Real Estate Investing Pain Points

Rental Property Investor · CA · Member since 2019 · 11 posts · 1 vote

Since there are so many aspiring real estate investors, experienced real estate investors, property owners, and alternative asset holders (crypto, stocks, bonds, etc.) in this group, I'm curious about all of your experiences investing and operating. I'm trying to understand what it's like being on the other side of an investment or what stops people from moving forward and am curious about the painpoints for people all across the investment value stream. Major questions that come to mind for me:

What is the hardest thing about buying a property? Why is it hard?
What are your sentiments towards renting either as a renter or as a landlord?
If you had $1,000 to invest in anything today, what would you invest in and why?

Happy Holidays everyone!

Thanks!

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Reed Rickenbach

Real Estate Broker · Memphis, TN · Member since 2020 · 202 posts · 203 votes

1. What is the hardest thing about buying a property? Why is it hard? This differs based on each investor's situation, however some of the largest hurdles are typically: Capital, Deal Flow & Property Management. All have their challenges. I struggle with deal flow, capital & property management in that order.

2. What are your sentiments towards renting either as a renter or as a landlord? I'm glad it is not in the government's hands directly.

3. If you had $1,000 to invest in anything today, what would you invest in and why? As a blanket statement I would invest in something that allowed me to make more money (self-help, RE license, etc.).

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
3y
@Alex Kim
can you clarify your questions? what viewpoint do you want - that of an aspiring investor, an experienced investor? both? what are your goals for 2023?
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Alex Kim
OP
Rental Property Investor · CA · Member since 2019 · 11 posts · 1 vote
3y
hi @Nicholas L. !

Open to both but would love to hear your perspective. Not sure what my goals are quite yet.
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Reed Rickenbach
Real Estate Broker · Memphis, TN · Member since 2020 · 202 posts · 203 votes
3y
1. What is the hardest thing about buying a property? Why is it hard? This differs based on each investor's situation, however some of the largest hurdles are typically: Capital, Deal Flow & Property Management. All have their challenges. I struggle with deal flow, capital & property management in that order.
2. What are your sentiments towards renting either as a renter or as a landlord? I'm glad it is not in the government's hands directly.
3. If you had $1,000 to invest in anything today, what would you invest in and why? As a blanket statement I would invest in something that allowed me to make more money (self-help, RE license, etc.).
1 Reply
John Mathew
Real Estate Agent · Member since 2019 · 143 posts · 74 votes
3y
1. What is the hardest thing about buying a property? Why is it hard?

Sometimes the hardest part about buying a home isn’t finding it, it’s getting it. That means there are too few homes and too many people needing a place to live. That means there are more buyers than sellers. That gives sellers the advantage, meaning it’s a Seller’s Market.

2. What are your sentiments towards renting either as a renter or as a landlord?

Rental property is not cheap, and keeping it on the market is no easy task

3. If you had $1,000 to invest in anything today, what would you invest in and why?
With $1,000, I can invest in REIT stocks, mutual funds, or exchange-traded funds. It is a great way to diversify your portfolio outside of traditional stocks and bonds and can be attractive for their strong dividends and long-term capital appreciation.

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Alex Kim
OP
Rental Property Investor · CA · Member since 2019 · 11 posts · 1 vote
3y
Quote from @Reed Rickenbach:

1. What is the hardest thing about buying a property? Why is it hard? This differs based on each investor's situation, however some of the largest hurdles are typically: Capital, Deal Flow & Property Management. All have their challenges. I struggle with deal flow, capital & property management in that order.
2. What are your sentiments towards renting either as a renter or as a landlord? I'm glad it is not in the government's hands directly.
3. If you had $1,000 to invest in anything today, what would you invest in and why? As a blanket statement I would invest in something that allowed me to make more money (self-help, RE license, etc.).

Love the perspective here. What is it about deal flow that makes it challenging for you? Is it that once you are established at an investor you're getting a lot of noise-to-signal (i.e. getting a lot of bad deals among good ones) or just generally getting consistent deals to look at?
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Alex Kim
OP
Rental Property Investor · CA · Member since 2019 · 11 posts · 1 vote
3y
Quote from @John Mathew:

1. What is the hardest thing about buying a property? Why is it hard?

Sometimes the hardest part about buying a home isn’t finding it, it’s getting it. That means there are too few homes and too many people needing a place to live. That means there are more buyers than sellers. That gives sellers the advantage, meaning it’s a Seller’s Market.

2. What are your sentiments towards renting either as a renter or as a landlord?

Rental property is not cheap, and keeping it on the market is no easy task

3. If you had $1,000 to invest in anything today, what would you invest in and why?
With $1,000, I can invest in REIT stocks, mutual funds, or exchange-traded funds. It is a great way to diversify your portfolio outside of traditional stocks and bonds and can be attractive for their strong dividends and long-term capital appreciation.

Love this as well. Two questions for you. 1. What are the particular challenges of a seller's market for you? Crazy price hikes, contingencies, lack of supply? Anything in particular? and then 2. As you grow your war chest through REIT's/mutual funds/ETFs, are you then using proceeds from those to invest back into real estate or are you trying to keep a certain portfolio diversity?
Thanks! Appreciate your transparency.
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Reed Rickenbach
Real Estate Broker · Memphis, TN · Member since 2020 · 202 posts · 203 votes
3y
Quote from @Alex Kim:

Quote from @Reed Rickenbach:

1. What is the hardest thing about buying a property? Why is it hard? This differs based on each investor's situation, however some of the largest hurdles are typically: Capital, Deal Flow & Property Management. All have their challenges. I struggle with deal flow, capital & property management in that order.
2. What are your sentiments towards renting either as a renter or as a landlord? I'm glad it is not in the government's hands directly.
3. If you had $1,000 to invest in anything today, what would you invest in and why? As a blanket statement I would invest in something that allowed me to make more money (self-help, RE license, etc.).

Love the perspective here. What is it about deal flow that makes it challenging for you? Is it that once you are established at an investor you're getting a lot of noise-to-signal (i.e. getting a lot of bad deals among good ones) or just generally getting consistent deals to look at?

Generally speaking, deals on the MLS are very tight and wholesalers take most of the meat out of the deals they send you. That would leave me to source off-market deals directly, and I am currently working 70+ hours for active income. I'm sure there's a way to get it all done. I'm working on it!
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