Back in 2010 I was searching for a way to take control of my financial future. I didn’t know what that looked like, I had no idea what direction I was headed, but I knew I was sick and tired of the uncertainty I felt day in and day out. I found real estate (or real estate found me lol) and I started a massive dive into education. I was hooked on real estate as the vehicle to create my envisioned future. Why? Because it was a vehicle I could CONTROL.

When thinking about different asset classes, control is a consideration that shouldn’t be overlooked. Any investment carries risk with it. If you invest in the stock market, you can choose what stocks/funds you put your money in but you have zero control over the outcome of that stock/fund. If you invest in a college degree, there is no guarantee you will find employment in your chosen field. If you invest in your 401k, again you are at the mercy of the market.

Rental real estate is no different in the sense that there is risk involved. You are providing housing to human beings. Human beings are not perfect. Imperfect human beings sometimes don’t treat the apartment they live in well. This is the reality that multifamily operators face. However, there is a large component of control that multifamily investors can use to their advantage.

  • We have control over who we choose to manage the property.
  • We have control over what tenants we allow to rent from us.
  • We have control over the purchase price that we feel comfortable at.
  • We have control over the level or remodeling we choose to move forward with.
  • We have control over the rent we decide to charge.
  • We have control over the debt we secure to acquire the property.

We can’t control everything (these past 12 months have been a great reminder of that), but this gives me piece of mind in knowing that my teams’ performance has so much to do with the overall valuation and returns that we will produce.

Do you feel like you have control over your financial future? If so, great. I want to hear all about it. If not, do you know why? Are there certain things that are holding you back? I am an open book and always want to learn from others. I am always happy to share what has and hasn’t worked for me.

Nicole Pendergrass