Lessons Learned in 40 years as a Real Estate Investor

6 Replies

This week I have been working with my Dad as an active Real Estate Investor for 40 years.  Here are five tips to succeed as a Real Estate Investor for 40 years:

1. Set written goals of what you want to achieve and review those goals at least once each week.

2. Try to have more than 50% ownership in any real estate investment so you have control in the investment.  

3.  Be wary of providing personal loan guarantees where you do not have 50% ownership

in a real estate investment.

4. Easier to manage and grow with single family homes in my opinion.  Our business owns and manages both houses and apartments but I like the houses a lot better.

5.  Remember my major motto after 40 years of investing: "Happiness is a positive cash flow!!"  Cash flow is very important as an investor in real estate

Once you accumulate a certain amount of cash/credit, isn't it faster to accumulate by buying large apartments? Or is it not difficult to buy several houses in package deals?

Hi Wilson,

The management level in apartments can be very intense.  Just be sure you have a team in place when you own and manage apartments.  We manage our houses ourselves.

The house tenant usually never calls us to complain about someone in their parking space or having a petty arguement with their neighbor.  Makes my life a lot better.

Those are good ones, tried, true and proven I'd say. I'll add one, just a few more years;

You can never polish your crystal ball enough, keep learning. :)

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

Originally posted by @Craig Horton :

Hi Wilson,

The management level in apartments can be very intense.  Just be sure you have a team in place when you own and manage apartments.  We manage our houses ourselves.

The house tenant usually never calls us to complain about someone in their parking space or having a petty arguement with their neighbor.  Makes my life a lot better.

 So then you believe that it is easier to buy a 100 unit building, for example, than 100 homes? Just curious about what your experience has been in terms of growth.

Hi Wilson,

We only own enough apartments or houses so we can manage them ourselves.  Having a lot of units does not make a lot of sense if you do not have a good management team.

I am not a big fan of property managers as members of our family are the management team we use.  

More units is not always better.  With too many units, you may lose control of the operation if you do not have a good management team in place.

Twenty to thirty houses is enough for me as I manage them myself with my Wife. Any more houses than that would require a Property Manager outside our family.

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