Countless times on these pages I’ve admitted my addiction to the process of taking real estate investors from ‘now to retirement’. Of course, there are nearly an infinite menu of investor flavors. There’s the experienced veteran. The investor who’s owned their first property for quite awhile, but hasn’t experienced a tax deferred exchange yet. Obviously there’s all the variations in between.
But my all time favorite real estate investor? The first timer. Get ‘first timer juice’ flowing in my veins and I’m good for quite awhile. 
Talk about a potent fix. They ask more questions, have more anxieties, are more conservative, searching for ‘lake serenity’, or real fire breathers, braver than is safe. Sometimes all at once. They also offer insight at times which makes me stop and think. They’re unfettered by experience, good, bad, or indifferent, so often bring a fresh take to the arena.
The questions almost always are the ones they should be asking. Many of their queries require a crystal ball, but they understand that — they just want a professional and experienced opinion. Fair enough.
How long will it take to get these properties rented? Do I include insurance as an expense when analyzing properties I recommend? How to houses in the area compare to the ‘sides’ of a duplex for resale value? Don’t I need a pre-approval letter for each property? Can we drive a harder deal with this or that seller? Why don’t renters buy, when the payments wouldn’t be much different?
See what I mean? All great questions. And those are only a small sampling of what I’ve been asked in just the last several days. I remind people all the time — answering questions is a huge part of my job.
Of course, the best part is when I’m able to answer a question they didn’t know to ask. Lord knows I love when that happens.
When new clients, especially those new to investing, ask us questions, we try our best to give in depth, and richly detailed answers. It’s not always possible, but we give it our best shot. When the answer depends upon our perpetually cracked crystal ball, we laugh about that fact with our client, then proceed to answer the question as best we can.
Sometimes the answers aren’t what they expect. Everything isn’t Grandma’s pancakes and bacon — know what I mean, Verne? Newbies learn quickly — we don’t sugarcoat answers that are sometimes by nature, negative, or at least unpleasant. One of our most often repeated retorts to stunned silence is, “Hey, that’s why we insist on a Sominex Account.” 2 3 4, “Oh, yeah, right.”
That’s when the light comes on — there’s a reason it’s called ‘risk capital’ Virginia. Usually by the time any particular conversation is finished, they’ve learned a new respect for the concept of cash reserves. This is a decidedly good thing. Soon, the excitement of investing for a magnificently abundant retirement is tempered by the realities of the real estate investment arena.
Again, that’s exactly why we call it Purposeful Planning — ‘cuz doing things on purpose with a plan is a whole lot mo betta than the alternative. Right?
Right.
Deciding to take the path of a real estate investor for the first time means you’re gonna take a nearly vertical ride up the learning curve elevator.
I’m always excited to ask — “What floor please?” “Penthouse? Excellent choice.”
It’s my job to answer questions, and do it as long as you have them to ask. Never, ever feel like you can’t ask ‘just one more question’. It’s how you learn, and how I stay high.
First time investors are great fixes.
Related posts:
- Real Estate Investors — The Little Things Count — Big Time
- #1 Reason Real Estate Investors Cause Their Own Train Wrecks
- How Purposeful Planning Worked for the Greens—First Time Investors
- Real Estate Investors Need A Purposeful Plan And One Sharp Dirt Lawyer
- Why Are Real Estate Investors Leaving San Diego?
About BawldGuy
Thanks for the glimpse into real estate from your angle. Very interesting. This is such a good time to get into investing. Thanks for the story.
Gainesville — You’re welcome — people seldom get a peek into how we view things from our end of the table.
Great post! Wish more folks were as honest as you in the investing world.
Thanks David — When guys like you and me give answers our clients didn’t necessarily want to hear, they learn quickly we’re not there to paint pretty sunsets all day.
Sometimes it rains.
“Do people really live in a place like this?”
Meanwhile, I’m thinking “yes!” Not everyone lives in a 4,000 square foot home with 3 garages, a shed out back on 5 acres with a private pool and also has $40,000 cash in their checking account to buy a rental property.
“There is definitely a market for this price range” is usually my actual response.
Reading my comment I thought it looked kinda bad. So to clarify, my point was that often people forget where they start.
Sorta like the first time home buyers whose parents visit the home after contract and make comments like “kinda small” or “is the neighborhood safe”. By the time you have kids old enough to buy a house you might forget your first one thirty years ago.
Chris — I’m with you all the way. I’ve had the experience many times. I’ve usually bit my tongue, but every now and then, when the time’s right, I simply ask — “Really? Where did you live when you first moved out of Mom & Dad’s place?”
That’s usually when the wife (or husband) begins to stifle an evil grin.