Why People Don’t Get into Real Estate and Rental Properties

Windows

Attention grabbing sentence! Generic comment attempting to draw you in to the main point of the article from an umbrella statement. Ever so cliché statement or quote from someone only somewhat famous because the quote fits well with the topic or real estate and rental property.  Rhetorical question?  No one likes this crap, but it works… Without further ado.

The common, unambitious person has three major reasons why they do not get involved in real estate and rental properties.  And they are all obvious!

 

1. “I don’t have enough money to get started.”

Learn to manage your money and lower your standard of living.  You do not need cable.  You do not need a smartphone; a flip phone will do.  Find a roommate.  Do odd jobs for extra cash and pile it away.   Learn to manage your money and lower your standard of living.  You do not need cable.  You do not need a smartphone; a flip phone will do.  Find a roommate.  Do odd jobs for extra cash and pile it away.

There is no shortage of money out in the world, and if you are even halfway competent, you can find a job.  Not enough money is not an excuse.  If you want it bad enough, you will find a way to make it happen.

Let me let you in on a little secret, unless the silver spoon was placed in your mouth at birth, winning the lottery is not in your future.  Force the money to come.  Work your ass off at your job to get promoted.  Even a 25-cent raise helps.

 

2. “There is not enough time in the day.”

That is why property managers exist. Yeah, they are parasitic vermin at times, but what insanely successful person in rental properties takes the tenants phone calls day and night? Why not pay someone to do this job? “But, I bought a rental property and can’t afford one.” Then you chose the wrong property.

Absolutely have a property manager. It makes all the difference because it allows you to keep your full-time job if you have one. Not only that, it keeps you from getting burnt out with it once you have a few.

Scalability is critical once you reach a certain point and that point will come sooner rather than later if you do it correctly. It also allows you to create systems that save time in the long run, increasing profitability.

 

3. “What if X happens?”

Don’t be that guy that only says, “what if, what if, what if.”  Come up with solutions to each what if scenario.  There really should be a gif of Biff Tannen and Marty McFly on this section when Biff calls Marty a chicken and Marty turning around.  Warning, cliché coming… Hope for the best, plan for the worst.  Or if you are an Eagle Scout, like myself, you have the “Be Prepared” motto just about ingrained.  If you have a plan in your head, write it down.  Don’t be that guy that only says, “what if, what if, what if.”  Come up with solutions to each what if scenario.

There really should be a gif of Biff Tannen and Marty McFly on this section when Biff calls Marty a chicken and Marty turning around.  Warning, cliché coming… Hope for the best, plan for the worst.  Or if you are an Eagle Scout, like myself, you have the “Be Prepared” motto just about ingrained.  If you have a plan in your head, write it down.

Write it down:

Write down each situation and come up with a solution that keeps your rental property business alive.  For example, I am never going to allow all my properties to be managed by the same property manager or management company.  They will be split up into two or possibly three groups.  The reasoning for this is so that if one company does a poor job and makes me almost unprofitable, I still can make money from the other properties until I can change the unprofitable ones over to new management.

It is an odd solution, but after you have a property manager almost ruin you, you will plan for it.  This is not to say that at a certain point that I will create my own property management company or hire a personal property manager, because that is on the plate.  You get the point.  It is an odd solution, but after you have a property manager almost ruin you, you will plan for it.  This is not to say that at a certain point that I will create my own property management company or hire a personal property manager, because that is on the plate.  You get the point.

 

Excuses, excuses, excuses

The excuse that you have a family and “just can’t risk it” is a terrible justification.  How is taking control of your future finances riskier than working at one job?  Your company and boss could layoff/fire you tomorrow.  It is far more financially perilous to not have another stream of income.

People skip out on buying real estate and rental properties because of lack of money, lack of time, and from being afraid. All three reasons can be solved with elbow grease and a little sacrifice. You must force yourself to be successful. No one is going to do it for you.

 

By Trey Stevens

Feedback@PlusFourZeros.com

Learn what I did wrong or right from My Journey in real estate and rental properties OR check out other articles on my Blog.

Leave a Reply