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In Real Estate Investing You Don't Get Rich Quick Overnight- As Many Learned

in Real Estate Investing you don't get rich quick I have been a landlord since 1996 and for the most part I enjoy it. As in anything else in life, sometimes I run into a snag. Most tenants I have are really good, hard working people. Occasionally one becomes a thorn in my side, but I suppose that goes with the territory.

My broker has been in the business for nearly 50 years and he has owned investment property for all of those years. Thus, our company, M & M Real Estate Inc here in Brevard County Florida deals heavily with clients in helping them buy, sell, rent, own and manage investment property.

Owning rental real estate is not for everyone!

Many people believe that real estate is a get rich quick scheme. I don't believe that! And we have seen the fallacy of that theory when everyone was buying at the peak of the market. Everyone jumped in because they were following the crowd.

I believe that in real estate estate you create wealth over time. You must buy property and hold it. You cannot get rich overnight. Few do. And often the ones that do, get greedy, as we saw over the past several years, and they quickly lose their fortune.

Let me qualify my statement by adding that there are some successful investors and contracting companies that have a crew of workers, that can get in and out of a property, after completing the necessary repairs, and make a profit. Some have the skill and experience to know which properties to look for, which areas to buy in and what repairs can be cost effectively completed. These investors and contractors are professionals and have perfected their system in time. They know the importance of the saying that "Time is money." And some are earning a decent living.

In being a landlord, if you're weak at heart, or if you aren't handy, real estate investing may not be right for you.

If you have a problem with the word "NO" then it definitely is not for you!

I have seen many easy going, happy go lucky people get into the business, thinking it is going to be a piece of cake. They rent to friends and people they know. They let their tenants get further and further behind on their rent. THIS IS A RECIPE FOR DISASTER! And they take tenants in that they feel sorry for! BAD IDEA!

It's not a popularity game, it is a business.

You must be firm and be able to say that enough is enough. Some don't realize that it is a lot of hard work and it can be time consuming, sometimes.

I began purchasing rentals 12 years ago. And I remember people asking my husband, my father and I why we were buying those 'little rental houses.' Today, even with the rollercoaster ride that our real estate market has seen, my properties today are worth 2 to 3 times what I paid for them 8 to 12 years ago.

IN REAL ESTATE INVESTING, YOU DO THE OPPOSITE OF WHAT EVERYONE ELSE IS DOING!

Visit my website at www.SandyShoresMelbourne.com

Posted by Sandy Shores, Melbourne/Palm Bay FL, Brevard County Real Estate & Investing on 10/09/2008 07:44 AM

Comments (14)

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Originally posted at: Melbourne Real Estate News, Brevard County Florida by Sandy Shores Melbourne FL Realtor: In Real Estate Investing You Don't Get Rich Quick Overnight- As Many Learned

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14 Comments on In Real Estate Investing You Don't Get Rich Quick Overnight- As Many Learned

OCT

2008

It is so true that you need the right mix of factors to succeed at either type of real estate investing, and one of the biggest is the right attitude and personality.

Sandy - Any legitimate money making endeavor involves time, expertise, or most often both. As you pointed out, rental homes are definitely a long-term investment.

Hi Sandy,

Great points. I, too, am a landlord and it's not easy, that's for sure. I am inspired to hear your story. I'd love to hear some case studies about how you found your properties and tenants and what else you've learned along the way.

I will object to your point that "you can't get rich quickly" because I know several people who have done it, riding the wave up. However, I also know a lot of people who tried to do it and struggled more than they should have because they didn't know enough about what they were doing and/or weren't in the right area, etc.

It is hard for everyone who tries to make larger amounts of money quickly, but it is very possible for some in the right time, right place, with the right information. The challenge is knowing which of those groups you fall into.

I think this is a great buying opportunity for a lot of people who have been thinking about getting into the market. With all of the uncertainty out there - would you say "blood in the streets?" - those who are willing to buy for a long term hold will find prices lower and more negotiable than they have been for the last several years.

I think there will always be a demand for little rental houses. they are perfect for empty nesters and newly singled persons.

Hi Sandy ... Thanks for the advice. There are good buys out there, but I agree that one has to be prepared for the reality of being a landlord. As a child my family owned an apartment building, and I remember that it was not always easy to deal with tenants or the unexpected maintenance problems.

Hi Suzanne, I agree that you need the right mix of factors to be successful in real estate investing. I think too many have tried to make it look too easy. It's not easy. It's alot of hard work. And it really is not for everyone! Thanks and have a great weekend!

Hi Erik, I agree that any money making endeavor requires time and expertise. I think real estate wealth can be created over time. Where did we get the idea that it is a get rich quick scheme? Crazy and perhaps the reason we are in this mess we're in today. Thanks for your feedback!

Let's hope the dems don't get in the White House. They evidently think there is something wrong with owning more than one real estate property and investing and growing the economy!

Hi Emily, Thanks for the comment. Being a landlord can be tough at times and it truly isn't for everyone!

Hi Rich, I love my little rental houses...more rent per square foot, less taxes and insurance, lower prices, and typically higher rent. They have worked beautifully for me and I hope that they continue to do so! I always love to hear from you - hope you are doing well!

Hi Marie, Owning rentals can get hairy. I only own single family rentals...no multi family. To me those are much more difficult...tenants living in close proximity, rent fixing, one bad apple can topple the apple carts. Multi family rentals are tough, I think. Others do beautifully with them. Thanks and have a great day!

Hi Jeff and Lisa, Thanks for your comment. I appreciate your opinion and you bringing it to light. Take care and have a great weekend!

Sandy, I think that today is the perfect day to buy rental property if it suits you. If it doesn't, no day is the right day to buy rental property. Cash flow is so important. At the top of the real estate bubble, there was no way to cash flow rental property but people were still scrambling to buy them. Now, where are they?

Good instruction for people that will pay attention.

Her Fred, Agreed! There was no cash flow when people were buying at the peak of the market. People were counting on the market continuing on an upward trend...it couldn't continue up forever, the fastest and higher it went it, the quicker and hard it was bound to come down. Rental resl estate is not for everyone! Thanks for the comment and hope things are going well for you!

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