Are You Available for Lunch?
Are You Available for Lunch?
It’s funny how a simple question can turn your life around.
That’s exactly what happened when Ron Phillips asked an investor he knew if she was available to discuss business over lunch and she said yes…every time he asked!
How was her schedule always so open?
Ron and his brother were working hard flipping houses. Ron’s investor friend and her husband would often purchase the properties he was selling. They clearly had a thriving business of some sort, and yet they weren’t nearly as busy as Ron.
They seemed to have both money and time on their hands — when many people often have neither.
What was their secret?
Eventually, Ron decided to ask… and the answer changed his life.
Shifting From Renovation to Rentals
It turned out that Ron and his investor friend were on different sides of the real estate game.
He was buying houses, renovating them and then selling them. This is a good way to make money in some economies, but a venture that was labor-intensive and left him open to financial loss when homes didn’t sell quickly or for as much as expected.
Ron’s client, on the other hand, was in the rental business.
She bought Ron’s properties and held onto them, renting them for more than the mortgage. She and her husband had built a network of rental properties, allowing them to enjoy the fruits of their labor while their investments brought in monthly income…
All while accumulating equity and multiplying their initial investments!
Ron shifted his focus.
He built a new company… one that helps other investors find rental properties and start enjoying the benefits of owning rentals for themselves.
Thinking About Investing in Rental Property?
Rentals can be a great investment, but they aren’t for everyone. If you’re thinking of buying a rental property, Ron shared some important considerations that can help you decide whether or not to take the plunge:
- Real estate comes with some great tax benefits, which can help in a number of ways
- A retirement fund can be used to purchase real estate if you roll it into a self-directed Roth IRA
- You’ll need a financial cushion if you go into this business, because properties sometimes go vacant for a while, and as every homeowner knows, unexpected expenses come up from time to time
- Being a landlord is not for everyone. You’ll either need to be handy with fixing things yourself or have a property manager who can deal with problems as they come up — Ron says that a good property management company is well worth the investment
- Ron shares that it’s important not to buy property based on its potential to appreciate but based on the basic profit-and-loss viability of the investment. That mitigates a lot of the risk
- This is a long-term game, not a quick turnaround. Plan on around six years before you cash out on one property and buy others. But once you start building, your rental properties can provide a long-term stable income — and they can even be passed down to your kids.
Today, Ron reports that he has helped clients build rental income both through his investment property business and through RPCInvest.com, where he offers education and a podcast to those who are interested in learning more.
And as a bonus?
He’s always available for lunch!
Dr. Patrick Gentempo