To make the big bucks in this business, you must hold onto your rent-producing properties. Flip-flopping and selling off assets might sound a little more sexy but it’s short lived at best. Selling works in direct opposition to retaining income, depreciation credit and avoiding the tax collector. Combined with appreciation, these are the main ingredients for wealth. Obviously, keeping properties requires handling the tenants, who pay you their money every month. As your collections grow, landlording becomes much more tolerable, and eventually, more fun!
For the vast army of “Mom and Pop” investors, landlording skills are the price you must pay to become lots richer than your snoopy neighbors. Granted, landlording is the most unromantic part of being a wealthy tycoon…but for aspiring real estate investors who wish to make it to the Promised Land – take my advice, learn about landlording at the same time you learn investing skills. Both are inseparable parts of your “becoming rich” plan.
When you ask folks who are successful long-term real estate operators what made them that way – I’ll bet I can tell you their answer. It’s their ability or skills to handle the people who live in their properties! Do-it-yourself investors like me don’t become successful without landlording skills. No one is born with these unique set of skills, but it’s nearly impossible to succeed without them.