ProActive Property Management

7 TIPS FOR LONG-DISTANCE LANDLORDING SUCCESS

Who is the best person to take care of your real estate investments?

YOU!

So, how does an out-of-state investor ensure their properties are being taking care of properly? Follow these seven easy techniques and you will become a PROACTIVE Property Manager just like the investors in our CashFlowCows.com network.

From my numerous years of managing realty holdings in up to five states simultaneously, I've learned the following information, which I share with my clients. I would like to also pass them on to you.

1. Choose the Best Local Manager, Even if Costs More.
Some apartment building owners choose a property manager based on their fee. They will choose the cheapest company in order to save money. Many different spiritual doctrines teach us that our true reality is often times the OPPOSITE of what it may actually appear to be.

This is also the case in the area of business. Sometimes by paying more now we actually save money in the long run. There is a popular saying I heard while growing up: "Compra barato, compra cada rato."

Translated from Spanish, this wisdom literally means: "Buy cheap, buy often."

Good property managers are worth their fee, plus some! They have a difficult job, one that is filled with constant stress. Imagine, they have to hear it from the tenants AND the owners. Tenants want new appliances, new carpet, they don't want their rent to increase and owners hate to spend money. They want income to surpass expenses and they want their rents to keep up and surpass the rate of inflation.

Great property managers are worth every penny they charge. Great property managers need to be treated with respect and should be admired and rewarded.

2. Communicate Effectively and Often
Many times, investors are hesitant to purchase long distance because they have an issue with trust. The gift of trust (it's truly a blessing to be able to let go) is a quality that may be earned through effective communication. Don't be afraid of asking questions.

Don't be afraid to call and check up on things. It's perfectly acceptable and recommended to call up every so often and check on how things are going. Just remember to be courteous enough not to call the first few days of every month as this time is usually the period where everyone is being worn thin.

I also like to get to know the staff, often the bookkeeper, assistant or receptionist can give you a quick update without even having to check in with your property manager.

An out-of-state property manager is a trusted advisor who has a fiduciary duty to serve you, just like your attorney, your financial planner, or your accountant. You therefore must feel comfortable enough to trust their judgement. If you don't have this level of confidence that I'm speaking of, perhaps you have not found the right property manager for you.

3. Have a Team or Network in Place
Make it a point to meet people when you visit your targeted investment location, initially and thereafter. When I know that one of my buildings needs some work, I schedule it when I visit so that I can meet my handymen in person. I also like to get numerous bids and meet as many locals as possible.

I enjoy socializing when I visit my targeted investment areas, I'm not one to stay holed up in my hotel room and order room service. The more people you meet, the better handle you can have on your property. If you can, I encourage people to try to attend a local real estate investing club to meet other investors. Other local investors make wonderful acquaintances as they understand the challenges and benefits of landlording

I like to be able to know a few independent people who can visit my properties within short notice and email me photographs when needed. Great people to have in your network are: Local Realtors or Brokers, inspectors, appraisers, insurance agents, and loan officers who live in the area. Local service professionals are excellent team sources. An investor should become friendly with them. (Tip: Luckily, people in these fields are always courting investors because we bring in out-of-state $$$)

4. Audit Your Property Regularly
I feel it is important to visit your property as often as possible. Once a year is great, every six months is even better. Remember: It's a tax deductible vacation!

Perhaps your investment is not in a resort location, but the money you make out of it could very well fund your true fantasy get-a-way in the near future.

I know that people who work 9-to-5 jobs may not have the extra time to audit their property, that is why I think www.CashFlowCows.com is growing so rapidly because we take regular trips to visit our own investments as well as those of our clients.

5. Emphasize Curb Appeal
Make sure your properties are kept clean. If you are going to spend any money on your properties, a portion of it should be allocated to spruce up its curb appeal. This can really make a positive difference, not only in the value of the property, but it will also attract more desirable tenants.

Clean and tidy people gravitate towards well-kept properties. You will have a lot less deferred maintenance if you keep up the quality level of your buildings because it will automatically attract a different level of renter than a property that has trash spread about the yard or displays graffiti that has not been bothered to be painted over.

6. Take Action Now, Don't Wait for Tomorrow

It's important for those interested in owning real estate to realize that they themselves must take personal responsibility for their investments. In order for a person to thrive in life and in business, one must be ProActive. You can't wait around for things to happen to YOU, you must make things happen.

If you have a vacancy, don't just wait around for it to get rented, take action. I have actually found tenants for my out-of-state properties by using the great online tool called Craigslist. The real estate portal of http://www.craigslist.com/ offers great resources for investors. Many of my investor and real estate colleagues have also located outstanding deals on this website.

The fastest way to find a tenant is through word of mouth. If your tenants are happy, they will alert their friends or family members when a unit nearby becomes available. This is why it's important to have a well-kept property. I also recommend having someone post a "For Lease" sign as soon as you know a unit will become vacant.

Another ProActive way to assisting your manager in procuring a tenant is to place a text ad in the local paper. The world wide web has really revolutionized real estate investing. You can literally find local newspapers online in virtually any corner of the globe (http://www.newspapers.com/) and place an advertisement quickly online.

When it's more challenging to fill a vacancy quickly, I resort to "Specials". My manager in Arizona recommended a "1/2 Month's Rent Off Special", which worked very well.

I also like the "Low Move-In Deposit Special" or the "Pets OK Apartment Special. Here is my ProActive Property Management Formula:

Sign + Advertisement + Craig's List + Specials = 100% Occupancy

Having all of your units fully occupied is the name of the game in the landlording business.

7. Have a Back-Up Plan
The scientific theory of entropy states that the natural order of our universe is chaos. That everything left unattended will begin to fall apart. Whatever we focus our attention on will grow, whatever we neglect will begin to demise. This theory can be seen in our every day life.

If you don't pay attention to your finances, what happens? You begin to shop needlessly or overspend compulsively. If you don't pay attention to your apartment buildings what can happen? Tenants may not pay the rent or the building will have a lot of deferred maintenance, perhaps even worse can happen.

It's important to always have back-up property managers, even if you are currently happy with the team you have, just in case.

By utilizing these tips, an investor can feel more confident when they are ready to expand their real estate portfolio by investing outside the comfort of their own backyard.

Remember: Opportunities for real estate riches can be found around the nation; in fact, around the world...

Enjoy the journey of success in real estate, until next time.

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Create Your Wealth Through Real Estate,

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No part of this blog may be reproduced or transmitted in any form or by any means, electronic or mechanical without prior written permission except by a member of the media who wishes to quote brief passages for inclusion in a magazine, newspaper or broadcast. The advise in this blog is solely based on personal opinion. Always seek the advise of a trusted attorney, broker, financial planner, accountant or other professional before investing in real estate.

Goal Setting for Success in 2007!

"Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success." --Pablo Picasso

New Year's Day is such a refreshing time. It is a moment when one contemplates the accomplishments and mistakes of the past and sets forth on a journey for yet another 12 months.

I love New Year's Day because it means that I must mandatorily slice out a chunk of my time to contemplate my life -- I do that often anyway, but this is different because I get to write it all down. It's an annual ritual to list my goals for the upcoming year.

Those who strive for success, such as to someday be a financially free or own multiple rental properties, MUST write down goals every single year -- more often if they are especially ambitious.

I did a bit of research and asked many people I came across with recently whether they had written down their goals. I cringed when the majority of people said that they hadn't.

"I just want to have a better year," said one person.

"As long as I can just make a living, I'm happy," said another.

Yikes!

Right before writing this week's blog, I saw Joel Osteen's sermon, ironically, he was preaching about the same exact thing: goals. He said people should have high hopes and expectations.

All spiritual truths offer phenomenal advice on how to attain success in all aspects of life, including financial. The Bible is worded so beautifully that it states many great commands for its believers to follow, such as...

"If the axe is blunt, and one doesn't sharpen the edge, then he must use more strength; but skill brings success. " -Ecclesiastes 10:10

The pen is truly mightier than the sword, and when you WRITE DOWN YOUR GOALS, two things happen:

1. You contemplate what it is your truly desire
2. You make concrete those wishes to the Universe (God, Creator, Jesus, Holy Spirit, etc.)

Did you take the time to sit down and contemplate your wants, your needs, your desires for the upcoming year?

If you don't know and demand what you want out of life. If don't expect to get more than to merely GET BY, then why should you be blessed with abundance?

Last year I wrote out six goals. I am proud to say that I accomplished four of them. I was actually surprised by my great results. So much so, that this year I decided to raise the bar. This year, I wrote out 15 goals. FIFTEEN! At first I wanted to reach ten, but then I said, "What the heck, don't limit yourself, Linda. Want more. Expect more!"

My broker, Hector Padilla, who is also my friend and real estate mentor, really takes his time in writing his goals. He writes everything out and places it inside a binder. He showed me his "goal journal" once and it was quite a few pages long. It was neatly typed. I noticed he had handwriting on the side. When I asked him about his scribbles, he replied, "Those are the things that have already come true."

Let me tell you about his last year. Hector, who is only in his early '30s, went on 14 trips: He toured Brazil, Costa Rica, Nicaragua and Cabo San Lucas. He took off to Las Vegas several times and went river rafting in San Francisco. Plus, he took real estate-related business visits to Florida, Texas, and New Mexico.

When I asked him to share advice for by blog readers, he replied: "I simply write down my vacations in my LIFE/Business PLAN."

He also stressed a technique that I apply in my own personal life: visualization.

"If you cannot go there in your MIND (i.e. visualize it), then you cannot go there in life," he says.
You know it's nice to be rich, but it's even nicer to be both YOUNG AND RICH! But guess what? HE WRITES DOWN HIS GOALS!

"If you fail to PLAN you are PLANNING to FAIL! Simply write it down and MAKE IT HAPPEN," advises Hector.

In fact, I walked in on him writing out his goals last year. It was early December and him and a few of his staff members were in the conference room all writing down their personal goals.

If you're striving to be a wealthy real estate investor, as those who generally read this blog are, then I implore you to start writing down your goals each and every year. Make it a habit of being aware of what it is you want from life. Contemplate where it is you want to go.

Life is exactly what you make of it.

I leave you with a great affirmation that Joel said tonight on his televised sermon:

"I am expecting abundance for this New Year!"

Now say it loud and proud! And when you say it, mean it, believe it, and it shall be so.

thanks for reading,
Linda

TIP: Place your goals where you can see them or read them often. This is important to keep you motivated throughout the year.

Good luck in 2007, I know you will prosper beyond your wildest dreams.

***********************************************************************
Create Your Wealth Through Real Estate, Allow My Team to Assist You!

Sign up for our FREE e-mail alert service today at: www.CashFlowCows.com

We Hand-Pick Properties and Market Areas Where WE PERSONALLY INVEST!

No part of this blog may be reproduced or transmitted in any form or by any means, electronic or mechanical without prior written permission except by a member of the media who wishes to quote brief passages for inclusion in a magazine, newspaper or broadcast. The advise in this blog is solely based on personal opinion. Always seek the advise of a trusted attorney, broker, financial planner, accountant or other professional before investing in real estate.