What are some good nuggets of wisdom you've learned about real estate or business?
Have a few golden nuggets of wisdom you've learned from working your business? Let's see 'em! :) I'll start with a few of my own.
When my wife and I were new investors, we attended a class taught by a very seasoned investor who'd been in the business for over 40 years. Every time I look at a deal now, I always remember what he drilled into our head all through the class and the question and answer period: "It's all about ROI, ROI, ROI!" Yes, it's obvious, but it's also very easy to lose sight of that when you're new to real estate and trying to get your first deal. The key question with any investment is always will it generate a return?
The second insight I learned from a past property manager when we were fairly new landlords. New investors sometimes get desperate to get a tenant in their unit, so they discount their rent to (hopefully) make the property more attractive and get it rented faster. The problem with this is that it may attract the kind of people you don't want renting from you. When a unit is priced low, good quality tenants automatically assume there's something wrong with it: either it's a dump, it's in a bad area, there's a meth lab next door, etc. The first question good tenants often ask when they call on a discounted unit is "what's wrong with it?".
So, new landlords, avoid the temptation to cut your rent below market to try and attract a tenant. Not only are you creating a bad first impression of your property, but you're taking money out of your pocket and may make it tougher to find good tenants!
Any other nuggets of wisdom out there?