Being able to collect rent on time is one of the most fundamentally important aspects of being a landlord. Unfortunately, it’s also one of the aspects that feels most out of your control. Many new landlords think it’s up to the tenants to pay rent wherever and whenever it’s due and your only option is to evict those tenants who don’t pay on time.
Many people appear, to automatically, believe, people, who rent a place to live, aren't able to afford, to buy a home. However, many individuals, don't want to own a house (prefer to rent), for a variety of other reasons. This may be, because they are uncertain of how long, they will live in a specific area, whether they will enjoy the particular neighborhood, aren't comfortable with the unknowns of home - ownership, or don't want the responsibilities, etc. With that in mind, this article will briefly attempt to consider, examine, review and discuss, some of these reasons and considerations.
Rental property can generate monthly income while building equity and appreciated value over time. Get-rich-quick success is rare in real estate investing, but rental property can be a sound investment when buyers act prudently based on thorough research and planning. Investing in real estate carries risks, and stakes are high. So it’s vital to understand — among other things — the relationships between a property’s purchase price and the revenue it’s likely to generate in the short and long term.
Managing rental properties can be a tedious process sometimes landing you into legal issues. As a property manager or owner, you should think about preventing problems even before they occur to have an easier time maintaining order.
Hiring a property manager is a daunting task. REIs around the country are tasked with the idea of trusting someone else with their livelihood, and they are often coming to the decision that it is not worth the risk. However, a good property manager could be the difference between you reaching your fullest potential as a real estate investor. Now, this does not mean anybody is qualified to manage your rental properties.
It’s no secret that I love rental properties. Sure, flipping and wholesaling properties might be fun. Notes and tax liens might have fewer tenants. The stock market might be more popular. But rental properties are my true business love.
The first step of the process is to ask yourself the following: Why do I want to wholesale property? What is it that I want and need? If you cannot clearly define these things, then stop. Also, your answer cannot be, “I want to make money.” Of course you do, but you want to use the money for what purpose? You have to have a reason.
Renting your property may seem like an easy way to increase your passive income, but upon starting the process, you may find it to be more complicated than expected. Your house may sit on the market for months without a rental applicant because it is priced above the fair market rent. A bad tenant may be late or outright refuse to pay rent; they have the potential do thousands of dollars in property damage and may ignore your attempts to evict them from the property until authorities are involved.
Find a coach/mentor in your area to whom you can turn for guidance. Most importantly with anyone you turn to, make sure they are successfully doing what you want to do and talk with others they've helped before you make a commitment of your time and/or money.
After reading my previous wholesale posts, you should be able to find deals and know that they need to be purchased at deep enough discount that you can sell them to investors who can, in turn, make their own profit from them. Here we'll assume you have these great deals and you simply don't have buyers to purchase them.