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Lots of people making money around real estate, but not as investors?

Started by david123, August 14, 2019, 06:05:33 AM

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First off, I have very little experience in real estate having never owned an investment property.  I've been curious lately, and looking into it more.  I've found there are LOTS of people circling the real estate market (agents, property managers, financial people, bloggers, people selling books or classes, ...etc) looking to make money off the investors.  It strikes me as unusual if these people say they are making millions off real estate, but then want to charge $1,500 to for a class or blog, or whatever.

I've also seen tons of "turn key" real estate for sale.  If it's such a great investment (cash flow positive, great tenants, great appreciation, ...) then why are they selling it?

Sorry, but I am an natural skeptic.  I've been reading bigger pockets and it seems they are really down on 401Ks and the stock market, but I've done very well in mutual funds with very little effort.  I'm considering a jump to real estate, but I'm trying to convince myself.


Are you renting your primary residence or do you own your home and are looking to buy your second property as an investment?

Regarding your comment about people saying they are making a lot of money in real estate and then charging readers to learn about it - there will always be folks charging for courses on any topic from A to Z. And some of those folks may be stretching the truth or not have the credibility that they claim, but some might. You don't have to pay for a course to become a real estate investor, but you do need to do your due diligence and have a strong grasp on your financial health, short term and long term goals, and be willing to take on the responsibilities and stresses of managing tenants, stay on top of property taxes and ongoing maintenance of a property. Even if you hire a property manager, they're not going to do everything for you. Things slip through the cracks all the time.

A lot of people want to add real estate exposure to their portfolios without the hassles and risks of making a huge purchase, so they venture into real estate crowdfunding and REITs. Sam has a great resource page you can check out,

It feels like a recession is really on the horizon now that the yield curve has inverted. So keep that in mind with your investment plans.


It's good to be a skeptic. If you are skeptical, DON'T invest in the asset, period.

The ideal situation if you are in the real estate industry is to make money from real estate, have a big rental property portfolio, earn money as a broker, author, speaker, etc. Why not do it all? Some people just don't have that much time.

Always ask: how big is your portfolio? What is your experience? etc.

If a blogger has only one rental property and has a course on getting rich with real estate, you probably should pass.



My opinion is real estate is best investment platform if you invest in right place and long term.

Money Ronin

I starting real estate investing in earnest about 6 years ago but I dabbled starting 10 years ago.  You are correct in being skeptical.

I bought courses from RE gurus but never really studied them.  For a long time, I attended courses that got me fired up but I stopped short of taking action.

If you buy a turnkey property, the work has been done in theory, but there is only downside from the proforma.  As I found out, maybe the rents have been maxed out but aren't collectible.  Maybe the rehab was done poorly.  Maybe the city introduces new taxes and regulation.

That is why I started buying value-add opportunities.  I buy at market price buildings with poor rents.  I do the rehab and pick the tenants.  I increase the rent.  I increase the value.  It's more work, but I reap the rewards.  I also use a management company.  Everything--repairs and maintenance--cost most more than anticipated but the rents have also increased more than anticipated.