Kris Krohn here with Limitless Wealth TV.
And I am going to tell you right now.
Real estate, can it produce headaches?
It absolutely can.
Can it produce money?Yeah.
Today's question, is it really worth it to own rental real estate to have those headaches?
Alright, so I got this question from one of you that's saying, "in real estate investing,
is owning a rental property worth the headache?"
And I though this was actually such a good question that I want to make a video about
it.
I'm going to share my perspective on it because my answer is - yes/no or no/yes or maybe.
Dude, I've had some properties that were like the headache crème de la crème headache.
They were like the total worst headaches that I possibly could have.
I'm like, " I wish I never bought you."
But I hardly experience it anymore because I'm going to tell you that I actually, the
property isn't usually what wrong.
Do you what's usually wrong?
The investor.
I want to tell you kind of mean by that.
So I remember when I first got into real estate, I've never done it before so I have some apprehension.
And I remember when I bought an investment property and I rented it out and I found a
family that gave me $3,000 lease option down payment, they moved in, they're making their
payments and you know what?
In the beginning, it was awesome because guess what?
I bought the property with really low price.
I put it in some money into repairs and fix up but then all of a sudden, I'm out there
and I get this renter in this house and I'm making several a month cash flow.
I'm like, "dude, this is sick, I should do a million at least."
Up until the 6th month, the 6th month, I started getting phonecalls like, "hey, we're really
struggling to make the payment.
We really don't think we can, can we get some leniency?"
I was totally brand new so I really don't like it but I'm like, "yeah, when do you think
you can pay it?"
You know and they were like, "we can try next week right?."
Well, for the next year, they were late almost every month, and I created a relationship
with them, where I would reluctantly work with them.
And they were perpetually late.
Now, I learned some things from this, but during that period of time, I actually really
doubted whether real estate was worth it.
I bought this property with tons of equity and I was making a cashflow.
But I hated issuing late fees, I was kind of a softee and here's the reality.
These people were taking advantage of me because I was not yet a professional in the landlord
space.
Because think about it, from the very first moment they ask for flexibility and I gave
it to them, what did they know about me?
They know that I'll be flexible.
So guess what happened after month, after month.
They would pay their cellphone bill first.
They would pay maybe this medical bill first.
But guess where they knew they had flexibility to be late when things were tight?
Me.
And sometimes they don't even call, sometimes they don't even tell.
Sometimes they just didn't make their payment.
And we created a relationship in the end where it was so frustrating.
When I finally got them out of the house, I was so grateful.
Now in honesty, I had my moments where I doubted whether I should have even done the deal.
You need to know that years later I sold that house and I made well over a hundred grand.
I'll tell you something, when you're on the closing table, and you're getting a big check
like that, and you're weighing out the headaches and the money, as long as there's a big check.
Because there's always is but as long as there's a big check, I'll tell you at least what happened
for me.
You know what?Some of these headaches are going to be there.
Some are optional, but they were totally worth it.
I mean in the end, if I look back, how much time and effort did I really put in?
I created optional suffering, I created mental anguish and I did.
So the problem is with who?
The problem is with me.
Let me tell about real estate, here's the facts, here's reality.
On some homes, renters are going to be late.
On some homes, renters aren't going to pay.
On some homes, renters are going to kick the trash out of your apartment.
On some homes, they are going to be professional victims.
Once a while, you'll going to pick a professional renter that goes in that's going to leverage
the state laws, to take advantage of you and look for free as much as possible.
That's the truth.
How often do Ideal with that?
It's very little.
I would say that 20% of the time, I'm dealing with people being late on rent.
I would see that 5% of the time I'm dealing with someone that becomes a huge headache.
I've changed my attitude on the concept of the headache.
I've been doing this for years now, so guess what?
In the beginning when I was emotionally like, "why are you doing this?, why can' t you just
pay me on time, I'm so mad about this."
That's called emotional incompetency.
What I did is I got smart.
I started learning what was part of the real estate business.
And as I came to accept that part of making a lot of money if you're doing it right is
dealing with that, first of all I started housing it out.
I let it be someone else's thing and I just don't get emotional when something gets and
happen in real estate.
It's part of the business.
However, what I also learned, is I had the to learn how to stop being my own enemy.
Here's how you do that.
If you're in real estate or you're considering it, I'm going to tell you.
It's a business.
It;s not real estate.
It's a business.
And every business has what?
Profits and losses.
And every business has the things you don't like dealing.
And every business has headaches.
But whether you choose to emotionally invest in that energy and feel negative towards it,
that's a personal choice.
For me, when for example I just got email yesterday.
True story.
Selling one of my house out of state and someone said, "oh my gosh!
the rental company said, dude, this place needs a lot of fix out to get ready to sell
on them on the market."
Here's my response.
This is what my face looks like when I was looking at the email.
This is what my face look like when I read it and this is what my face looks like when
I just said, "do it."
It all looked the same.
I emotionally don't invest because by the way, it's not bad.
It's real estate.
It's what it's supposed to do.
The questions is , are you mentally equipped to handle it?
Because I would say that on average on owning hundreds of homes that 90% of the time, it's
never a bother.
It's just doing it's deal.
10% of the time, it's saying, I need money.
Do this for me.
Make an exemption.
And if you can go own the game, choose to be mentally fit and mentally strong.
Just say that's part of business and it's not anything to get emotional over.
That I'm telling you right now, You got a way greater chances of success.
So what's the risk of losing your craft?
I tell you what the risk is.
You could actually sell yourself in becoming a "don't wanter".
You could sell yourself that this is bad.
Here's what you want to sell yourself that it's bad.
When you have headaches, and you're not making money.
And when you sell the property in the end you're not going to make money.
That sucks.
I've done that before.
I've nurtured and baby sat and taken homes for years, sold it and actually lost money.
Fortunately, you get to learn from my mistakes.
And fortunately, it hasn't happened very often.
In fact all the money I've made from real estate totally outweighs the money that I've
lost.
Totally but I had to earn how to become emotionally fit and emotionally strong.
How do you do that?
Seriously, should actually come and get some live mentoring with me at one of my financial
or mindset events because I will teach you how to think like a boss.
I'll teach you how to take this muscle called the brain.
And how to power just like in the gym, so that it is empowered to think the right way
and process negativity and process problems.
Like in my world, everyone knows, if you work with me, my wife even knows this.
You never call a anything a problem because there are no problems.
It's information.
It's something that comes up.
And whether you lose your stuff over it, dude, that's your personal problem.
If you that, if you're trained right now to be drama king/queen, if you're trained right
now to be like see the class half empty.
If you;re trained right now to see something that's going to cause money and call it bad?
Then I was going to tell you, you're not bad, you're just not trained yet.
You're not trained to think like a winner.
You're not trained and I can train you to do that.
Other people could do that.
Invest in yourself.
The real state between is where you do play the game.
So full circle coming back, answering this question is the owning real estate and renting
it out worth the headache?
Yes.
If you're up for the challenge and if you're willing to be trained because like my real
estate, dude, it doesn't bother me at all.
I love my real estate.
In fact, every time I sell a house and make a grand lot.
I've sold a house last month.
Made a 100 grand and I'm like, "I just wish I just get 10 more of these."
And the headache?
Totally 100% worth it because you can learn how to deal with it.
You get to learn how to be strong here.
My kids, when I send them off to school, we have this mantra.
And one of the things that we talk about is I'm strong here, I'm strong here, and I'm
strong here.
Which means that all around, I've got emotional strength, I've got mental clarity strength,
and I got physical strength which means that no matter comes up, it's information and I
can beast through it and I know you can too.
If you want to know the most headache free approach to real estate investing, head on
to our website and check out the link in the description and me and my team will get with
you and share with you how you can dive in, and outsource the headaches.