These are the 11 things I learned the hard way when I started investing in Real Estate.
1. This is a business
Your tenants are not your friends. Make sure you understand this. At the beginning I had tenants paying month after month late. This spiraled out of control quickly.
2. Deferred maintenance cost more in the long run
Ignoring issues on your property can lead to bigger issues. If it's broke- fix it. Don't wait for the problem to get bigger
3. Communication matters
Don't ignore your tenants. I really do know landlords that do this. Text back, drive by. Show you are vested in them & the property.
4. Curb appeal matters
When I first started out I had tenants take care of lawn. Now I have a contract w a 3rd party. The properties always look nice & I don't have to fight with anyone over the lawn not being done in a timely manner.
5. When buying- drive by the property at night
It can look great during the day, but drive by the property in the evening when everyone is home from work. Don't invest in a property you wouldn't live in.
6. Pay a property manager
I use to try to do it all. Now I pay a manager to take maintenance calls and make sure the trash gets rolled out to the street.
7. Treat your tenants how you want to be treated
Often I don't charge a late fee unless they don't communicate with me or they are late every single month.
8. Your team matters
In the middle of the coldest day of the winter I had 2 furnaces out at the same time. It took 24 hours to get parts replaced. I had a plumber drop off space heaters at both units for me. Building a solid team sets you apart from others.
9. Title company/Lawyer matter
Mid way through I picked a Title company in both states and good lawyer in both states. This makes transactions so much easier when you work with someone you trust.
10. Don't just buy it because it's cheap
Great price - doesn't always mean great deal. Focus on B/ C class neighborhood. When you buy in D class neighborhoods problems come with that. So proceed with extreme caution.
11. Stop listening to your family
Doing business with family is tough. I would have given up this journey I'm on at door 2 if I listed to my mom about buying ugly properties. You are earning money a different way. Not everyone will get that. And that's ok
My name is Tom, and I invest in real estate, and resell products.
I own 20 doors in Texas and Ohio, and I've retired from my 9-5.
