In this interview with a property management in Houston, Brian Spitz and Pete Neubig discuss the top downfalls investors in Houston face.

Not inspecting the property

  1. Especially investors who buy tax sale liens
  2. Not wanting to spend the money on inspetions.  Penny-wise pound foolish.  The more you inspect the property the more information you have regarding the property.
  3. End up getting in a bad property
  4. Being greedy/lazy.  Do not want to do the work to find another deal

Not putting in a good resident

  1. Biggest difference between a profitable investment and an investment that loses money is the clientele you put in the property
  2. Create a policy on who you are going to let into the property and inform all prospects what the qualifications are
  3. Create a procedure on how you perform the background checks
  4. Follow the policy
  5. Sample qualifications –  must make 3x rent, must be in same job at least one year,  no criminal, no broken leases.

Not keeping good records

  1. Most investors do a great job finding deals and finding money to buy the deals.  However they do a poor job of keeping up to date records especially on the resident side.
  2. No lease, no application, no documentation of maintenance requests, no tenant ledger