My name is Kevin Gleason. I have been a commercial real estate broker since 1986. Over that time I have sold numerous commercial properties, encompassing apartments, shopping centers, office buildings and single-tenant net-leased properties. The clients and customers I have served have two things in common: 1) They have all built wealth through investing in real estate and 2) not one of them did it over night.
Typically they started out with a small property, say a four family apartment. After a few years, as the property appreciated, they refinanced and pulled cash out and used it to buy another. Thus began a pattern of investing that over ten to twenty years built a portfolio of properties worth millions.
Some were hands-on and on a part-time basis or with a spouse or partner managed the properties themselves. This for the most part consisted of renting apartments to qualified tenants, providing those tenants with a quality residence and collecting rent checks every month. Simple bookkeeping, consisting of bill paying and record keeping took a couple hours a month. On occasion they might paint an apartment or cut the grass or plant flowers. They could enhance the attractiveness of their property in whatever way they chose, and the benefit was attracting better tenants, increasing the rent more often, and controlling to a large extent their wealth creation.
Other investors hire a management company to perform those tasks for a fee based on the total collected rent. The more rental income the manager generates, the greater their fee. This arrangement provides an incentive for them to keep the property full. Either approach takes the investor to the same place – financial security, and over time, a valuable portfolio of real estate.
This approach to becoming rich hasn’t changed since I started in this business. It goes on everyday, everywhere, and creates the same result. Slow and steady wins this race, and careful and responsible investing in real property will never let you down.
Call me if you are thinking about embarking on the slow boat to wealth creation known as real estate investment. All you need is access to credit, a work ethic and the patience to see it through.