The folks that would make the best real estate investors are the ones that run for the hills when someone mentions the subject or even the possibility of owning real estate. I don’t blame them as there has been so much bad press about how difficult tenants are and how much work it takes to own investment real estate.
They have visions of late night tenant phone calls and non-paying residents where they live in eviction court.
This can be a very true picture if you buy in tough areas, rent to challenging residents and don’t have a few simple systems in place to maintain and manage your property.
When I started investing in real estate I didn’t have anyone to guide me. I found inexpensive duplexes in fringe areas. I did experience what most people are afraid of although I wasn’t a slumlord and took care of my properties. The result of my investments were beyond anything the text books could have explained to me. These areas became desirable urban renewal areas. My properties more than tripled in value within the first 5 years. The cash-flow was great and the tenant base was challenging.
I then was looking for a high-end multi-unit where I could live. I was fortunate to find a beautiful property a few blocks down from the George Eastman House in Rochester, New York. The property was stunning with high ceilings, hand molded decorative plaster adornments, hand carved fireplace mantels and stained glassed windows which housed mostly traveling consultants. It was a bit of a stretch for me going from buying $25,000 duplexes to a $500,000 6 unit in a high rent district.
I didn’t know that this one purchase would redirect my real
estate investing life forever.
The problem tenant phone calls disappeared, the chasing someone around for rent check stopped and the tenant to tenant issues went away. I didn’t realize how much aggravations I was handling until I had the experience of the exact opposite. When I bought my new home on East Avenue I had already been a real estate investor for over 16 years.
This experience set me on a new course in real estate investing. I started seeking out and understanding this new area of investing that I now call “bluechip properties”. I still looked for urban areas that needed great land lording to support the revival of these areas. I went to work creating apartments that would attract and house what I call “bluechip tenants”. I intuitively knew that there would be many folks who would love to live in a newly created space with great amenities like granite counter tops, ceramic tile flooring, refinished hardwoods, stainless steel appliances, replaced windows and off-street parking.
I now have 27 completely rented head-ache free units that create great cash-flow and have the possibility of doubling in value within the next 5-10 years.
What I learned and now teach my clients is how to invest their hard earned money in “bluechip” properties that are easy to own, maintain and manage. These properties are solid, steady and generate a great return just like any “bluechip” stock would.
Our country needs more folks like you investing in, caring for and contributing to these neighborhoods. You’ll feel good about where you are investing your hard earned money. Besides feeling good, you will create great cash-flow, lower your taxable income and have a property that appreciates in value.
Your hard earned money will go to work for you creating a prosperous future financial portfolio that builds dividends each year while your residents pay down your debt increasing your profit.
Everyone Wins! The neighborhood wins because they have a responsible investors who is caring for the property, the tenant wins because they get to live in a great place and the community wins because there is a well kept property in their neighborhood.
The truth is there hasn’t been a lot of responsible mentorship or teachers that have taught the “business” of investment real estate. Just this week I’ve seen another one of these “get rich quick” flippers come through our area promoting how you can make millions in real estate. I cringe when I hear these advertisements knowing that this is the cycle that created the real estate crash that we are just digging ourselves out of.
Real Estate Investing is a great way to create cash-flow and build long term wealth. Knowing that Real Estate investing is a “business” not a get rich scheme will change your perspective if you choose to learn what was once a noble business. Knowing what properties to buy, where to find them, how to understand the financials and having a few simple systems to manage as well as maintain your investment will insure your success!