Exceeding Expectations : If Real Estate is SOOOO good how come only 3% of us invest in it?

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If Real Estate is SOOOO good how come only 3% of us invest in it?

By: Todd Clark
Wednesday, May 02, 2007 10:56 AM

According to the NAR only 3% of Realtors invest in Real Estate, yet, you see us talk about it and how great it is. I am investing in Real Estate myself now to take some of my own advice. I was wondering how many others here take their own advice to others about investing and actually do it?

[ ] Are you a member of the 97% of Real Estate agents that don't invest in Real Estate?

[ ] Are you a member of the 3% of Real Estate agents that invest in Real Estate?

I would love to hear from you if you are a member of either group or why or why you don't invest in Real Estate.

Todd

Comments

Member Since '06	Chris and Janet Gaut said: We got into real estate by investing May 2, 2007 12:09 PM
Member Since '04	Mary Welch said: Todd, I am in the 3%. You just see alot of good deals out there. I will be buying my second flip, closing on it next week. Of course I have a fantastic team of agents selling for me after the renovations (me, myself, and I). I don't think I would invest if it wasn't for my great team. May 2, 2007 12:09 PM
Member Since '06	Todd Clark said: I realized I needed to get in myself when I saw investors I was buying for making $50,000-$100,000 in less than 2 weeks with no money our of his pocket. Then here I am making $5,000 and doing most of the work! Todd May 2, 2007 12:18 PM
Member Since '06	Tim and Susan Fennell said: Absolutely in the 3%! I, too, am amazed at how few agents invest... but then the number who really understand real estate is very low too so it shouldn't be all that surprising. May 2, 2007 12:43 PM
Member Since '06	Sharron and Steve Lobman said: We have been investing in real estate since I bought my first home at the ripe old age of 23! That is why I became a REALTOR! My real estate agent back then was a real doll who helped me make a sound real estate decision. That is when I decided that I would like to help others make great real estate decisions after I retired from teaching. May 2, 2007 12:49 PM
Member Since '06	David J. Barone said: What is even more surpising to me is how many people don't even own their own home... May 2, 2007 1:02 PM
Member Since '07	Pete & Theresa Shrader said: We are members of Todd's 3% Club! I believe the reasons most don't invest are based on mis-conceptions and mis-perceptions. Most people have difficulty learning to get advice from people who are successful at what they are attemping to do. I have been told "don't ask a ditch digger about doctoring". In real estate that means "don't take investment advice from someone who doesn't invest or who failed at investing". Some people try investing and when they have to deal with a situation they don't want to deal with they get out. Another thing I was told is "if you fall down in the shower are you going to quit taking showers?" Lastly, no matter what you do in life - business, marriage, investing - if you have unrealistic expectations you are setting yourself up for disappointment. Disappointed people blame everyone and everything when they should really be looking in the mirror. I applaud all you 3% club members! -Pete May 2, 2007 1:11 PM
Member Since '07	Rod Rebello said: Count me in the 3%, although I also started in RE investing then became a REALTOR partly to save on fees, but then got interested in working with clients. The agent I bought investment properties through became my mentor as I worked on my license. May 2, 2007 1:13 PM
Member Since '07	Bill Thompson, REALTOR® said: Investing in real estate drove me to get my license. So yes I am in the 3%. In fact I have mde a lot more money investing. Some people don't invest in real estate because it is not a liquid asset. May 2, 2007 1:13 PM
Member Since '07	Pete & Theresa Shrader said: <html> <head> <meta http-equiv="Content-Language" content="en-us"> <meta name="GENERATOR" content="Microsoft FrontPage 5.0"> <meta name="ProgId" content="FrontPage.Editor.Document"> <meta http-equiv="Content-Type" content="text/html; charset=windows-1252"> <title>New Page 1</title> </head> <body> <p>As Robert Kiyosaki the author of <a target="_blank" href="http://www.richdad.com">Rich Dad Poor Dad</a> says: "Try going to your banker tomorrow and tell him/her you want a loan to buy $100,000 in stock and that you have 10% to put down. How hard would they laugh and how fast would they throw you out?"</p> <p>What else can you invest in where people are almost tripping over themselves to loan you money?</p> </body> </html> May 2, 2007 1:23 PM
Member Since '07	Pete & Theresa Shrader said: Sorry. As Robert Kiyosaki the author of Rich Dad Poor Dad says: "Try going to your banker tomorrow and tell him/her you want a loan to buy $100,000 in stock and that you have 10% to put down. How hard would they laugh and how fast would they throw you out?" What else can you invest in where people are almost tripping over themselves to loan you money? May 2, 2007 1:25 PM
Member Since '04	Mary Welch said: Ok Todd, now that you have a 3% club, we are expecting some T shirts May 2, 2007 1:34 PM
Member Since '07	Gary Morris said: I am almost ashamed to say I am in the 97%. My plans are to become part of the 3% in the near future, but just starting back in real estate 3 years ago is still crimping my budget. Anyone care to share where they get the best deals? Preforeclosures? Tax sales? Other ideas? May 2, 2007 1:40 PM
Member Since '06	Bente Gallagher said: I'm with Bill, Rod, and Sharron and Steve: investing in real estate - and spending a ton of money in commissions to other people - was why I got my license. We flip or renovate a couple of houses a year; so far, we've also sold our own house every two years (to avoid the capital gains tax, you know) and making a bit of money that way. We don't mind moving that often; as soon as we're in a house, we develop wandering eyes anyway. What we haven't done a lot of, is investing in rental property. Does anyone have some words of wisdom on that subject? Pros and cons? Do you or don't you? May 2, 2007 1:43 PM
Member Since '07	Lee Hannibal said: I too took the same road as most of you. After a few years in corporate America and watching more and more desk become empty I decided that I could make more money and be happier doing Real Estate. At that point in my life I had already had a few investments. Life is good! Did I just bump our club up to 4% ?? May 2, 2007 1:45 PM
Member Since '06	Ronda Kaufman said: Where's my T-Shirt. I've been investing almost 20 y/o. I was 21 when I bought my first. May 2, 2007 3:05 PM
Member Since '06	Joe McCart said: 3% club for me as of August 2006...so far all is well and looking for the next opportunity. May 2, 2007 3:23 PM
Member Since '06	Todd Clark said: I don't do shirts! I can send you an invisible bat. Here is the link: ____________________________ oh wait that is invisible to - OH WELL. May 2, 2007 5:25 PM
Member Since '06	Joe Leksich said: I am part of the 3%! I have always had an interest in buying properties to fix up since I was a kid. Now I have the means to do so and love doing it. I fliped 3 homes in the last 12 months and made over $50,000 doing so. Here in Indiana it is very unlikely to make $50,000 to $100,000 per flip. But I am happy when I make $20,000. I don't run myself ragged doing so and it is great to be the one getting the big check at closing. If you are a Realtor and not investing in Real Estate, you are missing the boat!!! You need to go out tomorrow and take on an investment property. Practice what you Preach! With Great Enthusiasm, Joe Leksich May 2, 2007 6:44 PM
Member Since '06	Rick Belben said: Hey Pete You did not have to go to your bank for a loan on the stock- "Margin" is the trick and the brokers will lend you the money May 2, 2007 9:26 PM
Member Since '03	Gary Szolosi said: Rick: Margin investing is similar to leverage in the purchase of real estate, except that you can leverage real property at a much greater rate. In contrast, the typical maximum margin leverage or debt allowed now in a brokerage account is 50%. Prior to the Great Depression, stock could be purchased at levels of margin similar to those for real estate but that was a long time ago, in a galaxy far, far away. In addition the Chairman of the Federal Reserve has the ability to change that percentage to dampen down “irrational exuberance”. So 50% margin could change to 40% overnight. A change in the value of your stock or change in margin percentage triggers Margin Calls, and there are no margin calls on real estate. So, margin investing and real estate are apples and oranges. May 3, 2007 5:23 AM