[ad_1]
Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, such as American Express, but our reports and recommendations are always independent and objective.
People tend to think that real estate investing is passive. But that couldn’t be further from the truth, according to owner Becky Nova.
In his experience, being an owner is more suitable for certain types of people. “I think it’s important that people always invest in things they understand. If you’re going to invest in real estate, you need to know your numbers and you need to understand people,” says Nova, a real estate investor who owns 10 properties.
Based on his experience, Nova says there are two types of people who should invest in real estate.
People who want to own tangible investments
Compared to stock market investments, investing in real estate is much more tangible. Sometimes, it also involves hands-on work in a way that investing in stocks could never do. Nova says this could be a big plus for anyone motivated by the idea of more tangible investments.
For her, investing is best when she can see what she is investing in. “I can see when I get paid monthly as an owner. Those numbers are a lot more tangible than money sitting in an investment account that I can’t look at for another 25 years,” he says.
People who are good with customer service and research
In some ways, being an owner is more like working in customer service than being an investor.
“When you’re dealing with tenants it’s a people management position,” he says. Dealing with tenants and customers at all hours of the day is a routine for landlords.
And it requires a lot of organization and research. “You have to be educated and you have to understand the legal issues involved,” he says. Many cities have laws to protect tenants and, as a landlord, it is your responsibility to know them.
In his experience helping other owners, he finds that many successes and failures depend on the amount of research and future planning.
“One question I always get is,” There’s a problem with this tenant and I don’t know what to do. “Usually, the answer should be addressed in the lease, but I feel a lot of people skip those steps,” he says. ” They don’t have a process in place, which makes it very confusing and very stressful for both landlord and renters. “
Knowing the laws and how to work with people are both critical qualities for anyone looking to invest in real estate.
“You have to understand the details,” he says.
Disclosure: This post was brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not provide investment advice or encourage you to adopt a specific investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our business partners. This does not affect the presence or absence of a financial product or service. We operate independently of our advertising sales team.
Source link
