Q: Sir, you started off by renting residential. Given the state of the modern residential real estate economy, do you think buying and renting residential is still a good (viable?) strategy for someone new to real estate with little cash but good credit?
A: A lot depends on your alternatives, motivation, abilities, attitudes, and circumstances!
– If you buy right (price, location, financing, timing),
– If you have or are willing to develop the skills to create sweat equity (fix up/re-position, market better etc.),
– And the willingness/energy/curiosity/mindset to take the time to read/learn about all knowledge areas that impact your investment from maintenance (plumbing, electrical, a/c, construction/development, codes) to legal, finance, taxes, accounting, marketing etc.
Then entrepreneurially managed real estate will generally outperform passive investments over the long haul, certainly more than if you spent the same time surfing the internet, watching TV, or at happy hour.
It won’t be easy (if it were, everyone would be doing it and/or it would’ve already been done) but most of the time it will be interesting and even fun and it is very energizing to watch your nest egg grow.
“Any entrepreneur has to prepare for a lot of dark days, and they’ve got to really like what they are doing, and they have to have a reason for it to succeed.” – Phil Knight, Nike founder
“The thing most people don’t pick up when they become an entrepreneur is that it never ends. It’s 24/7.” – Robert Kiyosak, “Rich Dad, Poor Dad” (Caveat: Rich Global LLC, a Kiyosaki-controlled company declared bankruptcy in 2012 and per Slate and Suse Orman, some of Kiyosak’s advice a bit “dodgy”. However, I like the quote and this is a fine example of the need to “sort the wheat from the chaff”, apply critical thinking skills)
“Many people dream about being an entrepreneur, starting their own business, working for themselves. Very few actually take the plunge and put everything they’ve got into it.” – Fabrizio Moreira
“People ask me all the time, ‘How can I become a successful entrepreneur?’ I have to be honest: It’s one of my least favorite questions, because if you’re waiting for someone else’s advice to become an entrepreneur, chances are you’re not one.” – Michael Dell
As always, I share what I most want and need to learn. – Nathan S. Collier