33 Guidelines for investing in real estate.....

Guideline #17:  What you do, or don't do, matters.

When you buy stocks, bonds, shares in a REIT, mutual funds, rare coins, commodities, gold, art, or collectibles, you have invested your money, which is a very good thing.  Congratulations!  If you have purchased wisely, you can make significant gains.  It the markets appreciate, you can make significant gains.  Other than deciding to sell, your role after making such investment is passive.  You are at the mercy of "the market," that mysterious force.  You get to watch and wait.

Real estate is different.   As with all other investments, if you have purchased wisely and/or if the market appreciates, you can make significant gains.  But......real estate is not passive.  What you do truly matters.  By refusing to fix things that need fixed, by not taking care of things that need taking care of, by ignoring the needs of your tenant - you can make the value of your investment decline.  By fixing things that need fixed, by taking care of things that need taking care of, by tending to the needs of your tenant - you can keep the value of your investment stable.  By upgrading the property, by maximizing its potential use, by upgrading tenants and/or rents - you can make the value of your investment go up.

A regular periodic review of the investment property matters.  Is the rent appropriate for market conditions?  Are the expenses in line?  Are both you and the tenant following the provisions of the lease?  Is the property in sound condition?  What improvements and repairs are on the horizon?  Is the neighborhood around the investment holding its own?  Am I comfortable with continuing to own this investment?  These are among the questions you, as the active investor, need to think about and answer to your own satisfaction.

What you do, or don't do, matters.