Like no other time in history, there more real estate investors today then ever before. Real estate investing has been glorified all over television, real estate magazines and many books. With this recent popularity, investing has also brought many training programs, teaching real estate investing. Like any business there are seasoned investors and newbies in the game. Along with this recent popularity come changes to city codes and permits. Yes, I said it, that awful, dreadful word… permits! This is one area of real estate investing that can easily be put on the back burner sometimes by mistake and a lot of times intentionally.
In today’s blog I will be visiting the “elephant in the room” with telling you my experience and how it changed my buying, renovation and selling habits so I could keep up with these changes.
Many investors might not admit that they don’t pull permits because they know they should be. I’ll be the first to admit that when I got in this business, which was awhile ago I was in that same pool of investors that many find themselves in. I was young, uneducated on the subject and no mentor to teach me the permit game. I would buy houses, do work and sell without giving this a second thought. It wasn’t to long until that all changed when I got a surprise visit from a city inspector wanting to see a few of my homes. Let me tell you I have never forgotten that day. Not only was I slapped with fines on top of paying for the necessary permits that I should have taken out but I also had to pay a licensed plumber and electrician to make changes to my already completed renovations. This was a wake up call.
This situation will happen to some investors and they will also make the necessary changes and others won’t and move on. Let me tell you, don’t be the later investor. If you’re in this business for the long haul learn to adapt and make changes to your business model even if that means making less profit/income on a house and paying more carrying costs. It will be worth it and no one can ever say that you don’t. You don’t want to be the person looking over your shoulder wondering if neighbors are going to call the city or if you will get a special visit from the “housing police.”
In conclusion, if you haven’t been pulling permits, do so, it’s not all about bottom line. Start making changes to your purchases so you can reflect permits and hold times for your properties. Henry Longfellow, the American poet once said, “It takes less time to do the right thing then to explain why you did it wrong.” It’s always the right time to do the right thing and so never forget that while you build and scale your business. Your mind and body will thank you and you will save yourself years of stress when it comes to this massive part of your business.
For more information on how to start your own real estate investing business visit www.teammaderealestate.com
“Your results coach to real estate excellence”~ Manjit Rukhra