I recently wrote this article for a national trade magazine.
It is time to let the world know that we are the experts-not just the caretakers of their investments. We, as NARPM members, have been working toward this goal bny becoming educated professionals.
Most new investors listen to everyone else first. This is a mistake. The property mangers, who are in the trenches, should be their first point of contact. Property managers usually get the properties after the investors have listened to the “gurus.” The investor is shocked when they learn what return the real market will produce. They have a rental and now they have been told to “get it rented,” as if this is an automatic thing property managers can do.
There is one major subject that is rarely discussed by the gurus with these new investors. The subject not mentioned is maintenance.
After a month or more, a major breakdown may occur-replacement of the water heater, air conditioner, heater, of an appliance. most new investors have not planned for these unscheduled surprises. I want to quote a retired property manager from the Sacramento Area Chapter. Bill Horn gave a class that I attended where he made a profound statement. “If you can’t afford real estate, don’t invest.” A lot of times, the new investor has money for the down payment and maybe a modest reserve during the vacancy, but they do not have the capital to handle a major breakdown.
On occasion, I have talked an investor out of buing a questionable investment. These are the rare occasions when a wise out-of-town investor calls for some advice.
Who are these “gurus” that offer these infomercials and seminars? Most have been successful in the real estate investment business. However, a question always pops up in my mind, “Why aren’t they following their own advice and investing in proerties?” I suspect that. based on the pricescharge for their programs, they make more money selling programs than investing in property
