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One would assume that experts in selling Real Estate would also want a piece of the pie… but in Real Estate Investment this seems not to be the case most of the time.
Whether the Investment property is a single family home, a rental apartment building or a commercial property, the common denominator seems to be the tenants. Why? Because tenants don’t treat the properties as well as owners do. Oftentimes "Customer Service" becomes an issue for many potential investors.
No one is fond of receiving a tenant’s call at 3 in the morning to tell you the unit is flooded. No matter what kind of property you have as an investment, repairs and maintenance is a major headache. This is one area in which paying for a handyman or a Property Management company makes all the sense in the world.
Unfortunately, this area is often not known by new investors. I can not stress enough how important is "knowing what you are getting into". Those who succeed in this business have that magical touch with customers. There are many Real Estate Agents that invest in the business and are happy with the steady income provided and will continue to invest. Not having false expectations about the quality of tenants you will have, can prepare you emotionally for what will be an inevitable string of problems and complaints. Preventive maintenance of you property will pay off.
Having tenants requires a lot of involvement and maintenance, you can choose to handle them yourself or you may opt to have someone else handle those problems. Depending on the size of your portfolio it might be advantageous to hire your own property manager, this way you can be sure the customer needs are being taken care. After all, there is no business without customers. But be prepared by having a budget for repairs and maintenance. Ideally, you will not spend more than 2% of your time to manage your portfolio and to achieve this you will need some one dedicated to your tenants.
Many successful Real Estate Investors have a passion for the business and continue to increase their participation in the business. Some invest in apartment buildings while others go for commercial property. Commercial property usually demands a larger commitment and more maintenance, but because it has a higher yield attracts more investors; but with higher yields also come a higher risk. They consider Real Estate Investments to be a great source of income when they retire. Here we see the long term investment nature of the business.
Another deterrent may be materialized in the form of taxes, AAH UUH OOH… Yes, the tax on capital gains scares many, but the solution is the obvious… A god tax advisor! A CPA that specializes in Real Estate Tax Law particularly in the 1031 tax deferred exchange law to avoid taxes capital gains… is now your best friend. Together you can strategize and postpone some of the liabilities or perhaps re-investing in some other areas with less intrinsic value.
The level of commitment required to start your Real Estate Investment portfolio demands a true passion and involvement. There are risks, like in any other investment, but compared to the volatility of other investments this is a more stable perfect as a counterweight to other investments. With real estate property almost always if you hold on to it long enough it will make a better than average, profit.
GBrey | 
