Discover the #1 reason why real estate investors lose money on deals. You’ll learn about a Margin of Safety, a Margin of Error, that will insulate you from how you can avoid the destructive pitfall of losing money.


29 Thoughts to “#1 Reason Why Real Estate Investors Lose Money”

  1. Daniel Lloyd

    I have a real estate horror story I could share – but I don't want to publicly post it.

  2. Damjan Visnjic

    Do you recommend buying an FHA 203K property?

  3. Olivia P

    I'm overly pessimistic. Then again, my "money pit" that I owned for 3.5 years and sold last year (worst deal I've ever done in my life) profited $500/year. Oh goodness, I totally agree with what you're saying around 11 minutes in – I'm not buying right now, because prices in my local area are up 40 to 100% from last year prices.

  4. Duck Trong

    Phil great video.
    I like how you said, "do do. "
    at 15:56

  5. Ryan Taylor

    Hi Phil, I'm crunching some numbers on what could be my first income property – duplex purchase. I'm trying to build in a margin of safety around % estimates for vacancy and maintenance costs – per year. Do you have a suggestion?

  6. Sultan Mecherfieh

    hey phil how can you get a 500,000 dolar homes for 375? is it because they need the money always or do you youse some kind of strategy?

  7. J.T.

    Do recommend investing in mobile/manufactured homes???

  8. R Cooper

    Phil – it would be great if you did a video on redemption rights. The pro's and con's.

  9. Maurice Clark

    Dude u are amazing man. I've never been so motivated in my life!!

  10. Frank Edmiston

    You close on "fewer" deals, not "less" deals.

  11. Haris Salam

    Great video, I can't agree with you more. For an entrepreneur this should be common sense ūüôā I am already following this rule of being pessimistic, and watching this video just reinforce me follow it with deciplin.

  12. Mvuyisi Jezile

    This was very helpful. looking forward to more videos

  13. Madan Anand

    Very Very informative,

  14. Sell a House

    It's funny to me¬†watching all these¬†home rehab shows and¬†how they pour all their money into rehabbing the place and then¬†they barely¬†get more than what they¬†spent¬†when they flip it…¬† I'm always thinking, "Boy did they screw up big time!" I feel like I'm learning from their mistakes!

  15. TheRwhit

    Very very very good advice!

  16. Bo Christman

    phil can you shorten up the videos … too long lol

  17. Flavio Espaillat

    Thanks phil

  18. Adrik Abramian

    Hi Phil I'm a new investor and i wanna know that, is manufactured homes good for first investment? Because you can buy them very cheap and sell them high .thank you 

  19. Brian Russell

    Phil, you're wearing a tie now…why the formal look?

  20. Moses Rottenberg

    Hi Phil. There's a common word. You live & you learn. Means you as you're the guy who love to learn every day more then yesterday. And me learning from your videos sooo much aspacialy on each video one major idea in the business that can help always & as well bunch of small info. Phil you're great. Thanks so much!

  21. MrCaboola

    Phil, you're the man.

  22. BrenttheGreat

    Do you focus more on finding an asking price that is low, or do you feel it is better to throw out a bunch of low ball offers on lots of properties till you find someone desperate?

  23. CaribSurfKing1

    You also have to ask yourself how did I get it for $375k and its worth $600k, I am not that lucky

  24. Jaron Pope

    Great Video!  Love the channel.  

  25. TheKhaosripit

    Do you personally have rental property

  26. Mauricio M

    I was talking about this today to a fellow RE peer about having a RE Investing business. About how in the old days in RE Investing that investors only used one strategy and became Gurus, but now you need to know and have a team to be a very serious RE Investor. We also spoke about not making deals that are not worth doing

  27. UltimateBargains

    Great video.

    The margin of safety also applies to wholesalers. I teach my customers:

    "I suggest that you track the results of your wholesale buyers (customers). You want repeat business from your wholesale buyers and you want to use their success stories to attract more wholesale buyers. If your wholesale buyer fails on a project, then you want to know the cause. If the cause is related to an erroneous calculation on your part, then you must take corrective action in your systems and processes to avoid a repeat failure. I firmly support Caveat Emptor ('buyer beware') and your wholesale buyers are fully responsible for their own due diligence. You want repeat business, so learn from your mistakes and improve your results."

  28. OrwellToday

    love your stuff, Phil!

  29. TT SS

    Great info thanks

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