Top 3 Reasons Why People Quit Real Estate

quit real estateHave you ever wondered why anyone would ever quit an activity as lucrative as real estate investing? You're about to discover the top 3 reasons why people quit real estate and how you can avoid such a financially destructive fate. Statistically there are more millionaires created with real estate than any other investment vehicle. Real estate investing is, by far, the most tried and true way to financial freedom. But in order to experience the fruits of real estate, you must preserve through challenges and not quit. For anyone considering getting into real estate, or even if you are already trying to invest but struggling, you need to know the top 3 reason why people quit real estate so you can steer clear of the traps that have ended the careers of other budding real estate entrepreneurs.


Real estate is a transient business. A lot of people that get involved with real estate, end up quitting soon after.  Most of the real estate agents, mortgage brokers, and investors I met when I first got started are no longer involved in real estate. Whether you are first getting started in real estate, or on the verge of quitting, it is important to know why so many people leave this business.


1. Wrong Expectations


The number one reason people quit real estate is because they expect to see immediate results. People expect a solid month of hard work to result in a good deal and a lot of money, and when it doesn’t, they are quick to decide real estate must not be for them. The problem is, real estate is not a get rich quick scheme. 30 days is an incredibly short amount of time in real estate and it can take months to land your first deal.


Real Estate is About Big Pay Days and Long Pay Delays


Author Viktor Frankl wrote a book called “Man’s Search for Meaning”, which is about his time as a psychiatrist in a World War II concentration camp. In this book, he described his discovery that many people in concentration camps truly believed that they would be released by Christmas. Well, when Christmas would come and go, many of these people ended up passing away.
Meanwhile, others who looked at the same situation without expectations; but instead had hope and goals for survival, are the ones that ended up making it.

The lesson you can learn from this book, is to not set expectations, but instead, set goals.If you do not reach those goals in the timeframe you’ve allotted, you can reflect on the reasons you did not achieve your goals, and make any necessary adjustments and changes.

Having false expectations in real estate can be catastrophic. It is the number one reason why people quit the business. It is important to keep a goal mindset and to get rid of any expectations you may have. Have a goal of what you want to accomplish, and if you do not get there, reassess and figure out what you need to do differently.


2. Thin Skin


Real estate is tough. It is a business of mental and emotional intensity. People that are offended or pushed around easily will not be successful in real estate.  You must be willing to grow a thick skin and get tough in life or agents, investors, and title companies will push you around.



Last week I received a call from a licensed agent about a property I have listen on the MLS. The agent informed my assistant that the property wasn't zoned as a tri-plex so it could not be listed as one.  My assistant kindly explained that it was zoned as a multi-family which means it can be a tri-plex. The agent then continued to complain that the property was in the community redevelopment zone, which my assistant knew was not true. In the end, it turns out that the real estate agent was just trying to argue her client into the best deal possible.


You Must Have Thick Skin

The microcosm of this business involves a lot of clashing with other people because everyone is trying to get the best deal for themselves, or the client they are representing. You cannot take it personally, you must have thick skin, and learn how to handle people that are trying to bully you.

When I first started out in real estate, I had thin skins, but with time and experience, I grew tough. This does not mean you need to be a jerk. You can be kind and respectful, without letting people push you around. If you don't let bullies push you around in real estate, they won't. They will realize that you are tough and smart and move onto other people. People will not try to play games with a person that obviously knows what they are doing.


3. Money Issues


  • Losing Money in Real Estate

Losing money is the most obvious reason people quit real estate. It is completely unacceptable to lose money on a deal. If you use a margin of safety, avoid mistakes, and only do great deals you won't lose money. In my book “Real Estate Investing Gone Bad” you can read 21 stories of what not to do in real estate.


3 Helpful Videos

"Number One Reason Why People Lose Money in Real Estate"

"Seven Reasons Why Real Estate Investors Fail"

"The Worst Way to Invest in Real Estate"


  • No Money

Another major reason people quit real estate is because they expect big profits with very little knowledge. People that get involved in real estate, without any prior knowledge or experience tend to blame the field if they aren't immediately making money. The truth is real estate makes a lot of people a lot of money. Whether they're buying $75,000,000 commercial properties or they're flipping little houses in the worst parts of town, people in real estate are making a killing. Using the business as an excuse for not making a money, is never valid. The real problem is lack of education. People make mistakes or are unable to execute a deal, because they do not know what they are doing.

Real Estate is about big paydays and long pay delays, but when you make those big paydays it gets exciting! Someone can make $50,000 or $100,000 in one deal, which is more than most people earn in an entire year. Money can be a big driver, for why people quit, but it shouldn’t be because the business amazing.


Apprentice Program

If you want to learn how to be a market leading, money-making machine in this business, consider applying for my apprentice program. My team and I work with people step by step to turn them into professionals in this business. You can be successful if you want to be, the business is there for the taking.

I also have a video course, called  “Creative Real Estate Investing and Flipping Houses” . This course is over ten hours of videos on how we do this business.


A Message to Those Who Want to Quit Real Estate


I want to encourage you to not give up on this business because every new experience is a new distinction.  If you stick with real estate long enough, you're going to be very thankful that you did. Anyone who has stuck with real estate long-term has been very happy with the results. The money is huge. The key is to not give up, because once you get real estate dialed in, it is an amazing experience.

Look, there was a time when even I wanted to give up. Can you imagine if I would've quit real estate? Millions of people wouldn't have benefited from what I've shared through my training and videos. Don't ever give up!

Click to rate this post!

[Total: 29 Average: 4.4]


  1. Things happen for a reason, Phil. That’s why I came across your video tonight. I’ve been full time since 2010 and this business has helped me conquer thin skin and all kinds of other issues. You can’t put a price on these things.

  2. Jeff Carbine says

    I found it interesting when you said people anticipate a month of hard effort to yield a terrific deal and a lot of money, and if it doesn’t, they quickly conclude that real estate isn’t for them. I used to think differently about it not until you explained it briefly and it really got my attention. What you said about the real estate investing agency was really interesting to me.

  3. Buyers Agent in Sydney says

    Thank you for sharing your ideas with us. Keep on posting.

  4. Please, Please – Just the Facts.
    Trump – Strongest Economy Ever
    Obama – Failed America Entirely
    Biden – Trainwreck

  5. Thanks for sharing this article with us. you are absolutely right. not only for real estate but also for any business that you want to go through and wanna be successful in. you must be hardworking and absolutely having a thick-skin. if you believe in yourself never give up. making a good junk of money never ‘ve been easy and riskless.

  6. Jonathan May says

    A lot of newbie real estate agent can get knowledge from here.

  7. Many thanks for sharing this useful information. I am new in the business and thinking to quit but I am not any more. God bless you for be a blessing to many people in which I am one of them. Stay blessed.

  8. Franklin White says

    Thank you for explaining how you need to be tough in real estate in order to get things done. I couldn’t imagine not being able to handle people and their opinions while trying to work real estate. What they say can either really affect you or you could simply blow it off and do something else about it.

  9. Theresa Yarrow says

    Hi I am a 46 yr old with a few stupid past things on my record so I would not pass the criminal check can I still become a real estate agent in Canada? If there is something I can do to get it passed please tell me this is my dream and now I am happy to say I am at the point in my life that now is the time I succeed in my dreams and desires and I wanna make first step pls help me

  10. Patrick Ross says

    It’s good to know that a realtor can be thick-skinned. My sister has been telling me about how she wants to sell her house soon, and she doesn’t want to get pushed around by a buyer. I’ll share this information with her so that she can look into her options for realtors who can help her with this.

  11. Diana Noonen says

    Ive researched Realestate positions for 10 years. Im jumping in, but with very little expectation of really making any money for my first year. Im also going to be very cautious about my expenditures in regard to office fees, brokers fees, and further education. Trust me most agencies whant to sign you, but youll be making money for them, out of pocket, way before you actually see a sale. Dont come in empty handed. IT TAKES MONEY TO MAKE MONEY!!!

  12. I tried real estate for two or three weeks but it was really hard and I didn’t make any money so I quit. Maybe I’ll give it a try someday but only if someone can guarantee you that I’ll make a bunch of money.

  13. Dylan Peterson says

    It’s good to know that you should never accept a real estate deal where you will lose money.

  14. Gideon Afolabi says

    I want to learn more about the 100 hours apprentice program. How do i start?

  15. Westrom Group Real Estate says

    Thanks for posting such a piece of amazing information regarding people quit real estate. It’s really helped me preparing to build homes to rent out.

  16. Shaune Langston says

    Free book(s) please. I plan to be a millionaire by 45. I am not quitter.

  17. Thanks, Phil. Another winner. I have yet to watch one of your videos that has not been on the money.

  18. Good stuff! Thanks

  19. Thank you Phil for your wisdom. I am a new R.E. investor in Massachusetts and having hard time to find an attorney to close a Subject To deal. One said it is just illegal, check attorney general website. The other attorney who is also investor highly against. They all said it will be sued and highly risky for me to go into from legal. Do I just keep looking and not give up until I find one attorney will help me? If government form HUD form has a line Subject TO, shouldn’t it be legal? Almost feel like giving up because of this. Your thoughts?

    • Phil Pustejovsky says

      We have a great attorney in Massachusetts we work with who is more than happy to help with Subject To deals. But I only share such contacts with my Apprentices. The harder part is finding a title insurance company that will issue title insurance. We have invented a technique to get around this but also, only share with our Apprentices.

  20. Phill
    Thank you for your blessing. I wake up to God and Freedom Mentor. You have blessed me. I purchased my first multi family Property. I’m preparing to build homes to rent out.

    Thank you and your family.
    May our Lord Jesus Christ, open his heavenly blessings from above and over take you.
    C Riojas TX

  21. jeffrey doto says

    Seems to me that an exceptional foundation of knowledge would take care of any `thin skin` that might exist….Another great video….Coming your way soon. Hope I`m excepted !!!!!!!! Thanks again !

  22. LaRoyce Jansen Capers says

    Hi Phil, I joined a transactional real estate program because it was supposed to do 100% hard money lending on my real estate flips with access up to $750,000. I got a deal and two weeks before closing, their “lending department” said they don’t have 100% financing for flips and they sent me to this other lending company. Something wasn’t right with them and they sent me to another lending company and that 3rd company charged $2,000 upfront and $395 in additional fees. This has all been a Nightmare for me! They were also saying since I’m only getting a small profit from the deal ,they have high fees,it’s not a good deal ! I need 100 funding now to close by January 30th 2017 and I feel like I’ve been duped by the hard money lender who said I have access to $750,000 on my deals! Can you help me? Also, you are so right about having tough skin in this business! The sellers and my buyers have tried to Bully me !

    • Phil Pustejovsky says

      I am not familiar with 100% hard money for brand new investors; just about every legitimate hard money lender in the United States can be found in our Hard Money Locator tool and you can scour the hundreds and hundreds of lenders in that system and unless you have built a very strong personal relationship over the course of tons of deals with a particular lender; they usually require you have significant “skin in the game”. For a more detailed explanation, watch the video In Depth View of Hard Money Loans. About the only 100% funding in real estate investing is transactional funding. But to obtain that, you would have to have a cash buyer already lined up to close a day or two after your closing today.

  23. Always a pleasure to watch your very Real videos. Thanks for sticking it out so we may learn from you. You have allowed me to buy a city block with 18,000sqft light industrial with $0 down.. 630k mort…return at 7k mnthly and expandable to 12k mnthly…in 6 mnth…you humble viewer
    Paul….getting rich slowly in Canada.

  24. Lemard Mays says

    Thank you Phil..

  25. George Gandjoulov says

    Phil, I read the book that you recommended “Think and grow rich” and I found out, that I have many of the things that the author is talking about, and I think I was just born that way. So in a word if someone has the desire, will, knowledge, and hunger if you will, nothing is going to stop that person to accumulate wealth in real estate. If people fail in real estate, they will probably fail in other fields too, or may be working for McDonald’s etc. will be better for them!

  26. Joyce Tessman says

    Phil, Do you recommend that R.E. investors get their R.E. license? I am approaching my late 60’s and don’t want to waste money, that is, invest in something that will not return a profit.

    Thanks for you insight!

    P.S.: Very much enjoy your videos.

  27. Chuck McGlothlin says

    Phil, Again thanks for the pep talk and the experiences you bring

  28. Rodney Walker says

    I want to take the 10 or 15 hour video course that Phil mentioned at the latter part of this video. How do I do that?

  29. I want to know how to enrol in your mentoring program, Phil. I like to come on board. I just started a real estate business. Just come across a property i’m trying to work on with the help of a realtor friend. But I definitely need a mentor like you to help assist me. Pls lete know how to join your team. Thank you for all your training videos.

  30. Always inspirational! Thank you Phil.

  31. David Herzog says

    I am interested in learning more about your apprentice program.

Speak Your Mind