By Tom Dunn

If you have ever thought about investing in real estate for renting, you've most likely heard all the horror stories of nightmare tenants, late night plumbing problems, lead paint hassles, and evictions. I certainly did, and I wasn't interested in putting a lot of time and effort into screening tenants, dealing with vacancy and repair, and going to court.

In fact, the very first book I bought on real estate was Lonnie Scruggs' Deals On Wheels, a brilliant treatment of mobile home investing. But Lonnie got his start by investing in real estate for renting, which he grew to hate. The entire concept of buying and selling mobile homes, as developed by Lonnie, evolved as an answer to his "tired landlord" syndrome.

After reading Lonnie's book, and others like it, my mind was more set than ever- you would never, ever catch me investing in real estate for renting. I would never have a tenant. I would NEVER, EVER be a landlord.

My how times change. Based on the knowledge I have gathered over the last several years as a real estate investor, and conversations with hundreds of experienced investors, I now know that it's not what you do, but how you do it, that determines the level of frustration you experience with ANY type of investing, especially investing in real estate for renting.

In short, when you decide to start investing in real estate for renting, it's the position you choose.

Choose A Position Of Strength

You can be a landlord if you want. I choose to be an investor. This is how I approach investing in real estate for renting.

Landlords do many things that investors don't, unless they choose to. Let's compare:

Landlords deal face-to-face with tenants, run classified ads, spend vast amounts of time at open houses and showings, screen tenants and their families, complete background checks. Landlords handle all sorts of paperwork, rules and regulations, and the collecting of rents and deposits.

Investors who engage in investing in real estate for renting hire professional property managers.

Landlords spend all sorts of time on the telephone with tenants who call about plumbing problems, neighbor problems, heat problems, appliance problems, you name it. Landlords call their tenants to ask them for overdue rent, try to collect late charges, and tell them to stop breaking the rules. Landlords apologize to neighbors for unruly tenants, cut grass, and plow snow. Landlords fix appliances and leaking toilets.

Investors who are investing in real estate for renting hire professional property managers.

Landlords are apologizing a lot- to tenants, neighbors, public officials, etc.

What about investors who are investing in real estate for renting? Let's see.

Savvy nvestors hire a professional property manager to handle all of the things that landlords have to do themselves. Which is easier, more cost effective, and a more efficient use of your limited time if you are investing in real estate for renting? If you answered, "Hiring a professional property manager," you're right!

A professional property manager is worth what you pay them, and then some! They will act as a buffer between you and the irksome details of investing in real estate for renting. They are experts at all of the things mentioned above, and much more, including bookkeeping, rent collecting, rule enforcing, late charge assessing, and even answering the telephone.

You, Oh wise person investing in real estate for renting, will get a check at the end of each month

Is this becoming clearer?

It seems so simple, right? Why does it take some investors who for long years have been investing in real estate for renting, including me, so long to see understand the difference?

Change The Way You See Yourself

When you see yourself only as a landlord, you fail to recognize that your time is better spent doing what puts money in your bank account- namely, finding and acquiring property that meets your investing criteria. Unless you are a plumber by trade, or a professional property manager, or landscaper, wouldn't your time be better spent doing what you have learned to do so well- investing in real estate for renting?

Of course if property management is something you love to do, something you aspire to, by all means do it! If you have a passion for managing your own properties, and you like the idea of being a landlord (with all that entails), go for it. I'm not trying to change what you love- I just want you to understand that you have a choice. When you decide that investing in real estate for renting is for you, you get to decide how you do it.

If you're like me, you'll have to teach yourself to think differently about who you are- to think like an investor. You'll need to start approaching investing in real estate for renting like a business instead of a hobby. You don't save money by doing everything yourself. In fact, you most likely are spending more by doing it that way- maybe a lot more.

To repeat, the two keys are:

1. Learn to see yourself as an investor who is investing in real estate for renting- not as a landlord. 

2. Learn to think like an investor investing in real estate for renting- not like a landlord. 

Are your strengths really in the areas of landlording I listed above? If so, fine. Keep doing what you're doing. But if, as I imagine, you are better suited to finding deals and bringing them to the closing table, then hire a pro to manage the properties you decide to hold and rent. Play to your strengths- you will multiply your time and your investing in real estate for renting business will grow like a thoroughbred racehorse bursting from the gate

Now, go make more offers!

You are welcome to share this report, unedited and in it's entirety, with anyone you like. You may not remove this text, or the following live text link. For more on beginning real estate investing visit www.dealfiles.com © 2006-2007 by Tom Dunn. 

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