Real Estate Profits - Do We Keep Property for Rentals or Sell Quickly for Cash?
Real Estate investing gives us options: Should we hold rental real estate, or turn it over for faster profit?
There are a lot of real estate investors who have a great fear, or dislike of keeping property for more than a short time. They only want to wholesale, or rehab and sell the property. I understand the fears of being a landlord. You can have tenants who mess up the property, don’t pay, and you have to evict them, buildings have unexpected maintenance issues, there will be vacant units you need to have rented, a multitude of problems. But there are a few ways to deal with those issues, let’s take a look at some of them.
First, let’s start at the very beginning.
When you buy a property, you have to buy right. By that I mean you have to have enough income from the property to pay for all the costs, including mortgage, taxes, insurance, maintenance, vacancies, & repairs. Then you want to have some money left for you. Remember, you are in business to turn a profit! If there is not enough profit in the deal, walk away. You will be glad you did. There are many deals out there, don’t be too anxious and buy the wrong one. One of the biggest mistakes investors make is too pay too much for the property, then they are under a lot of pressure to get units rented quickly, and that can cause them to rent to some people they may not have rented to, if not under that pressure.
Once you purchased at the right price, this gives you more options. You can manage the property if you want, but if you intend in buying a lot of properties you may either need to hire a property management company, or start a management company. If you are a person who does not want to deal with the daily problems of maintenance and tenants, using a management company may be your best option. Then all you need to do is keep your eye on the management company to be sure they are doing their job well, and you will be free to find more deals.
Why do we want to keep property instead of selling for profit? Real estate builds long term wealth. When you wholesale properties, or buy and resell, there are a lot of profits to be made, but you have to continue to do that for your income to continue. When you buy a good property, you will have rental income, (possibly lease option fees), and almost always you will have appreciation. Renters are paying for your houses, and apartments. At some time in the future, those properties could be paid off. Think of the income you can have with houses that are paid off! How may houses would it take to give you an incredible income?
I actually choose to do both. I buy some properties to resell for quick profits and I keep rentals to continue to build my future wealth.
Lesley Wilson is a Real Estate investor, a licensed Real Estate agent, and has also worked in the Title Insurance industry for many years. She has been investing, and helping others invest for over 30 years, and has been a licensed agent for over 15 years. She is dedicated to helping others find financial freedom through Real Estate investing, and providing them with all the Real Estate Resources they need to be successful
There are a lot of real estate investors who have a great fear, or dislike of keeping property for more than a short time. They only want to wholesale, or rehab and sell the property. I understand the fears of being a landlord. You can have tenants who mess up the property, don’t pay, and you have to evict them, buildings have unexpected maintenance issues, there will be vacant units you need to have rented, a multitude of problems. But there are a few ways to deal with those issues, let’s take a look at some of them.
First, let’s start at the very beginning.
When you buy a property, you have to buy right. By that I mean you have to have enough income from the property to pay for all the costs, including mortgage, taxes, insurance, maintenance, vacancies, & repairs. Then you want to have some money left for you. Remember, you are in business to turn a profit! If there is not enough profit in the deal, walk away. You will be glad you did. There are many deals out there, don’t be too anxious and buy the wrong one. One of the biggest mistakes investors make is too pay too much for the property, then they are under a lot of pressure to get units rented quickly, and that can cause them to rent to some people they may not have rented to, if not under that pressure.
Once you purchased at the right price, this gives you more options. You can manage the property if you want, but if you intend in buying a lot of properties you may either need to hire a property management company, or start a management company. If you are a person who does not want to deal with the daily problems of maintenance and tenants, using a management company may be your best option. Then all you need to do is keep your eye on the management company to be sure they are doing their job well, and you will be free to find more deals.
Why do we want to keep property instead of selling for profit? Real estate builds long term wealth. When you wholesale properties, or buy and resell, there are a lot of profits to be made, but you have to continue to do that for your income to continue. When you buy a good property, you will have rental income, (possibly lease option fees), and almost always you will have appreciation. Renters are paying for your houses, and apartments. At some time in the future, those properties could be paid off. Think of the income you can have with houses that are paid off! How may houses would it take to give you an incredible income?
I actually choose to do both. I buy some properties to resell for quick profits and I keep rentals to continue to build my future wealth.
Lesley Wilson is a Real Estate investor, a licensed Real Estate agent, and has also worked in the Title Insurance industry for many years. She has been investing, and helping others invest for over 30 years, and has been a licensed agent for over 15 years. She is dedicated to helping others find financial freedom through Real Estate investing, and providing them with all the Real Estate Resources they need to be successful
Real Estate investing gives us options: Should we hold rental real estate, or turn it over for faster profit?
There are a lot of real estate investors who have a great fear, or dislike of keeping property for more than a short time. They only want to wholesale, or rehab and sell the property. I understand the fears of being a landlord. You can have tenants who mess up the property, don’t pay, and you have to evict them, buildings have unexpected maintenance issues, there will be vacant units you need to have rented, a multitude of problems. But there are a few ways to deal with those issues, let’s take a look at some of them.
First, let’s start at the very beginning.
When you buy a property, you have to buy right. By that I mean you have to have enough income from the property to pay for all the costs, including mortgage, taxes, insurance, maintenance, vacancies, & repairs. Then you want to have some money left for you. Remember, you are in business to turn a profit! If there is not enough profit in the deal, walk away. You will be glad you did. There are many deals out there, don’t be too anxious and buy the wrong one. One of the biggest mistakes investors make is too pay too much for the property, then they are under a lot of pressure to get units rented quickly, and that can cause them to rent to some people they may not have rented to, if not under that pressure.
Once you purchased at the right price, this gives you more options. You can manage the property if you want, but if you intend in buying a lot of properties you may either need to hire a property management company, or start a management company. If you are a person who does not want to deal with the daily problems of maintenance and tenants, using a management company may be your best option. Then all you need to do is keep your eye on the management company to be sure they are doing their job well, and you will be free to find more deals.
Why do we want to keep property instead of selling for profit? Real estate builds long term wealth. When you wholesale properties, or buy and resell, there are a lot of profits to be made, but you have to continue to do that for your income to continue. When you buy a good property, you will have rental income, (possibly lease option fees), and almost always you will have appreciation. Renters are paying for your houses, and apartments. At some time in the future, those properties could be paid off. Think of the income you can have with houses that are paid off! How may houses would it take to give you an incredible income?
I actually choose to do both. I buy some properties to resell for quick profits and I keep rentals to continue to build my future wealth.
Lesley Wilson is a Real Estate investor, a licensed Real Estate agent, and has also worked in the Title Insurance industry for many years. She has been investing, and helping others invest for over 30 years, and has been a licensed agent for over 15 years. She is dedicated to helping others find financial freedom through Real Estate investing, and providing them with all the Real Estate Resources they need to be successful
There are a lot of real estate investors who have a great fear, or dislike of keeping property for more than a short time. They only want to wholesale, or rehab and sell the property. I understand the fears of being a landlord. You can have tenants who mess up the property, don’t pay, and you have to evict them, buildings have unexpected maintenance issues, there will be vacant units you need to have rented, a multitude of problems. But there are a few ways to deal with those issues, let’s take a look at some of them.
First, let’s start at the very beginning.
When you buy a property, you have to buy right. By that I mean you have to have enough income from the property to pay for all the costs, including mortgage, taxes, insurance, maintenance, vacancies, & repairs. Then you want to have some money left for you. Remember, you are in business to turn a profit! If there is not enough profit in the deal, walk away. You will be glad you did. There are many deals out there, don’t be too anxious and buy the wrong one. One of the biggest mistakes investors make is too pay too much for the property, then they are under a lot of pressure to get units rented quickly, and that can cause them to rent to some people they may not have rented to, if not under that pressure.
Once you purchased at the right price, this gives you more options. You can manage the property if you want, but if you intend in buying a lot of properties you may either need to hire a property management company, or start a management company. If you are a person who does not want to deal with the daily problems of maintenance and tenants, using a management company may be your best option. Then all you need to do is keep your eye on the management company to be sure they are doing their job well, and you will be free to find more deals.
Why do we want to keep property instead of selling for profit? Real estate builds long term wealth. When you wholesale properties, or buy and resell, there are a lot of profits to be made, but you have to continue to do that for your income to continue. When you buy a good property, you will have rental income, (possibly lease option fees), and almost always you will have appreciation. Renters are paying for your houses, and apartments. At some time in the future, those properties could be paid off. Think of the income you can have with houses that are paid off! How may houses would it take to give you an incredible income?
I actually choose to do both. I buy some properties to resell for quick profits and I keep rentals to continue to build my future wealth.
Lesley Wilson is a Real Estate investor, a licensed Real Estate agent, and has also worked in the Title Insurance industry for many years. She has been investing, and helping others invest for over 30 years, and has been a licensed agent for over 15 years. She is dedicated to helping others find financial freedom through Real Estate investing, and providing them with all the Real Estate Resources they need to be successful
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