How does true Real Estate Investors earn a living?

[ClearwaterfloridaREI]

Hello, I am an inspiring Real Estate Investor who hasn't done a deal yet but I was wondering how Real Estate Investors earn a living? It seems like everyone has a blog or a course for a certain amount of money but they consider themselfs doing deals?  Are deals hard to find so you have to supplement your income by getting people to buy your course.  Or is it easier for someone to buy your course and harder to actually do deals.  Thanks for your answers in advance!

[justin0419]

Many people do REI in addition to something else.  There are people on here who are engineers, firefighters, stock traders, loan officers, lawyers, accountants, etc who are active in REI.  I'm in the military.  Some people get into creating a course or book to sell and then they focus on that.  They may or may not have done much RE investing in the past, but they've compiled something to sell you all you need to know for $39.95.  We've found many deals over the past couple years in this market.  You can still be an investor and have another source of income too. 

[Bluemoon06]

The reason we do real estate is because it is not a job.  A job is basically trading time for money.  If you want to make more money you have to spend more time doing something.  You do real estate because it frees up your time.  You make money based on how much you own not how much you do.  For example all my houses are full.  All I do is cash the rent checks and pay the mortgages.  I have loads of time on my hands.  It is like that lottery game that if you win you get $1000/week for life.  That is what I have but it is not a gamble.

 Everybody needs something to do and real estate ain’t it.  There just is not enough there to keep you busy.  You write books because everybody wants to know how to do real estate and real estate is so easy they just write a book and make some money.

I have always had separate businesses I had a video store (before Blockbusters) and vending machines and a textile factory.  At some point in time all businesses get so big you have to quit your job to run them.  Real estate never gets too big to go fishing,  golfing, work another job or write a book. 

[ClearwaterfloridaREI]

  Thanks Bluemoon for your input,

I get so much conflicting information it's mind numbing.  You mentioned there is not much to do to keep busy but I read how hectic some investors schedules are, (fixing broken windows, toilets and any additional repairs, tenants not paying the rent, court battles..etc).

I could find a TON of things to do to keep busy if I wasn't working, (Traveling, helping out the less fortunate, seeing more of my family and extended family.just to name a few)

So Real Estate Investors earn a living by doing deals...So why would you sell a seminar for 20 thousand dollars a person?  Why not help out people who want to do deals by lowering course prices and helping people do their first deal?  Misleading people by saying max out your credit cards because on your first deal you will be able to do one deal and pay it off? Or just teach new investors and when they make there first deal take a percentage of the profits?

I just came back from one of those seminars and I will NEVER do it again.  They didn't get any money from me.

[justin0419]

Some people are investors; others are information salesmen. 
I don't know how many units Bluemoon has or how much work he does on his own, but I definitely feel like REI could be a full time job for me...especially when we're acquiring more properties.  I try to fix/repair/rehab everything I can without messing it all up so I spend a good amount of time trying to fix these places up when we buy them.  I'm definitely not going to tell you it's not time consuming.  I like doing what I can on the properties and I work cheaper than paying someone else to do what I can do, so that's why I operate this way.  We don't get a ton of repair calls from houses once they're filled, so if Bluemoon has already bought the amount he wants then he probably does have a good deal of free time.  I'm just not at that point yet.
I don't know why some people charge huge amounts for seminars.  If they can live with themselves doing that, I guess that's just their personality. 

[ClearwaterfloridaREI]

See Justin now you know where I am coming from.

I have a friend from one of the seminars that spent 20k and he is "Forever" trying to get me to spend that kind of money as well. "Awww you have it" he would say but it's been a year and he hasn't done a deal, I would buy a book and study it but no way am I going to throw away 20k.

I just need a formula that works, I will stick with it and then I can reap the rewards.  I believe that is what most newbies like myself want.

How can you tell the difference between the salesmen or the investor?  I'm sure they are both well trained in Marketing and getting a prospect to say "yes"

[Investrix]

Some people are investors; others are information salesmen. 

Exactly! It's like the saying... Those who can, do, those who can't, teach.  It's illogical that people who are doing these seminars and writing these books are actually out investing.  They may be very smart.  They may know what they're talking about, at least in the theoretical sense.  But I guarantee that if they were actually as good as many of them claim to be in investing, that's what they would be doing with their time -- not writing a book or traveling around the country doing seminars.  Although, I will say that at the university I went to, there was a very successful developer who taught a real estate course.  The difference though is that he doesn't take a pay check for teaching, he's just doing it to give back to the community.

[justin0419]

Local Realtors know who the investors are and who owns multiple properties.  You want to find someone who's doing what you want to be doing.  Unless you want to be up on a stage clicking thru a PowerPoint presentation to sell something, those people aren't your targets.
Depends on the person as far as what they'd want out of helping you out, but I would suspect there are still some decent people out there who wouldn't want to take all your money to show you how things are done.  I've had a few people from my work say they're interested in getting some rentals.  One guy seemed pretty serious.  I offered to take him around and show him our places.  Even had a couple rehab projects going so he could've seen work in progress.  He's still yet to take me up on it.  I'm not even wanting anything from him...was just going to help him out. 
You're right about a formula.  Once you find something that works, it's easy to replicate.  That's what we've done.  I wouldn't spend money on a seminar either.  Your friend may just want someone else to make the same mistake he did so he doesn't feel like he's the only one.
A lot of good that did him.  He got a few hours of information for the same amount I could buy a house.
If you can offer something of value to an investor, you'll probably have decent luck finding the answers you seek.  I'd be thrilled to talk about our business with someone helping me paint a couple rooms, rip up some carpet, etc on a Saturday sometime.  Wouldn't cost you a thing but your time...  Granted you're not here, but I'm sure you can find someone in your area to help out.

[fdjake]

I get asked CONSTANTLY by people to TEACH them how to invest in real estate.
To be completely honest with you.....

97% of these people are an utter WASTE OF MY TIME.  they want this to be EASY, don't want to do the work, can't think for themselves, and want a "SYSTEM or PROGRAM" they can start like a BLENDER and have it make money for them.

So here's how I sort out the "WANNA BE'S from the WILL BE'S.

I tell them to save $30,000 then come back and see me. At that point I'll give them another piece of the puzzle FOR FREE....If they follow instructions....They get another piece....FOR FREE....There are so FEW of these people out there that I rarely waste my time on DREAMERS....The REAL FUTURE INVESTORS find deals by following directions and WORKING!!!

If they can't do that.....They have NO SHOT of making it in this business.  or I hear how it's IMPOSSIBLE for them to save that amount of money...

Here's a news flash...

For MOST PEOPLE......Successful real estate investing IS impossible!!!

But for those in that 3% group that CAN save that amount of money????

As they SAVE, they LEARN to over come OBSTACLES, they LEARN ways to come up with  more cash....That could be a part time job, another FULL TIME JOB, selling their boat, sports cars, whatever....However they do it, it shows COMMITMENT to a TASK, a desire to SACRIFICE, and a willingness to DO whatever is needed to SUCCEED.

Without that......

You're wasting MY TIME and YOURS!!!

Oh....one other thing.....YOU NEED MONEY TO BE A REAL ESTATE INVESTOR!!!!

A LOT OF MONEY.

[Daave]

Thank you for the post it was truly knowledgeable and got to learn much from it. As i ma new to this site i wish to learn much more further.

[the700level]

Oh....one other thing.....YOU NEED MONEY TO BE A REAL ESTATE INVESTOR!!!!

A LOT OF MONEY.

I disagree with this, by successful marketing and negotiating there are deals to be made with little to no money needed.

[kdhastedt]

No you need a lot of money.

It just doesn't have to be YOURS!


Keith

[the700level]

No you need a lot of money.

It just doesn't have to be YOURS!


Keith

truth!

[wallacehobbs]

I get asked CONSTANTLY by people to TEACH them how to invest in real estate.
To be completely honest with you.....

97% of these people are an utter WASTE OF MY TIME.  they want this to be EASY, don't want to do the work, can't think for themselves, and want a "SYSTEM or PROGRAM" they can start like a BLENDER and have it make money for them.

WALLACE HOBBS SAYS: YES, THANK YOU FOR SAYING THIS IS SO TRUE IN MY CASE AS WELL!

So here's how I sort out the "WANNA BE'S from the WILL BE'S.

I tell them to save $30,000 then come back and see me. At that point I'll give them another piece of the puzzle FOR FREE....If they follow instructions....They get another piece....FOR FREE....There are so FEW of these people out there that I rarely waste my time on DREAMERS....The REAL FUTURE INVESTORS find deals by following directions and WORKING!!!

If they can't do that.....They have NO SHOT of making it in this business.  or I hear how it's IMPOSSIBLE for them to save that amount of money...

Here's a news flash...

For MOST PEOPLE......Successful real estate investing IS impossible!!!

But for those in that 3% group that CAN save that amount of money????

As they SAVE, they LEARN to over come OBSTACLES, they LEARN ways to come up with  more cash....That could be a part time job, another FULL TIME JOB, selling their boat, sports cars, whatever....However they do it, it shows COMMITMENT to a TASK, a desire to SACRIFICE, and a willingness to DO whatever is needed to SUCCEED.

Without that......

You're wasting MY TIME and YOURS!!!   

Oh....one other thing.....YOU NEED MONEY TO BE A REAL ESTATE INVESTOR!!!!

A LOT OF MONEY.

Here is the bottom line, it takes a lot of hard work and risk to be a Real Estate Investor and make money at it! Yes and a lot of somebodys money!

[yrush2000]

investing can be a fulltime job if you choose to make it.  Someone who owns 100+ units and decides to handle all the repairs themselves or does rehab after rehab and does it themselves will be busy but again making money doing something they life or they would not tackle the project.

I own over 50 units but handle none of my repairs.  I have someone who handles the calls, the repairs,etc.  They are allowed to spend  X amount of dollars without contacting me per unit per month on repairs before they need to notify me prior to repair.

I have a power team that brings deals to me for review and if I like them I move forward.  Smart investors have people calling them to sell, not investors calling people to see if they want to sell.

If I do rehab, I contract out the work so I need the right financial spread in there to make the deal work.  I do field about 3 - 4 hrs of phone calls a week to complete deals and deal with issues but that is all.    I also have a career in upper management with a 6figure income that I plan not to walk away from till I am in my 40's at least.   

I live off my career earnings below my means, I save my real estate earnings to retire younger than most and get the things I want in life when I retire. 

Key to retirement is not necessarily to have tons of money in the bank as it can disappear fast but to have a constant residual income for years into retirement.  Paid off rentals are a great way.  Imagine having only 20 units bringing in 500 month PCF into retirement.  That is 10K a month without doing anything plus whatever else coming in like SSI or a Pension and a nice saving account.

Also forget 20K courses.  That is a greedy investor selling worthless knowledge who can not back up his deals in papers with court records.  Seek out the guys in your community doing deals.  I always say, buying someone a cup of coffee or lunch will get you further and picking their mind.  There are to many deals out there for one investor, even investors flip some of those golden apple deals.