Are you an investor who’s interested in delving into rentals?
Or maybe you already do rental deals, but you want to hear a fresh take on partnering in this niche?
Hey Moguls, Chris Clothier back with you again, and in this lesson, I want to hit on what you should look for in a partner company for rental investors. The specific point I’m stressing here has to do the issue of return of capital…
Return OF Capital
Return of capital is what you as an investor should pay attention to. Write that down and underline it.
Return of capital!
You want to make sure that it’s your #1 priority. In any investment you make, you must know that you can get a return of 100% of your capital.
That means you must work with the best company you can find – whether it’s a rental property management company or an investment firms that works with rentals.
You have to pay attention to all the little details—the things that are often lost on the average investor, like:
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Do they have a team?
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Does the size of the team, and the responsibilities of that team, match up with what you are being told by the company?
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Do they talk about customer service?
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Do they talk about length of stay of residents?
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Do they talk about the way they provide services to their residents?
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Do they have the necessary infrastructure, and technology?
Safety and Security
The problem is, in our world of technology today, anyone can say just about anything. You shouldn’t place your trust in someone—even me—just because of a lesson or video.
You should look at the way the company is designed. Observe whether the teams that the company has built are designed to provide safety and security for you.
In my company, everything is designed for investors to have a return of their capital. Think of this: If in the future you decide that you need to go in a different direction in your investing, you need to know ahead of time that you will be able to get your capital back.
You need to know that the properties have value, and that the services provided have value to other investors.
Not a Time for Risks
Too many investors focus on return on capital; that cash-flow thing I was talking about.
Not enough attention is paid to return OF capital.
This is not an environment for an investor to go cheap. This is not a time for taking risks. This is a time to be very safe, very careful and very patient as an investor.
Are You Confident?
Spend your time getting to know who it is that you are going to be doing business with. How are they protecting you over the long term?
You want to be able to say with certainty: I am confident that I will get a 100% return of my capital.
Once you can say that, then you can turn your attention to return on capital.
If you make sure you can do that, then you’ll be safe.
So, how do I know all this?
Well, because my company delivers on all the points and conditions I’ve laid out here. Our rental investors are totally confident in the 100% return of their capital. You should look for a company that does the same.
Your Take
What’s been your experience with rentals and partnering with companies? Share your feedback in the comments box below.
Determine to make return of capital a priority with your investments
Ask the right questions of the rental management group you work with
Avoid risks with rentals
Chris Clothier
owns and operates three multi-million dollar a year marketing brands including 1-800-SELL-NOW, Find Cash Buyers NOW and Find Private Lenders NOW; each brand, under the REI Marketing umbrella, is designed to help real estate investors and agents reach a specific marketing niche.