Your biggest learning lesson in real estate?

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This topic contains 14 replies, has 6 voices, and was last updated by  Chris Pflum 1 year, 2 months ago.

  • Author
    Posts
  • #1331

    VictorT
    Participant

    If you had to pick, what would you say is the single biggest learning lesson you’ve had in real estate investing?

  • #1357

    Chelizno1103
    Participant

    Every investment opportunity is a new opportunity to learn something new!! Tell us about your biggest lesson learned. This a definitely a nice conversation topic!! Thank you 🙂

  • #1363

    StanleyDe49
    Participant

    My biggest lesson was to not rush things. Real estate is not like the stock market, and timing is less important than valuation. There are exceptions, but if someone tries to rush you into a deal, take a step back.

  • #1366

    Bob Melton
    Participant

    I would say mine has been to get referrals when hiring contractors. You shouldn’t just pick someone randomly from Craigslist, ask other investors who they use. You’re much more likely to get a good one this way.

  • #1369

    Chelizno1103
    Participant

    Those are all great lessons!! Taking your time is always important to ensure that you are doing things right and not being taken advantage of. Haste makes waste is what I was always told. And absolutely we must always research our contractors. That goes hand in hand with taking your time. I agree 100% with both and I think that’s a great lesson all around….take your time and make sure you do your research so you know what you are getting into. Always have all your info so you don’t get in over your head or get taken advantage of!

  • #1371

    StanleyDe49
    Participant

    Bob- that’s a good one

  • #1375

    HeatherMc
    Participant

    Along the same theme on Contractors, this is my key as well. Choose contractors based on their reputation, and develop a good collaborative relationship with them. Investors who try to beat contractors down on margin versus finding agreement on fair pricing for the services to be rendered will find themselves creating problems.

    The other key point on this is to use contracts and don’t give too much money up front. If you use a reputable contractor, with a contract, payment should be less of an issue.

    I work a lot with contractors, and consider them part of my team, and a contributor to my success. Handle this poorly, and they will be a contributor to your failure.

  • #1390

    Chris Pflum
    Participant

    Choosing the right partners is mine. Make sure that you know exactly what your partner can bring to the deal, and make sure that that’s enough to satisfy their side. If you don’t do this, then you might end up with a partner who is unable to carry their own weight, leading to disappointment.

  • #1404

    StanleyDe49
    Participant

    Chris- I wondered if that was going to come up, lol

  • #1406

    Bob Melton
    Participant

    Sounds like there might be a story there Chris. Anything you want to share?

  • #1409

    Chelizno1103
    Participant

    I like stories too 😉 if anyone feels like sharing

    • This reply was modified 1 year, 2 months ago by  Chelizno1103.
  • #1421

    Chris Pflum
    Participant

    No real big story or anything. I had a partner in a startup that got going just before the market turned south in ’07. Since I was generating most of revenue, I offered to split the assets 50/50 and go separate ways. Was a huge opportunity for my partner, but he got greedy and made the breakup a battle. Took a lot longer than it should have, but ended up being my original offer. Still has me scratching my head today.

  • #1423

    Bob Melton
    Participant

    Sounds like maybe he was a little green in the running a business area, but seems like it worked out ok.

  • #1427

    StanleyDe49
    Participant

    Green, and maybe a little immature. I know Chris has had many good partnerships, so this was more of the exception.

  • #1431

    Chris Pflum
    Participant

    Switching back to the question at hand, I think think having a backup plan is important. If you’re getting into a flip right now, you might not hit the market until October or later. That’s a tough time to sell a house.

    If you can delay closing a couple months and plan to hit the market after the new year. Here in Florida, things are already cooking by February. If you’re in the north, you might want your listing to go live in late March, just ahead of the curve.

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