New investors are usually concerned with keeping costs down. They want to see their profit margins go up and really...who can blame them? They got into real estate investment with hopes of making some money on the side, and the best strategy seems like it’s to spring for cheaper properties and keep costs low. Maybe they even decide they can landlord it themselves.
After all, do they even really need a property manager? What’s so hard about it?
And then, a few months in, they realize they’re losing their mind trying to do it all, nothing’s going like they wanted it to, and they aren’t even seeing the profits they want (or need), and it sure as heck isn’t passive income. What happened?
For starters, there’s an old adage that seems to always hold true for real estate, even if investors don’t always see it at first.
You have to spend money to make money.
It’s not called investing for no reason. You have to put something in before you can really get something out of it.
Ah, but wait; our new investor was putting something in, wasn’t he? A lot of time, sweat, and tears trying to landlord his property, and he wasn’t getting any return on his investment! What gives?
Here’s the thing: landlording and property management aren’t for everyone. They’re separate job descriptions that owning a property doesn’t qualify you for. Can you learn? Absolutely! But they’re not jobs that everyone needs or wants to do. It’s hard work that for you, as an owner and investor trying to build up your passive income portfolio, can distract you from the big picture.
Dear Real Estate Investors: Stop losing your mind trying to do it all!
You may think you’re saving money by not hiring a property management team. But trust us. A good team is worth the investment and more!