Have you ever firmly believed one thing, only to realize that it wasn’t quite right? Maybe you did a 180, or maybe you just needed to tweak something in your thinking. Being able to see things from different perspectives is essential to being a successful investor.
First of all, you have to see a property’s potential. If all you see is horrible paint colors, dirty carpet and dated décor, you don’t have the right perspective. You want to get to the point where you can walk into a house and immediately get a vision for what it will look like when it is fixed up.
Secondly, you will need to analyze more than just numbers. You have to get inside the head of your end-buyer (or renter). What are they looking for, how much are they willing to pay, what could turn them off, etc? You don’t have to agree with them, you just have to understand their thought process so that you can deliver the right product.
There are other perspectives to consider as well, like your contractors, your real estate agent, the neighbors, your lenders, etc. Learning to see things from other perspectives will help you keep moving forward in business and life.
For your reading pleasure
If you have ever considered owning rental property, now is the time. Fewer people are choosing to own homes these days due to high home prices, high debts and rising interest rates. In 2006, 70% of Denver residents owned homes. Today it’s just under 62%. For landlords, this means good rental income, less vacancies and higher pool of good tenants.
Thinking about doing the short-term rental thing (a.k.a. VRBO, Airbnb, HomeAway, etc.)? The difference is, you furnish the house and rent out by the night, week or month. You can often make more money than a traditional rental, but it’s getting more difficult. Denver now requires landlords to charge the 10.75% lodging tax and they are cracking down on violators. Make sure you get your license to operate as a mini-hotel and charge the appropriate taxes.
See you soon,
QUOTE OF THE WEEK:
Read the full newsletter here: 2017.02.24 – Friday Flyer – Perspective