Is It Time to Become a Real Estate Mogul?

by Michael Bolton on December 1, 2011

With falling real estate prices, and more importantly the increasing number of renters, one would think this would be the opportunity of a lifetime to become a real estate investor, and for some it is. However, if there is one thing that this real estate malaise has taught us, being a landlord isn’t for the faint of heart. There were a lot of well-intentioned real estate investors that thought they would give it a try, and lost it all.

Create a business plan:

I’ve been a landlord for several years now, and I can tell you first hand that it isn’t a “set-it and forget-it” type of endeavor. You need a plan, and then you need to work that plan. Just because real estate prices in some areas are at rock bottom prices, doesn’t mean that being a real estate investor is something you should give a try. Treat it as if you were going to start a new business, or buy an existing one. Having appraised tens of millions of dollars in investment properties, worked with scores of real estate investors, I can tell you that the ones that had a plan, did their research, have fared the best and have done well.

Seek advice from others:

Craig Kamman, a Realtor with Edina Realty, just published a very thorough but succinct article on what it takes to become a real estate investor. I highly recommend if you’re interested in becoming a landlord to seek-out the advice of seasoned Realtor; find one that has rentals themselves, or has been working with investors for a while. Find a local real estate investors club, talk to other landlords, find a good real estate attorney (you may need one someday), check with different municipalities about landlord classes. Learn from other peoples mistakes, and you’ll be way ahead of the game. Good luck, and may the force be with you!

If you have any questions, or real estate appraisal needs (divorce, bankruptcy, tax appeal, or estate planning) please contact Michael at 612.599-2581, or use the form on the contact page.

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