5 Scary (But Temporary) Factors of Being a Real Estate Novice

Getting into real estate as a novice can feel scary and overwhelming.  It’s important to remember that real estate investing is filled with twists and turns, both expected and unexpected.  While a lot of these are scary, it’s important for novices to recognize which ones are just temporary, and which ones are part of the job long-term.  Here are some aspects of real estate that are only temporary, based off an article I found on Biggerpockets:

Fears: When beginning any new career, there are going to be plenty of doubts and fears that come with it.  Yet long-term real estate investors push past these fears for the sake of their careers.  Of course, this isn’t an overnight process, but with proper training and consistent experience, your fears will be replaced with confidence in yourself and your skills.

Hearing “no”: When somebody says “no”, it can often feel like a personal attack.  Yet with real estate investing, it’s nothing more than an answer to a proposed situation or question.  Remember that “no” may only be temporary, and the thought process, motivation and flexibility of a buyer or seller will most likely change over time.  Be sure to follow up with people from the past to see what has changed in their lives, and if you can be of assistance.

Fair market values: The only thing constant in life, as Francois de la Rochefoucauld once wrote, is change.  Values change by day, so always be aware of current values and ideally where the market is going.

Your reputation: If you’re just getting started, you don’t have much of a reputation.  Yet from such a point of obscurity, you can grow your word-of-mouth reputation so that sellers, buyers, homeowners and others can know who you are and how you can help them.  Stay consistent in your advertising, and work to treat everybody with respect.  Yet remember that while reputations are slow to build, they’re very quick to ruin, so be on your best behavior.  

Your business plans and goals: A great thing about real estate investing is that there are so many ways to make money and create value for others.  If you’re new to real estate investing, you’ll need to become educated and safely take immediate action helping sellers in your area, so that you can adapt and change your forward progress as needed.  

Renting to Millennials

You’ve probably all heard by now that the Millennials are a generation of renters. They’re taking their time getting to home ownership — that’s just not the milestone that it was to older generations. They’ve seen what can happen to property during a Recession, which contributed to putting any plans for buying a house on hold. Between the college students and the young professionals, Jason Cohen Pittsburgh’s primary demographic is Millennials. We’ve learned a few things that make them different than their predecessors.

They Multitask
Don’t be surprised to see a workspace in your tenant’s apartment in addition to living quarters. Millennials are more likely to take a lower-paying job based on passion than a gig that pays a higher salary. They may supplement their income with freelance work from home, or they may use the freedom of a better work-life balance to pursue other interests. We see a lot of hobbies that are close to taking over our tenants’ apartments.

They Like to Be Connected
Your Millennial residents are likely to have a lot of wires and routers to get all their devices online. But they’re also likely to have eschewed traditional cable for a cheaper solution that may require a bit more work on their part. Just make sure that your apartments have the appropriate hookups and abundant wall outlets.

They’re Passionate about their Values
We notice this a lot in our properties that have green elements. Millennials tend to practice what they preach. They are often environmentally conscious, which is reflected in their lifestyle. The bike racks are always in use at our apartment complexes. And they recycle. You wouldn’t believe how many multi-family properties we’ve seen that do not accommodate recycling.

They Want Easy, Quick Communication
The Millennials are the first generation that grew up with the Internet. They are accustomed to having answers — from an online encyclopedia or a customer service rep — just a few clicks away. Make it easy for them to manage their rent in the same manner. Jason Cohen Pittsburgh apartment residents can use our online portal to pay rent and file maintenance requests. They appreciate the ease of use, the quick response time enabled by technology, and the lack of checks in this increasingly paper-free world.

Millennials are not an alien generation, nor does each individual fit into each aforementioned characteristics. We’ve found renting to them to be a pleasant experience. It just helps to understand some key traits that guide their behavior and preferences in apartment rentals.