Real estate investing does not have to be complicated!

Real estate investing does not have to be complicated

Do you know what is the hardest deal to ever do in real estate?

Your first one!

The challenge is that most people will quit before ever getting their first deal.

I also feel that there is sooooooo much information available in the marketplace that even getting started is almost as challenging as getting your first deal!

I think one of the reasons for this is there are so many ways to invest in real estate!

Do I buy No Money Down?

Do I invest in Foreclosures or Pre-foreclosures?

Do I invest in “Fixer Uppers?”

Do I do “Flips”?

Do I adopt a “Buy and Hold?”

Do I Lease-Purchase or Lease option?

Do I buy “Subject to” the existing financing?

Do I buy Single-family homes? Condos? Mobile Homes? Apartment buildings?

You get the idea! There are so many ways to invest in real estate today!

Ok, let’s say you’re lucky to pick one way to invest in real estate, let’s say Foreclosures.

There seems to be a hundred ways to do a foreclosure deal!

Now, in addition to finding your first foreclosure deal, you then have to figure out which of the hundred ways to do that deal!

I still wince in pain whenever I see a real estate program that has anywhere from 12 to 36 CD’s or audio tapes!

Who really has the time to go through all of that information?

And even if you make time, can you say, “Information OVERLOAD”?

We always said that we did not want to learn 100 ways to do a real estate deal but one simple, proven way that would take us to the bank!

When we wrote “Buy With No Credit–How to Make Money This Month in Real Estate” it was with the belief that people would appreciate a course that simply “cut to the chase” and taught one simple method (no credit checks and $1-10.00 down) to invest in real estate.

Something so simple that anyone could read it in a day and begin contacting homeowners the very same night!

We appreciate people that do not “Mickey Mouse” around and are direct and to the point!

So our strongest recommendation is to find one way to invest in real estate and then pay the price and really learn that one method.

Vickie and I recently went to our first “bootcamp” (yes we believe in continuing education)

During this 3 day event, there were 7 “guest speakers” and these speakers all had an upcoming “boot camp” they were promoting. The thing that blew us away was all the people who signed up for those additional “bootcamps”.

We saw some folks that signed up for every one!

I wanted to scream out, “What about the information that was being presented this weekend?!”

When would these people ever have time to implement the strategies they were learning that weekend?

The reality is that most people would rather write a check then to take action!

So the only action they have in a year is going from Bootcamp to Bootcamp, a massive credit card bill, and to officially be a “jack of all trades” in real estate!

Do not try to be a “jack of all trades” in real estate!

Jacks of all trades in real estate never make the money that the specialist will!

Let me ask you a question: Who makes the most money in the health field? Is it the General Practitioner (Family doctor) or the Specialist?

The Specialist, of course!

Choose this day to become a specialist in one area in real estate and then apply yourself to becoming a Specialist in that one method!

Once you have mastered that one method, then and only then, you can diversify and learn another method.

A word of warning:

When choosing a course or training program on any real estate method, do not confuse the price of the program with the value of the program.

Just because a program is a lot of money does not mean that it has more value than a less expensive program.

Case in point: One of our students spent $12,000 with a “real estate mentor” and was frustrated because it was like he was spinning his wheels.

He ordered our course for the special price of $97 and within 4 weeks was closing deals on his first 2 properties!

Remember this and remember it well… The value a real estate course or training program has nothing to do with the price!

Just because it is expensive does not make it automatically better than a more affordable course.

The value is only determined by the impact the course or training program has on that person!

This is absolutely critical!

Truly caring for your success! TC and Vickie Bradley http://www.tcandvickiebradley.com

About the Author

TC and Vickie Bradley are authors of the #1 best selling course “Buy With No Credit, How to make money this month in Real Estate”.

It has maintained a #1 ranking in Real Estate at one of the Internet’s most trusted and respected web sites since it was released in April of 2003.

This dynamic and caring couple has a passion to assist others in walking into the greatness that is already within them!

Real estate investing does not have to be complicated!

Real estate investing does not have to be complicated

Do you know what is the hardest deal to ever do in real estate?

Your first one!

The challenge is that most people will quit before ever getting their first deal.

I also feel that there is sooooooo much information available in the marketplace that even getting started is almost as challenging as getting your first deal!

I think one of the reasons for this is there are so many ways to invest in real estate!

Do I buy No Money Down?

Do I invest in Foreclosures or Pre-foreclosures?

Do I invest in “Fixer Uppers?”

Do I do “Flips”?

Do I adopt a “Buy and Hold?”

Do I Lease-Purchase or Lease option?

Do I buy “Subject to” the existing financing?

Do I buy Single-family homes? Condos? Mobile Homes? Apartment buildings?

You get the idea! There are so many ways to invest in real estate today!

Ok, let’s say you’re lucky to pick one way to invest in real estate, let’s say Foreclosures.

There seems to be a hundred ways to do a foreclosure deal!

Now, in addition to finding your first foreclosure deal, you then have to figure out which of the hundred ways to do that deal!

I still wince in pain whenever I see a real estate program that has anywhere from 12 to 36 CD’s or audio tapes!

Who really has the time to go through all of that information?

And even if you make time, can you say, “Information OVERLOAD”?

We always said that we did not want to learn 100 ways to do a real estate deal but one simple, proven way that would take us to the bank!

When we wrote “Buy With No Credit–How to Make Money This Month in Real Estate” it was with the belief that people would appreciate a course that simply “cut to the chase” and taught one simple method (no credit checks and $1-10.00 down) to invest in real estate.

Something so simple that anyone could read it in a day and begin contacting homeowners the very same night!

We appreciate people that do not “Mickey Mouse” around and are direct and to the point!

So our strongest recommendation is to find one way to invest in real estate and then pay the price and really learn that one method.

Vickie and I recently went to our first “bootcamp” (yes we believe in continuing education)

During this 3 day event, there were 7 “guest speakers” and these speakers all had an upcoming “boot camp” they were promoting. The thing that blew us away was all the people who signed up for those additional “bootcamps”.

We saw some folks that signed up for every one!

I wanted to scream out, “What about the information that was being presented this weekend?!”

When would these people ever have time to implement the strategies they were learning that weekend?

The reality is that most people would rather write a check then to take action!

So the only action they have in a year is going from Bootcamp to Bootcamp, a massive credit card bill, and to officially be a “jack of all trades” in real estate!

Do not try to be a “jack of all trades” in real estate!

Jacks of all trades in real estate never make the money that the specialist will!

Let me ask you a question: Who makes the most money in the health field? Is it the General Practitioner (Family doctor) or the Specialist?

The Specialist, of course!

Choose this day to become a specialist in one area in real estate and then apply yourself to becoming a Specialist in that one method!

Once you have mastered that one method, then and only then, you can diversify and learn another method.

A word of warning:

When choosing a course or training program on any real estate method, do not confuse the price of the program with the value of the program.

Just because a program is a lot of money does not mean that it has more value than a less expensive program.

Case in point: One of our students spent $12,000 with a “real estate mentor” and was frustrated because it was like he was spinning his wheels.

He ordered our course for the special price of $97 and within 4 weeks was closing deals on his first 2 properties!

Remember this and remember it well… The value a real estate course or training program has nothing to do with the price!

Just because it is expensive does not make it automatically better than a more affordable course.

The value is only determined by the impact the course or training program has on that person!

This is absolutely critical!

Truly caring for your success! TC and Vickie Bradley http://www.tcandvickiebradley.com

About the Author

TC and Vickie Bradley are authors of the #1 best selling course “Buy With No Credit, How to make money this month in Real Estate”.

It has maintained a #1 ranking in Real Estate at one of the Internet’s most trusted and respected web sites since it was released in April of 2003.

This dynamic and caring couple has a passion to assist others in walking into the greatness that is already within them!

Keeping Real Estate Investing Simple

In real estate investment, do you know what the hardest deal to close out is?

The first one!

The challenge is such that most people eventually quit even before ever getting their first deal completed; in fact some would be real estate investors quit even before getting started!

With the glut in available information and the numerous real estate investment options available, getting started is as challenging as getting your very first deal!

Consider some of options that you can choose from if you want to invest in real estate.

Buy and Hold

Commercial space rental

Subject to the existing financing

Fixer Uppers

Flips

Foreclosures or Pre-foreclosures

Lease-Purchase or Lease

No Money Down

Single-family homes, condos, mobile homes or apartment buildings

Confusion arises when you are undecided which of the profitable and popular options as enumerated above you want to engage in.

Unless you are a very liquid and well-financed organization, you can engage in all of them. However, for ordinary investors, engaging in one or two investment options at the most is the preferred method.

If you are lucky enough to make up your mind in which real estate option you want to engage in, the next step is then to systematically search for and close your very first deal.

Again, there are several options open to you on how to close your deal and get to the bank in order to deposit the check of your deal.

The best way to invest in real estate is to find the option you are comfortable with and specialize in it! Learn everything all you can about your particular investment option.

If you have to, take informal courses related to it so that you will become knowledgeable and on the road to becoming a specialist!

Once you have mastered your specialization, take the necessary action in order to get and close your very first deal.

Then and only then, and only if you are serious in making money in real estate can you diversify and learn another real estate investment method.

In learning the ropes of real estate investing, either you choose to undergo a training course or do it on your own.

If you choose to take formal lessons, do not confuse the price of the program with the value of the program.

The cost of a training program is not related to the value it has and the methodologies and techniques you will learn.

About the Author:

Download A Free Ebook That Shows You How You Can Make $50,000 Per Deal From Real Estate Preconstruction: Free Preconstruction Ebook

How Does Real Estate Investing Work

A question often raised by brand new real estate investors, and those who would like to be, is ?How does real estate investing work?? I will attempt to provide you with a brief overview in this article, and hopefully you will have a better understanding of real estate investing and how you might become involved.

First of all, when answering the question, ?How does real estate investing work?? it?s important to begin by stating that there are almost as many different types of investing as there are investors.

You could become involved in commercial real estate investing. This would include many different kinds of property and types of investing, from strip malls to mobile home parks, from malls to apartment complexes. You could buy commercial property at bargain prices, and sell for immediate gain, or you could buy income property and hold for the long term. You could also combine the two, and realize income from both the increase in value and the month-to-month rent. Commercial property is an important consideration when answering the question, ?How does real estate investing work??

You could also get involved in any of a number of different strategies involving residential property, from single family homes, duplexes, small apartment houses, even mobile homes. When it comes to answering the question, ?How does real estate investing work?? the possibilities are limited only by your imagination.

If you?re the type of person who enjoys projects, you might enjoy buying ?fixer-uppers? and rehabbing them. You could become a wholesaler or a bird-dog and find deals for other, more experienced investors, some of whom have already worked out the answer to the question, ?How does real estate investing work??

Maybe you like helping people? If so, working with buyers and sellers to solve their credit or payment problems will provide you with ample opportunity to profit from their dilemmas. You could also negotiate directly with the mortgage lender to buy houses, either in foreclosure or ?short sale? investing. A little investigation of these terms will give you a clearer picture of the answer to the question, ?How does real estate investing work??

Alternatively, you may have money to invest, but little or no time. You may find that investing as part of a group, or ?trust? is a good fit for you. These trusts can be very lucrative, and a good option for the less hands-on investor. Even very busy professionals find REIT?s (Real Estate Investment Trusts) a good choice when deciding for themselves, ?How does real estate investing work??

Hopefully, you?re curiosity has been piqued by this brief introduction to the question, ?How does real estate investing work??

Now, go make more offers!

Real estate investing does not have to be complicated!

Real estate investing does not have to be complicated

Do you know what is the hardest deal to ever do in real estate?

Your first one!

The challenge is that most people will quit before ever getting their first deal.

I also feel that there is sooooooo much information available in the marketplace that even getting started is almost as challenging as getting your first deal!

I think one of the reasons for this is there are so many ways to invest in real estate!

Do I buy No Money Down?

Do I invest in Foreclosures or Pre-foreclosures?

Do I invest in “Fixer Uppers?”

Do I do “Flips”?

Do I adopt a “Buy and Hold?”

Do I Lease-Purchase or Lease option?

Do I buy “Subject to” the existing financing?

Do I buy Single-family homes? Condos? Mobile Homes? Apartment buildings?

You get the idea! There are so many ways to invest in real estate today!

Ok, let’s say you’re lucky to pick one way to invest in real estate, let’s say Foreclosures.

There seems to be a hundred ways to do a foreclosure deal!

Now, in addition to finding your first foreclosure deal, you then have to figure out which of the hundred ways to do that deal!

I still wince in pain whenever I see a real estate program that has anywhere from 12 to 36 CD’s or audio tapes!

Who really has the time to go through all of that information?

And even if you make time, can you say, “Information OVERLOAD”?

We always said that we did not want to learn 100 ways to do a real estate deal but one simple, proven way that would take us to the bank!

When we wrote “Buy With No Credit–How to Make Money This Month in Real Estate” it was with the belief that people would appreciate a course that simply “cut to the chase” and taught one simple method (no credit checks and $1-10.00 down) to invest in real estate.

Something so simple that anyone could read it in a day and begin contacting homeowners the very same night!

We appreciate people that do not “Mickey Mouse” around and are direct and to the point!

So our strongest recommendation is to find one way to invest in real estate and then pay the price and really learn that one method.

Vickie and I recently went to our first “bootcamp” (yes we believe in continuing education)

During this 3 day event, there were 7 “guest speakers” and these speakers all had an upcoming “boot camp” they were promoting. The thing that blew us away was all the people who signed up for those additional “bootcamps”.

We saw some folks that signed up for every one!

I wanted to scream out, “What about the information that was being presented this weekend?!”

When would these people ever have time to implement the strategies they were learning that weekend?

The reality is that most people would rather write a check then to take action!

So the only action they have in a year is going from Bootcamp to Bootcamp, a massive credit card bill, and to officially be a “jack of all trades” in real estate!

Do not try to be a “jack of all trades” in real estate!

Jacks of all trades in real estate never make the money that the specialist will!

Let me ask you a question: Who makes the most money in the health field? Is it the General Practitioner (Family doctor) or the Specialist?

The Specialist, of course!

Choose this day to become a specialist in one area in real estate and then apply yourself to becoming a Specialist in that one method!

Once you have mastered that one method, then and only then, you can diversify and learn another method.

A word of warning:

When choosing a course or training program on any real estate method, do not confuse the price of the program with the value of the program.

Just because a program is a lot of money does not mean that it has more value than a less expensive program.

Case in point: One of our students spent $12,000 with a “real estate mentor” and was frustrated because it was like he was spinning his wheels.

He ordered our course for the special price of $97 and within 4 weeks was closing deals on his first 2 properties!

Remember this and remember it well… The value a real estate course or training program has nothing to do with the price!

Just because it is expensive does not make it automatically better than a more affordable course.

The value is only determined by the impact the course or training program has on that person!

This is absolutely critical!

Truly caring for your success! TC and Vickie Bradley http://www.tcandvickiebradley.com

About the Author

TC and Vickie Bradley are authors of the #1 best selling course “Buy With No Credit, How to make money this month in Real Estate”.

It has maintained a #1 ranking in Real Estate at one of the Internet’s most trusted and respected web sites since it was released in April of 2003.

This dynamic and caring couple has a passion to assist others in walking into the greatness that is already within them!

Socially Responsible Real Estate Investing

There are many ways to practice socially responsible real estate investing. In this article I will outline what I believe to be the best way to invest in real estate in a socially responsible manner.

I run into all kinds of people, many of whom are less than charitable when they find out I own rental property, and that I also flip houses and mobile homes. I frequently find myself disagreeing with those same people about just what socially responsible real estate investing means. For some strange reason, many people are predisposed to look down on those who engage in such capitalistic endeavors. Often, these are the same people who take advantage one or more of the many government programs that my tax dollars support.

Here?s what I mean when I talk about socially responsible real estate investing.

I am a man of my word, so when I say I?m going to do something, I make every effort to do it. This applies to offers I make on properties, promises I make to tenants, and agreements I make with contractors and service providers. In my mind, there is no more powerful way to engage in socially responsible real estate investing.

Being a landlord and property investor makes me a productive member of my local economic community. I strongly support and add to the tax base, and help provide a healthy living to several Realtors, contractors, and service providers. I also bank locally, and contribute to my local Real Estate Investor club. These are all great ways to pursue socially responsible real estate investing.

In addition, I provide clean, safe, affordable housing to several tenants, including children and senior citizens. I also provide housing to those in the lower income brackets through HUD?s Housing Choice Voucher Program, also known as Section 8. Providing this type of housing is another powerful way to practice socially responsible real estate investing.

There are those who believe that in order to practice socially responsible real estate investing, one needs to provide free housing to the deserving poor. I do not agree with that assessment. The Bible says, ?The laborer is worthy of his hire,? and certainly that applies to property owners. I commend those who choose to be charitable, but I do not believe it should be legislated. It needs to come from the heart, and be supported by a consistent practice of sound business principles.

That attitude, and the underlying economic practices, are reasons why the United States of America has been, and continues to be, the most charitable nation on the face of the earth. Practicing socially responsible real estate investing isn?t the result of some feel good nonsense, but rather the application of wise investing habits and moral consistency.

Now, go make more offers!

Real Estate Investing Course - Help Yourself

There are many late night advertisements that offer real estate investing course for you. However, before you order any of these, you have to ascertain whether they have the required information that you wish to learn. Still, it does not imply that any of these courses have irrelevant information but the key thing to consider here that whether it serves your purpose or not. This is because different people have diverse types of style of working and the way of earning in real estate suits for one may not be as effective for another one.

What Interests You?

Luckily, there are so many variations that are based on the several methods of making money in real estate. You should choose a real estate investing course that can teach you the way that best suits you. For example, if you have interest in commercial property then this could be the area where you should focus. On the contrary, chances of success are less likely if you enter in the field of mobile homes where you have no interest at all.

Even after the availability of so many variations, what should you do if you feel that you are not getting the type of real estate investing course that you are looking for? Maybe this is the moment when you should think of devising your own course so that you can succeed in your objective of making money in real estate. To begin with, you should go to a good book store where you can find some books describing the different methods of building fortune in this business.

How Books Can Help You?

Glance through these books, try to understand and write down whatever appeals you. You can learn that investing in the fixer uppers earning money quickly. This is an imaginative style of investing. Nevertheless, you should be equipped with the necessary tools to manage the uncertainties and the risk factor associated with it. Unforeseen surprises and continuing decision-making is always linked with this type of real estate investing.

On the other hand, if you are good at dealing with the talents you can go for rental homes. This is a harmless to begin with when the Residual Income cash flow is there and you have performed your homework well. However, this is not as exciting as other options and you may have to wait longer for big returns. There are many other options that you can find in these books so, choose whatever kind of method suits you best.

Now, it is the time to formulate your own real estate investing course. You have three different sources for gathering facts and information about the type of investing you have chosen for you. You can categorize them as books, people and other resources. Dig up all the books that are relevant, from a bookstore, internet or a library. Then talk to the people who are experienced in the area you are venturing.

Finally, under the other resources category you can collect information from the seminars, tapes and Internet forums.

Socially Responsible Real Estate Investing

There are many ways to practice socially responsible real estate investing. In this article I will outline what I believe to be the best way to invest in real estate in a socially responsible manner.

I run into all kinds of people, many of whom are less than charitable when they find out I own rental property, and that I also flip houses and mobile homes. I frequently find myself disagreeing with those same people about just what socially responsible real estate investing means. For some strange reason, many people are predisposed to look down on those who engage in such capitalistic endeavors. Often, these are the same people who take advantage one or more of the many government programs that my tax dollars support.

Here?s what I mean when I talk about socially responsible real estate investing.

I am a man of my word, so when I say I?m going to do something, I make every effort to do it. This applies to offers I make on properties, promises I make to tenants, and agreements I make with contractors and service providers. In my mind, there is no more powerful way to engage in socially responsible real estate investing.

Being a landlord and property investor makes me a productive member of my local economic community. I strongly support and add to the tax base, and help provide a healthy living to several Realtors, contractors, and service providers. I also bank locally, and contribute to my local Real Estate Investor club. These are all great ways to pursue socially responsible real estate investing.

In addition, I provide clean, safe, affordable housing to several tenants, including children and senior citizens. I also provide housing to those in the lower income brackets through HUD?s Housing Choice Voucher Program, also known as Section 8. Providing this type of housing is another powerful way to practice socially responsible real estate investing.

There are those who believe that in order to practice socially responsible real estate investing, one needs to provide free housing to the deserving poor. I do not agree with that assessment. The Bible says, ?The laborer is worthy of his hire,? and certainly that applies to property owners. I commend those who choose to be charitable, but I do not believe it should be legislated. It needs to come from the heart, and be supported by a consistent practice of sound business principles.

That attitude, and the underlying economic practices, are reasons why the United States of America has been, and continues to be, the most charitable nation on the face of the earth. Practicing socially responsible real estate investing isn?t the result of some feel good nonsense, but rather the application of wise investing habits and moral consistency.

Now, go make more offers!

Real Estate Investing - Are You Landlord Or Investor?

When I first started buying real estate, I made a conscious decision to avoid rentals because I had no interest in being a landlord. Like you, I heard all the horror stories of nightmare tenants, late night plumbing problems, lead paint hassles, and evictions. I wasn’t interested in putting a lot of time and effort into screening tenants, dealing with vacancy and repair, and going to court.

In fact, the very first book I bought on real estate was Lonnie Scruggs’ Deals On Wheels, a brilliant treatment of mobile home investing, and a more dedicated "anti-landlord" than Lonnie has never been born. The entire concept of buying and selling mobile homes, as developed by Lonnie, evolved as an answer to his "tired landlord" syndrome.

After reading Lonnie’s book, and others like it, my mind was more set than ever- I would never buy rental property. I would never have a tenant. I would NEVER, EVER be a landlord.

My how times change. Based on the knowledge I have gathered over the last several years as a real estate investor, and conversations with hundreds of experienced investors, I now know that it’s not what you do, but how you do it, that determines the level of frustration you experience with ANY type of investing, rental or otherwise.

In short, it’s the position you choose.

Choose A Position Of Strength

You can be a landlord if you want. I choose to be an investor.

Landlords do many things that investors don’t, unless they choose to. Let’s compare:

Landlords put up "For Rent" signs, place newspaper ads, and hold open houses and showings. Landlords deal face to face with tenants, screen them, and do background checks. Landlords tell tenants they’re approved (or not), explain the rules to tenants, and sign leases with them. Landlords collect deposits and rents.

Investors hire professional property managers.

Landlords take tenant phone calls when there are problems, no matter what time it is. Landlords tell tenants their rent is late, assess late charges, and enforce rules. Landlords apologize to neighbors for unruly tenants, cut grass, and plow snow. Landlords fix appliances and leaking toilets.

Investors hire professional property managers.

Landlords apologize to tenants for problems, fill vacancies, and inform tenants they are not getting their deposit back because of damage done. Landlords evict tenants and go to court with them. Landlords do many, many other things I don’t want to do.

What about investors? Let’s see.

Investors hire a professional property manager to handle all of the things that landlords do themselves. Which is easier, more cost effective, and a more efficient use of your limited time? If you answered, "Hiring a professional property manager," you’re right!

A quality property manager is worth every dollar you pay them. They will make sure that your units are rented to the right tenants, that the property is well cared for, and the tenants are happy. They will fill vacancies and answer trouble calls. They will deal with repairs and evictions. They will handle the bookkeeping, collection of rents, and assessing of late charges. They will form a buffer between you and the headaches of running a rental property. They are experts at all of these things, and much more.

You will get a check at the end of each month.

Get the picture?

It seems so simple, right? Why does it take some investors, including me, so long to see the difference?

Change The Way You See Yourself

It’s all in how you view yourself. When you see yourself as a landlord, you fail to recognize that your time is better spent doing what puts money in your bank account- namely, finding and acquiring property that meets your investing criteria. Unless you are a plumber by trade, or a professional property manager, or landscaper, wouldn’t your time be better spent doing what you have learned to do so well- investing in real estate?

Does that mean that if property management is something you love to do, something you aspire to, you shouldn’t do it? Of course not. If you have a passion for managing your own properties, and you like the idea of being a landlord (with all that entails), by all means go for it. I’m not trying to change what you love- I want you to see that you have a choice.

Maybe you’re like me. I had to teach myself to think differently about who I am- to think like an investor, not a landlord. When you begin to think like an investor, you start approaching real estate like a business rather than a hobby. You realize that you don’t have to do everything yourself just to save money. You come to understand that doing everything yourself is most likely costing you money- maybe a ton of money.

To repeat, the two keys are:

1. Learn to see yourself as an investor.

2. Learn to think like an investor.

Are your strengths really in the areas of landlording I listed above? If so, fine. Keep doing what you’re doing. But if, as I imagine, you are better suited to finding deals and bringing them to the closing table, then hire a pro to manage the properties you decide to hold and rent. Play to your strengths- you will multiply your time and your business will grow like a thoroughbred racehorse bursting from the gate.

Now, go make more offers!

Real Estate Investing - Are You Landlord Or Investor?

When I first started buying real estate, I made a conscious decision to avoid rentals because I had no interest in being a landlord. Like you, I heard all the horror stories of nightmare tenants, late night plumbing problems, lead paint hassles, and evictions. I wasn’t interested in putting a lot of time and effort into screening tenants, dealing with vacancy and repair, and going to court.

In fact, the very first book I bought on real estate was Lonnie Scruggs’ Deals On Wheels, a brilliant treatment of mobile home investing, and a more dedicated "anti-landlord" than Lonnie has never been born. The entire concept of buying and selling mobile homes, as developed by Lonnie, evolved as an answer to his "tired landlord" syndrome.

After reading Lonnie’s book, and others like it, my mind was more set than ever- I would never buy rental property. I would never have a tenant. I would NEVER, EVER be a landlord.

My how times change. Based on the knowledge I have gathered over the last several years as a real estate investor, and conversations with hundreds of experienced investors, I now know that it’s not what you do, but how you do it, that determines the level of frustration you experience with ANY type of investing, rental or otherwise.

In short, it’s the position you choose.

Choose A Position Of Strength

You can be a landlord if you want. I choose to be an investor.

Landlords do many things that investors don’t, unless they choose to. Let’s compare:

Landlords put up "For Rent" signs, place newspaper ads, and hold open houses and showings. Landlords deal face to face with tenants, screen them, and do background checks. Landlords tell tenants they’re approved (or not), explain the rules to tenants, and sign leases with them. Landlords collect deposits and rents.

Investors hire professional property managers.

Landlords take tenant phone calls when there are problems, no matter what time it is. Landlords tell tenants their rent is late, assess late charges, and enforce rules. Landlords apologize to neighbors for unruly tenants, cut grass, and plow snow. Landlords fix appliances and leaking toilets.

Investors hire professional property managers.

Landlords apologize to tenants for problems, fill vacancies, and inform tenants they are not getting their deposit back because of damage done. Landlords evict tenants and go to court with them. Landlords do many, many other things I don’t want to do.

What about investors? Let’s see.

Investors hire a professional property manager to handle all of the things that landlords do themselves. Which is easier, more cost effective, and a more efficient use of your limited time? If you answered, "Hiring a professional property manager," you’re right!

A quality property manager is worth every dollar you pay them. They will make sure that your units are rented to the right tenants, that the property is well cared for, and the tenants are happy. They will fill vacancies and answer trouble calls. They will deal with repairs and evictions. They will handle the bookkeeping, collection of rents, and assessing of late charges. They will form a buffer between you and the headaches of running a rental property. They are experts at all of these things, and much more.

You will get a check at the end of each month.

Get the picture?

It seems so simple, right? Why does it take some investors, including me, so long to see the difference?

Change The Way You See Yourself

It’s all in how you view yourself. When you see yourself as a landlord, you fail to recognize that your time is better spent doing what puts money in your bank account- namely, finding and acquiring property that meets your investing criteria. Unless you are a plumber by trade, or a professional property manager, or landscaper, wouldn’t your time be better spent doing what you have learned to do so well- investing in real estate?

Does that mean that if property management is something you love to do, something you aspire to, you shouldn’t do it? Of course not. If you have a passion for managing your own properties, and you like the idea of being a landlord (with all that entails), by all means go for it. I’m not trying to change what you love- I want you to see that you have a choice.

Maybe you’re like me. I had to teach myself to think differently about who I am- to think like an investor, not a landlord. When you begin to think like an investor, you start approaching real estate like a business rather than a hobby. You realize that you don’t have to do everything yourself just to save money. You come to understand that doing everything yourself is most likely costing you money- maybe a ton of money.

To repeat, the two keys are:

1. Learn to see yourself as an investor.

2. Learn to think like an investor.

Are your strengths really in the areas of landlording I listed above? If so, fine. Keep doing what you’re doing. But if, as I imagine, you are better suited to finding deals and bringing them to the closing table, then hire a pro to manage the properties you decide to hold and rent. Play to your strengths- you will multiply your time and your business will grow like a thoroughbred racehorse bursting from the gate.

Now, go make more offers!

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