Most SFH Investors Aren’t Really Making Great Money… Here’s Who Actually Is (And How to Avoid the Sharks)
TL;TR:
Most SFH investors aren’t getting rich, the people around them are. Wholesalers, lenders, contractors, and “mentors” often make more on the deal than the investor taking all the risk. The real money in the SFH space is in selling overhyped deals, inflated loans, and confidence, not results.
How to avoid the sharks:
Run your own comps, repair numbers, and ARVs
Build your own contractor network
Avoid lenders who speak in feelings, not facts
Don’t let anyone make more on your deal than you do
Say “no” fast and without apology
Control the process so nobody can fleece you
Bottom line:
You can make great money in SFH investing, just stop feeding everyone else first.
Let’s just say it out loud:
Most single-family home investors aren’t making the kind of money they think they’re making.
Some are. Sure. A handful of people are actually dialing in their system, running clean budgets, and managing risks like adults.
But most?
Most are out here grinding, flipping, chasing rentals, and walking away with a profit that barely covers the stress, the time away from family, and the occasional HVAC unit that dies at the worst possible moment.
And somehow—somehow—the people around them all seem to be making more money than the actual investor.
Shocking, right?
Because here’s the real truth no one likes to admit:
The BIG bucks in SFH investing isn’t made by the investor.
It’s made by the people patting investors on the back while quietly overcharging them.
The industry is full of “helpers”:
The guy selling the “too good to be true” deals that are somehow never quite as good when you close.
The lender who talks to you like they’re doing you a favor while sliding in fees that would make Wall Street blush.
The contractors who learned their pricing structure from the airlines, random, inflated, and somehow always “urgent.”
The coaches, mentors, and course-pushers who made more selling the dream than ever doing the actual work.
In the SFH space, almost EVERYONE gets paid… except the investor who took the risk, signed the loan, and lost sleep over it.
And I’ve watched people fall into this trap for decades.
Why does this happen?
Because the sharks are smart.
They know:
Investors want to believe the next deal is the deal
New investors fear missing out more than they fear financial ruin
Most people don’t know what due diligence looks like
And almost nobody actually runs the math correctly
That ignorance?
It’s profitable.
Just not for you.
But here’s the good news:
You CAN make real money in SFH investing, you just have to stop feeding the sharks.
Here’s how.
1. Stop trusting “deals” that come pre-packaged
If the deal came from:
A wholesaler
A Facebook group
A “mentor”
An off-market list your buddy bought for $49.99
…you should assume you’re the last person in the chain, and that every person before you already took a bite.
Run your own comps.
Run your own scope.
Run your own ARV.
If you can’t do that, you’re not investing, you’re gambling with confidence.
2. Never accept repair numbers you or your team didn’t produce
Contractors, wholesalers, lenders, they all love giving you repair estimates.
Funny thing?
Those repair estimates evaporate the second you close.
Create your own scope of work.
Walk the property yourself.
Get actual bids from trades you know, not randoms recommended by the wholesaler “who’s great and super reliable.”
You want to stop losing money?
Take control of the construction numbers.
3. Avoid lenders who talk in feelings, not facts
If the lender says things like:
“We can make this work.”
“I’ll see what I can do.”
“This should be approved.”
Run.
Lenders don’t care who you are, they care what you can prove about the deal.
The facts, presented correctly, are your credentials.
Find lenders who talk numbers, ratios, and documents—not vibes.
4. Don’t work with anyone who makes more on your deal than you do
If your “mentor,” wholesaler, or service provider is walking away with more than you are, you’re not investing together.
You’re dessert.
If they can’t succeed unless you bring the deal, the capital, the risk, the loan, and the labor, congratulations, you’ve hired yourself a parasite.
5. Create your own system, not someone else’s funnel
Most of the people selling you systems…
…made their money selling systems.
You make money by:
Knowing your numbers
Running your own due diligence
Building your own contractor network
Structuring deals based on ROI, not hype
When you control the process, nobody can fleece you.
6. Learn to say “No” without apologizing
You’d be shocked how much money investors lose simply because they hate disappointing people.
“No” is your shield.
“No” is how you stay profitable.
“No” is how you starve the sharks.
If someone tries to pressure you, rush you, or guilt you into a deal, you’ve already identified the problem.
The final truth:
You can make great money in SFHs…
But not when you’re the food source.
Stop being the meal.
Become the investor who’s informed, prepared, and not easily impressed by big promises and small numbers.
That’s how you avoid the sharks.
That’s how you keep your profit.
And that’s how you actually build wealth in real estate, without feeding every middleman in the industry.
Ready to get into some blue waters, without the sharks? Let’s talk.