There are tons of questions that should be asked before getting into real estate investing.
The first question though is whether or not you’re truly committed to making real estate work for you. This isn’t a business for the faint of heart. It takes dedication, hustle, and business savvy.
If those don’t scare you though, keep reading.
“In order to make bank flipping houses and properties sometimes you have to be ruthless when dealing with buyers and sellers, but ethical to a fault when it comes to the work you have to do in order to get a property sold.”
The reason you need to be committed to making real estate investment work for you is simple: there will be ups and downs along the way. Property values rise and fall over time. This means that even when prices falter, chances are that they’ll eventually recover.
Slow & Steady?
Those who count on slow & steady growth in the property values are called “buy and hold investors.” These are the investors are truly committed to their investment for the log-haul. Some of them choose to hold the property as a vacation property, while others try to earn income on the property by renting it out to other families or vacationers (think AirBNB).
This is an easyway for people to enjoy the luxury of a vacation property without absorbing all of the expenses involved in owning one because the rentals or short term vacationers help compensate some of the costs when the owners/investors aren’t in residence. This is a common practice in popular tourist areas where people enjoy vacationing (like Disneyland, New York, Hollywood, Seattle, etc.).
Those who own rental properties should also be committed to making their investments work for them. Rental properties aren’t a ‘hands off’ investment. They need to be maintained and modernized to remain in demand by tenants. You also have to make constant efforts to keep the properties managed and filled while simultaneously being sure that you’re getting your rent each month and the properties aren’t falling apart or being trashed by tenants.
So what’s an easy way to stay on top of things? Here’s one: hire a property management agency to handle the month-to-month details and collections. This is a huge time (and stress) saver whether you have one lone rental property or a large portfolio of them.
If you keep your rental properties in tip-top shape over the years they can become liquid assets in no time. Basically, they’ll actually pay for themselves a few times over if you invest for the long-term rather than focusing on the moment.
The Bottom line of Real Estate Investment:
No matter what type of real estate investment you’re doing, it’s important that you’re prepared to make the commitment to profit or profitability that is necessary in order for your venture to be deemed a success. As Stephen King said:
“Talent is cheaper than table salt. What separates the talented individual from the successful one is a lot of hard work.”