Quote:
Originally Posted by Badhobz
I don’t know people bother.
If you already have millions why go through the aggravation of dealing with these scum tenants. Just go enjoy your money you greedy fuck. You don’t need anymore.
I hated being a landlord. Yaletown condo was always causing me headaches. Dealing with these retarded tenants and their problems.
|
Quote:
Originally Posted by bcrdukes
I think there is a fallacy where people believe that becoming a landlord, be it residential or commercial, will absolutely generate passive income, and this is where people get it wrong. You need to put work into it and treat it like a business or a career/job.
A lot of people dish out how successful they are but they don't necessarily share the aches, challenges, and pains of making it all work.
|
You guys are exactly right. Being a landlord is hard... but really only on the residential side of thing. But that's not always the case.
The whole reason my family went all-in into CRE was because of the simplicity. All you need are 2 people, a very very good RE lawyer and a good accountant.
They cost a lot of money, but the peace of mind that they bring is incredible.
When my lawyer draft a commercial lease agreement, she doesn't just layout the general stuff, but every single imaginable scenario all the way down to if a plane hit the property (I shit you not, because we are in the path of a regional airport runway).
My oldest tenant that is still with us has been renting our unit for 15yrs. We have sent each other (not including followup replies) 9 emails during this time frame. I could count the time he texted me regarding business matter (emergency that couldn't wait for email) with a single hand.
The most time we actually spent is every time that I'm in town, I'd buy him a dinner/coffee/beer and just chat about general stuff like how's family and business doing... the regular small talk.
The other part that's hard for landlord is that if you take it as a career/job, you need to be constantly scouting for opportunities. Maybe you are't buying/selling. But you need to be always up to date with what goes on in the area.
But that's also not 100% the case.
It's also a fallacy that you need to work hard. No... you need to work smart.
My clients pays me 0.5-5% on their transaction for me to consult on their cases (find them the property, negotiate the terms, structure the entity... etc) AND many of them pays me another 5-15% of their rent income just so that I take care of everything stuff for them.
Just like Hobz said... no one likes being a landlord, but it doesn't mean you always have to do everything by yourself. I don't either.
Whenever I'm about to buy a property in a city, the first thing I do is to find the best RE lawyer, the best accountant (if it's in a state I don't already operate), the best plummer, the best electrician... etc. Actually, that's not true.
I find the best that can also accommodate me. So, everything is within a call away for me. If some shit happens at 11PM at night, I can have it dealt before the clock turns 12.
In short, these are valid points. But just find the right people and it can save a lot of problem. A lot of time we gotta stop thinking like Asian. "he's charging me how much for that shit?!?" Through the 3 decades that I have been doing this, one thing I learned is that I don't see paying these people as expense. I see them as investments. Their effort makes a difference on my ROI.