Why Investors Leave The Business

• Unrealistic Expectations: Investing in real estate is not a get rich quick scheme that leads to instant riches. Sure, there is unlimited upside potential but the true home run deals are the exception rather than the norm. You are more likely to make a modest amount on a fix and flip deal rather than generate high five or low six figures. Fix and flip rehab deals are often a lot more work than anticipated and are often filled with several problems along the way. These problems aren't as easy to solve as you may see on your favorite rehabbing show. Those investors who leave their full time job with hopes of being a real estate tycoon are often shocked at just how much work is required and how difficult the process is. Yes, there are many investors who have instant success, but there are also several who need time to adapt to the business. If you are not willing to be patient and work, you may be disappointed with your results.
• Poor Attitude: Investing in real estate requires thick skin. It is a business that is filled with more rejection rather than success. You may submit offers on ten deals and only get one or two sellers to counter. There are days you will feel beat up and wonder what you are doing. All it takes is one deal or one new contact to completely change your business for the better. If you call it a day early or don't follow up on that phone call you will never know where your business could go. If you let a negative attitude follow you around, nobody will want to work with you. Even if you are struggling you can't let the people around you feel it. As difficult as it may be, you need to be positive at all times and always look for opportunities. Things will not always go your way, but there is always opportunity available if you are willing to find it. Your attitude often reflects your work ethic which ultimately reflects your success.
• Finances: You don't necessarily need money to start investing, but you better know how to manage money. Saving and spending capital are key elements in any business, but especially in real estate. Whether you are working on a fix and flip rehab deal or deciding on marketing there are important spending decisions in everything you do. If you blindly spend without thought, you will be forced to play catch up and generate more income just to sustain. On the flip side, if you are smart with your spending and what you do with your capital you can grow your business faster. There are always things you can do with the funds you get from a big closing. Sometimes it means putting it back in your business other times you are better off parking it in savings. Some repairs call for quality products others can be done less expensively. You will learn which is best over time, but you do need to understand the consequences of every dollar you spend.
• Time Commitment Needed: There are many ways to invest in real estate. Not every investor wants to dive right into fix and flip rehab deals. Some are interested in building a buy and hold rental portfolio. Others get started wholesaling deals to fellow investors. Some are strictly financial backers until they learn the ropes and are comfortable investing on their own. What is universal is the time commit associated with each of these options. You can't just wish you were an investor and wait for deals to fall on your lap. There is substantial time required to find deals, work partnerships and manage projects. You can certainly work full time and invest on the side, but you need to be able to manage your time wisely. This could mean working with a project manager or changing your after hours or weekend schedule. Any way you slice it, you need to be able to work when opportunity becomes available. If not, you may see some deals fall through the cracks.
• Lack Of Deals: There is an unrealistic expectation for many new investors that they have as many deals as they can handle when they get started. As obvious as it may sound, there is a big difference between deals on the market and deals worth investing in. Finding good real estate deals is much different. You need to get the contract at a number that works for you. This requires plenty of time and diligence on your end. It is not enough to have a good real estate agent and wait for your phone to ring. You need to come up with your own methods of generating leads. These could range from reaching out to distressed landlords to tracking abandoned looking properties. There are literally dozens of ways to generate leads that don't necessarily require a ton of capital. If you really want to be involved in real estate you will come up with ways to keep a steady flow of leads.

There is no magic formula to be a millionaire overnight. Real estate has unlimited upside, but it won't happen without work and persistence. If you make it past the first year in the business there is a good chance you will be well on your way. Getting past these five common roadblocks is a great place to start.