Who is right or wrong or is it a matter of commonsense and street smarts to be able to succeed in income property investment?
I hear monthly, I DON’T WANT TO GIVE UP CONTROL OF MY INCOME PROPERTY TO ANYONE AND WANT TO OWN BY MYSELF and make my own decisions. That may be the worst decision you make!
That could be the most foolish statement from investors that have little professional experience in a field that they try to compare themselves to top pros that forgot more than these investors ever knew in the first place.
The sad thing people in general think they know everything and really quite often their own decisions turn out to be incorrect in a field they venture into that is not their main business but an investment vehicle. Because you have a building or two and they happen to come out ok after you purchase them, it doesn’t make you an expert in the entire real estate investment business.
Go with the pros in a income property sector and make sure they are in control of the decision making not yourself who is mostly banking on luck.
When you go to a lawyer or CPA for help because they know more about these issues than you studying a book or looking up Google search, what is the difference in real estate income investments?
Don’t ever turn down listening to new ways of investing because you are stubborn and think you are better than the next guy.
Listen more and talk less!
Each sector in commercial real estate is totally different than the next and each strategy is different so if you don’t know them all and worked in all aspects of these sectors you really can’t make an educated decision on your own when buying or selling.
There are alternative strategies totally different than buying one building with one tenant and calling it a GREAT DEAL. Many things make up that great deal like:
- length of lease
- leverage of debt
- responsibility of expenses
- tax consequences
- diversification of assets etc.
Going to a public website, picking out a 7 cap property and pursuing it based on cash on cash return is just plain foolish without knowing a host of possible concerns that a real estate pro can explain before getting serious.
Did you take into consideration that your loan will most likely will expire and reset long before your tenant’s lease expires and your cash flow may dwindle down at that time?