IT’S NOT YOUR MANAGEMENT – IT’S YOUR BUILDING BEN LEYBOVICH
“The fault, dear Brutus, lies not in our stars,
but in ourselves…”
~ William Shakespeare
The solution
Therefore,
if
passivity
of
management
is
Location
paramount to you, as it is to me, then the question
becomes – what type of a unit is desirable to and
In my estimation, we buy income-producing real
will attract the kind of tenants who are not going to
estate for two reasons. First and most relevant is
give us grief? Before itemizing some of the
stable passive cash flow. Second reason is to
specifics, allow me to give you a piece of
protect buying power of our wealth against
generalized advice. Following it will save you a lot
inflation,
of heartache. Here goes:
Therefore, when analyzing an acquisition what we
otherwise
known
as
appreciation.
are doing is asking two questions – will this
When considering a new acquisition, in lieu of
building generate stable income and is there a
framing the proposition in terms of whether
reasonable chance that it will appreciate over time.
potential tenants would like living there, ask
And if we extrapolate this logic a bit further, we will
yourself instead if you would enjoy living there? I
realize that the answers to both questions are a
don’t mean this in terms of this unit in this building
function of desirability, which in large part is
being the definition of absolute nirvana to you – of
determined by the location.
course not. But, if you needed to live there, would
I’ve got a
It seems to me that most of us want the same
newsflash for you; most of your potential tenants
things out of life, more or less. We want to walk out
would rather own a mansion on the water similar to
of our front door and take a stroll down a shaded
yours, but since their circumstance does not allow
alley with our children and friends to a local coffee
for it, they are considering your unit instead. And
shop or ice-cream joint. We want a couple of nice
here’s the deal - if you, a responsible and well put
restaurants, shopping centers, and a barber shop
together person wouldn’t want to live in a dwelling
where they know you by name. We’d like a park for
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