Hello? Mr Investor? Can you hear me?

By
Managing Real Estate Broker with Full Circle Property Management

I hate to use the "I told you so" or throw out my over 30  years of property management and real estate experience, but seriously? Are you listening at all? 

 

So many times people buy a home or get the idea to invest in real estate to make money because they see it on TV or read it in a magazine and want to get rich. Can you? Absolutely! But if you have never done this before, listen for just a few minutes:

 

  1. Ask my advice before you buy your house! It could sound great as some other investor off-loads his headache on you. Bad area, bad tenants, deferred maintenance-its all now yours.
  2. Got money? If buying takes all your funds and now you need the tenants money to make your payment this is going to go badly. You need a minimum of 4 months rent in the bank as a cushion.
  3. Cheap is cheap! Yes I use good vendors, and yes you can find a guy with a truck who will work for less, but if the work is substandard and has to be done 3 times that will cut into profits!
  4. Breathing is not a qualifying parameter for a tenant. Let me advise you or you will get a bad tenant. Tips? Anyone who has recent evictions or needs to move in this week is a bad risk.

There are a lot of other tips I can help you with, but are you listening?

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 02/10/2017 11:50 PM
Topic:
Real Estate Best Practices
Groups:
Property Management

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Ambassador
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Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

What? I need money reserves when I purchase real estate. The tenant will pay the rent which will cover my mortgage.

Jan 29, 2017 05:31 AM #1
Rainmaker
2,965,480
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Dennis and really well done. I love your focus and your truth. So true.

Jan 29, 2017 06:56 AM #2
Rainmaker
4,198,877
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Dennis.  Very well written advice that all want to be investors should pat attention to.

Jan 30, 2017 05:29 AM #3
Rainmaker
1,861,774
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

The way it works... you share it, but they don't always drink from that well of knowledge Dennis Swartz !

Feb 01, 2017 03:38 AM #4
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I like your tips here Dennis. A good tenant does more than just breathe. That made me smile.

Feb 19, 2017 05:40 AM #5
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Dennis Swartz

ABR, CRB, GRI, MBA...experience counts!
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