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People tend to think of real estate investing as passive. But that couldn’t be further from the truth, according to owner Becky Nova.
In his experience, owning a home works best for certain types of people. “I think it’s important that people always invest in things they understand. If you are thinking of investing in real estate, you have to know your numbers and you have to understand people, ”says Nova, an owner real estate investor. 10 properties.
Based on his experience, Nova says there are two types of people who should invest in real estate.
People who want to own tangible investments
Compared to stock market investing, investing in real estate is much more tangible. Sometimes it even involves hands-on work in a way that investing in stocks could never do. Nova says this could be a big plus for anyone motivated by the idea of more tangible investments.
For her, investing is best when she can see what she is investing in. “I can see when I’m paid monthly as an owner. These numbers are much more tangible than the money put in an investment account that I can’t look at for another 25 years, ”she says.
People with good customer service and research skills
In some ways, being a homeowner is more like working in customer service than being an investor.
“It’s a people management position when you’re dealing with tenants,” she says. Dealing with tenants and clients at all hours of the day is routine for landlords.
And that takes a lot of organization and research. “You have to be educated and understand the legal aspects involved,” she says. Many cities have laws in place to protect tenants, and as a landlord it is your responsibility to know them.
In her experience helping other homeowners, she finds that a lot of success and failure depends on the amount of research and forward planning done.
“One question I get all the time is, ‘There is a problem with this tenant and I don’t know what to do.’ Usually the answer needs to be addressed in your lease, but I feel like a lot of people are skipping those steps, “she says.” They don’t have a process in place, which makes it very confusing. and very stressful for both owner and tenants. ”
Knowing the laws and working with people are two essential qualities for anyone who wants to invest in real estate.
“You have to understand the ins and outs,” she says.