Know Your Capabilities

During my early years in property ownership, I attempted some property repairs, remodeling, and renovations myself. Bad idea! I lacked the required talent and skills. I lacked the temperament. Rather than save money (my goal) many of these "do-it-myself" projects ended up over budget and low quality.

In addition, projects that I thought I could complete in a week often lasted a month or more. Sometimes I lost more in rent collections than I would have paid a competent contractor. Plus, if I had hired a contractor in the first place, I would have saved myself substantial aggravation. (Admittedly, working with contractors can aggravate, too.)

The moral: Assess your capabilities before you buy a property. Many investors fudge a property's expense numbers to persuade themselves that a proposed deal looks better than it really is. They tell themselves that there's no need to include an expense for this or that because "I can do it myself." But even if you can do it yourself, at least enter a bookkeeping expense for the value of your own labor.

Most successful property owners hire out their property upkeep. If you focus management operations and let others execute, you'll typically make more money and avoid the burnout that plagues so many owners who try to do everything themselves.

Moreover, when you delegate the manual labor, you free your own time to think, research, and plan your investment strategy. I am convinced that most owners of small income properties could improve their bottom line if they would simply manage their strategy more than they fret over the small stuff. Think more, work less. That approach leads to effective, value-creating property management.

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Credit Score Booster

There are many misconceptions about credit scores out there. There are customers who believe that they don’t have a credit score and many customers who think that their credit scores just don’t really matter. These sorts of misconceptions can hurt your chances at some jobs, at good interest rates, and even your chances of getting some apartments.

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