So what does “conscious” mean anyway?
Believe me I know what it’s like to have very little money and pray that all of the tenants checks come in so that all of the bills, taxes and mortgages were covered. Even then when money and time were really tight I still offered a well kept, freshly painted and clean units.
This same consciousness applies to how I handle my real estate investments. I appreciate and understand numbers when it comes to looking at a income/expense sheet. I watched as 11 of my investor friends filed bankruptcy because of their over leveraging or over renovating. There were times when I could have fallen into the same category but I resisted the temptation of immediate gratification.
My friends that over leveraged had more money than me but lost everything in the end. My friends that had nicer looking places than me boasted that they brought in higher rents but still couldn’t cover the debt that the upgrades cost them which caused them to loose their properties.
I teach what I preach to my clients. I feel that wise leveraging provides the money you may need to improve and upgrade a property but only to the point where the current property isn’t financially hurt. I am an avid renovator so upgrading apartments is what I love but not to the point where my ego is having all the fun. This is the opposite of over leveraging it is over spending.
Both ends of the spectrum can cause debt that isn’t conscious as a real estate investor. The outcome can ruin a great investment.
Offer a clean well kept apartment where the common hallways are cleaned, the grounds are kept up and you are attentive to any repairs calls that come in quickly. Add a feeling of home by adding color, decorate the common areas and add beauty with potted plants on each side of the front entrance. Remember that it is an honor to provide housing for the people you are fortunate to serve.
Take care of your business and the business will take care of you – be conscious.