A recent article by David Greene in Forbes magazine caught my eye this week. I’ve been blessed to work with many successful Real Estate Investors (REIs) over the years. They are a diverse bunch to be sure – women, men, US citizens, foreign nationals, younger, older, etc. That said, I know that they all share some core, success producing traits. David Greene explains what, in his view, those traits are and how they help REIs consistently make money over time. I encourage you to read David’s article. It’s illuminating. I want to highlight a few of his main points here and add my thoughts.
Successful REIs never stop learning and keep up with the latest market trends. Knowledge is important. Experience goes hand in hand with expertise. If a successful REI doesn’t know how to do something, he asks, listens, and learns. Many of my clients absorb as much information as they can by listening to podcasts or audiobooks during their daily commute. However they do it, they spend the time required to stay well informed.
Greene also talks about patience in his article. I agree that patience is crucial. A key component of patience is timing. Right now, with New York City in a state of flux and people fleeing the Big Apple in record numbers, outlying areas like Westchester County are experiencing a boom in rental and sales demand. Experienced REIs see this and are taking full advantage of the current market dynamics.
I also agree with Greene’s emphasis on efficiency as an essential trait of a successful REI investor. Few REIs can do it all – handle the required renovations and repairs, find tenants, manage all aspects of the tenant relationship, etc. Most successful REIs do what they do best and hire pros to handle the rest.
For example, most of us know an REI who is also a great handyman. If his properties are local, he handles all the repairs himself, saving money. Other REIs prefer to find and manage their tenants – they don’t mind that 3 am phone call saying that a water heater exploded and flooded their house. Some REIs are always looking for new investment opportunities. Others are content with an investment or two that they inherited or previously occupied. What they all have in common is that they know what they need and put the right people in place to achieve their goals.
Successful REIs have a support group they can count on – a great handyman, a proven reno company, a property management company, an attorney, and an accountant. Relationship building is important. Whenever they need a service, they don’t have to go to Craig’s List or phone friends and business associates for recommendations. They pull up their contact list and make it happen.
As a property manager, I work with clients who, for multiple reasons, do not want to or do not have the time to deal with the tasks involved in managing their properties. Many of the landlords we represent have busy careers plus family and personal obligations that make it impossible for them to be their own property manager. They know the importance of leveraging their time and hiring a knowledgeable property manager to handle their rentals.
If you have a residential property or properties in Westchester County that you are interested in renting, now is the time to put them on the market. At Sterling Property Solutions, we have a team in place that can answer all your questions and address any challenges. If you are already a landlord and you no longer have the time or desire to handle rental property management on your own, we can help. Maybe your current property management company is not giving you the top tier service you deserve. If so, reach out. We are there for you.
Please give me a ring at 914-355-3277 or send me an email at Linda@Sterlingpsi.com. Together, let’s form a plan for you to take full advantage of the current conditions and put in place a robust, long term program for your success.