Managing your property and tenants is a business. Treat it that way from the very beginning and you’ll be ahead of the game. Many investors have a problem with this idea when they start buying properties. It does no good to negotiate a “killer” purchase price, which is considered fun, and then give all the money back to a tenant who sues because you failed to learn about the paperwork or habitability laws, which many consider drudgery. Same thing goes for taxes.
Buying rundown houses for fifty cents on the dollar takes skill. Lease options, buying paper, adding value (fixup) bank repos, partnerships and selling for top dollar all require a good bit or education. But none of these will provide you with long-term wealth if you don’t have a proper foundation to build on. When your business is houses and apartments, you need people skills and a business plan to support your real estate activity. Landlording must be part of your plan.
I know many different ways and techniques to make money with my real estate. Over my 50 years or so I’ve done just about everything with houses and apartments even building from scratch. But I must tell you some of my most rewarding (that means profitable) deals have come my way because I know how to be a good landlord. I can handle tenants and I know how to arrange my business affairs to protect myself and stay away from problems.
At a recent radio talk-show interview I was asked, “What particular technique or special skill has made you the most money during your long and obviously successful real estate investing career?” My simple single word answers as always seemed to surprise him. Perhaps he was hoping to hear a sexier answer! Understandably “LANDLORDING” doesn’t conjure up an exciting image for most listeners. Still, that’s my answer and I’ll stick t