I belong to this fraternal organization in Northeastern Pennsylvania. We have a meeting hall to gather in and a restaurant to enjoy some food and drink. There are a number of benefits to membership. On Fridays, we have happy hour specials and I often meet up with my brethren and our significant others to rehash the week. We also run monthly bus trips to Phillies games and get discounted seats through a ticketing connection. We get bargains on burial plots in a private cemetery and, with that perk, I’m never quite sure if I want to live… or die.
Just joking—the club is a great place to meet up and talk business as well. Many referrals have been passed between members. I’m a professional real estate investor and the organization has played an integral part in helping me to growing my portfolio. The advantages of being a landlord outweigh most of the rewards I get from our little cabal but both factors—social scenes and business worlds—have melded to spur my success. Since I’ve covered the benefits of my social club. Let me point out the top five benefits of being a landlord.
The Top Five Benefits of Being a Landlord
Everyone has their own idea of the American dream. For some, it’s sitting on an island sipping umbrella drinks after winning the lottery. For others, it’s prosperity achieved through years of hard work. Owning rental properties obviously fits the second category and, along the way, I’ve gotten to see some great upside from being a landlord. The benefits emanate as much from the essence of the business itself as they do from the end result.
1. Financial Savvy
When I was gainfully employed by someone else, I banked my check, paid my bills, and maybe saved a couple bucks after all was said and done. I didn’t think too much about investing or how I could optimize my income. Owning rentals took me to a whole new level. Suddenly, there was more cash flow to manage, more bills to pay and ultimately, more to understand about business loans, cap rates, and taxes. I couldn’t afford an accountant in the beginning so my hands-on experience taught me a lot about finance. That knowledge eventually seeped into my personal and business negotiations—from buying a car to haggling over hard money lending and even understanding financial markets.
2. You’re the Captain
I think most people want to be their own boss, set their own hours, and take six-week vacations. I’m not sure about the last part. I can’t stay idle that long, but I answer to no one but myself and I do set my own hours. If I need to get to my son’s soccer game on Tuesday afternoon, I simply block out the time and divert meetings with real estate agents and tradespeople to other time slots. Being head honcho prevents me from playing the blame game. If I hire some shoddy contractors, it’s on me. I own it, I fix it and move on. When I acquire a property in an up-and-coming neighborhood for a great price– that win—it’s on me, too.
3. Continuing Education
I was just a guy who had some ambition. At first, I knew nothing about buying and renting out homes. I learned a lot of valuable lessons and skills—some quickly and some through experience. People skills become important when dealing with renters of all temperaments and mindsets. Talk to any one of us who rents properties and you’ll hear some harrowing tales about tenants. Sure, there are difficult times but my interaction with these folks has taught me negotiating skills, patience, and a keen insight into human nature. Believe me—those virtues have helped me in every aspect of life.
4. Tax Benefits
At one point in my old career days, I had a 110-mile round-trip commute and had no means to expense it. I entertained clients and friends, mostly hoping I would see some return on that “investment.” As a real estate investor, I now fastidiously record any expenses associated with my business—miles driven, advertising, and home office costs, among others. Aside from real estate taxes, insurance, and utilities I deduct on my income property filings, I also now have the means to maximize my tax deductions for investment properties that I previously couldn’t. I now measure my ROI from buying meals and drinks for business associates and prospects, and reduce my taxable income in one fell swoop.
I won’t be around forever, and for better or worse, my cohorts at the club have assured me I have someplace to go in the end. The beautiful part about building a rental property portfolio is that the whole operation can continue to prosper in the hands of like-minded future generations. I have three sons, one of which I’ve been grooming to deal with 3 a.m. tenant phone calls and earn a good living when done properly. Setting up a succession plan to pass on to my kids has left me with a calm knowing that they and their children may not have to squirm as much as I did in my young life.
Fulfilling Your Real Estate Investment Dreams
Each night I count my blessings. Among some more important ones, I am thankful for having the opportunity to make my own bones in this life. I hope it doesn’t seem like I’m patting myself on the back too firmly. Truth be told, this wasn’t a solo trip. When I bought my first few rentals, there were business struggles that led to some personal challenges. But, when I became a HomeVestors® franchisee, I found many folks on board who walked the earth in my shoes. My seasoned Development Agent has been a key supporter in helping me grow my professional investing business. And, I have a nationwide network of fellow HomeVestors® franchisees who have seen just about every scenario you can imagine so I can benefits of being in landlords.
Contact the HomeVestors® team now and see you can garner the benefits of being a landlord, too.
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