What you wont hear any investor tell you

[Gareth Fisher]

I have been involved with flipping properties since early 2000s.   First subbing out as a carpenter for several local investors and builders.   When the market dropped out in 2008.  Everyone I knew including myself went under.   Several years back now that the market turned around I hopped back in the game!!  Full of eagerness and drive, I thought I was going to light the world on fire.   Instead I made a little, not enough to justify my moves.     In fact looking back, I think I would be much further ahead now if I would have stuck to contracting work.   I didn't lose money, but I haven't made what I would call "money"

Here is what I learned, and here is what very few investors will tell you.  The reason why is simple, most investors out there on podcasts, selling books, or on the web.  R there for exposure.   They need the exposure to bring in capital, syndicate money, expand there "circle"    

I have met a few "stand up" friends, but they also haven't made me money either.  

First off all the shows on hgtv are branding and marketing tools for the individuals on the shows.  This applies to podcasts, you tube, and almost any other forms of interactions.

Wholesalers numbers are the worst and extremely inaccurate

Most rei groups are nothing but a way to attract to stupid money

Most investors are cheap, cut corners on the contracting side in the sake of the almighty buck.   I recently seen photos of one of the largest flippers in the area who flips roughly 200 homes in my local markets.   Frame over carpet on a concrete floor with your standard non treated 2x4s.     This a basic no brainer clear violations of building codes.

90 percent of your contractors are crooks who will stab you in the back the first chance you can get.

Bankers will lend you money on properties that are complete junk, as long as the comps ck out and the appraiser comes through.    At the end of the day your portfolio is only worth what the properties will sell for.

For every investor  that makes money there are 8 or 9 that lose money and thats in a strong market.

Most diyers are complete hacks, constantly cut corners like having lead based wooden windows in there rentals exposing young children to toxins and damaging there front cortex.  

Neighborhoods full of rentals, typically go to crap, because tenants don't care and landlords don't want to dump money into properties where the tenants won't take care of them.

Big business and syndicates have taken over the most profitable areas of real estate. I remember a time where there were local builders in every town, and a man could make an honest living building homes.  Now there are tract builders, nationwide corporations that a common man just can't compete with.

I'm not sure how I'm going to move forward. I have made enough to keep me interested, learned a ton, but feel that most of the value in real estate is in the ability to money in a safe  tangible asset.   Being that were in a 13 year high, that doesn't even seem like a wise strategy at the moment.   For all you new guys, be very careful moving forward.    Real estate investing is a very difficult business.  Sorry for the rant, but I feel that all the sugar coating and *** kissing that goes on in these circles someone needs to share the other side of the story.