Real Estate Investing, in Rental properties gets a lot of admiration because of, passive income. Usually there is positive cash flow in, rental properties.
Joke of the day Rental properties
A young woman, pursuing a graduate degree in art history, was going to Italy to study the country’s greatest works of art.
Since there was no one to look after her grandmother while she was away, she took the old lady with her.
At the Sistine Chapel in the Vatican, she pointed to the painting on the ceiling. ‘Grandma, it took Michelangelo a full four years to get that ceiling painted.’
‘Oh my, ‘the grandmother says.
‘He and I must have the same landlord!’
A few weeks ago I interviewed my co host Trevor Evans on the topic “The path to Financial Freedom” We received such an overwhelming response to that topic that I decided to have a spin off on, Real Estate Investing. This is episode #2 in the series: Real estate investing, “Funding, Fixing and Flipping. Is Owning, rental properties, worth the headache?
As a realtor for over 17 years, investing in, rental properties, has been my space up to this point. I own several rental properties and I also manage several rental properties.
My co-host for this podcast is Trevor Evans: Speaker/Trainer for Legacy Education Alliance and Rich Dad Education. Trevor is also an Entrepreneur, Real Estate Investor. Banker and Founder of Personal Awakening Brand “Being Normal Sucks.”
I met Trevor earlier in the year when I attended a Get Motivated Seminar and signed up for a 3 day, real estate investing, seminar. I met my co host Trevor Evans at this program and let’s say his vast knowledge on the subject of, real estate investing, and, real estate, opened my mind to new opportunities.
I didn’t know what I didn’t know!
His knowledge base was extensive. I immediately enrolled in the Legacy Education Alliance, investing in real estate, training program.
Real Estate tip of the week
What is your best choice as a, real estate investment? From the book “Your money and how to keep it by Brian Costello”
Real Estate, will be a natural choice for many as an, real estate investment, vehicle. Generally, real estate, can be counted on to rise in value over a period of time. If you want short term investments, you can use short term investment vehicles like treasury bills. Other options are gold, commodities and the options market. Small investors are now also switching to Mutual funds because they offer a great deal of flexibility, and they can be cashed in at any time.
So, the best investment choice depends on your country laws as it relates to Capital Gains tax vs interest tax. In the USA and Canada, interest is taxable while you can make a lot of money tax free with capital gains.
Todays episode of Fund, Fix and Flip is sponsored by, Myrna Young Realtor
Are you looking to invest in the south Florida market? The time is ripe for investors. Call Myrna Young at Century 21 Selling Paradise 239-542-5777 for all your Wholesale or Rehab purchases, Buy and Hold, rental properties, or Property Management services. We are licensed in real estate and property management services and can also buy or lease your home. Don’t delay, Call today 239-542-5777
“Is Owning Rental properties worth the headache?” Show notes:
What are investors doing that is causing the headache?
- Not properly screening the tenant.
Most investors are stressed to put a tenant into, rental properties, because it costs to have a vacant property.
That is the underlying reason that they short the screening process or decide to take a risk with a tenant. But it costs more to have the tenant removed and evicted, so the pain of a bad tenant lingers for a long time. - Not understanding the renters mindset
A renter does not have an owners mindset to take care of a property.
The environment the rental is living in determines the mindset of the tenant. If you have a tenant in a single family home that is costing over $1500 per month. That tenant has an owner’s mindset and would usually take care of the, rental property, as his own because he or she is probably an executive and is not renting because they can’t afford to buy. - Know your tenant
That allows you to skip inappropriate steps. - Understanding the positive cash flow cycle
- Buy only properties that need remodeling instead of renovations
- Setting up warranty or replacement work directly with local scratch and dent shops
- Paying a flat fee to a Property Management company
Additional resources
Some resources for Real Estate Investors:
BiggerPockets: The Real Estate Investing Social Network. There are many free articles and forum threads all for free on how to get started in real estate investing.
https://www.mashvisor.com Use analytics to find lucrative traditional or Airbnb properties in a matter of minutes.
https://myhelpsrealestateinvestments.com/ – list of off market properties at discounted prices in Fort Myers, Fl and West Palm beach, Florida