Residential investment properties are a great diversification for the real estate investor’s portfolio.
Long-Term Investing
Long-term investing may not sound as exciting as flipping a house for a fast buck, but it can be very rewarding. There aren’t nearly as many late night infomercials touting this method. However, many times we find that fortunes are not made overnight. Remember the old saying, “Slow and steady wins the race!”
Even though flipping may not be a viable option in the near future, long-term investing in residential rental properties is still alive and kicking!
As a real estate investor, the housing crisis has affected you in many ways. You may need to adapt to the new needs of all the Foreclosed-upon ex-homeowners who have now found themselves in a position of being called “Tenants”.
There are good people wandering around trying to figure out what to do, where to go, with their family and pets. It is very rewarding when you are able to provide a service, at a reasonable price, to someone who really needs it and appreciates it.
Taking a property that has been neglected and is perhaps a little run down and fixing it up to shine again – to be a comfortable home for someone – is such a wonderful feeling!
Buying investment properties is not something that one should just “jump” into. It is a serious commitment, and you need to be as educated on the subject as you can be before signing on the dotted line.
Don’t despair, there really is a method to my madness! You need to understand where we have been to know where we are going! It is imperative to your success as a real estate investor to read as many books as you can on the subject. Even attend a few seminars, if you can. One of the great things about Americans is that we are an opinionated bunch! You will find many different ideas and approaches – which is wonderful! You have to become as informed as you can on your topic and then take several f the ideas that make sense to you, and that you are comfortable with, and put them together and start implementing them.
Once you have made your decision and have chosen your path, go down that path with confidence.
Having confidence, however, doesn’t mean that we operate with blinders on! We must always be aware of the changes that are happening around us. If we are not happy with our results, remember that one definition of insanity is repeating the same actions over and over again, yet expecting different results!
It is also interesting to note that the most successful investors are not arrogant in any way. Your knowledge and experience may just scratch the surface of theirs … but you would never know it! They do not show off. They are very humble and are constantly seeking knowledge by asking about market trends and for advice on rental prices and neighborhoods. They are always looking for new ideas and adventures.
Becoming a landlord is not for the faint of heart! You have to have an entrepreneurial spirit. You have to like people and treat them with respect and show them empathy … yet, you have to be firm and polite so that you get paid. Or, hire a good Property Management Company so you don’t have to deal with it.
You have to remember that you are most likely setting this up as a profitable business and not a charity for the deadbeats!
