Re: How much knowledge needed? - Posted by Joe
Posted by Joe on March 12, 2002 at 21:51:16:
This probably won’t go over too well with a lot of people reading this, but here’s what could happen if you don’t do your homework. You will overpay for your first investment. You’ll let some seller or realtor tell you that you can get a lot more rent than what the market dictates. You’ll underestimate the needed repairs. Prospective tenants will come up to you and promise you that they are the greatest people on the face of the earth, you will have absolutely no problem with them and that they will pay their rent on the first of the month every month. You won’t even have to do a credit check on them. One month after they’ve moved in, while you’re trying to figure out what to do with a bounced security deposit check and their rent is late, all of a sudden you have become the big bad evil Landlord who won’t give a little guy an even break. You may be tempted to listen to this guy’s pleadings, but after about six months of no rent (try pleading with the financial institution holding the note on your property) you finally wise up and evict the guy. Now you have a trashed-out house with several months of rehab time. You’ve suddenly become the “don’t-wanter” everybody’s talking about. But the problem is you owe a lot more on it than its worth.
I know this to be true, not only because it happened to me, but it also happened to a lot of seasoned veterans early in their careers.
The purpose of my message is not to discourage you or anyone else. There are a lot of good-hearted, well meaning people out there to help you but you got to do your homework and find them and the others you can trust. But be aware that there are a lot of predators out there, whether they are sellers, some seminar gurus or tenants and “newbies” are their prey.
You need to do your homework, do your homework, do your homework.
Best wishes in achieving your dreams.