Side Hustle
12-05-2020 | 02:21 PM
#221
Gets Weekends Off
Joined: Apr 2007
Posts: 5,610
Likes: 624
Very true on the amount of work. Although it seems the majority of the work is at the beginning, setting up your team, systems and processes. After that gets rolling a lot of the workload is on autopilot. One sponsor told me managing a 400 unit apartment building is easier than managing a duplex he had when he first started because the apartment building is has so much scale it pays for the on site maintenance and leasing team. A duplex that responsibility is all you because the scale is so small property management would zap most if not all your cashflow.
12-05-2020 | 02:36 PM
#222
Gets Weekends Off
Joined: Apr 2007
Posts: 5,610
Likes: 624
In the airline industry, we have a continuum of time vs money. We can trade more of our time for more money via WS, GS, etc.
In the world of real estate investing there is a similar balance. An investor with loads of time can invest that time to generate a higher return on the invested capital through self management and sweat equity in value add property. They think they are getting the best possible return. The mistake is that time is finite, but money is not. You can create more money with good investments, but you cannot create more time. Be careful with your most valuable and limited resource.
If you don't have the time to invest, you may be getting a lower percentage return by paying for property management and property improvements, but you have more of your time available to find more property. Some investors have a hard time letting go of the reins and get stuck at the limit of their own time and ability vs expanding their team and focusing time on the most productive areas.
In the world of real estate investing there is a similar balance. An investor with loads of time can invest that time to generate a higher return on the invested capital through self management and sweat equity in value add property. They think they are getting the best possible return. The mistake is that time is finite, but money is not. You can create more money with good investments, but you cannot create more time. Be careful with your most valuable and limited resource.
If you don't have the time to invest, you may be getting a lower percentage return by paying for property management and property improvements, but you have more of your time available to find more property. Some investors have a hard time letting go of the reins and get stuck at the limit of their own time and ability vs expanding their team and focusing time on the most productive areas.
12-06-2020 | 06:49 PM
#224
Moderator
Joined: Jul 2006
Posts: 7,481
Likes: 478
In the airline industry, we have a continuum of time vs money. We can trade more of our time for more money via WS, GS, etc.
In the world of real estate investing there is a similar balance. An investor with loads of time can invest that time to generate a higher return on the invested capital through self management and sweat equity in value add property. They think they are getting the best possible return. The mistake is that time is finite, but money is not. You can create more money with good investments, but you cannot create more time. Be careful with your most valuable and limited resource.
If you don't have the time to invest, you may be getting a lower percentage return by paying for property management and property improvements, but you have more of your time available to find more property. Some investors have a hard time letting go of the reins and get stuck at the limit of their own time and ability vs expanding their team and focusing time on the most productive areas.
In the world of real estate investing there is a similar balance. An investor with loads of time can invest that time to generate a higher return on the invested capital through self management and sweat equity in value add property. They think they are getting the best possible return. The mistake is that time is finite, but money is not. You can create more money with good investments, but you cannot create more time. Be careful with your most valuable and limited resource.
If you don't have the time to invest, you may be getting a lower percentage return by paying for property management and property improvements, but you have more of your time available to find more property. Some investors have a hard time letting go of the reins and get stuck at the limit of their own time and ability vs expanding their team and focusing time on the most productive areas.
Word! A friend was going to sell his 6-9 properties because they were taking so much of his time. I talked him into trying property management for a year, and he couldn't be happier. 8-10% hit in returns, but MASSIVE gain in QOL and time with the family. If I move up into more proprieties, it will only be with property management or through programs mentioned above.
12-07-2020 | 04:14 AM
#225
On Reserve
Joined: Sep 2020
Posts: 12
Likes: 0
From: A350 Left
I agree . I am commercial property only all on triple net long term leases. The 10% I pay my manger is money well spent and it's deductible. I now pretty much just check my statements once a month. Your time is gold use it wisely. Having just retired after 38 yrs. of airline flying its time to enjoy.
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