Today, we are talking about how to treat your investment property. We always tell our clients to treat the property like a business. I am an investor myself and I own properties. A lot of my professional experience is based on my personal experience as a landlord.
One tip to remember is to never let your emotions dictate the deal. Don’t fall in love with the house or the investment. The numbers have to make it a good deal and dictate whether it’s something you want to buy or you don’t want to buy. Sometimes investors will want to buy a house on the same street that they live on. Maybe they just really love the neighborhood or they’re thinking the proximity will allow them to keep a close eye on it. I always tell them that in my opinion, they need to go where the deal is. That’s probably not going to be in your own neighborhood. When you work with a property management company, you don’t have to worry about being close enough to the property to take care of it. Instead, you have access to an entire team. Leverage that team so you can buy properties in another part of town, where you’ll get the best deal. We can help you find those properties and keep you from driving all over the place to manage them.
We work with professional investors who have entire portfolios and people who own one or two houses. Regardless of how many houses you own, you have to look at it like a business. All of our out of town investors often buy a property without even seeing the house. We give them our opinion, they have the property inspected and they don’t let their emotions get in the way. When the numbers make sense, they close the deal. It’s like buying stock. You go forward when it presents itself as a good financial investment.
Whether you have one property or 50 properties, you own a business. Treat it that way. Be professional, and always write and follow strict policies and procedures. If you don’t have a business plan in place, create one or partner with a property management company that can help you be successful with your property. You need a plan for where you want to go and how you want to get there.
If you have any questions about how to become a successful property investor, please contact us at Empire Industries and we’d be happy to help you out.