Landlord by Design

I want to start by painting a picture. You read books, went to seminars, talked to other investors, did your research, and realized that real estate investing is a great path to getting wealthy. You decide to take action and buy an income property. So, what now? From all that you've read, you figure that you just kick back, relax, and let the rent checks roll in. You have other people pay down your mortgage while your property increases in value. It couldn't be any easier. Then it happens. First, you get a call for a plumbing issue. The plumber you carefully selected for your team is busy or out of town. The tenant sends you a text every hour to ask when they’re coming to fix the problem. Now, not only do you need to find a plumber ASAP you’re also likely in the middle of spending time with family. You may be there for your family physically, but mentally, you’re somewhere else. You solve the issue, and all is right with the world again. The next day, you’re having a hard day at work and you get an email. A tenant is putting in notice. They’re on a month-to-month lease, so they’re only giving you one month to find, screen, place, and turn the apartment. While you’re writing up your brilliant rental ad, you decide to check your online banking and you notice a rent check from one of your tenants has bounced. All of a sudden, the glamour and prestige of being a landlord is starting to wear off. You wonder if it could be you. Are you doing it wrong? I mean, you crunched your numbers; you have positive cash flow. How could you be so off on your expectations? That’s where Landlord by Design comes in. Most real estate investment authors write in extremes. They write either horror stories (which, fortunately, are rare) or hero stories (which, unfortunately, are also rare). The reality is that the lifestyle of the small landlord is a bit of a grind. You will have to feed your property to cover capital expense. A year’s worth of cash flow can be wiped out with one major problem. Even if you hire a property manager, you’ll have to manage them. You won’t always agree with them, and, at times, you may think they’re not doing enough or taking too long to fill a vacancy. Here’s a reality check. Real estate investing is an amazing way to build wealth, but (and it’s a big but) real estate investing is a business. It’s also a long-term wealth builder. That’s what also makes it great. If you have a good property in a good location, filled with great long-term tenants, and your building is in great shape, then it can actually be a pretty boring easy business. The challenge is that unless you go into it with a lot of cash in the form of a big down payment, or build something new, it can take one to two mortgage cycles to get to this position. That’s 5 to 10 years. Most the books don’t tell you that. Landlord by Design can help by providing real-world stories and education about property management. Our mission is to educate and help small landlords and property managers. We tell the truth, which you can’t find in books being sold by people trying to glamorize the residential rental business. We believe that armed with the right knowledge and expectations, people can enjoy life and create wealth at the same time. It’s not a business for everybody, and the income is definitely not passive. We hope you will find the stories and advice on this page helpful. Michael P Currie Landlord by Design