Property Management Guru – Ep 4 – Why people don’t invest in Real Estate
What is your greatest fear about owning investment properties?
Michael here once again with Real Property Management, your property manager guru! Hey today I’d like to talk about why people don’t invest in real estate. You know there’s so many things out there why we should, but so many of us understand all of those principals, and never take that next step. Why? Why is that?So I am going to go through just a few reasons as to why people don’t invest in real estate. One is they simply lack the knowledge. I just don’t know how to do it. And so that paralyzes them into inaction. Next one might be life influencers. I am so grateful for the people I have had in my life, my father especially, who opened my eyes to the things that I could personally accomplish. Introduced the idea to me that I can accomplish anything! You know what, not everyone has that. And so sometimes people just need to be told that they can. Some people just don’t think they can invest in real estate because they’ve never been told that it’s for them. They always think that it’s for somebody else. Oh that’s for the rich, and that’s for some other guy, that’s for the guy down the street. The other guy I know. My cousin, my uncle, or whoever, but certainly not for me. Absolutely not true. Next one is money. Money and financing, a lot of us think that it’s the money that keeps us from investing in real estate. I don’t know where the money is going to come from. I don’t have enough income. Or what if this, what if that. Next one is the hassle. Oh! Man! Let me tell you after managing rental properties for 30 years we absolutely know and understand the hassles that can happen as a result of investing in real estate. We experience those things every single day. So trust me, we absolutely understand those things. But it’s still one of those things that keeps people from investing in real estate. Next one is time. I just don’t have the time. How am I going to find time when I have a full time job, I have kids, I have a wife, I’ve got all these things, I’ve got all these different responsibilities. I am coaching this team, or I am doing this with this, my church responsibilities, whatever it might be we fear the time that it might take to go and find a property, to manage the property, to manage the tenants, and all those other types of things. Next one and this is probably one of the bigger ones. Is risk. Boy it is the big what ifs of investing in real estate. What if there is a bad tenant, what if they don’t pay their rent, what if they destroy the property, what if they have to be evicted, what if the property doesn’t rent for a long period of time and I have to find money to pay for the mortgage, what if the furnace goes out and I don’t have $4,000, $5,000, $6,000 dollars to replace the furnace, or the roof, you know maybe we will have to replace the roof, and I just don’t have the money for that. The maintenance, the financial side of things, I just don’t know if we can make it, if one expense comes up or something like that, what if the market changes, absolutely a fear for many people, what if the market changes and real estate goes down, will the rent even cover the mortgage. All of these things are based out of really unknown factors. It is the fear of all of these things that we actually don’t even know about that keeps us from investing in real estate. So how do we overcome these fears? 1 is knowledge! Seminars and classes and books! Another one, have a team! You don’t have to be the expert! Especially if you have never invested in real estate before. Especially if you haven’t gone to all the classes and seminars. No matter what even seasoned investors know that there are experts in every different field. You need a financial expert, a financial planner, a good mortgage and loan officer, a great property manager goes a long way to help eliminate all of these different fears and problems. A good estate planner, a CPA, an attorney, a great real estate agent that knows what you’re looking for in an investment property helps investors to find a great rental property and know what you’re looking for. All of these people, all form a team to help you to be successful. We’d like to be a part of that team, we’d love to talk to you about how our company and the things that we do help eliminate the fears associated with taking that next step and buying your first rental property. Go ahead, schedule a call with a local representative! We’d love to talk to you more about what we can do to eliminate those fears and start you on the road to financial success and freedom. Thank you and make it a great day!
Here are some great articles about investing in real estate:
Maximize Your Rental Property’s Return On Investment
5 Top Real Estate Markets of 2018
Stress Management 101 for Salt Lake City Real Estate Investors!
How do I determine what the rental price should be for my property?
Need more help? Want to give owning a rental property a try? Even if you want to choose to manage it on your own we can help you! We have some great tools and resources and a DIY Landlord starter kit to get you on your way to success. Give us a call to get yours: 801-571-7400 or email us!
