After all, real estate is not one of those investments that you buy and just forget about it. (A lot of people did that with stocks, right?)
Unlike stocks, real estate is a tactile investment that may even require some sweat equity. But the rewards can be tremendous.
A lot of us are still standing in these markets. I’m not saying that to brag. My tenants keep me humble. God knows that.
But what I’m saying is a lot of buy and hold real estate investors will be able to ride out this recession fairly well.
Sure, there are bumps and bruises along the way, but by and large, it’s still a whale of a way to invest your money and time.
But real estate is a hands on people business because you are dealing primarly with people. Some landlords are good at this, some aren’t.
If you aren’t, is there a solution?
Hire a property management company.
Proceed with care on this. But why shouldn’t you sub out property management to someone else?
You can, if you know what you’re doing.
That’s where a lot of landlords get it wrong. They don’t know how to manage the properties themselves and they don’t know how to manage the property managers.
Is there a secret?
Here’s the top tip.
Train property managers right from the very beginning. Set your expectations high. Don’t let them get by with stuff.
Isn’t this what you would do with anyone who works for you?
Let them know from the beginning that you can take your business elsewhere if you’re displeased with their performance.
Set up checks and balances; kind of like our Constitution. Have them give account for every dime and every tenant. Make sure they are doing it right.
I know this may seem like a simplistic approach, but I believe everything can be drilled down to the DNA or what works and doesn’t work.
Of course, books have been written about landlording. Get them and read them. Learn everything you can. Them sub the work out to others if you need to.