Why Most Real Estate Investors Lose Money (And How You Won't)

SPEAKER_1 (0:00)

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Najay Barnes (0:39)

We will be back.

Michael Zuber (0:45)

I hate Brandon Turner's words, words that I've used a lot. So people in my universe know that I don't like the guy for reasons we can get into later. But the problem I have with this story is, you know, Brandon Turner had it made, right? He was the name you thought about, not only when you thought about Bigger Podcasts, but frankly, when you thought about buy and hold real estate.

He was that guy. He sat at the tippity top of the mountain. And when you're at the tippity top of the mountain, you're absolutely right. You get a lot of people throwing stuff at you. And one of them is to become a money whore and use your name to send out Instagram posts and raise millions of dollars. You're in Hawaii saying, you work an hour a week or whatever it was. You're saying things like, I would rather lose an accredited investor's money than someone else's. You just almost get arrogant. You're not an operator. You're just a money whore. And then he starts saying dumb shit like he wants to be a billionaire. And then out the other side of his mouth, he's talking about God and wanting to spend more time with his family. I mean, you can't do all of these things, right?

If you're going to go for it, go for it. But don't tell me on one side of your mouth, you're doing this, that, and the other. And then on this other side, use your reputation to take money from people. It's just disingenuous to me. I don't...

Gus (2:21)

All right, guys, thank you for coming back to another episode of Behind The Doors. And let me say this first and foremost, I wanna thank everyone. For subscribing, you know, I go back to this.

I started this about almost six months ago. I had zero subscribers, and I wasn't sure who was gonna subscribe. I wasn't gonna show who was gonna watch. I wasn't sure of anything. Only thing I knew is would I have been I've been. doing my whole life. The more you're consistent at something, the more you're gonna get better, and the ones that are attracted to you are gonna come watch or be part of what you're building. And you guys have been subscribing and watching. And the watch hours has been tremendous. Even when I have newbies on, and they're talking about what's going on with them, you guys are still watching, and I appreciate that. So first and foremost, I need you guys to continue to subscribe.

If you're new to this particular channel, share it with someone. We're gonna have a great discussion today. As you can see, the players on the court, they're ready to go ahead and share their real estate knowledge with us today. I'm gonna let them go ahead and introduce themselves. We'll start off with Najay, Scott, Nick, and then end with you, Zuber. Najay, if you want to go ahead and do a 30-second introduction.

Najay Barnes (3:24)

Yeah. Hey, everybody. Welcome to the show. I'm on Najay Barnes, long-term buy and hold real estate investor out of Houston, Texas. We do single-family and multi-family, and we operate under various operating models, short, mid, and long-term rentals.

Scott Gadea (3:41)

Hey, how's it going, everyone? I'm Scott Gadea. I'm out of California. I'm a long-term buy and hold. I've done the Bird Method. Yeah.

Nick Massey (3:49)

Yeah. I'm Coach Nick Massey, everyday teacher to an everyday millionaire. I've owned 2 million of real estate, sold it, bought Bitcoin, AI. If this was basketball, because I coached basketball for 20 years, I guess I'd be the Magic Johnson. Gus, you're probably Kwame Brown, but that's a whole other story.

Ouch!

Michael Zuber (4:09)

One Rental At A Time is what I'm known for. I've been investing in real estate for almost 30 years, built up a portfolio, replaced 2 six-figure incomes, retired in 18, and now help people do the same thing. So yeah, that's me.

Gus (4:21)

Right. Thank you.

What's big for me, and I say this every episode, is integrity. If you ain't got integrity, we don't want you on the platform. If you're here to stare my audience and have, you know, pull them in and tell them that we could do all this stuff for you. And the next thing you know, you're in their pockets. We don't want you on there. I want to feel safe. When someone resonates with someone, they reach out to them, and you guys are going to point them in the right direction. Also, you know, since Nick want to go ahead and be slick, make sure you invest in real estate, and don't put that money into crypto. Okay. So we're going to go ahead and get started, and we're going to dive into that topic too. I got that for Nick today. So let's go ahead and get started with the first question. When does debt go from being a tool to build wealth to being too much of a risk? Anyone could go ahead and start with that question.