Why Most Investors Fail (And How You Can Avoid It)
How to wipe out your housing payment and build wealth on autopilot
Let’s be real.
Real estate is hard man.
If you’re thinking about investing in real estate because some guy on YouTube said it’s easy money, this newsletter is for you.
Because here’s the reality:
Real estate can absolutely make you wealthy — but it’s not quick, it’s not easy, and it’s definitely not “no money down.”
And if you don’t know how the game works, you’ll bleed cash fast...
So let’s talk about how real estate actually builds wealth — and how to avoid the traps that keep most investors broke and frustrated.
Why Most Investors Blow It
Here’s why so many people crash and burn:
They think real estate is “passive” and don’t do the work.
They chase shiny objects — flips, wholesales, zero-down nonsense.
They ignore their own finances and jump in before they’re ready.
They trust gurus who are better at selling courses than owning properties.
And let’s be real…
Real estate is NOT quick and easy. If that’s what you want, go to a casino or buy a scratch-off.
Real Estate Is Slow, Steady Freedom
Despite all the hype, real estate is one of the three time-tested ways ordinary people build real wealth.
(The other two are stocks and small business ownership.)
Over decades, smart real estate investing can deliver 8-10% annual returns — sometimes more.
But here’s what makes real estate special:
✅ You earn money multiple ways — cash flow, equity growth, tax benefits.
✅ You can leverage OPM (Other People’s Money).
✅ You’re buying future income streams, not just bricks and mortar.
Done right, real estate can help you:
✅ Quit jobs you hate.
✅ Control your time.
✅ Build generational wealth.
But you have to respect the game.
Here are 22 lessons I put together from interviewing the top minds in real estate investing in the last 4 weeks:
1. Real estate is a proven way to build wealth. Rental properties bring income, tax breaks, and equity over time.
2. Rentals aren't for everyone. Ask yourself if you can handle tenants, repairs, and unexpected chaos.
3. Get your finances sorted before buying. Save money, keep debt in check, and budget for surprises.
4. Protect your credit. Bad credit makes borrowing expensive, no matter what anyone says.
5. Your first home can be your first investment. Live in it, then rent it out or sell for profit.
6. Stick to residential properties at first. They're simpler to buy, understand, and manage.
7. Small multifamily buildings and single-family homes are smart starting points. Attached housing holds value in established urban areas.
8. Build your team before you shop for deals. Moving fast and having trusted people around can save you from rookie mistakes.
9. Invest in places where growth is headed. New development usually means rising values.
10. Forget zero-down hype. Good deals still require cash.
11. Putting down 20 to 25 percent often gets you the best financing. It also keeps payments safe if rents drop.
12. Bigger deals come with more complexity. They need more cash and scrutiny, but they can pay off with better returns and simpler management at scale.
13. Test the waters with REITs or lease options. REITs give you real estate exposure without the hassle, and lease options let you try before buying.
14. Location matters, but so does value. Find properties in good spots or neglected ones in solid areas where you can unlock hidden equity.
15. Buy close to home. One to two hours away at most. Anything farther is a headache to manage.
16. Study the local economy. Weak economies drag down real estate returns.
17. When you buy real estate, you're really buying future income. What you pay and the cash flow you get makes or breaks the deal.
18. Never trust the seller’s numbers alone. Sellers fudge figures. Run your own analysis and check everything with your team.
19. Flipping can work, but taxes eat into profits. And markets don’t always stay hot.
20. Be wary of gurus selling easy riches. They're often making money off you, not real estate.
21. Real estate isn’t quick cash. It’s for people willing to play the long game.
22. Know your numbers, especially Net Operating Income. Project it forward, plan ways to raise income or cut costs, and lean on tech to speed up the math.
Real estate isn’t easy—but it can work if you work it. Let’s build your plan together.
Schedule a quick call and I’ll walk you through what you qualify for.
No pressure.
Hope that helps.
-Ben Stef | Mortgage Advisor NMLS# 2018674