Great Article published today with 3 Really Good Tips

[Chris Clothier]

https://www.businessinsider.co...

I don't know the investor in the article, but I think her three tips are super timely and I happen to agree with all three.  You don't find very many experienced investors giving tips like these, IMO.  I think that is mostly because the forums like BP can sometimes celebrate some of the opposite of her advice.  Here are her tips from the article:

Three tips:

1. - Focus on buying the right house, not the cheap house.
2. - Do not let current news cycle dictate or change your real estate investing plans.
3. - Investing is about more than just numbers. You have a responsibility to provide quality housing and service to your tenant (resident).

I am a big believer in all three of these tips which is why I wanted to share the article.  Again, I don't know the writer or the investor, but I definitely believe more investors should follow that advice.  My failures in real estate have occurred when I am violating some form of these tips.  I have focused on buying cheap housing in the past because I equated it with less risk.  In reality, the cheap housing with crap, quick, un-permitted work was much riskier than buying a better house and doing a more diligent renovation.  I lost money on the cheap crap.  I know  handful of investors who have made a fantastic living on buying very cheap real estate, but they are also full-time, hands-on and many of them are very fair to their residents, which certainly helps.  I think this article is mostly for passive investors and in many ways, I think it speaks directly to turnkey investors who put a heavy reliance on others for their success. 

Same goes for the news cycle.  We should often be doing the exact opposite of what the news says, especially when they describe the national real estate market.  That does not exist.  It is a lazy way of creating news and not having to really dig into data to give meaningful news about particular markets.  I have gone as far as to do podcasts based on news headlines and pointed to where the data they use shows the opposite of their headline.  

Lastly, and probably the most controversial is the tenant/resident/owner relationship.  The bottom-line is residents will stay when they feel heard and valued.  I'm a big believer in the responsibility to be a good landlord/investor.  Not everyone will agree with that and some feel the responsibility is much heavier for a tenant/resident to be the responsible party.  Both are right.  When both parties fulfill their responsibilities (which is the way interpreted #3), there is no reason an investor cannot have a sustainable and reliable investment.