Landlording has become a negative word these days in many chatrooms and investment circles. It seems that landlords are often viewed as dingbats, who enjoy getting abused by tenants for a few lousy bucks at the end of the month. Frankly, I've met a few of the above and probably have fit that description on more than one occasion. When done improperly, landlording can be a grind. But let me tell you, there are few opportunities for energetic people that can be as rewarding as Income Stream ManagementTM. Let me offer this first bit of advice. You can use the term landlording in common interaction with others, but in your own mind begin to reframe the way you see landlording. You control and manage an income stream. A cash flow. A simple concept with profound meaning. With all of the knocks landlording takes, few business or investment opportunities provide the potential freedom and long-term income that owning income properties will give.
The first key to making Income Stream management rewarding is very fundamental and basic. You absolutely, definitely must buy well below fair market values. It must be what some would call an outrageous deal. This type of purchase will provide cash flow almost immediately. Next, this type of purchase typically will payoff in 5-10 years on a mortgage. When paid, you have basically creating a small lifetime annuity. The net income each month will be $250-375 per month.
The second key is you must know and understand proper fixup and repair techniques, because this will keep you from being frustrated when tenants mishandle your property. Also, you will avoid burying cash into the deal. Don't bury your cash. If your not the handy type, don't despair, neither was I. The concepts and methods are learnable by anyone, male or female. You don't have to do the work if you have either the time or patience. Just learn the concepts and direct others. I do.
Thirdly, you must be able to manage the revenue coming in to your checkbook. This is done two ways. You must select the right tenant profile. The right person to pay you. Choosing the right tenant can eliminate 70% of all misery. The second part is achieved by handling your cash flow wisely; paying mortgages strategically so you can get the property free and clear as soon as economically feasible. Last in revenue management, you must handle the administrative details of the paperwork flow that accompanies all real estate ownership. I've met literally hundreds of real estate investors, and the ones, who seem to ultimately prosper the most and create the most wealth, are landlords and real estate owners. Buying and selling has its place, but developing income via income producing assets is the place where long-term income is creating along with large equities.
Let's get back to reframing the way you view yourself. You aren't a landlord. You are an income stream manager. You manage cash flows just like a multitude of other industries. You are in reality not much different than a banker. Banks control capital and then re-lend or rent that capital out in the form of loans. You control capital also. You also re-lend that capital out in the form of shelter. The user pays a fee called rent. This control of capital and renting it out is the same whether you are a banker or landlord. It is income stream management. The big companies that own cable or wireless phone service are income stream managers just like you. When AT&T buys a cable company they aren't interested in the entertainment industry. They are buying an income stream. Income streams are assets that are totally salable and measurable. Rental income from houses, garages, rooms, or mobile home lot rent are all measurable income streams.
Your first job is to start changing your mentality. From landlord to income stream manager. Once you do this you'll start to respect yourself more and make better decisions.