To Maintain Profitability, Maintain Your Real Estate
Unsuccessful real estate investors tend to focus on the purchase. Successful investors focus on the operation. As you own more and more real estate over longer and longer periods of time, you will find that the clock is your best friend or your worst enemy. So use it wisely!
When considering a real estate investment over a mid or long term period, an important issue you need to come to grips with is the physical nature of a property and how it affects your financial growth and profitability. Too often a property is purchased and then left to operate without much thought about the paint, plaster, pipes, wiring, roof and so on. The intent of course is for the owner to generate as much cash flow as possible and cash flow is good. But, if that cash flow comes at the expense of allowing property elements to deteriorate, then the little profit you are taking now will be eaten up exponentially by the financial pounding you’re going to take later.
Wise management and operation will prove that those willing to do the work when it should be done, will inevitably achieve higher yields than those who foolishly allow maintenance issues to go as long as possible before responding. Simple preventive maintenance items that are ignored will compound due to the ravages of time and will inevitably cost you exponentially more to repair than they would have cost to maintain them when a maintenance need first arose. For example, a dripping bathroom p-trap that would take 30 minutes and a $5.00 part to fix will, if left unattended, warp the cabinet, deteriorate the floor and possibly allow mold to invade subfloors, sheet rock, carpeting and pad. A five dollar fix from a few months ago could now cost hundreds if not thousands of dollars to rectify. Without question the proper and timely maintenance of investment properties is the best expense control program you will ever use. Many owners have learned this lesson the hard and expensive way. Don’t be one of them. Learn from the experience of others, both good and bad.
If you will inspect your properties frequently and make the repairs and upgrades appropriately, you will save yourself thousands upon thousands of dollars over the long haul. You will also be able to maximize your income because of the quality of your property and thereby increase your NOI and market value. If your intent is to profit from real estate, then you must maintain it properly. So do the work as soon as it is identified and do it right. You’ll be dollars and hours ahead. And after all is said and done, real estate investors are capitalists, and proper maintenance is a capital idea. Good luck in your career and with your real estate investments.
When considering a real estate investment over a mid or long term period, an important issue you need to come to grips with is the physical nature of a property and how it affects your financial growth and profitability. Too often a property is purchased and then left to operate without much thought about the paint, plaster, pipes, wiring, roof and so on. The intent of course is for the owner to generate as much cash flow as possible and cash flow is good. But, if that cash flow comes at the expense of allowing property elements to deteriorate, then the little profit you are taking now will be eaten up exponentially by the financial pounding you’re going to take later.
Wise management and operation will prove that those willing to do the work when it should be done, will inevitably achieve higher yields than those who foolishly allow maintenance issues to go as long as possible before responding. Simple preventive maintenance items that are ignored will compound due to the ravages of time and will inevitably cost you exponentially more to repair than they would have cost to maintain them when a maintenance need first arose. For example, a dripping bathroom p-trap that would take 30 minutes and a $5.00 part to fix will, if left unattended, warp the cabinet, deteriorate the floor and possibly allow mold to invade subfloors, sheet rock, carpeting and pad. A five dollar fix from a few months ago could now cost hundreds if not thousands of dollars to rectify. Without question the proper and timely maintenance of investment properties is the best expense control program you will ever use. Many owners have learned this lesson the hard and expensive way. Don’t be one of them. Learn from the experience of others, both good and bad.
If you will inspect your properties frequently and make the repairs and upgrades appropriately, you will save yourself thousands upon thousands of dollars over the long haul. You will also be able to maximize your income because of the quality of your property and thereby increase your NOI and market value. If your intent is to profit from real estate, then you must maintain it properly. So do the work as soon as it is identified and do it right. You’ll be dollars and hours ahead. And after all is said and done, real estate investors are capitalists, and proper maintenance is a capital idea. Good luck in your career and with your real estate investments.
Unsuccessful real estate investors tend to focus on the purchase. Successful investors focus on the operation. As you own more and more real estate over longer and longer periods of time, you will find that the clock is your best friend or your worst enemy. So use it wisely!
When considering a real estate investment over a mid or long term period, an important issue you need to come to grips with is the physical nature of a property and how it affects your financial growth and profitability. Too often a property is purchased and then left to operate without much thought about the paint, plaster, pipes, wiring, roof and so on. The intent of course is for the owner to generate as much cash flow as possible and cash flow is good. But, if that cash flow comes at the expense of allowing property elements to deteriorate, then the little profit you are taking now will be eaten up exponentially by the financial pounding you’re going to take later.
Wise management and operation will prove that those willing to do the work when it should be done, will inevitably achieve higher yields than those who foolishly allow maintenance issues to go as long as possible before responding. Simple preventive maintenance items that are ignored will compound due to the ravages of time and will inevitably cost you exponentially more to repair than they would have cost to maintain them when a maintenance need first arose. For example, a dripping bathroom p-trap that would take 30 minutes and a $5.00 part to fix will, if left unattended, warp the cabinet, deteriorate the floor and possibly allow mold to invade subfloors, sheet rock, carpeting and pad. A five dollar fix from a few months ago could now cost hundreds if not thousands of dollars to rectify. Without question the proper and timely maintenance of investment properties is the best expense control program you will ever use. Many owners have learned this lesson the hard and expensive way. Don’t be one of them. Learn from the experience of others, both good and bad.
If you will inspect your properties frequently and make the repairs and upgrades appropriately, you will save yourself thousands upon thousands of dollars over the long haul. You will also be able to maximize your income because of the quality of your property and thereby increase your NOI and market value. If your intent is to profit from real estate, then you must maintain it properly. So do the work as soon as it is identified and do it right. You’ll be dollars and hours ahead. And after all is said and done, real estate investors are capitalists, and proper maintenance is a capital idea. Good luck in your career and with your real estate investments.
When considering a real estate investment over a mid or long term period, an important issue you need to come to grips with is the physical nature of a property and how it affects your financial growth and profitability. Too often a property is purchased and then left to operate without much thought about the paint, plaster, pipes, wiring, roof and so on. The intent of course is for the owner to generate as much cash flow as possible and cash flow is good. But, if that cash flow comes at the expense of allowing property elements to deteriorate, then the little profit you are taking now will be eaten up exponentially by the financial pounding you’re going to take later.
Wise management and operation will prove that those willing to do the work when it should be done, will inevitably achieve higher yields than those who foolishly allow maintenance issues to go as long as possible before responding. Simple preventive maintenance items that are ignored will compound due to the ravages of time and will inevitably cost you exponentially more to repair than they would have cost to maintain them when a maintenance need first arose. For example, a dripping bathroom p-trap that would take 30 minutes and a $5.00 part to fix will, if left unattended, warp the cabinet, deteriorate the floor and possibly allow mold to invade subfloors, sheet rock, carpeting and pad. A five dollar fix from a few months ago could now cost hundreds if not thousands of dollars to rectify. Without question the proper and timely maintenance of investment properties is the best expense control program you will ever use. Many owners have learned this lesson the hard and expensive way. Don’t be one of them. Learn from the experience of others, both good and bad.
If you will inspect your properties frequently and make the repairs and upgrades appropriately, you will save yourself thousands upon thousands of dollars over the long haul. You will also be able to maximize your income because of the quality of your property and thereby increase your NOI and market value. If your intent is to profit from real estate, then you must maintain it properly. So do the work as soon as it is identified and do it right. You’ll be dollars and hours ahead. And after all is said and done, real estate investors are capitalists, and proper maintenance is a capital idea. Good luck in your career and with your real estate investments.
posted by zzzzzzzzzzz at
4:19 AM
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