How to Stop Being A Landlord and Start Investing
Stop being a landlord and start investing - What?? What is this all about? So you own a few properties maybe 4, 5 or 6 properties and you are proud of the accomplishments you have made. You have purchased the investment property, perhaps did some rehab work and like all investors you have experienced some trial and tribulations and with each one of these you became smarter and wiser. You have saved money by doing your own property managing and this has helped your overall balance sheet. Investing is now in your blood and every once in a while you buy another property. You are seeing your portfolio grow and your accountant tells you, you are doing well.
How to break through your current level of success!
This is a very common question and one that most investors go through at some point. The short answer is you want to stop landlording and start investing. I know this may sound confusing as you have already invested. Seasoned investors will tell you differently. It is common when you start investing that you buy a property in close proximity to your home so that you can manage it and keep an eye on it. I too started this way. I was proud of the fact that I saved about $100 per month for each property I owned. At the beginning this was putting approximately an extra $1500 in my pocket. After a few years of doing this I was proud of my accomplishments but I was frustrated with the time restraints and the inability to rest peacefully. Taking vacations was a challenge as when I was away I had no one to look over my properties should something happen. So I took tenant calls while on vacation. Trust me it is no fun coordinating a tenant and plumber together while you are trying to enjoy a peaceful family vacation.
During one of these so called vacations I realized I was more of a landlord than an investor. Every time I bought another property I bought myself another obligation and eventually this was getting old.
What took me way too long to discover, I will share with you today.
Stop being a landlord and start investing
Investing near your home so that you can manage it may sound like a good idea to save money but is it? You may be one of the few people in the country to coincidently live in a great real estate investing market. Markets however are cyclical and most of the time the best markets are not in your back yard. Many gurus trying to sell you tapes and books will tell you that you can invest anywhere. This may be true but not just “anywhere is the best market. Where is the best place to find investment real estate?
The most important aspect of real estate is something we all know; say it with me Location, Location, Location. For investors the most important aspect is say it with me “Location, Safety and Sustainability”. Investment property that is safe to own with calculated risk management for sustainable returns is what true investing is all about. Seasoned investors have figured out that saving money managing your own properties is not the way to get the best returns from your investments. Focusing your time and resources on growing your portfolio with a long term objective is paramount to being a happy long term investor. Investing in true turnkey properties in the best most sustainable markets will convert you from a landlord to a true investor.