This investment period differs from the mass flipping that occurred during the real estate bubble when everyone was buying, rehabbing, and reselling. This new strategy is to buy and hold. In order to do this you will have to consider being a landlord. If this has no appeal or you do not want to do the research than pass right now or find a property management company that you can work with and expect to pay a fee for their services. Not everyone is cut out for direct involvement and I admit that I made mistakes along the way. It is from this experience that I will be sharing some important lessons and tips that I have learned.
My role in property management was everything from start to finish for 9 residential properties. I did everything except supply the bankroll. This included:
- Property Selection
- Prep for Renting
- Tenant Selection
- Rent Collection
- Monthly reporting to owner of income and expenses
- Tenant Eviction
- And, Sale Preparation.
Ok. I've probably scarred off 95% of the readers. That's probably a good thing because real estate investment, just like everything else is hard work. There is an element of risk. That is absolutely why it is one of the number one ways to make big money over the long term. The market may go up and down, the house may even burn down, but it is the land that remains. Unless of course the river floods but that is a different topic.
I love real estate property investment! There is absolutely nothing much more gratifying than seeing a young couple start their lives together in the cute home that you have carefully picked and they are renting from you until they can buy their own. I am a firm believer in the American dream. I've lived it and loved it and hope that it never dies from the heart of the people. Being able to play in your own back yard and sleep in your own bed at night is the closest it gets to heaven on earth. If lawn mowing is not your thing condos and apartments provide a home with convenience and hopefully a good view.
Investing in residential real estate provides something new everyday. Do you like:
- Looking at houses?
- Comparing prices and crunching the numbers?
- Mowing lawn?
- Meeting new people?
- Are you a handyman (or woman)?
- Finding creative solutions to problems?
- Managing a rehab project?
- Carpet cleaning?
- Dealing with bankers?
- Working with hired people to get a job done by a deadline?
- Watching the market for prices?
Though you don't have to like these things to be successful, you will save you money if you do. The day to day operation includes all these things and more.
Prices are down it is an ideal time to consider if this is a worthwhile time to consider real estate as a long term investment.
Getting these homes back into the portfolios of individual investors as their private residence or investment property will go a long way toward rebuilding the economy.