You started off investing in real estate hoping to earn passive income. Your idea was to buy a property, rent it out, and generate positive cash flow that would help you gain financial freedom, save up for retirement, or have the disposable income you’ve always wanted.
Somewhere along the line, though, something got out of sync. You found yourself doing more and more work. Suddenly, investing in real estate wasn’t so much passive as it was a full time job. You probably went into this knowing there would be some work involved, but didn’t expect it take over your life!
Some investors enjoy investing full time. They want it to be their life and a full-time job. But many don’t. They prefer to keep their investments passive and in the background—and when they’re not, it’s a big red flag. Something has to change.
4 Traps Real Estate Investors Falls Into That Turn Investing Into a Full Time Job
1. You Try to Expand Too Much Too Quickly
We all have our limits, investors included. Trying to expand your portfolio too much too quickly can be problematic. Sure, if you have the resources to hire the managers to cover it all and the experience under your belt to keep up with everything, you’ll be fine: but if you don’t, you’re asking for trouble. Overwhelming yourself with too many properties in your portfolio and straining your resources to their limits is just asking for extra stress and work that you just don’t need.
2. You Fall Into the Wrong Niche
Every real estate investor likes to explore their options. There are thousands of ways to invest in real estate, and there’s a niche out there for everyone! That said, not every niche is going to suit you. You might not enjoy flipping or wholesaling. Land development might not be yourself thing, or CRE might not excite you. Being in the wrong niche can take the joy out of investing in real estate and turn it all into a slog—plus, different forms of investing are more hands on and hands off than others. Knowing which is which, and what kind of investor you want to be is crucial.
3. You’re a Micromanager
No matter what you do, what kind of investments you have, what properties are in your portfolio, there’s one thing you can do that will always turn investing in real estate into a full time job: micromanaging. You can have all the staff in the world handling things for you, but if you can’t let them do their job and have to have control over everything yourself, you will turn it into a full-time job for yourself anyway.
Learn to trust the people you’ve hired. Let go of the little details. It’ll be okay.
4. You Believe Landlording Yourself is Easy
There are many newbie real estate investors who start off under the erroneous notion that they can save money by choosing to landlord their properties themselves. It’s true, property management can be expensive. But your time is a precious commodity. When you landlord yourself, you cease to be a passive real estate investor. Landlording is a full time job; and just because you’re an investor doesn’t mean you’re qualified to be a landlord. They are two entirely separate jobs!
Some things in life require an expert. Investing in real estate is no exception! Leave this one to the professionals: your investments will thank you.
Getting Back on Track
If you’ve found that you’re no longer the passive real estate investor you always intended to be, there are things you can do to get back on track.
- Streamline. Downsize your portfolio if you need to. Really hone in on the markets you want to be in and think about where and who you want to be as an investor. This is the time to examine your strategy and goals. The clearer the picture you have for yourself and your future, the better.
- Branding. What kind of investor are you? Now that you’ve experimented with different types of investments, what niche speaks to you? Is it passive investments, like turnkey real estate? Or is it something more involved and hands on? Once you decide, be definitive. Focus on the investments that satisfy you most.
- Big picture focus. Learn to let the little details be. What will ultimately impact your investing future? These are the things that matter. Don’t sweat the small stuff that’s ultimately negligible. The more you can learn to let go, the less time you’ll waste on things that don’t really make a difference.
- Invest in professionals. Real property managers are so worth the investment, believe us. The premium cost is worth it. We keep saying it, but investors keep thinking they’re cut out to landlord by virtue of owning a property. A professional property management team can be one of your greatest assets as an owner, and the clearest path to making your investments passive.
Tired of trying to do it all? Turnkey real estate investment
is the best path to earning passive income.