I get emails and calls all the time about people wanting advice on how to invest in real estate. People want to be a Real Estate Investor, and do not know where to begin.
It is sort of flattering, like I have some sort of insider knowledge of the markets or what property or type of asset is the best investment today. But I am always willing to share my knowledge. Even more interesting are the investors who say something like, “If you find a property that I can make a quick $50K on, call me. I have the money to invest.”
If I see a property with a $50K potential, it’s mine — and no one else’s if I can help it.
I get people who contact me with things like this. “I have a goal to have 100 rental properties within 10 years. I have $10K to invest now. How should I start?” I admire the goal setting, and I appreciate the fact that someone can think big. Unfortunately, if that is your way to riches in real estate, your bubble will soon be popped.
Do You Have What it Takes?
There are many different ways to invest in real estate. I personally do rentals and have done a flip. I have also sold real estate. All my rentals had to be 100% remodeled after I purchased them, so I know a lot about rehabbing. If you are thinking about any self-managed real estate, you also need to know a bit about rehabbing. Once you can rehab a property, the world of real estate can get very interesting and more financially rewarding.
I have had to fill several vacancies already this year. If you have ever had the opportunity to experience filling rental vacancies, you know it can be challenging. Especially in the Winter.
When you have 25 tenants that you manage, like i do, you will have tenants move out. And some move out in the Winter. When the tenants move out, you need to get a new tenant as soon as possible. Vacancy is your number one avoidable expense as a landlord.
There are a lot of landlord discounts out there. I often talk with homeowners who are doing remodeling on their home. They might be buying Sheetrock, paint, appliances or any other remodeling project. Some of them spend several thousands of dollars on the project and are do it yourself people. They are generally too frugal (i.e. cheap) to hire a contractor at $100 an hour to do the work, so they do it themselves.
When I ask if they are getting their discounts, they give me a deer in the headlight look. They know enough to save money on most everything, but not on a remodeling project.
I was recently featured in a national publication, Money Magazine online. It was a great honor to have an article I wrote featured on the site. Since I write for BiggerPockets, one of my posts was picked up and published on Money.
I have noticed that since I now have national recognition, the paparazzi are continuing to follow me. They seem to disguise themselves as regular people, and act like I am just another person. I am sure they have a secret way of following me all around, as I never notice the same person following when I walk just a little bit away. It must be a secret code they use, similar to a baseball catcher, to switch followers. Now I know how a celebrity feels…
Keep pets, friends, and bad credit from ruining your shot at a nice rental
If you are a renter, you have many obstacles ahead of you. Landlords are full of horror stories, and you are just another potential horror story. You want and need to be the best renter the new landlord has ever seen.
No landlord really wants you, but they need you. They need you to help them pay their rental mortgage; they need you to help them pay their personal mortgage, they need you to help them retire early. But they do not need you to come around and damage the premise or cause them a lot of extra work. Here is how to be the best renter you can possibly be.
Read the rest of the article here
I am a financially independent real estate investor, and always in the market for new investments. The secret to finding great deals is to be observant, understand what you are investing in, and understanding the risks. And a bigger key is to be able to actually get into the deal.
If all your capital is used up, you will have to watch others get into deals. So I have a choice coming, additional investment, or ride off into the sunset with what I have – which is more than enough already.
24 of 25 rents were all collected and deposited in the bank by 2/3/2015. Since I am now 100% full, it was a great month for deposits and rental cash flow. My one late tenant is the same one as I have every month, and she paid on 2/6/2015. It was late, and many landlords would be happy to get their rents by the end of the month, let alone the first Friday of the month.
My typical month goes just like that. If you look at my previous rent collections, you will see that I rarely get any late fees, and I rarely go beyond the second business day of the month to deposit my rents.
How do I do it? I get great tenants to start with.
A while back, when I first started this blog, I had a malware issue. I installed WordFence, and it worked great for a long while.
Just recently, I had another attack. My hosting provider put my site on hold for a while so I could clean up the issues. They also offered a ‘security 911’ option that I could pay for and get ‘out of jail’. They also provided a list of ‘infected’ files that I needed to delete. There were like 120 of them.