Real estate investing can seem like a fad when viewed through the lens of the popular press. When prices are flying the airwaves abound with stories of fortunes gained overnight. And when the market slows down you can’t pick up a newspaper without reading a story about the impending housing collapse. Based on the coverage it would seem that real estate is an area that investors jump into when the market is hot, then bail out when the going gets tough.
Nothing could be farther from the truth. Reporters latch onto the story when volatility is high, but true investors stay the course. According to census figures, there are around nine million single family rental property units in the United States, and more than twice as many multi-family units. And the overwhelming majority of these properties are held by individual owners, not corporations. They’re owned by people like you. Real estate investors house America.
Most of these owners are having a positive experience as investors, but not all of them. Almost a third of property owners report that they would not buy property again. Real estate, as it turns out, isn’t for everyone.
So – why so many burned out landlords? Well there are a lot of answers to that question. There is a right way to be a landlord, and a lot of wrong ways. Choose a wrong path and your investments will rule your life. Choose the right path and you’ll be able to manage your investments and use real estate to help to build your financial future. Generating security through real estate is all about using leverage to build a portfolio over time. You won’t have the endurance to accomplish this if your landlord duties are driving you up the wall.
