Kyle has been involved in hundreds of investment properties and understands the key components of investing successfully. One of the most important aspects being properly identifying and being prepared for key costs immediately following the purchase and for years to come. This is one of the biggest mistakes people make. They paint the new property and change all of the fixtures, but when the roof leaks the following winter they don’t have the money to repair it, and eventually end up losing the property. So it is very important to understand the costs over the lifetime of the property and have a plan for them.
Another key component in investing is identifying value in missed opportunities. If there is an additional room that could be added that would cost you $10,000, but will pay you an additional $1000 per month for the lifetime you own the property, it is of great value and could be the difference between a property losing money and being a home run! There are thousands of things like this to look for – keep your eye out for value that someone else missed and you’re on your way to being a great investor.
Plan based on your situation. The best real estate investment is different for everyone; If you know you need to be liquid in 3 years the plan will be different for someone looking to park their extra cash for 18 years until their newborn is off to college. Buy in the areas you are comfortable with and have a good base in- if you travel a lot and won’t be around to make decisions when something comes up at your property, you had better have some good friends or partners that can chip in. Don’t buy somewhere 4 hours away that you can’t get to in an emergency situation and have nobody you can trust to cover you.
Invest! Invest in whatever tools you need to manage your expenses and tenants. It could be a PO Box or office, on-site surveillance, or accounting software. Make sure you are set up with all the tools you need to track, manage, and ensure your property’s success.