To make the big bucks in this business, you must hold onto our rent producing properties. Flip-flopping and selling off assets might sound a little more sexy, but its short lived at best. Selling works in direct opposition to retaining income, depreciation credits 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 – but 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. Finally, learning “street skills”, as well as rules and regulations in the book, will make your landlording job 100 times easier. You must learn enough street knowledge to gracefully handle tenant intimidation.