face. Ear to ear, baby. You want details? Fine. I drive a Ferrari 355 Cabriolet. What’s up? I have a ridiculous house in the South Fork. I have every toy you could possibly imagine. And best of all, kids, I am liquid. So, now that you know what’s possible. Let me tell you what’s required. You are required to work your fking a** off at this firm. We want winners here, not pikers. A piker walks at the bell. A piker asks how much vacation time you get in the first year. Vacation time? People come and work at this firm for one reason: to become filthy rich. That’s it. We’re not here to make friends. We’re not savin’ the fkin’ manatees here, guys. You want vacation time? Go teach third grade, public school. The first three months at the firm are as a trainee. You make $150 a week. After you’re done training, you take the Series Seven. You pass that, you become a junior broker and you’re opening accounts for your team leader. You open 40 accounts, you start workin’ for yourself. Sky’s the limit. [b]Word or two about being a trainee. Friends, parents, other brokers, whoever, they’re gonna give you st about it. It’s true. $150 a week? Not a lot of money. Pay them no mind. You need to learn this business, and this is the time to do it. Once you pass the test, none of that’s gonna matter. Your friends are st. You tell them you made 25 grand last month, they’re not gonna fkin’ believe you. Fk them! Fk ‘em! Parents don’t like the life you lead? ‘Fk you, Mom and Dad.’ See how it feels when you’re makin’ their fkin’ Lexus payments. [/b]Now, go home and think about it. Think about whether or not this is really for you. If you decide it isn’t, listen, it’s nothing to be embarrassed about. It’s not for everyone. Thanks. But if you really want this, you call me on Monday and we’ll talk. Just don’t waste my f**kin’ time.”
Good movie, you guys should check it out. Illustrates a good point, if someone doesn’t like what you do screw them.
And why so few are in this business. Yes, it’s a business, and like any other business you’ll have good customers and bad customers, ups and downs. That’s one of the main reasons there are so many employees and so few owners - they only see the negatives, and never the rewards (which will come).
Real estate is a lot like selling drugs or robbing banks, the risks are high and the rewards are high. People shy away from risk, only certain types of personalities can handle the risks.
That's one of the main reasons there are so many employees and so few owners - they only see the negatives, and never the rewards (which will come).
People shy away from risk, only certain types of personalities can handle the risks.
This extends beyond humans as well. With canines and any other pack animal, 1 natural leader is born or created out of 30 or so who are not built to be anything more than a follower. It’s only natural for a pack to have up to 30 followers with 1 leader. If everyone was a “leader” there would be no followers thus no true leaders. Most people lack the confidence to be anything but a sheep in a wolf dominated world. Most people want to be a wolf because of the rewards, but simply aren’t built for the necessary responsiblity, control, judgment making, leadership, and most of all, risks. Risk only survives with people who try to be the wolves. A wolf has the confidence in his abilities to complete the task and the responsibility and determination to never allow anything but a success. When failure’s not an option, there are no risks.
On the other hand, your friends and relatives have every reason to urge caution. The vast majority of newbies fail in a very short period of time. The horror stories you’ve heard about tenants are absolutely true. If you are successful in building your rental property business, you will experience every one of them. Then, there are the idiotic laws which protect the criminals, deadbeats, and scumbags. These same laws are absolutely set to punish honest landlords. In short, there are stresses everyday in business. That’s the bad news.
The good news is that if you can survive the first few years, you will become relatively numb to the nonsense.
With all the talk about negativity and emotion, that is not the real threat to new business owners. Businesses fail primarily due to the lack of cash flow. You either understand business and come up with a valid plan, or you fail. It’s just about that simple.
being a landlord really demands that you be pretty multi-faceted…dealing with fianaces, contracts, social services (the people), etc, etc. It is NOT a one dimensional, push-button process.
As for tenants, the 80/20 rule of life comes into play here. Twenty percent of the tenants cuase 80% of the pain in your back side.
lastly, its not a wam-bam, qucik return kind of business, but rather requires a steady effort over many years and then you really can see the fruits of your efforts
Lucky for me I’m the type of person that will work harder if the rewards are greater for harder work. I just have a problem with a 9-5 where I can can work 20% or 160% and get the same pay, in that case I tend to work 20%. If I can see financial growth for extra effort I don’t stop working. Plus if I know my life will be easier down the road if I make it harder now I am willing to sacrifice now to have a better life later.