Dumbest Thing you heard from another Investor!?

Question

I'm sure we all heard a lot of quotes or sayings from another Investor that you thought was the dumbest thing you have heard!

I'm sure this will help others because you can learn a lot from those quotes!

Here is a few:

- I had a GUT feeling this family will work out just fine! (Never did Tenant Screening, 2 years later, eviction)

- Why would I want to buy that Property when I need a car?! (10 years later, the house appreciated by approximately $800k and the Car is worthless)

- OH! Real Estate is EASY, I can do it with my eyes closed! (2 years after getting his License, never sold a property).

- Sure, I'll put her mail in her Crack! (ok... this one is a bit raunchy, but was said innocently by my partner! He got mail from a tenant that moved across the street and he mean't to put her mail through the crack of her door! We were just dying laughing when he said it that way!)

Let's hear yours and make a few BP Investors smile!

Paul G. · Answer

My friend who really wants to be a real estate investor came up to me with this fun little back and forth.

Her - "I just went under contract for my first Investment property... Can you run the numbers for me?" - Strike 1

Me - "Uhh you didn't run any numbers before putting an offer?"

Her - "My Realtor told me it was a good deal" - Strike 2

Me - "I repeat... You didn't run the numbers before putting an offer in?"

Meanwhile, I plug in the numbers to my spreadsheet and see that she is going to be about 300 cashflow NEGATIVE

Me - "This is a terrible deal. You will be cash flow negative immediately and this area will not be appreciating very much anytime soon (an area that is in decline)"

Her - "But they're paying down the principal, so I'm ok with it being cash flow negative because they're paying for it." - Strike 3

Mind you, this is in Arizona where if you DO look, you can find decent properties. Not all will be homeruns, but definitely cash flow positive... Also, I sent her my spreadsheet that has all the information she needs. She just had to plug in like 4 numbers.

Luckily, she found a few major problems with the inspection so she backed up.

Mindy Jensen · Answer

"I don't need to screen my tenants - I can read people. I just go with my gut."

The ONLY time you should go with your gut is when they check out ok but your gut is saying no.

Ryan Tuleja · Answer

"You dont need to account for replacing roofs, that's what insurance is for"

Thomas S. · Answer

Increasing down payment increases cash flow.

I had a gut feeling (better see a doctor)

Landlord at eviction hearing with tenant 6 months in arrears of rent....Adjudicator: why did you wait so long to act ? Landlord: He was a good tenant.

Linda Weygant · Answer

Statistically speaking, this is true. Individual markets, neighborhoods, blocks or houses, may not. But in a general, statistical sense, this isn't necessarily wrong.

Terry Miller · Answer

I heard this somewhere about forty years ago. It was repeated by several people. Even at ten years old, I knew it was wrong.

"Real estate always goes up."

Antoine Martel · Answer

These are good man. I love them haha.

Terry Miller · Answer

Your friend must have talked to the same people I did when I was ten.

Dumbest Thing you heard from another Investor!?

Dumbest Thing you heard from another Investor!?

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