Many investors who avoid real estate are afraid of the anticipated difficulties of being landlords. They hear horror stories. They think to themselves, “I don’t want to fix toilets,” and “I don’t want to get calls from tenants in the middle of the night.” But know that there are strategies for intelligently managing a property that any capable person can implement. As well, many people fear the threat of a lawsuit. And rightly so. We are a litigious society. Attorneys are rewarded for bringing claims against wealthy individuals.
But know that there are asset protection strategies that can reduce your exposure and limit your liability. In all, the rewards of owning real estate far outweigh the drawbacks for most prudent investors.
In recent years, many have come to fear the entire market. With the meltdown in 2008, thousands of real estate investors were caught with properties worth less than the mortgage on the parcel. These underwater properties have caused a great deal of turmoil for many investors. Some will never re-enter the real estate market. But others, who do not fear but rather appreciate the market, will do well. For in any environment there is room to make money in real estate.