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Dave’s 3 Biggest Mistakes in Real Estate Investing
February 4th, 2010Apartment House Riches Bootcamp Day 3 Update
January 21st, 2010Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
Check back for new teaching videos from Dave at the Apartment House Riches Boot Camp!
Sign up below to discover how YOU can learn more about the strategies that Dave mentioned in the video!
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Apartment House Riches Bootcamp Day 2 Update
January 20th, 2010Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
Check back for new teaching videos from Dave at the Apartment House Riches Boot Camp!
Sign up below to discover how YOU can learn more about the strategies that Dave mentioned in the video!
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Apartment House Riches Bootcamp
January 19th, 2010Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
Check back over the next four days for a new teaching video from Dave at the Apartment House Riches Boot Camp!
Sign up below to discover how YOU can learn more about the strategies that Dave mentioned in the video!
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Where’s Dave?
January 15th, 2010Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
CLICK HERE FOR MORE INFORMATION ON COMMERCIAL REAL ESTATE
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Make a Real Estate Fortune Investing in Clever Ways
January 8th, 2010Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
I’ve always believed in learning from the best. In a real estate investment career that has seen me rise from the bottom of the ladder and end up with millions in the bank and more than 7,000 apartment units in my name across more than six states. I made mistakes, and learned from them, but I also made sure that I learned from those who were ahead of me and were successful.
As you’d expect I get asked for a lot of advice and many questions about the best way to succeed in real estate investing and in many cases I point those who ask to my workshops and courses which are designed to help new real estate investors gain the insights and experience-based information I would have loved to have had when I was starting my career. But I also give advice and insights away free because I too, valued such information when I was learning.
This brings me, rather neatly, to this piece. I am often asked what’s the best way to invest in real estate and my response is that there is no ‘best’ way as such. Each investment decision you make depends upon the circumstances you are in as an investor, what the market is doing and the level of risk you are comfortable with.
It is risk, or rather risk management, that for me is the deciding characteristic of a good real estate investment decision. Let me explain. Let’s say you go for a single-family dwelling. The moment you take it on, if you hold on to it, instead of flipping it fast for a profit, you have began to build a long-term, steady income stream that will keep on delivering good value to you for years to come.
At this point most real estate investors, quite rightly, also think of the drawbacks involved. Tenants moving, the property remaining empty for a couple of months, damage to the building and its fittings which has to be set right and the general cost involved in running it and overseeing it.
The smart money, of course, lies in perspective. Rather than see the problems of one such building multiplied a few fold the moment you switch and go for multiple-family dwellings, it pays to think that what you are doing, in this case, is spreading the risk of the negatives while multiplying the income streams available to you, all from one real estate investment decision.
The truth is that managing multiple-family dwellings is no more trouble than managing a single one plus, because you now have volume, you can achieve economies of scale, outsource the day-to-day running and management very cost effectively and never have to deal personally with a single tenant, ever!
This way of thinking and risk management is the secret to successful real estate investment and it is how you can make a fortune through clever investing.
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Where’s Dave?
January 6th, 2010Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
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Happy Holidays!
December 23rd, 2009Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
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Note Buying Tips
December 16th, 2009Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
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How Essential Property Management is in Apartment Investing Success
December 4th, 2009There is a belief that an apartment investor can “get away with murder” by not having a professional property management person on site is negligent on the property management spectrum. The stark reality is that next to the rents, the property management aspect is top of the list for essentials in the apartment investing market. The average apartment complex has a few hundred units and at the very least, 40 hours of daily work tasks. These tasks need to be done on the occupants schedule not the schedule of the management. This creates a very interesting dilemma for any of the property investors that feel a 40 hour employee on site is either unnecessary or unwarranted. In both aspects this is incorrect. A simple table will demonstrate why this is a reality and a reason to employ a property manager on site, at least part –time.
Four Reasons to Come out of Pocket for a Great Property Manager on Site
• Professional Presence: Many Residents Prefer and Expect a Person On Site
• Customer Service Advocate: Professional Approach
• ‘Fire’ Person: Daily ‘fires’ That Blaze and Can Destroy an Investment/ Separate from the Real ‘Flames’ of a Fire
• Maintenance Issues: If There is no Dedicated Maintenance Person On Site the Professional Property Manager Will Know Who to Call or Do it Themselves
• Collection: Collector of the Rental Units Dues.
These issues listed above are very important and that list is just a microcosm of the reasons that can be formulated in the realm of property management for apartment investing success. Many other reasons are commonsense related and need no further defining and if they did then possibly there are other investment alternatives in the horizon. The apartment investor realizes all too well that the risk of failure in the business of renting units to strangers is relatively high. The nature of the business screams for the property to be adequately protected with a professional on site during the working hours of early morning to late afternoon. This is just how it is so when the check is being written, for the purchase of the apartment complex, make certain that an additional percentage is weaved into the final amount. This will make it that much easier to hire the property manager off of sites like IREM.org.
Are There Reasons to Not Employ an On Site Property Manager?
Yes. The size of the apartment complex may will decide what time of management you will need.. The tasks are so monumentally challenging to own and operate an apartment investment that the reasons for not employing a trained professional are almost not there. For some areas of the United States, where the rentals can be seen as almost homeownership by the clientele, these are the ones that can afford to not have an on-site property person. In the end the apartment investor that is serious about maintaining the integrity of both the rental units and their own will think very seriously about the hiring of an on-site property manager.
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