The stories I have about my early days in real estate are almost too ridiculous for anyone to believe. My side hustle was anything but a side hustle. It turned into a very time consuming low-paying job.
I worked so hard to get the perfect first rental house to begin with that I was ready to check out after I managed the rehab and got a tenant on the hook to give me my monthly mailbox money.
Only I couldn’t check out. I was an ACTIVE INCOME real estate investor.
Monthly, I was hustling to collect rent. I answered every call and complaint. Though I had no business doing so, I became a 24 hour repairman. It was ANYTHING but passive. Then the cops got involved. Yes. The police were calling my phone along with three other phone numbers in quick succession. MY TENANT had shot the neighbors cat in the front lawn.
Brad, on the other hand, had situations where he took the extremely passive approach which is just as unfortunate as being an active income real estate investor. He and Jimmy go over the details of one of our deals and Brad explains his experience with his uber-passive approach in this Deal of the Week.
Upon visiting his rental property almost a year into his tenants lease he was introduced to FIVE new and unwelcome residents…
So where is the middle ground you ask?
You need to think STRATEGY if you are going to be in the game of rental real estate.
Sure, it is easier in the short-term…
- to never visit the home
- to trust your tenant will live in accordance with their lease
- assume your tenant will notify you of necessary repairs
- believe the absolute best in people
You need to think in terms of long-term wealth and evaluate all the numbers involved in your wealth strategy and make decisions accordingly. Sometimes you have to give on cash flow to make a sound decision to maintain the integrity of your property and focus on appreciation. White-knuckling your cashflow numbers will make you feel good TODAY but can compromise the overall plan for financial freedom.
We help our Empire Builders set themselves up for a better long-term solution to wealth. This means laying out every scenario as we see it that can happen good, bad, and ugly. We mitigate risk at every turn and set in place a PLAN that helps you as the investor make (strategically) passive income.