# Entrepreneur of the Week Eliran Simoni # Post 6 Real Estate Investing This is not IKEA Hello everyone! Our Friday post…
# Initiated week Eliran Simoni
# Post 6 Investing in real estate is not IKEA
Hello everyone! Our Friday post and we feel there is so much more to tell and tomorrow is already the last post in the group… but we will be here later for questions, clarifications and more.
We thought we would expand a bit on a slightly more significant issue, in fact much more significant - real estate must be connected to the field!
During a decade of investing in the US, we met quite a few Israelis who mistakenly thought that investing in US real estate could be similar to IKEA - with a few instructions and no experience, you can make and earn.
But is everything really that simple? of course not!
Investing in real estate in the US requires constant and even daily management that must be based on the ability to invest learning time and a lot of hard work to reach the professionalism, and the desired experience!
Therefore, for the benefit of those adventurers who love a "guide", we have compiled five rules (out of dozens) for the proper management of real estate, five rules that will explain why it is right to work with a company that provides management services as part of the investment:
1. Cost savings - accurate funds, what is meant?
Work like Rami Levy and save costs - a good and efficient management company should map out the possible problems and glitches and evaluate with service providers and products in standby to provide a quick and cheap solution. The company will know how to spend money in accordance with the investment strategy in the property such as things that will give value in the sale or alternatively defer expenses that are not necessary or less important to the tenant or buyer.
2. Professionals - trust only ourselves, a professional from the company is on site all the time, in order to manage and supervise all maintenance and renovation works of the property. There is no need to bring the whole company and its investors into a spin when there is unusual treatment in one of the houses, such as a blockage or an air conditioner that does not work, everything is done on the spot with trusted professionals who support several investment groups.
3. Fast service creates a strong positioning in front of the tenants - problems expand and intensify when they are not taken care of quickly, so as soon as we arrive quickly at the apartment, we save time. Once in stopping the problem from spreading such as repairing a dripping pipe that is treated slowly could increase the problem to replacing flooded parquet. And the second thing is "good there is good oil", from experience, quick treatment is also quickly distributed to the other tenants and makes it possible to occupy apartments easily.
4. Whose responsibility is it? - As soon as you invest with a company that has property management teams in the investment areas, it screams - your investment is important to us and we (and not even a foreign team) will take responsibility.
5. Finding good tenants - when there is care on the part of the management company due to the structure of the transaction, we can know that the company will rent the properties to people it believes will be able to manage and collect rent from them, and of course the tenants will be carefully screened so that there will be less time to deal with the tenants in matters of collection and the tenants will know behave at home and they will not destroy it for lack of care and control. The management company must interview the tenant and see that he has the ability to pay the rent in addition to receiving recommendations from other homeowners he has stayed in.
An empty property is better than a bad tenant - no one wants to deal with bad tenants and there are always some. The management company that lives the investment area is expected to know how to check the history and abilities of the tenant to rent the property and use existing sources of information to avoid collection problems, vandalism and the like. Of course, she must also know when it is appropriate to activate the eviction procedures and how to do it.
So as you understand it just is not!
This is exactly why we never save on asset management!
That's why with us at Keynvestments, in each of our investment areas, we place a senior management team, with decades of experience, who live in the area and know it down to the smallest details, such as: who are the recommended professionals, what is the quality of education in each area, what are the places and employment options, and more. And this is to give the best and correct answer to any problem that will arise (and will arise) and of course to ensure that our investments continue to be successful and profitable.
Remember, the investment begins at the entry into the transaction and does not end at this point, the day-to-day management of the assets is what will or will not bring the good return.
In the picture below, an advertisement of the management company - a subsidiary for rent of one of our properties.
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