Tuesday, January 29, 2013

How to Get Rich - Real Estate Management Tips

Do you have a burning desire to own Revenue Real Estate ?

Do you look forward to telling people how many properties you own ?

Before you jump in you had better read the following guidelines !

Investment Management

When it comes to individual Real Estate investments you can quite easily become bogged down with so many details that you lose sight of your original purpose. Namely, to make money ! No other reason !

So many so called Real Estate investors that I know do all of their own work. This means that they collect the rent, do minor repairs, get calls from Tenants in the middle of the night or when they're on vacation,etc. etc.

This is not what I call a real Real Estate investor. They have simply purchased another job that takes away their precious time. I would much prefer to spend my valuable time looking for new investments to make me more money and you should too. If you want to become truly wealthy that is.

What To Do

Well, as I said, my time is better spent looking for more opportunities. I leave the everyday details of managing my properties to a professional property management firm. For a small fee (usually about 10% of the rent collected) all I have left to do is cash the rent checks. They do consult with me if there are any larger repairs, but that is quite rare. Does this sound like a better option for you ? It should !

If you already own Revenue Properties and manage them yourself, start shopping around for a management company today. As with anything else, there are good ones and some not so good ones. Ask for references and check them out.

When buying new properties always build the 10% management fee into your cash flow projections. If they don't give you positive cash flow with that cost, they are not good revenue investments. I always look for at least $100.00 per month positive cash flow per door net of all expenses. Anything less is not worth the bother.

The Business of Real Estate

Your Real Estate should be thought of as a business. If it doesn't put money in your pocket every month, sell your holding and invest elsewhere. Yes, elsewhere ! By using a management company, you can invest in Real Estate anywhere in your country, your continent, or even the entire world. I guarantee there will be a good opportunity somewhere if you look hard enough.

Real Estate should never be the only form of investment that you have. As with any investment category, it is wise to diversify to give you added safety and security of future income.

As always, I welcome your comments and suggestions for future topics.

13 comments:

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