Why Being Too Picky Could Be Your Biggest Real Estate Mistake

In a market where optimism and inaction collide, a new sentiment survey reveals that while 38% of investors expect market conditions to improve, over a third plan to purchase zero properties this year. This paradox is particularly pronounced in Southeast Michigan, where apartment rents continue to climb and buyers consistently outnumber sellers. Larry Gotcher, owner and broker of Resource Realty Group in Ann Arbor, Michigan, has navigated every major cycle since 1991 and identifies excessive selectivity as the single biggest mistake he sees among investors. His advice is direct: “Investors are way too picky about what they’re buying. Purchasing real estate in America is one of the most lucrative things you can do. It’s hard to go wrong, even if you make a mistake, because you get your appreciation back over time.”

Gotcher distinguishes between healthy caution and paralysis. He emphasizes that the investors who build meaningful portfolios are those who close more transactions and win incrementally, rather than waiting for a single home run. “I would rather close more transactions and win a little bit every time. In the end, you’re going to win bigger because you own more property,” he says. He also identifies two questions that signal a buyer who won’t close: asking why the seller is selling, and asking to see the seller’s financials. According to Andrea Gotcher, who handles residential transactions at the firm, these questions focus on irrelevant variables. Instead, investors should focus on what they can produce with their own expertise and management approach.

The one non-negotiable for Gotcher is that properties must cash flow at or above zero after debt service. Breaking even monthly is acceptable, as tax depreciation and long-term appreciation generate returns over time. His core principle is to buy and hold, resisting the temptation to sell during temporary downturns. “Don’t be scared by temporary market conditions that force you to sell,” he advises. “Make sure you hold as long as you can.” Resource Realty Group is a full-service brokerage led by Gotcher, known for high-volume commercial transactions and disciplined deal structuring.