Tenant Thursday: But I'm Not a Real Estate Investor. Yesterday I met a woman who was interested in selling her investment property. She and her husband purchased this small, multi-family unit in Arbutus many years ago and had been renting it out ever since.
Recently, her husband passed away. She's simply not able to maintain the property and keep on top of the tenant issues any more. She knew that I owned a multi family unit nearby, and contacted me to see if I was interested in purchasing her property.
I asked her how being a Real Estate Investor over the years had benefitted her, and she replied, "Oh, but I'm not a Real Estate Investor!" It made me smile, and I certainly wasn't about to argue with her, but I have news for property owners: if you own a home (real estate) in which you don't reside, and you use that home to make a profit (invest), you are in fact a Real Estate Investor.
I guess people think that to be considered a 'Real Estate Investor', you must own multiple properties, develop subdivisions, flip homes weekly and possibly have the last name of Trump. And while those individuals are also Real Estate Investors, so are you, the single property landlord. I think it's important to keep this distinction in mind, because as you make decisions concerning your property, you have to think of how those decisions will affect your bottom line. When you forget that your property is an investment, and treat it like your own home, you can run into a lot of trouble.
Attention Real Estate Investors: follow this blog. On Thursdays, I frequently post advice about Real Estate Investing. Right now I am doing a series on common Tenant issues, and how to handle them. You can also find more content under the topics of Real Estate Investing, Thursday Q & A, and Tenant Thursday. And you can always contact me if you have a topic you'd like to see covered in the blog.
Photo courtesy of: Eric Rhoads