Buying a House is NOT For Suckers

Some time back, one of my favorite online financial gurus, Grant Cardone, put out a video that exclaimed, “Buying a house is for suckers!”

Before that, he wrote here on Entrepreneur that, “Unless you have 20 million bucks in the bank, in cash, you have no business buying a house.”

It’s not the first time I’ve heard him say this, nor is he the only financial guru peddling this message today. Author James Altucher has described time and time again how he’s refused to own a house. Remit Sethi, the blogger behind the I Can Teach You to Be Rich brand, often cautions readers to be wary of buying real estate. Even Robert Kiyosaki, author of Rich Dad Poor Dad, has become famous for informing the public that a home is a liability, not an asset.

Related: An Investor Answers: “Should I Buy a House for Myself or Purchase an Investment Property?”

Yet, for the majority of Americans, home ownership is clearly a part of the American Dream. Even a guy like me — a landlord for the past decade — has had to stop and ask if there is any truth to this. Is owning a home truly for suckers, as Cardone said? Or was the headline over his Business Insider video just click bait?

Here, my goal is to explore the the three primary reasons Cardone and other financial gurus typically use for arguing against buying a house — and offer a counter-argument.

1. It depends where you live.

Should you own your home? Maybe. But, maybe not. Real estate is expensive. In fact, that’s one of the primary reasons a lot of homeowners and landlords fail.

Besides the mortgage payment, the owner of the house also has to fix the plumbing, replace the roof, shovel the snow, paint the walls, replace the carpet — you get the idea. There are a lot of hidden expenses above and beyond the cost of the mortgage to consider, and the older the property is, the greater those expenses tend to be.

However, in many areas, it is still cheaper to own than rent. For example, in my town, I can purchase a decent single family home for around $75,000, which works out to a mortgage of around $500 per month, with taxes and insurance included. That same house would rent for about $1,000 per month. So, does the average homeowner of a $75,000 house have $500 in house-related expenses each month? Not unless he or she owns a terrible home.

Therefore, where I live, at least, it makes a lot more financial sense to own versus buy — even with the repairs and maintenance required. Of course, in some areas, it might be far less expensive to rent than to own, while in larger cities such as New York, San Francisco, Miami and other cities,the opposite is often true. All these facts add up to why you shouldn’t take blanket advice from the internet when you make your decisions.


2. Owning a house makes you immobile — or does it?

This was the primary reason Cardone put forward for his argument against buying a house. “To make money today, you need mobility,” he wrote.

Related: Buying a House: The Ultimate Guide to Purchasing Your First Property

Personally, I found that weird — because I’ve lived in the same county for 10 years, and I’ve made money. Lots of it.

So, do you truly need mobility to make money? Sure, mobility is fun. I remember “mobile life.” Living out of a suitcase, sleeping on friends’ couches, eating leftover cold mac ’n cheese I found in the back of the fridge. All hail mobility!

But, then, a funny thing happens: We grow up. We start having responsibility for things in our life. We actually want some kind of stability. We want to raise our kids in the same place. We don’t want to lose the friendships we have with our neighbors. We want to avoid having to move again and again and again because of someone else’s decision.

When you rent a home, yes, you can leave when your lease is up, which might be six or nine months down the road. Or, if you sell your house, you can be out in a month or two. Even better, if you need to move suddenly, you can just rent your house out to a tenant and — gasp — move! Now, you are building wealth through rental properties and you are free to be mobile — whatever that means.

3. Is real estate a bad investment?

Many financial bloggers love to point out that real estate values climb at a pace slower than that of stocks. Okay, that might be true, but it doesn’t tell the whole story.

As famed economist and Nobel prize winner Robert Shiller has pointed out, using the S&P/Case-Shiller Index, home values over the past 100 years have appreciated, on average, at nearly the same rate as inflation: around 3 percent.

So, should we immediately reject buying a house because it doesn’t appreciate fast enough?

Of course not. Real estate appreciation is just one of several benefits to owning property. When you own real estate, you don’t usually pay 100 percent cash for it. Instead, you obtain a loan and use a small down payment to take possession. That way, although the price of your property may increase only 3 percent, your actual return on investment could be significantly higher.


The largest drawback to renting

The bottom line is, should you buy a house? I have no idea; maybe you should, and maybe you shouldn’t.

But, if you base your decision on a financial guru telling you that “buying a house is for suckers,” we need to talk. In his video, Grant Cardone said that, “The best investment you can make is to have choices and freedom.” I couldn’t agree more. And when you choose to rent, you give up a sizable portion of your freedom to live the way you want to live; you hand that freedom over to a landlord like me.

Related: The 7 Vital Steps to Buying a Single Family Rental House

When you own a house, on the other hand, no one is going to come kick you out because he or she has made a decision for the property that doesn’t include you. You won’t be forced to move your kids to another, less desirable, school district. No one will arbitrarily increase your rent because the housing market has improved, decreasing the number of homes and apartments available in your city.

Further, no one is going to refuse you the ability to paint your bedroom the color you want, or to put in gorgeous new hardwood floors. In other words, when you own a house, no one is going to tell you what to do.

But do go ahead. Keep renting. I’ll keep buying rental properties and growing my own wealth. I’ll keep telling you to clean your deck, I’ll continue to deny you permission for your boyfriend to move in.

I may also decide to raise your rent, because I need an extra latte or two this month.

Now, that’s “freedom.”

[This article was originally published on Entrepreneur.com.]

We’re republishing this article to help out our newer readers.

What do YOU think? Is buying a house for suckers?

Let me know your thoughts with a comment!

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20 Must-Have Team Members for Real Estate Investing Newbies

“One of the most important leadership lessons is realizing you’re not the most important or the most intelligent person in the room at all times.” —Mario Batali

If you don’t agree with this statement or even see its value, then I think you will have a VERY hard time being successful in this business of real estate investing. As with every business, a successful real estate business is a team sport. The best teams win the most. And the best leaders surround themselves with smarter people than themselves all the time. It is that simple. (Side note: When I say “smart,” I don’t only mean “book smart.” I mean “street smart” as well.)

I can tell you that we are always working on building the best team possible. It is an evolving process. We have come a long way in 10 years, but there is always room for improvement.

It can seem a little daunting when someone is just starting out; however, forming a great team is incredibly important at any stage of the game, especially early on. Remember, your team will evolve as YOU evolve. Still, you want to start off on the right foot with the right people.

Before you go out and form a team, I would highly encourage you to determine your niche, your market, and your strategy. I don’t care if you get the smartest people in a room and begin working with them; if you are not focused and super clear on your plan and strategy, then NO team member will be able to help you. The more specific you are, the better people will be able to help you achieve your goals.

So here is a list from A to Z of key people you need on your team for optimal success.

20 Must-Have Team Members for Real Estate Investing Newbies

1. Mentor

I know there is a TON of articles and blog posts written about this topic of mentorship. However, I can’t stress this team member enough. I would encourage you to find someone (local if possible) who is where you want to be in 5 years. Once you find this person, find out how you can help them achieve their goals faster. Then and only then will they be happy and willing to help you achieve your goals and mentor you through the process.


2. CPA

This is a very critical person to your team. Obviously, you want to ensure they have real estate investing experience. However, above all else, you want to make sure your CPA is a real estate investor themselves. Our current CPA is an active real estate investor and simply understands the business more than other CPAs we have had who did not own investment property.

Related: How to Hire Amazing Team Members for Every Real Estate Process — From Finding Deals to Renting Them Out

3. Attorney(s)

This is also a BIG one for any new real estate investor. You want to find an attorney who can help with basic real estate knowledge, but who also has the ability to put together partnerships, etc. As a newbie, you want to have an attorney who can help you through real estate closings and will help review all documents, etc. Again, an added bonus is having an attorney who owns investment property as well.

4. Banker

It is always recommended to begin to get your financing together BEFORE you actually need the money. You want to have the relationships and terms established up front before you make any offers. That way, when you begin to run your numbers and analyze deals, you will be able to know if a deal is a good one or one you should pass on based on the terms the bank gives you.

5. Insurance agent

You would think all insurance agents/brokers are the same, but they are not. Some insure investment property, and some do not. Some insure properties you are going to flip, and some do not. You want to find a local, hands-on agent who can help you with your insurance needs. You also want to shop around. There is one insurance company we work with that just insures our single family homes because they give us the best price. There is another insurance company that insures all of our large multifamily purchases. Different insurance company specialize in different areas. Know what you are getting yourself into.


6. Hard Money Lender

Some new investors will rely heavily on a hard money lender when they get started. Other newbies will not go near them. Regardless, you want to have options when you are in the midst of financing your deals. With some deals, having a hard money lender makes sense; with other deals, it does not make sense. Again, it is helpful to find a hard money lender that you are comfortable with, who you trust, and who trusts you—again, BEFORE you find your deal.

7. Private Money Lender or Equity Partner

This might be a tough one for newbies, but it is possible to line up a private money lender or even equity partner early on. The reason it is tough for newbies to get private money is because most private money lenders/equity partners want to see the person they are partnered with have some investing experience under their belt. However, this team member might be possible for you if you position yourself as the feet on the street, with them as the money partner. You both are new to the business but are willing to bring something different and unique to the table.

Related: The 6 Things You NEED to Train Your Real Estate Team Successfully

8. Real Estate Agent

Always a great team member to have aboard. My only suggestion here is make sure that the real estate agent works mostly with investors, not homeowners. As you will see, a homeowner and an investor are completely different customers. I have rarely found a real estate agent who is great at catering to both customers. It is OK if their business is 60/40 or 70/30, but I would steer clear of the agents who can be all things to all people. They will waste your time and send you the wrong property.


9. Wholesaler

As you can see, we are moving into the stage where you are looking for deals. In today’s competitive market, you HAVE to employ various strategies—at least three or four. That way, you are always uncovering deals and getting deals presented to you. Remember, if you work with a wholesaler and decide to drag your feet and not move quickly, they will NOT take you seriously. Wholesalers, agents, etc. want to work with investors who can CLOSE and do not waste their time. I would recommend you work with a few wholesalers who specialize in your market.

10. Birddog

These are people who might have a full-time job but have the type of jobs where they are always out and about and might have the inside scoop for potential opportunities. These are also people who aspire to be real estate investors and are looking to share leads with other investors, typically for a finder’s fee.

11. Title Company

We typically work with the same title company in NJ and the same title company in PA. This builds a long-term relationship with the title companies, and they are more willing to go above and beyond when they know they are going to get repeat business.

12. Well-Connected Business Professional

I know you might be reading this one and think, “What is a well-connected business professional?” These are well-connected business folks who work closely in your markets. These people know everyone in the area and know how to make things happen.

These are great people to have on your team and to begin to form a long-term relationships with. These are folks you want to find ways to help as well. Remember, relationship building is a two-way street. Over the years, some of our best team members were unrelated to real estate investing. These are rain makers, and you want to have a couple of them in your corner.

13. General Contractor

I know this one must be an obvious one, but unless you are a general contractor yourself or have your license, this one will become very important as you look to renovate and rehab properties. We have been through our fair share of GCs over the years; however, I can tell you, you should always, always be looking for GCs.

Contractors come and contractors go. You always want to have GCs that you trust on your team. When you find a great GC, remember to take good care of them. Pay them promptly, be clear with the scope of work, and be super clear on expectations with both money and project timeline. You may want to give them an additional bonus or financial incentive if the project gets done under time and under budget.

14. Plumber

If you own older rentals, you will ALWAYS need a reliable plumber on your team. We have been working with the same plumber for 10 years and trust him with any property! Find a good one, and again, take good care of them.

15. General Handyman

When we started out, this was a challenge for us. It was hard to find a reasonably priced handyman. But they are out there. Find one that can grow with you as you grow your portfolio.

16. Electrician

Another key subcontractor you should have on your team.

17. Pest Control Company

Again, if you have older buildings as rentals, you will need a good pest control company. We have a lot of rentals in Trenton, NJ, which is an urban community with properties very close to one another. Since these types of properties are older, pests tend to be more prevalent. We have a bed bug company, bed bug dog sniffing company, and a regular pest control company—all of which we give repeat business to.


Related: The Quick Guide to Hiring For Entrepreneurs: How to On Board Quality Team Members

18. Cleaning company

You might not need this company for a while, but when you are almost ready to list your rental after the rehab, you will DEFINITELY need this company then! Again, it will be great for you to find a company that you can give repeat business to as you grow your portfolio.

19. Property Manager

You might decide to manage your property/rental yourself, or you might want to outsource it. Either way, it is always helpful to begin interviewing property management companies in your focused trading area. First, you want to know what they charge, what they offer, even their perspective on the local market. You’ll want to learn about your potential competition as well!

20. Accountability Group

Last but not least, you want one of your team members to be a peer (someone who is also looking to invest in real estate) who can be an accountability partner for you. You are going to set a lot of goals, and the last thing you want is to fall short on your goals because you get distracted or lose interest. Find someone who can support you (and someone who you can support) to help stay accountable to goals and strategy. Meet/talk at least monthly. If you want to be ambitious, schedule weekly calls!

I hope this list of 20 essential team members will help get you and your real estate business moving in the right direction. Remember, to build long term relationships with others, you need to help them achieve their goals. The best relationships always have a win/win element.

We’re republishing this article to help out our newer readers.

Good luck on your journey! Anyone essential that I am missing?

Please leave your comments below!

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Crowdfunding platform DiversyFund plans $50M investment in multifamily, commercial real estate

DiversyFund, a crowdfunding platform that specializes in real estate investing, is launching a new fund that will target multifamily and commercial real estate. The company is planning to raise $50 million for the fund with a minimum investment of $5,000, and claims that the fund’s projected returns are between 15% and 20% per year.

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4 HGTV-Level Upgrades to Make Your Flip Stand Out

I distinctly remember two years ago via a random phone call, a producer called asking if they could view and shoot a property I flipped for the House Hunters television show. I was in the midst of a pretty trying and seemingly never-ending rehab, and I said yes without giving it much thought. The production team thanked us, said it was a great house, and they went in for a few hours and did whatever they do. And then it was silence.

Nearly two years later via a ping on Facebook, I learned the property had in fact been on House Hunters.

The TV show had aired without me even knowing my house had actually been selected and put on the show.

I thought that was pretty cool the house had been seen on national television, but here is the deal. Millions of people watch these television shows believing the couple they just watched searching for a home had this camera crew along to capture the experience. I have a few friends in the real estate world with their own show, and I’ve also spend time on numerous occasions with production teams talking through the possibility of our own show.

Right now the shows really come down to drama, get people juiced up about cool-looking houses, and the pictures of the “after” at the end. These stories for the most part are totally scripted and there to give you a show—not to teach you to be a good buyer or a  investor or to instruct you how to actually flip a house.

Through the nearly 100 houses we will have flipped this year within our business, our team has worked ceaselessly to understand not only how to make the house “look” good, but to really add value for the investors and home owners who buy our properties. For just a little bit more money, a little foresight, a little planning, you can add value both visually and for the longevity and health of the people who are buying and living in your properties. Let’s take a closer look.


Use Great Paint

With the incredible technology of paint these days, we’ve been testing all kinds of different paints over the years. There are a lot of options, but we’ve settled on SuperPaint from Sherwin Williams for both interior walls and all our exteriors. Our painters always say it covers better than nearly any other paint. It is durable and will last a long time.

On the exterior, we’ve painted it on during blazing hot summer months and into the coldest of winter months in our market. Have you ever tried to paint a second layer when it’s cold? It doesn’t go down smoothly, it will peel, and it won’t cover well. The SuperPaint is something you can put down when it’s as cold as 35 degrees, and we’ve never had problems.

You may be saying it’s a lot more expensive, right? Make a phone call and book an in-person appointment with the local sales representative. Tell them what you are up to specifically in your business, and then ask for what you want. The rep can give you some pretty incredible breaks in pricing depending on the volume and what product you are looking for.

Related: 3 Upgrades That Add Little to No Value to Your Investment Property

Teach your buyers and investors about the paint and how by buying your home, they are actually saving money because of the products you used to renovate their property. It also shows that you care about the little things.

Refinish and Restore Hardwood Floors

In our Midwest market, we have real original hardwood floors in many of our properties. I can’t tell you how annoyed I get walking into a “rehab” where someone has either not refinished beat up floors, or they have committed the ultimate sin in covering them up with tile, laminate flooring, or the worst, vinyl. Actually, even more terrifying is painting over hardwoods.

If you are doing that right now, stop it!

Hardwood floors look incredible, they maintain well, tenants and owners love them, and they look great in pictures.  Yes, I understand some hardwood floor companies want to charge an insane amount of money to refinish floors. That’s great for them, and if the general public wants to pay twice or more what we are paying for refinishing floors, that’s their choice.

But seriously, you are an investor. You are flipping and renovating a house. You want to make it the very best, stand out, and show up well. Refinish the floors and take pride in your property. Tell the story about how these are the original floors here, and this spot here, we patched and put this house back together. And then ask the client or tenant to guess whats old and what’s new. They will probably get it once you point it out, but who cares? They just bought into what you were selling!

Another bonus—if you have a lot of pet stains or smells, then sanding down, refinishing, and going a little darker color can nearly or completely hide all those problems.


Add Quality Plumbing Fixtures

Look under “things that get under Nathan’s skin” in the real estate dictionary, and find “crappy #$^” plumbing fixtures right next to it. Can you feel how annoyed I get when I see this kind of stuff? Yes, you CAN buy a faucet from Walmart for $20, but that doesn’t mean you should. It’s like that all-you-can-eat sushi bar that’s only $5. Yeah, good luck. I’ll stick with the good stuff that I know is actually fish, and not fish-like. #urp

Seriously, though, the more expensive fixtures have better parts, they aren’t made out of level 1 (I made that up) plastic. PLASTIC! You are telling me after actually using that faucet for more than a few months with regular use it’s not going to break down? Of course it is.

Stop it. Put in a metal one, take pride in the materials, and make it last a long time for your clients. It’s worth it.

Install Good Windows

I distinctly remember walking one of our turnkey properties early on in our business. I was walking with “Texas Jon” (I call all our clients by their name and area of the world), and I recall seeing this great rehab we had done in the property and talking with him about the great paint colors, new fixtures, totally redone bathroom and kitchen. And there, like a screaming baby, the windows were yelling at me. Something like, “You replaced everything else, so why didn’t you replace me?”

Related: The Top 7 Upgrades Tenants Seek When Searching for a Rental

Yes, they were windows. And technically, we could have left them. We sold the property already and installing new windows was not a part of our scope or included with the sale. But it really bothered me. I felt like we had left something undone both for my client and for the tenants who would eventually move in.

We walked outside, I called my partner, and we decided right then and there any property we rehabbed, if it didn’t already have awesome windows, we would ensure it did when we were done with it. That goes for $80k rentals and $350k flips. And without any more money from my client, we immediately had new windows installed in that property.


Final Thoughts

There is no shortage of information, education, and entertainment with regard to renovating and flipping properties. Take pride in what you do. Don’t just take care of the pretty stuff like paint colors and a fancy landscape—take care of the important things.

We’re republishing this article to help out our newer readers.

How do you stand out in your rehabs and flip properties?

Let me know with a comment!

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, , ,

I need to buy more properties!!! Looking to buy any and all types of real estate…

I need to buy more properties!!! Looking to buy any and all types of real estate. Single family rentals, flix and flips, multi-family, apartment buildings and land to develop. Mainly looking in Philly and lower bucks county. If you are an agent and see a good deal on MLS, you can represent me. If you are not an agent, I will make it worth your wild $$ to find me properties: If you have a family member who inherited a property, a neighbor who needs to sell their run down property, an uncle who is a tired landord and just about any other situation. Inbox me or visit my website. Would greatly appreciate any shares. Thanks in advance. frankbuysphilly.com


32 Signs You Might Be a Bona Fide Real Estate Investor

Real estate investors come in all shapes, sizes, and financial backgrounds. There are so many ways to invest in real estate. You can flip houses, buy notes, invest in delinquent property tax, become a foreclosure expert, buy and hold property, invest in single family or multifamily homes, buy into mobile home parks, become a developer or a real estate agent, and much more.

There is one thing all of these types of investors have in common, and that is a quest for high returns on their investments—and a willingness to be thought of as a huckster, fool, and risk taker. Some investors do indeed go broke, but the ones who succeed can often look back and wonder why people thought that they were a bit crazy.


Related: 5 Habits of Highly Miserable New Real Estate Investors (& How to Kick Them!)

You Might Be a Real Estate Investor If…

  1. You have driven by a property with an overgrown lawn and shrubs, and rather than think a lazy homeowner lives there, you wondered if there was an opportunity to make money there.
  2. You have ever looked at the Empire State Building and put together a rough analysis of the rate of return you could get—if only you could get the financing.
  3. Someone’s offer to sell you the Brooklyn Bridge was taken seriously—but only if they can guarantee you clear title.
  4. You have investigated several different ways to get more property financing and more mortgages, even though you currently only have a single mortgage—on your primary residence.
  5. You understand that every property could be a bargain, but only at the right price.
  6. You understand that cash flow is king, and any other so-called return (depreciation, appreciation, equity gains, etc.) is not a factor in the investment formula—regardless of what any real estate agent says.
  7. You factor in the cost of a property manager—even if you plan on managing the property yourself.
  8. You understand that real estate is the way to riches and also one of the fastest ways to the poor house.
  9. You can look at a prospect in the eye and decline them for a tenancy in your rental—even if they told you, “My credit is bad, but I always pay my rent.”
  10. You know that bad renters often lie on their tenancy application and let their relatives be their past landlord references.
  11. You understand the need for a full deposit for your rental and that a renter who does not have enough to pay it is a renter to be passed on.
  12. You understand that a bad tenant can ruin your rental returns for several years—even though your plan says you cash flow.
  13. You realize a 5% cash-on-cash return is not an investment; it is an opportunity to go broke.
  14. Terms like “return on investment,” “gross rent multiplier,” “cap rate,” “cash-on-cash return,” and “vacancy expense” actually start to sound meaningful.
  15. You make an offer on a property that makes your real estate agent feel embarrassed to submit—and you make a similar offer on a different property later that same day.
  16. You already have plans to quit your job as soon as you have a certain “number of doors,” and you have yet to acquire your first one.
  17. Everyone thinks you are crazy to buy that “run down property on the side street” and thinks you are a genius when you make six months’ worth of their salary in three months with that same property.
  18. People tell you, “I looked at that property too, but I could not make the numbers work,” and then they ask you, “How did you get the property that cheap?”
  19. People think you are crazy spending so much on a property, and then a few months later, they want to give you their money to invest.
  20. You look at a property that needs a new kitchen, bathroom, painting, new floors, landscaping, a new roof, and you think, “This is a gem.”
  21. You look at a weekend of painting as an opportunity—not a dreaded assignment.
  22. You are in the business to make yourself money, not the seller of the property.
  23. You know the cost of a 40-yard roll-off dumpster without actually getting a quote.
  24. Roaches, bed bugs, ants, mice, and rats are just non-paying residents to be evicted—not something to be afraid of.
  25. Your neighbors think you do not have a job and always wonder how you get all your money.
  26. The employees at your local home improvement store know you by name—and you are on their list to call when they have a closeout appliance deal.
  27. You not only own a toilet plunger, but a toilet auger—and you know how to use it.
  28. The house you just flipped looked like a million bucks—and your own house needs as much (or more) work.
  29. You are about to sign a mortgage—and it makes you just as nervous as the first time.
  30. You actually want to borrow a million dollars, but only if that same million gets you two million in property.
  31. People think you are a pauper, and you are actually a multi-millionaire (on paper).
  32. You understand that real estate is just an opportunity, and there will always be opportunities. You just need to find them.

Related: The 6 Non-Negotiable Habits of Elite Real Estate Investors

We’re republishing this article to help out our newer readers.

Do any of these things ring true for your world? What would you add to my list!

Let me know which of the above traits you can relate to in the comments section below!

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Number of multigenerational households hit all-time high

The share of Americans living in multigenerational households, homes with two or more adult generations, hit an all-time high in 2016. And while some demographics are more likely than others to live in multigen households than others, the trend is growing in nearly all groups.

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The Best Way to Attract Like-Minded People for Your Real Estate Team

First, let me backtrack in my life as an entrepreneur, business owner, and real estate investor in general. I remember the days when I started my real estate company. It took me a year and a half to make my first sale. I was sick of eating peanut butter and drinking $1 gas station coffees to survive. When I went to McDonald’s and bought eight cheeseburgers, eating four and putting four in the fridge, that was the highlight of my week.

One thing that I’ve taken from those times and that I’ll never forget is to always stay true to myself. I never compromised my beliefs. I sacrificed making a profit, making money, and eating in those days because I didn’t want to compromise my beliefs. So the message to you is stay true to yourself no matter what. No matter how hard times get, you are who you are. You can’t impress everyone, and you can’t make everyone happy.

Be Who You Are—And Attract Like-Kind People

I’m a very eccentric guy, I swear a lot, I wear my heart on my sleeve, and I don’t mean harm, but I always say take me as I am or watch me as I go. I’ve worked with a lot of investors over the years, and I’ve made a lot of money (and lost a lot of money), but one thing that I’ve always done is stay good to my word. If I say I’m going to do something, I do it, and if I make a mistake, I put my hand up because it’s an honest mistake and I pay for the mistake that I made. Over time, people start to appreciate that and respect that—and you start attracting like-minded people and people who want to work with you.

It’s hard to pinpoint one exact way to get people to work with you. I think there are many things that will get you there, but if I could give one piece of advice it would be to stay true to yourself no matter what. Only work with people who you genuinely feel are the right fit for you and who you feel you can help. In return, they will get you to where you need to be. I’ve said this in many other blog posts but real estate is a marriage; it’s not a one-night stand. You need to plant a seed now and reap the harvest later. You want to understand what delayed gratification means because it’s going to take you and your partner(s) five, 10, 15, or 20 years to meet your goals. It doesn’t happen overnight. That is something that you really have to keep in mind.

Related: How to Build a Real Estate Investing “Team” With the Skill Sets You Need

I’m begging you, stay true to yourself. Even if that means for a year and a half you have to eat peanut butter for breakfast and drink $1 gas station coffees like I did. Could I have made sales back in the day? I’m sure could have. Did I want to make sales? No, because I didn’t believe that those people were a right fit for me or for my company, and I genuinely didn’t believe that I could help them get to where they needed to be. So I decided to stick to my guns, and I didn’t sell. It was tough, but a year and a half later, I made my first sale. Fast forward to today, and I’ve done over 500 real estate deals.

What’s the single thing that has helped you build a team and grow as an investor—all while keeping your integrity?

Comment below!

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Oregon financial advisor accused of defrauding senior citizens in real estate Ponzi scheme

The former owner of an Oregon investment firm convinced senior citizens to invest in rehabilitating Portland-area houses, but actually misappropriated their money to pay earlier investors and took more than $500,000 of the funds for himself, the Department of Justice claims.

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An Introduction to Passive Income Through Real Estate Note Investing with Dave Van Horn

Most people understand the world of rental properties, house flips, and other common real estate investments. But there is one little-known niche that could provide massive cash flow and profits without the headaches: note investing. In this episode of the BiggerPockets Podcast, we sit down with Dave Van Horn, author of Real Estate Note Investing, to talk about how anyone can get started with real estate note investing—even as a first investor. In addition to a great conversation about notes, you’ll also hear some of Dave’s powerful strategies for getting his real estate offers accepted, how he started his investments using the BRRRR strategy (with credit cards!) and much, much more.

Click here to listen on iTunes.

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This Show Sponsored By

We just waRealtySharesnted to give a shout out to our podcast sponsor on today’s show: RealtyShares. RealtyShares is a crowdfunding platform that allows you to invest in professionally managed properties without leaving your living room!

Learn more by visiting RealtyShares.com/biggerpockets!

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In This Episode We Cover:

  • What is a note?
  • The types of notes available
  • Ways to start investing in notes
  • How much cash one needs to have a note
  • Dave’s backstory as a real estate investor
  • Dave’s shift to note investing
  • What hard money is
  • Three things you need to put together a deal
  • Getting bank financing
  • Performing vs. non-performing notes
  • Shadowing and how to do it
  • Making multiple offers
  • What happens when a performing note becomes a non-performing note?
  • About the book
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Fire Round Questions

Tweetable Topics:

  • “It’s not only about what you’re paying, it’s about how you’re paying it.” (Tweet This!)
  • “You don’t need any money, you just need a deal.” (Tweet This!)

Connect with Dave

Do you want to invest but don’t want to deal with tenants, toilets, and termites? Do you want to make a long-lasting passive income stream—from paper? If you answered YES to any of these questions, this book is for you! Order today!

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