Have 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
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.
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!