3 - The People

Real estate investments are not Hollywood relationships.... there is little glamor. It is dirty, smelly, unpredictable and uncertain. Be clear about whom you choose to do business with. Be clear about the money...when it goes in and when it comes out.

Who are the stakeholders?

Any and everyone who gains or loses by what you do is considered a stakeholder...from the hardware owner who supplied your lumber to the business partner with whom you split money and responsibilities.

Have a written operating agreement if you have business partners. The importance of choosing the right people and fit for you is what makes or breaks your business model. Make the boundaries clear...as to who does what and when. First understand a business partner’s strength and weaknesses. You can influence others but never assume they will perceive things the same way you do. We are all different for a reason and it is within accepting our differences and drawing out the positive from within us you can have a long term committed relationship with a stakeholder at all levels.

Have a written lease each and every time. If you are negotiating additional people, pets and promises have them in writing each and every time.

Who are the people in your neighborhood that will rent today? These people come and go.

With enough knowledge and properties anyone can figure out who is most likely to rent your place...and if you have the time and the technology you can market your place own your own.

When you decide to use a professional, make sure they are licensed, (as in a licensed real estate professional) and they understand the complexity of your place versus others. The real power of using a professional is leveraging off their current network of other real estate professionals and possible tenants flowing through their smart phones and websites 24/7. They can run reports off their websites, MLS and social media sites to check prices, inventory and who is renting for what. This means you can fine-tune ads and how you will spend money on these ads.

Each person has his or her own lifestyle and hopefully that lifestyle coincides with the way you run your business. As such, it is imperative that you clearly define how you do business before you get into the business, and to clearly communicate this to prospective tenants.

Your goal as a landlord is to set specific boundaries as to what your place is about and what it is not, how you expect to get paid and not.