Tenants Getting Screwed

Hard to believe that I, as a landlord, think that tenants are getting screwed. Usually a landlord gets a bad rap as the "slumlord" for not taking care of a property when in fact the tenants have destroyed the home. Like the lady who was complaining of mold in her home when in fact she never reported the toilet leaking and also never and I mean never, cleaned the bathroom in over a year. What does one expect?

But this time, in this one event, tenants are getting the shaft. Investors that thought real estate was the best get quick scheme out there, many flocked to the market buying homes and then renting the properties to make huge profits. Then the unthinkable has happened. The market went down.

So many so called "investors" got stuck with poor investments from their own bad choices and thus here comes the bad guys taking the homes back; those nasty lenders. Since the would-be-investors couldn't make the payments, the tenants get screwed finding out they have to move out with virtually no notice. Shame on them.

It is one thing when notice is given to a tenant to move, but when a foreclosure happens the tenants could be out on the street even though they had paid their payments on time. In this ever changing environment, it is becoming possible for tenants wanting information about the landlord/owner and their financial position. It has always been assumed that the landlord owned the home and as long as the tenants took care of the property and paid the rent on time all was fine. But with this new breed of investors out there, tenants need to be cautious who they rent from or they possibly could be out on the street with no fault of their own.

Investor or Idiot?

Real Estate Investors amaze me. First I suppose we need to define what an "investor" is. Most people consider themselves one if they plop down a few thousand and buy a home. Congratulations, you own a home therefore you are an investor. Please. You own money pit that will drain you dry.

At best you are just ignorant or you are an idiot. In the last year or so I have seen more people come up with the oddest strategy to determining if a property is a good value. They will do everything to make a home work, except doing the math. One buyer recently said, "This home is so pretty, everyone would want to live here so this has to be a good buy." She will probably be in the middle of a foreclosure in about 12 months.

An investor is one who has studied the market, the home to be purchased, understand what rate of return is and how to figure it. They are making, that's right, making their money work for them. This is not guess work, it is having an understanding of the environment around you. All aspects, from the job economy, industry statistics, the mechanics of the homes, and the true cash on cash value.

I have seen more people get into the real estate investing game in the last few years than ever before. I have also seen more people loose their shirt because of having insomnia and getting sucked into late night TV. There is nothing easy about real estate investing. The pros at it make it look easy. That's why they are pros. They understand how the market reacts, what the public wants, and they do their homework.

Real Estate can be the best investment one can make. It can also be the worst. I just met with a couple who lost, yes lost, over $50,000 when they had to sell a duplex. They didn't know what they were doing when they bought it, and it wiped them out. "Real Estate always goes up in value," they said. "That was an expensive lesson," I responded.

You can do this real estate investing venture. Just learn. Find someone who is not just a real estate agent, but one who knows investing. Most real estate agents are not investment strategist! I can help. If you decide that investing is for you, call me or email me and I can send you some names of people that can assist in your area.