Top 10 Excuses I hear from Real Estate Investors

 
How are you guys doing? So I wanted to record a video on the top 10 excuses. Again, this is a video or a presentation that I built on one of the flights to or from New York. I was really trying to sit back and think, ah, what am I hearing during this, these daily video creations? How, what am I hearing from subscribers and people I talked to and yesterday I talked about sort of the positive things. What are the, what are the 10 successful traits I see today? I thought I would do the reverse. What are the excuses? I hear one of my thoughts on them. Again, no particular order. I would love to hear from you which one of these resonated with you or for you. But also tell me about the ones I miss, right? Anytime you do a top 10 list or you kind of share what you’re hearing, you could be, you could have blinders on.
I could be missing things. So I’d love to hear from you. Give me a favor, leave comments, hit that thumbs up. And as always, help me grow the channel. I need some help. I have some goals to get to 3,500 subscribers. I know it’s a vanity metric, but still, it’s a goal. So I’m going for it. So share, subscribe, do all of those things for me. And of course, I need video ideas. So if you don’t know, I have this thing called subscriber questions, all you have to do is go to comments and leave a question and I will do my best to answer it in an upcoming video. Typically, two to three days out has been my average. So let’s, let’s do this thing together again. If you could help me grow, subscribe, share, ask others to join, that’d be awesome. Without further ado, let’s talk about some excuses.
All right, so here we go. You have to move all these windows out of the way. You know how it is. All right. So again, these excuses are in no particular order, although I guess the first one is the one I hear the most. So let’s say that’s the one I hear the most. But we’re going to talk about them. We’re going to kind of break them down. What I think, and then again, love to hear from you. And again, please tell me if I’ve missed any. So the first one, if you’ve been in real estate investing for any length of time that you hear and you talk to people, you go to meetups, it’s the classic, I have no money. I think we need to talk about that. Cause if you follow me for any length of time, I really attack this no money thing.
One of two ways, I believe. I believe most folks, and I include myself in this, if you’ve heard our story, we’re living fancy, as Gary V likes to say. Another way to say it is you’re living beyond your means. You don’t know what wants and needs are or what’s different. I share pretty openly that I spent my entire twenties working and spending every penny that came in. Literally, if I got a bonus check or a commission check or something I would just raise my standard of living. And on my 30th birthday, I realized I had nothing. So I had a spending problem. I think lots of folks, if they really looked at what they’re spending their money on, could find ways to say,” I know it’s sacrifice. I know it’s hard.” I know this is a long journey, but again, if you want to do this, you want to get on your path to financial freedom or at least a better financial future, try to lower your expenses.
I do believe it starts there. And the flip side of that is some folks, you know, you just, you just don’t, right. I grew up in a family where the month was longer than the money. So I know what it’s like to literally look in the fridge and have nothing right to, to know, Hey, we’re going to pay the electricity bill or the phone bill and only one gets paid. So I understand that those situations occur. You know, you need to make tough decisions. I wish I had some slick answer for you. Its things that I’ve done in the past is I had two jobs at one time while going to school. So I’ve done that. I’ve sold things that I owned to raise capital. You could go out and ask to work for free.
If you’re really, really excited about real estate investing, why don’t you go work you know, a couple of hours, five hours, 10 hours a week for somebody doing it so you can get your hands dirty, kick rocks, start to build your network. There are a lot of things you can do. And most of the successful investors you’ve seen on this channel all started with little or no money, right? Some of them didn’t have high school degrees. You know, some of them were ex-cons. I mean, you, you go back and watch some of the videos of interviews and realize that lots and lots of people started with no money, and if they can do it, you can. It really comes down to decisions in what you’re willing to sacrifice either in you know, current wants, verse needs or what are you going to do with your extra time?
I’m, I wish I had a slick answer, but it really choices that you can make. Another one kind of on that same line is I can’t save anything. You know, it’s kind of earn, save, invest is a, is a mindset that I follow. Again, track, you know, track your spending. It’s amazing. What you can do if you just track your spending for a week or a month. For me, it’s not necessarily money. I’ve been doing that for a while, but I mean, just to show you how all this is related for me, it’s food, right? My diet has gone to trash,  and you know, the weight has ballooned 20 pounds or whatever it is, and I’ve got to track what I eat. For some of you, it’s tracking what you spent great. Really, really getting clear on want versus need and going back and really self-assessing.
Right? I just did this morning’s video on the financial news and how many of you are lining up to buy an iPhone and you already have an iPhone, right? I mean, that’s just one example. So again you know, there are two ways to save. You can either lower expenses or raise income. All right? Those are the two things you get to play with. And if you don’t you know, lots of, lots of things you can do to save money, lowering expenses. Also, if that’s just not an option. As I said in the first one, you can look for ways to increase income or sell things or do whatever that is. Here’s a good one. My market is too expensive. Well, you know what? So’s mine. I live in Silicon Valley where you probably haven’t been able to buy a cash flow rental in two to three decades.
So I feel you, right? Yes. Right. If you do your homework and you look in your market, it’s, it’s 30 minutes from home. It’s too expensive, no time to go. So time to drive farther. For us, that meant driving two and a half hours away. I suspect within two and a half hours of you, whether it’s by car or by playing, there is a market that makes sense. And I liked the two and a half-hour drive. It’s not fun, right? It’s five hour day before you do one thing. But at least I can go see them on a whim. I can’t tell you how many times during the first 10 years we saw a property on realtor.com or some other place and we said, you know what time you get in the car, let’s go see it. Right? Cause again, it was a seller’s market when we were doing these things and it was pretty tough.
So, you know, we did those. We sacrifice, we made it happen. So if your market is too expensive, what are you going to do? Sit down and do nothing. Find a market near you. I, you know, I suggest not looking too far away in the beginning because you want to get your hands dirty. Once you learn and you understand how you evaluate markets, then go wherever you want. As I teach in my course, I really do believe that buy and hold rental properties, being a good buy and hold rent a landlord or investor is a skill. And if you do the homework to learn your market, compare assets, you can take that skill and relearn a new market. I do not believe it is. You know, something you’re born with is absolutely skill. And I teach it to students all the time.
Here’s one, I don’t want to be a landlord. It’s risky. My uncle’s next-door neighbor’s dog Walker, they had a bad experience or something. Frankly, anytime you’re in a people business, bad stuff happens. Being a landlord is no exception. There are lots of ways that you can get hurt. But if you really want to control and create legacy wealth, you’ve got to own assets. And if you can own assets that other people pay for, that’s awesome. Especially if assets are paid for and there are tax advantages, right? So again, you could look at the negative. Yes, being in a landlord is risky. Nobody can tell you any different, but you can have insurance, you could have entities, you could have all of these things to layer in protection. But I don’t know of another asset that somebody else buys for you. Right? Either 50, 70, 80%, your tenants are buying your assets.
Think about that, right? So again, yes, being a landlord is risky. You can’t get around it. There are ways you can protect it. But if you really wanted to create family wealth, legacy, wealth, just a better future, wouldn’t you like to own a few assets that others paid for? Kind of on the same lines, right? The whole T’s, right? Tenants, toilets, termites, trouble. I mean, I think these are things that frustrated landlords talk about it. It gets clickbaity and all of those things and yes, all those things suck. All of those things are terrible. But that’s kind of the cost of admission, right? You’re, you’re owning houses and you’re dealing with people. So stuff breaks, you know, people flush stuff down the toilet, you know, kids flush action figures and yes, we live in California, or at least I do. And termites are fricking everywhere and yes.
Okay, great. Do your homework, right as I talk about in the course by assets that you know make sense that, provide a good return. Be conservative. Don’t over leverage right? This, this one rental at a time game that I did and documented in the book is the, I don’t want to say easy, it’s simple, right? Just keep it in your narrow lane and go for it. It’s not easy. I’m not going to say it’s easy, right? Cause it takes time and you’ve got to do it over and over and it takes years to build the momentum. But these tenants, toilets, termites, trouble or just cost of admission and something you’ve just got to deal with. Here’s a good one. I don’t have any time. This is one I didn’t really expect. But when you really think about what we did for 10 years, the first 10 years of our career, we didn’t have any time either.
I just made time and let’s be clear, one thing that we did really well is we stayed as buying hold investors cause we didn’t have time to learn flipping or wholesaling or notes or mobile homes or any of that stuff. We’d always lived in single-family homes. So we bought single-family homes. We didn’t over-complicate anything. But what we did every day for 10 years, as I talked about in the courses, we looked at real estate, we started to understand what the market average is and when the market average came back at example 5% we tried to find deals that would produce six or 7%, whether that was creating another bedroom or you know, whatever that happened to be. But the ability to understand your market and see what the, again, we bought out of the multiple listing service. If you haven’t read our book, you really should because again, you know, we didn’t have a network, we didn’t do cold calling. We didn’t do these flyers that we get all the time now. We just bought out of the MLS and we looked every day, read the book, read the story and if you want to do the same thing, all right, we spent 15 or 20 minutes a day for 10 years looking, I give you everything we did in this course. And if you want a special gift, use coupon code book 20 a get the course for $20 less and get an autograph copy of our book.
Here’s one that I’m starting to hear more and more is my significant other is not on board. Right? I get this a lot at meetups or talks when I, when I, you know, so-and-so is on board so and so is not, you really gotta have a talk. As I document in the story or in our book, our first purchase on North drive was horrible. We did everything right too. It wasn’t like we missed something because we were new investors. We bought a house, it appraised, we put 20% down. We got what we expected for lease. We did all the credit checks, criminal reference, you know, all that stuff. We did everything right and it still blew up, right? We only got down first month’s rent and deposit before the family unit broke up and it got worse from there.
I can tell you what, if my significant other wasn’t on board with me, 100%, that could have been our last investment. Because think about it, right? You take, I dunno, $20,000, you put it as a down payment. You’re in a market two and a half hours away. It doesn’t go well. Can you already hear the chatter? You know, I told you it was risky. I told you so. You’re, you don’t know what you’re doing Bob. I mean, you could hear it right? So before you do that, cause as the other one other point earlier said, bad stuff happens. You’ve got to get on the same page and listen, ask questions. Something that I’ve heard a lot of is you know, by taking my course, you can actually start to learn what a good or great deal is. But more importantly is you can start to have conversations with your significant other and say, Hey, look, I’ve spent 30 days looking, here are all the average deals, but I found this one exception.
This one is better than all the rest, and tell them the story. I’ve seen those conversations turn extremely positive. Don’t just go in and bully and push forward. Either way, go in and do the homework, figure out what an average deal is and if you could make them a good or great deal and articulate why, which is what I teach, you’ll be in a much better position. Can’t find any good deals? Well, you know what, neither can I. It takes hard work, not hardware. Discipline, work, focus, time after time, right? Still today, I go through weeks and sometimes a month before I find another deal. That’s because 98% of the things on the multiple listing service, our average or bad deals, right? We are looking for buy and hold, good and great. That’s all I want to offer on and sometimes it takes a while to find them.
They’re there, they just don’t scream, Hey, I’m a good deal. You’ve got to go find them or create them or be, you know, find a reason why it’s the seller’s got to sell and offer less than asking price. I’m sorry, this is what you get paid for is a buy and hold landlord. In my opinion, if you want to get good at this and you want to do one rental at a time as we did, this is what you have to get good at. I teach you how to do it, but this is, it takes work and discipline in constant execution in learning and today after now 17 years or whatever it’s been, I still go weeks and weeks before I find a good or great deal. [inaudible] I’m sorry. It just takes discipline.
Here’s one that really kind of annoys me. I will wait until the crash. So basically you’re telling me you’re going to time the market and I’m not a huge market timer. As we would talk about in the book we bought all the way up. We did have a slight pause, which is about six months as it rolled over because we just never saw anything after. Ah, I forget what it was. Bear Stearns collapsed and then at the bottom we pause a little bit when all of a sudden the hedge funds bought everything out that was an REO. Other than that we bought up. Then we bought down. You just can’t time the market. You don’t know what’s going on. In addition, even if you could time the market perfectly, you’re not going to be able to process enough transactions to get through this.
I’m talking about thinking for decades. So what happens if you overpay by five grand or 10 grand? In the big scheme of things, as long as you do what I talk about good and great deals, you’re going to be okay because you conservatively financed it won’t matter. And once the unit is financed, it doesn’t matter what happens, right? We owned a lot of stuff we bought before the crash that was worth half what we paid during the bottom. But guess what? They all came back. Nobody can call the loan. They were 30-year fixed. We were good, right? You just have to hold through this. So the other thing that I saw about the crash and I’ll admit to buying a lot of stuff during the crash is most buyers disappear. That’s why we could buy everything is because everybody got scared. And when market crashes happen, it is scary. And instead of being active in buying, you’re going to sit on your cash and look for interest in a bank account and not buy. And I say that hoping that’s not true. But I saw it last time. That’s the only reasons. They were literally really big diamonds sitting on the ground screaming in the multiple listing service for us to buy is because all the buyers disappeared.
I’m scared, or I’m nervous, or I’m afraid of making a bad decision. It goes by lots of different, lots of different things. The only thing I can tell you is the way not to be scared is to build confidence in yourself. And the only way I know it had build confidence is to go learn your market. Do what I tell you to do on the course. Look at lots of real estate every day. Get, get focused. Understand, look at the same thing. See how the market it looks over time. I think I have a playlist about students on this channel. I’ve interviewed a couple and just go listen to their story. They’ve talked about how it’s simplified their business, increased offers. All those good things. So go listen to their stories or interviews. There, there, there are just a lot of fun and I love seeing that.
What I’m teaching and putting out there is working. I really do want to be a, I don’t know, one of the teachers helping people change their financial future. And one of the things that I really focused on is how to be more confident, which is kind of the reverse of being scared. So at the end, those are my top 10. Let me know which one resonated with you, which, you know, tell me what I missed. Leave a comment below, let me know how I’m doing. I’d love to hear from you. All right, so that’s my top 10. Again, thank you. Comments likes helped me grow the channel. Hit that subscribe button if you’re still watching and please share and ask others to join the party. All right, everybody take care. Thanks.

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