Are Your Real Estate Investments Not Making Money? It Could Be Because Of These Reasons
Are you concerned that your real estate Investments for not making you the money that you thought they should be? If so, you’re not alone! In this article, we will list for you 5 reasons why your real estate Investments are not making the money that you think that they should be.No Clear Objectives
The primary reason investors I meet do not make any money in real estate is because they have not taken the time to establish specific, clear objectives. Most investors have answers for the questions I asked our representative investor above and believe that is sufficient for moving forward. But the objectives need to be “SMART”:
Lack of Time
A real estate investment must be viewed as a business. As with any business you have clients (tenants), vendors (property managers, contractors, utility providers) and possibly employees. You have cash flow, accounting, and capital allocation decisions to make. You must have a marketing and sales strategy in place. And you must be able to generate a return on investment.
Poor Management Skills
Whether you self-manage your property (and I highly recommend that you don’t) or utilize the services of a professional property manager, you will need to have effective management skills. Interacting with tenants is part art and science as it involves the attraction and retention of quality tenants, balanced by the legal requirements involved with being a landlord. Managing the property manager is a different skill set altogether, as you need to be able to establish an alignment of interests, motivate the property manager to perform and then monitor that performance against expectations.
Get Monterey County Property Management
For Monterey County property management contact 36 North Property Management today by calling us at (831) 484-4604 or click here to connect with us online.