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
- Especially investors who buy tax sale liens
- 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.
- End up getting in a bad property
- Being greedy/lazy. Do not want to do the work to find another deal
Not putting in a good resident
- Biggest difference between a profitable investment and an investment that loses money is the clientele you put in the property
- Create a policy on who you are going to let into the property and inform all prospects what the qualifications are
- Create a procedure on how you perform the background checks
- Follow the policy
- Sample qualifications – must make 3x rent, must be in same job at least one year, no criminal, no broken leases.
Not keeping good records
- 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.
- No lease, no application, no documentation of maintenance requests, no tenant ledger