Most of the people think that rental owner and landlord and same. The fact is, these two are actually play in different roles. Understand the both distinctions is important and that can make all the difference in getting what you really want to be in real estate field.
Owning a rental property is a way to invest in property and build wealth. However, become a landlord can be completely different than just investing. Just make sure you understand the difference before you get involved.
Their mindset is difference
Most of the new investors get started on property investment field are just reading about real estate and how to owning rental properties. Furthermore, they don’t even finish the book sometimes, they don’t do research whether their current option is available with today’s market, or they might think they can invented their own landlord gig which better than others. Sometime this can work out perfectly, but its percentage is only 1%.
In fact, this often can stressed you out than anything else. Sometimes, working at boring office desk is better than being a property manager as it will take your 365 days to manage your property which more than a full time job. If you really want to buy your dream house, while you have some money, save it up and don’t think about to getaway on holiday, then your dream will comes true in the very near future.
Scale is important
Scale is another major consideration. Most don’t start out with a big property to reached their financial goals in future. If you are start out with first triplex or 20-unit multifamily apartment building, you may never find the ability to grow your financial.
You may be a good landlord for your property than others, however, if you want to grow and scale, you’ll need to be willing to let someone else do the job.
In fact, the owners are seldom can be the best property managers. They make emotional, decision and out themselves at big risk from a variety of liabilities. And this is true when a landlord try to bring in layman to help instead of delegating to the other professional property management company to assist them. However, if you prefer to build a professional company yourself, just be sure you build a model that makes it hands-off for you. Generating wealth from an investment in its genuine sense should never rely on the number of hours you can put in, how often you are available to be on call, or a skill set that only you can possess.