Over the years we have met many people that have different views on real estate investing. While some are very excited about it and knows that it is a great tool to generate wealth and passive income, others are reluctant to get involved. At first, we didn’t understand how come not everyone is seeing what we see. After a few years, we understood that there are many misconceptions surrounding real-estate investing and we have started to educate people on what does it mean “real-estate investing”.
When talking to people about real-estate investing many of them have a view on what it takes, even if they have never invested in real-estate before. Their views are generated by stories they have heard either first hand or not. Some are true stories and some are…well, let’s call them inflated.
The reason why so many people have negative views on real-estate investing is that they are looking at it from a landlord perspective and not a real-estate investor one. So, what is the difference between the two you would ask? Here is my short answer…
A landlord will take care of their property. They will manage it personally to cut expenses and be on top of every line in their income and expenses report. They will take the calls from tenants, deposit the rent checks, fix toilets and paint if they are capable of doing so. For many, those are tasks they are not willing to perform as they are time-consuming.
Real-estate investor, on the other hand, will hire a property manager that will take care of the day to day operation of his properties while he will spend time in overlooking the property manager. He will spend more time looking to increase his portfolio and think of creative ways of making more money from his current ones.
All this is not to say what is better, being a landlord or an investor. We have been landlords for a while and I believe it is an important step before becoming an investor. By being a landlord, you learn a lot about how to operate your investments. However, if you would like to establish a significant portfolio, you must let go of the day to day operations so you will have the time to expand your investment portfolio.
If you would like to become a landlord, investor or anything in between, contact us and we can guide you through the process.
Happy Investing or Landlording, whatever you will choose!!