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People tend to think that real estate investing is passive. But that couldn’t be further from the truth, according to host Becky Nova.
In her experience, being a home owner is best suited for certain types of people. “I think it’s important for people to always invest in the things they understand. If you’re going to invest in real estate, you need to know your numbers and you need to understand people,”; says Nova, a family member. Real estate investment owns 10 properties.
Based on its experience, Nova says there are two types of people who should invest in real estate.
People who want to own tangible investments
Investing in real estate is much more tangible than investing in the stock market. Sometimes, it even involves hands-on work in a way that stock investing could never do. Nova says this could be a big plus for anyone motivated by a more tangible investment idea.
For her, investing is better when she can see what she’s investing. “I can see when I get paid monthly as a landlord. Those numbers are much more tangible than the money in an investment account that I can’t see. In 25 years, “she said.
Good ones with customer service and research
In some ways, being a landlord is more like working in customer service than being an investor.
“It’s the position of managing people when you deal with tenants,” she said. Dealing with tenants and customers at all hours of the day is a regular job of the landlord.
And it requires a lot of organization and research. “You have to be educated, and you have to understand the relevant legal regulations,” she said. Many cities have laws to protect tenants, and as a landlord it is your responsibility to know them.
In her experience of helping other homeowners, she found that a lot of success and failure depend on the amount of research and future planning done.
“One question I always get is, ‘There’s a problem with this tenant and I don’t know what to do.’ Usually the answer should be mentioned in your tenancy, but I feel like a lot of people skip those steps, “she said.” They don’t have a process in place, This makes it very confusing and very stressful for both homeowners and tenants. “
Knowing the law and how to work with people are important qualities for anyone looking to invest in real estate.
“You have to understand everything,” she said.
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