IT’S NOT YOUR MANAGEMENT – IT’S YOUR BUILDING BEN LEYBOVICH
Real estate is still as privileged as it ever was; only
It falls outside of the scope of this article to
today it is not bloodline that determines one’s
address the notion that it is necessary to have a lot
capacity to enter and remain in the game – it is
of money in order to invest in real estate, although
intellectual worth. The mainstream wisdom is that
considering that 100% no-money down creative
buying real estate is a very cash-intensive
finance is my area of expertise, I will most certainly
proposition.
address this in future publications.
Although this wisdom is quite
Today,
erroneous, it nevertheless keeps most people from
however, I’d like to discuss the aspect of real
ever getting into the sport real estate investing.
estate investing that is most crucial to our success
and that scares most people away from investing
Not only that, but many of those who do find their
in real estate – tenants. You’ve heard the horror
way in, do not last. Why? Because while buying
stories and you’ve seen the movies – tenants
any old piece of real estate is about as difficult as
trashing units and intimidating the owners.
falling out of a tree – anyone who has cash can do
it, buying a piece of property which makes sense
It happens, but it doesn’t have to
today and will withstand the test of time is the
realm of the sophisticated and highly educated
few. Thus, belief that a person has to have a lot of
money,
combined
with
inability
to
choose
investments wisely due to a lack of perspective
and education is why real estate investing is very
much out of the mainstream. Few players make it…
The simple truth of the matter is that while there
can be no absolutes in the world of investing, there
most certainly is a method and a process of
selecting your long-term holds in a way that
addresses this issue proactively.
In fact, I have
come to believe that the manager’s ability to place
“responsible” tenants, those tenants who are not
likely to trash your unit, is 90% a function of the
property itself and only 10% of the management
and/or the tenant screening process.
Though there are exceptions to the rule, most often
when landlords struggle with trashed units and
other management issues it is because for one
reason or the other this unit attracting the type of
tenant who thinks that it is OK to destroy
someone’s property. Simply put, if you are having
these issues in your business, you’ve bought the
wrong kind of property, and now you are paying for
it.
This is why you may be burnt out on
landlording!