Most important aspect of real estate that is rarely talked about?

Question

I’ve listened to countless BP podcasts and am currently reading a few different real estate books. I am curious as to what the more experienced investors think is something very important to know, but is not discussed often.

Paul Shannon · Answer

Tax strategy.  Hire an accountant, a good one who's understands the ins and outs of REI, and tell him where you want to be in 5-10 years.  The right one can help you get there faster.

Taylor L. · Answer

The importance of commitment and work. If you stick around a while you'll see so many folks who show up, take a program or two, try for a few weeks or months, then stop and ultimately don't generate any results. There's a massive survivorship bias in real estate, where the folks you hear from are, naturally, the ones who stuck it out.

Just be aware that this stuff is all doable. But, it's not anywhere near as easy as people who are selling you a program make it out to be. I don't say that to dissuade, I say that to help you prepare.

Ujwal Velagapudi · Answer

I don't see it on here as much, but streamlining your operations is crucial. It is assumed that REI is innately passive, but it is not. You have to make it passive. The process of doing that from marketing, unit turnover, managing your PM, software, collections, applications, background checks, maintenance, taxes, etc. in an efficient, digitized way is the key to making it a truly "passive" asset that you can operate from your phone sitting on a beach somewhere. I still see too many inefficient operations.

Joe S. · Answer

One of the things that is pointed out many times, however people do not get a lot is financing. How are you going to take down your purchase? That is what separates the buyer from the wannabe. As a self-employed investor that has been a great challenge and I have found workarounds, but it is not as simple as people might think. If the financing challenge was not holding people back I guess everybody would own 1000 units.

Account Closed · Answer

@Joshua F. So I was reading the responses so far and all 3 pointed out key info. Understand it takes effort, a strategy (taxes being a hugely important piece) and a system that you are constantly adjusting (your procedures, communications, templates). So I don't have too much to add. I have 3+ years experience so naturally I'm still picking up new things all the time as well. Be flexible and continually learn and force yourself to learn to analyze deals through practice.

Most important aspect of real estate that is rarely talked about?

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