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. Statistics prove that more millionaires are 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. Many people get involved with real estate, only to quit soon after. In fact, the vast majority of 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 if you are first getting started, it can take months to get 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 describes his discovery that a lot of people in these camps truly believed that they were going to be released from the concentration camp 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 get offended easily, or let others push them around, will not succeed 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.

 

Example

Last week I received a call from a licensed agent about a property I have listen on the MLS. She informed my assistant that the property is not zoned as a tri-plex and that it is against the rules to list it as one. My assistant kindly explained that it was zoned as a multi-family meaning it can be a tri-plex and that the agent can look this information up if they would like. 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.

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, but don’t let 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

This issue tends to be the most obvious reason people quit real estate. It is completely unacceptable to lose money on a deal. If you always use a margin of safety, avoid mistakes, and only do great deals you will not lose money in real estate. 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. When a beginner tries to get involved in real estate with no prior education or experience, they are quick to blame the field when they are not making money after the first month. 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 all different facets of 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 that could have been easily avoided, or are unable to execute a deal because they do not know what they are doing.

Like I stated before, Real Estate is about big paydays and long pay delays, but when you make those big paydays that’s when 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.

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

If you can’t get into my apprentice program here is a link to my video course, “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 and if you stick to it 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 experiences are fantastic once you get it dialed in, so don’t give up.

Look, there was a time when even I wanted to give up. Can you imagine if I would’ve quit real estate? Millions and millions of people would not have been able to benefit from what I’ve shared through these trainings, these videos. Don’t ever give up!

Comments

  1. David Herzog says:

    I am interested in learning more about your apprentice program.

  2. Always inspirational! Thank you Phil.

  3. 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.

  4. 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?

  5. Chuck McGlothlin says:

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

  6. 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.

  7. 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!

  8. Lemard Mays says:

    Thank you Phil..

  9. 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.

  10. 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.

  11. 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 !

  12. 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

  13. 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.

  14. Good stuff! Thanks

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