Alright, so I have SO MUCH to talk about and so many other posts to write, but I have to tell y’all why I’m so freaking happy with my real estate and I’m enjoying it for what it is at the moment.
Mostly all of the resources and information that I use to learn more about real estate investing comes from a website called Biggerpockets. It’s absolutely amazing for the amount of value it gives out to people and I’m not aware of any other websites that have really brought people together regarding this topic. They have a blog, a podcast, webinars every week. All types of formats to hear from other investors from all walks of life for every stage in the investing cycle from newbie to super experienced investor. If you ever consider real estate investing, definitely check it all out.
Here we go though. So a lot of times when I listen to the podcast or read a blog article about how someone started real estate investing they talk a lot about the first deal that they did and I’d say that it’s typically said that they just accidentally got into real estate investing in some way, shape or form. For example, I had already bought my first house before I ever thought of investing and it wasn’t until I read Rich Dad, Poor Dad where I truly started thinking it’d be something I’d like to do. Then after I lived in the house for a year to meet the VA loan standards, I ended up purchasing a second house and turning the first into a rental.
Along with talking about their first rental property they talk about that first rent check that they receive from their tenant and how at that moment they realize, “hey, this is freakin awesome! Let’s keep doing this and making money.” Then they start getting more and more doors.
Well, that’s kind of how it went for me, but it wasn’t life changing or anything when I got my first check as it seemed to be for others. When I think back to the first check, all I can remember saying is something like, “this is pretty sweet!” Then I went about my business. Nothing impressive and honestly I wasn’t really making much of a profit from that first house after expenses, including paying a property manager and that was a mistake from the get go. I wasn’t losing money however and that’s what I was really excited about. Also, just the fact that somebody was paying off my mortgage was good enough for me as well as knowing that it was all helping me reduce my taxable income.
Let’s fast forward now to today, three houses later and 3 tenants later. I’m extremely excited! Why? Because I think I finally understand what those other people were feeling when they got their first rent checks.
At the moment I manage my properties myself. I use a fantastic property management website called Cozy, that allows me to collect rent from my tenants along with a variety of other things, such as track maintenance and expenses. It’s definitely an essential key to running my business and it’s super simple and straight forward for all users.
The reason I believe I never felt as excited as the other people is because my first tenants were friends of mine. Both in the first rental and in my second one currently. I know, I know. It’s not really a great idea to rent to friends, but it’s worked out extremely well for me and I’ve never had an issue with collecting rent or anything else. Usually because I try my best to take care of things as soon as possible and everybody always appreciates that. If you take care of your tenants then they’ll take care of you.
Now, last month was the first month with tenants in a property that I have not previously known before in my life. They’re not friends and that made me nervous. Not because they’re strangers or anything like that. I did the proper background checks and credit checks and the reference checks and what have you. It was just a huge learning curve trying to get somebody in the house and no matter how much due diligence you perform I think there can a always still be a little doubt in your mind because you never truly know what somebody may do.
Any worry of mine has evaporated though. I truly love all of my tenants and when I saw the rent checks come in from everybody on the first of this month I couldn’t have been happier! Yes, it’s something that’s required to do anyways while you’re renting, but I consider it a huge point in my land lording career. It’s an amazing feeling to know that you’re making a difference in the lives of others and providing value to the community. My tenants are making my life and I’m going to continue to make sure that I provide the best experience that I can because I’ll say it again, “If you take care of your tenants, then they’ll take care of you.”
On the last Biggerpockets podcast, the guest said something that I truly loved and I think it goes perfectly for not just every business but life in general. His business motto is “People first, profits second.” I couldn’t agree more. Yes, the money is important, but there will always be opportunities to make money. Caring for those around you and having their best interests in your heart is much more important, in my opinion, and I’ve seen time and time again that when you take care of others the Universe pays you back with so much more.
With all that being said, being a landlord has been a great journey so far. There’s ups and downs and always a new challenge that I need to face that pushes me outside of my comfort zone. Things may not be going as fast as I’d like, but at the same time I’m actually doing it unlike many people who just think about it. This is what truly brings me joy.