I cannot believe it’s been 2 years since the first property that I acquired, renovated, and rented.
Before my most recent trip home, I contacted my Property Manager to let her know I wanted to do a walkthrough of the property. Without hesitation, she said okay and noticed the tenant.
I arrived at the property a few minutes earlier to just take in the view of the property.
The tenant greeted me when I walked through the door and I was amazed at the view. It still looked the same with the exception of a few drawings on a door. It looked really good.
As she showed me around and pointed out a few things that I needed to fix, most of which were not emergency fixes; I felt very happy and proud. She also told me that the HUD HCV Program Inspector mouth dropped to the floor when he came inside. He couldn’t believe someone would put all that work into a property in that program.
She said she loved the place and that I did a great job on it. My Property Manager who is also a Real Estate Investor loved the layout of the kitchen so much that she is going to be doing well the same layout on her next project.
I couldn’t take all the credit for the kitchen layout; I only picked out the appliances but that was the ultimate compliment anyone has given me during my real estate journey and she has a lot more properties than I do.
I wrote this point to not only continue to inspire myself, but others as well. Real Estate doesn’t have to be scary or hard when you have a good team.
I honestly don’t know how other long distance real estate investors handle work orders from their tenants.
I wrote a blog previously about how valuable having a property manager has been to my team.
Today, I received a text from my Property Manager. I’m thinking a bunch of things like is the tenant okay, was there storm damage from Hurricane Ida, etc.
Low and behold, it was about the stove. The stove wasn’t connected properly and a part burned out. Go figure!
No one was injured. The property is still standing. The stove has been repaired and I reimbursed her the amount that she paid for the part. Luckily, I purchased warranties on all the appliances I purchased or that may have hurt my feelings and my pockets. 😂
My advice to anyone who is considering buying long distance real estate rentals or just investing in rentals in your neighborhood, try looking into getting a property manager. The service they provide to you is worth the money.
Back in 2019, I decided to invest in a rental property in Detroit, MI with an investment club. I found the leader of the group via YouTube. I had been watching her videos for a year and I liked the information she was putting out regarding business and making your money work for you.
I know there are questions people want answers to like:
1. How do you know if you can trust that person?
2. How often will you receive your portion of the profits?
3. How long will you own the property?
Truth, I didn’t know if I could truly trust that person, but we have a contract signed with all owners that lays out everyone’s percentage and how often monies will be disbursed. There is also a clause about what happens to the property after so many years. When you think about, even if I had a personal relationship with this group of investors, I would still want a contract.
Fast Forward to Present Day!
I’d like to say that it’s been a learning experience for sure. Some things have gone well and some things have gone not so well. Let me just say, I’m so glad I didn’t pay a whole lot of money.
First, we didn’t really get payouts every quarter because the tenant stopped paying rent. Yes, before the pandemic happened the tenant stopped paying rent. It’s a sad situation because the group is being told that the tenant is not affected by Covid-19. She’s still working and not paying rent.
The owner of the investment club posted a video on YouTube about the experience. I’m linking it below
One of the things, that I found to be tough as I began my real estate investment journey was building my team. It’s something that I still struggle with today and it’s partly because I don’t live in the areas I invest in.
As a newbie real estate investor, you hear people say, you have to build a team and you’re like okay. That involves a variety of people with different skill sets. Since I invest in Mississippi and I don’t currently live there, I had to network via Facebook. I was fortunate to reach out to a couple of people who came across my Facebook newsfeed from the area I am investing in who were also investors in the city and had connections and contacts and didn’t mind sharing. Of course there are other ways to connect with people via the internet and other social media platforms. On my first property, I knew I was going to need a Contractor, an Insurance Agent and a Property Manager. I thought that would be my team and I was good.
But later I found out that, building a team involves a lot more people. In order to grow the business, I’m going to need several Contractors, not just one, a Property Manager, a Realtor, an Insurance Agent, and a Lender, and a few people in my life to talk to when I need to vent or bounce ideas off of. It’s a whole system of people who I can rely on to get the things I need that will help me reach my goals. Of course I read a couple of books about it and one of the best ones, I read that helped me is Long Distance Real Estate Investing by David Greene.
It’s not an easy thing to do and it will take some trial and error, but I know once I’ve gotten my team down solid, the sky is the limit and at that point.