Why is real estate considered a "cutthroat" business?

no one on this board in real estate?

>>1035574

I was in real estate.

I mean, it's a hard business. A lot of people get rich, a lot of people lose everything.

There are a lot of people in this space that have 100k net worth that fuck around buying million dollar properties, that's why it's known as "cutthroat"

For the past 8 years, it's been a "everyone makes money hand over fist" business, but soon it will be a "everyone stupid enough to still be in loses everything" business when housing prices correct

>>1035596
Thanks for answering. I was just about to change and head to the gym. explain the whole "everyone makes money hand over fist" part. And how is it that people lose everything? What are they losing besides money?

>>1035601

>what are they losing besides money

Their homes, cars, wives, girlfriends, possessions

>money hand over fist

Real estate market goes up at alarming rate for 8 years, then crashes for a year, then goes up for 8 years, like clockwork.

Every 8 years we see the same thing.

The people that bought one year ago are thinking 'oh wow I'm making so much money I'm so rich I'm gonna go buy 10 more houses, all on mortgage!' because the market has been going up for 7.9 years.

Extortion, money laundering.

>>1035606
why 8 years specifically?

>>1035629

No reason. It could be 7.5 years sometimes. Could be 8.5 years.

Just always seems to be around 8 years,

Since it's been 8 years for so long, people get nervous (like me) and sell out after 7.5 years, and then other people get scared, and sell after 8... and with so much fear and speculation, boom- crash

>>1035634
When were you in real estate because most of the things you're saying sound like bullshit.

>>1035513
Real estate is cutthroat because there are many agents trying to get clients from each other. Just in Manhattan alone, there are 27,000 brokers and real estate agents.

You have to be willing to set huge goals and have a huge ego in order to succeed.

>>1035596
Explain to me how an agent loses everything, dumbass? This is why you're not in real estate anymore. Because you're autistic.

>>1035629

Social psychology would be my guess.

I mean just think about it logically. Consider a mob. When the mob is feasting it thinks of just one thing: more. Eventually this mentality leads to a collapse of resources and inputs to account for all the risk and taking. Then a crash, then a reverse for a while, then it all repeats.

Ever see a friend who just got a new job making plenty of money?

>>1035709
But it's not 8 years. The last housing bubble was longer than that. It was from 1997-2006. And to say that we're in a bubble right now is somewhat true but to say that we're going to crash anytime soon is a lie.

>>1035638

3 months ago.

Sold my properties with the tenants and their contracts intact.

I will buy the buildings back for half of what I sold them for in 6 months when the bank takes them back from the buyer.

>>1035689

You're dyslexic- I never said I was an agent. I'm not an agent- I'm talking about investors because this is a fucking investment forum, you imbecile

>>1035714

Ok if you want to get stuck with the hot potato be my guess

Real estate now is a bomb about to go off, people like me are passing to to people like you

>>1035735
Then when you become a real estate agent and learn the real estate business and know what the MLS is and what not and real estate trends, you can run your mouth. You're an investor that knows nothing of how selling real estate works.

>>1035739

Why would I want to become a real estate agent?

I've already worked, sold, and made my money- now I'm an investor.

I'll let the 20 year olds scramble all day, I'm in the business of growing wealth.

I know what the motherfucking MLS is- you don't have to be an agent to know what the MLS is, you need access to fucking google.

>>1035745
You can't access the MLS if you're not an agent. Silly silly investor. Must have gotten some of daddies money and started buying up properties and thought he could be the next big flipper. Turns out he's not even doing it anymore. Instead of flipping houses, go flip burgers, you useless fuck.

I bet you wear some gaudy ass gold jewelry and some cheap ass suit to the courthouse when you buy your sheriff sale's

Fuck off, dude. He asked about the real estate business. As in selling homes. As in working as a real estate agent/broker.

He didn't ask for advice on how to invest. If you want to teach someone how to invest, big shot, hold a fucking seminar at a Marriott.

>>1035762

why are you so bitter?

I spent decades of my life as a mortgage broker

I worked all my life, saved my money, and now I invest it as I see fit.

not everyone has to be a real estate agent

>>1035762

Anyways, that's flat out not true. Anyone can view MLS listings. Only real estate agents can view pocket listings- are you still in highschool or real estate school or something?

>>1035770
No one but an agent can access the REAL MLS, dumbass. Not MLS listings. I'm talking the Multiple Listing Service.

http://reitips.com/mls-access-without-license/

And yeah I am in real estate school btw. Problem?

And mortgage broker? That's nice. I'm not impressed though.

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>>1035513
>What facets of the business give it that reputation?

1. High leverage (people leverage their equity like 3, 4, 5 or even 10 to 1 e.g. 100k Net worth for Million Dollar property)
2. High amounts of money
3. Limited liquidity of assets

High leverage in itself is not very unusual but the combination of high leverage and big bets is. In the stock market one might take a high leveraged bet, but usually it's not with all their money on the line. Add to this that real estate is not very liquid and it takes long to find a buyer and you and up with a "cutthroat" business.

>>1035629
Literally Jews

Google shemitah

>>1035793
It's not 8 years, dude. Don't listen to a former mortgage broker about the trends of real estate.

>>1035792
Average down payment is 20%. What the fuck are you talking about? It's easy to find a buyer in this market because there is low inventory. Dumbass.

>>1035799
>Average down payment is 20%. What the fuck are you talking about? It's easy to find a buyer in this market because there is low inventory. Dumbass.
Maybe in your Disneyland US housing market. Not in the rest of the world.

Besides: 20% down payment is still 5:1 leverage. Even with a portfolio margin account this is about the most one can leverage in stocks without resorting to options or other instruments.

>>1035811
>trying to equate real estate to stocks.
Please get this schizophrenic fuck out of here.

>>1035783

Sigh.

Anon, all you need to get full MLS access is a real estate license- you don't need to be a real estate agent.

A real estate license, you go and take a test a 1st grader could knock out of the park "What counts a a half bathroom" etc.

Then you get a license. Anyone, literally anyone with internet access can go get one- I have one, you will soon.

You didn't know what- that;s how I knew you're just some stupid kid in school that hasn't worked a day in his life.

Let me make it simple-

Access to MLS: You need real estate license (me, grandma, everyone, you soon)

Real estate agent- Have taken an easy test AND have clients- you will never get clients because you're such a godamn prick, so you'll stay a shmuck with a license.

>>1035762
>>1035739
>>1035714
>>1035643
>>1035638
>>1035799
Hey bud. You aight senpai? I don't think you are. It's an anonymous board, no need to get emotional.

I swear, when will these indian/pakis/browns leave /biz/.

>>1035823
Test: Family, familia, SENPAI

>>1035822
Oh so now you have a license. First you were an investor. Now you're a former mortgage broker. And now you have your real estate license. The lies keep piling on, don't they? Stay pleb, pleb.

>>1035822
And no, you need to PAY for access to the MLS as an agent or broker. Dumb fuck.

>>1035823
I'm as white as snow. The fuck are you talking about?

>>1035830
You sure act like one of them insecure brownies, chimping out.

What's your beef.

>>1035823
>>1035824

No- he's an idiot.

He has the real estate license test confused with the bar exam.

Here's the difference- the bar exam is VERY hard. You NEED to go to law school or you fail it.

The real estate test is NOT a bar exam. It is NOT hard. You do NOT need to go to school to pass it.

The best real estate agents are people that sold mortgages, stockbrokers, used car salesmen- you know, sales people. They take an easy test, then they sell houses.

Kids that have no sales experince and go to real estate school get no where- because they don't know how to sell.

If you want to sell real estate, sell used cars, LEARN TO SELL, then take the fucking test.

>>1035735
I wanted opinions from investors and agents. I don't mind.

>>1035832
You need 99 hours in my state in order to go to take the Pearson Vue test. So you don't know shit. Other states it's even more. So yes you DO need to go to real estate school to pass a simple (as you describe it) test. If it were so easy, then why would former realtors have to take it again? Also we're not talking about law or the bar exam. We're talking about real estate.

>>1035835

Look, my only advice, is if you want to use an agent to purchase a property (you don't need one), use one that knows what he's doing- someone with sales experience,

Basically, you're paying someone to negotiate for you- so you want a good negotiator, used car salesman turned agent- not some stupid kid.

>>1035839
Oh I see, you're a foreigner. What are you, Albanian? Estonian?

>>1035843
American actually. Where are you getting these terrible assumptions?

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>>1035842
If I'm buying a house, I don't wanna deal with some pushy agent or realtor with a used car salesman mentality. I want the person who's been continually selling homes and closing deals. You've never sold a home so you don't know what that's like, big shot. You've just done mortgages and investing. Stick to what you know. You don't know anything about selling residential real estate, okay?

>>1035847
Your writing has subtle idiosyncrasies in grammar that I've seen only foreigners use.

>>1035850
Wait are you the same guy that blew up on the chinese tripfag?

>>1035850
>I want the person who's been continually selling homes and closing deals.

Yeah don't listen OP.

Here's the deal- I'm a real estate agent. You hire me to sell a house worth 200k- if I'm a shitbag, I lie to you about the value, say it's worth 190k, I put the house on the market for 190k, sell it same day because it's underpriced, make my commision.

You want the guy that will say- look it's worth 200k, but I think I can beat them up to 205k- because I've been beating up people and nickelling and diming for years.

That guy will work 10 times as long for 10% more money- because he wants to do a good job, and make a name for himself.

Stupid real estate kid will get 195k for that house.

>>1035854
No

>>1035851
>correcting grammar
>on 4chan

I'm not writing a doctoral dissertation. Kiss my ass.

>>1035858
That goes against the NAR's Code of Ethics, pal.

>>1035867
The brown's coming back.

If you look at your ID you can faintly make out Genghis Khan if you squint.

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>>1035874
Lol if you want to think I'm brown, go ahead, dude. I'm White as can be.

>>1035867

This is why I hate kids- 'It wont happen because the code of ethics forbids it'

They think they know everything, but they don't know shit.

You're gonna throw this guy into a negotiation with an ex car salesman, and he's gonna sell the 200k house for 185k- not because he's a fraud, because he got outsmarted.

>>1035888
>ex car salesman
If a fucker told me that, I'd walk right out of the listing appointment.

>>1035888
This is why I hate guys like you. Fucking Generation X baby boomers that think they know every goddamn thing. When I was in real estate school, all the top agencies were gunning for me. Keep thinking you know everything, scrub.

>>1035898

>when I was in
>I'm in school

which one is it anon?

Just stop with the bullshit- you're full of it.

Most of the top brokers in the country are people that started off selling payday loans to single mothers- and they became the top payday loan salesmen, and then they left for greener pastures.

>>1035899
I start again in July. Was half way through it back in 2015. Face it baby boomer, you know nothing about real estate sales.

Ever heard of Fredrik Eklund? Tell me who he is without googling him and I'll be impressed.

He's one of the top brokers in NYC. Dropped out of Stockholm School of Business to become a real estate agent. Didn't know anything about America or real estate when he came here and now he's one of the top brokers around.

I admit I'm inexperienced and a novice but that soon will change, pal. You've got a shitty fucking attitude. I wouldn't buy a bottle of water from you.

>>1035881
Come on, bruh. You can't be this stupid.

I'm gonna pretend you just pulled some other Google+ user, who's also in your state, picture.

But if that really is you, I can see why you act the way you do.

>>1035905
>Fredrik Eklund?

Ex gay porn star that does a lot of sales in Europe

Also why ask who is he is, then tell me who he is?

>>1035910
Ex gay porn star and current top 5 brokers in New York City. That is Fredrik Eklund. Or how about Ryan Serhant from Nest Seekers International?

>>1035906
Shut the fuck up, xenophobe.

>>1035513
Oh good, a thread that I can actually comment on.

I don't work in real estate investments but I own several real estate investment properties. They are all cash positive and they are properties that my family has held for several years.

From my experience, most individuals should not engage in real estate investments (besides the purchase of a home). A portfolio of index funds will suit all of their investments needs.

That being said, real estate investment is "cut throat" for two reasons:
1) Easy access by the masses. Most individuals with a stable income could purchase a home in some area and there was little to no due diligence. Those that bought in the wrong areas, either lost their savings or became enslaved to debt.
2) Like all investments areas, there are some evil opportunistic fuckers. It becomes more emotional when you meet the person face to face and shake hands, rather than being decapitated from a computer screen.

>>1035921
Finally someone with some sense.

>>1035919
You might as well tell someone to stop eating a certain type of food.

>>1035924
You hate brown people. You insisted that I was either
A. An Indian
B. A Pakistani
C. A brown person
D. An Albanian
E. An Estonian
F. The guy who blew up on the Chinese tripfag

>>1035927
Never have I uttered a single defamatory word for my red-dot brothers.

>>1035932
But you thought I was brown. If I were, would that be a problem?

>>1035933
As a brown person myself, I can guarantee you, it IS a problem.

>>1035936
Why? You guys are in CS or engineering, not real estate.

>>1035938
Shots fired.

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>>1035939

>>1035940
Chris go to bed already

>>1035839
I can take a 60 hour course online and take a test. Thats like 2 months

Because everyone and their granny knows a realtor. Why would they take a chance with some smarmy newb when they've got a family friend who will give them a 3% discount. If you want to be a realtor expect very little business for the first few years until you can build a client base.

>>1035994
It differs from state to state, dude.

>>1035987
You're not my mom, shut up

lmao a cutthroat thread when OP is asking why its such a cutthroat industry. too funny. no surprise that kid is a fat fuck 12 year old hick.

>>1035867
This. It's well know real estate people sell low to churn commissions

>>1035513
for Realtor's, it's because the barrier to entry is low, and it sounds like a easy get rich quick job.
For investors, it's because all investor business is cutthroat. storys man... low level judge getting beat up, lawyer lies, etc

>>1035829
>>1035830
You are so salty at the guy you're replying to it's ridiculous. Nigga is deflecting your autism like teflon and you just keep getting more and more angry.

You're never gonna make it tbhfam.

>>103643
Gonna be 24 soon. And hick? I thought this was /biz/, not /b/. What's with the name calling?

>>1036500
Then they shouldn't be in the business to be honest with you. If all you care about is your next commission check and not your customer or clients, then you're in the wrong business. Sure, commission checks are great but to sell an undervalued and underpriced home just because it would sell quicker and you'd get a quicker commission is just plain unethical and a dick move.

>>1036531
>salty
>nigga
>autism
>desu
>senpai
Sorry, I don't speak Ebonics. Can you speak in English for me?

>>1036433
Gonna be 24 soon. And hick? I thought this was /biz/, not /b/. What's with the name calling?