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There have been a number of threads on offering different services in an effort to attract or retain customers. I think diversification can be good, as long as it doesn't get ridiculous--we have to stay within our core competencies.
For several years I have been considering a different kind of diversification--rental real estate. There are a lot of advantages to real estate: passive income, tax benefits, appreciation of the asset, and more. And given that this is a buyer's market, the time seems right.
I personally think contractors are a natural for diversifying into real estate. We are out and about a lot, so we learn neighborhoods, meet a lot of people, and can develop a good understanding of the market. Add to that our general knowledge of homes/ buildings and their maintenance requirements, and it seems like a perfect fit.
I've heard all of the bad things about rental real estate--tenants, toilets, and taxes top the list. But as with contracting, if you have a system in place, these ills can be avoided. And to be sure that we avoid these issues, we are joining a mentoring group. After all, a wise man learns from his mistakes; a really smart one learns from the mistakes of others.
So my question is: has anyone diversified in this direction? And if so, what was your experience?
Brian Phillips
For several years I have been considering a different kind of diversification--rental real estate. There are a lot of advantages to real estate: passive income, tax benefits, appreciation of the asset, and more. And given that this is a buyer's market, the time seems right.
I personally think contractors are a natural for diversifying into real estate. We are out and about a lot, so we learn neighborhoods, meet a lot of people, and can develop a good understanding of the market. Add to that our general knowledge of homes/ buildings and their maintenance requirements, and it seems like a perfect fit.
I've heard all of the bad things about rental real estate--tenants, toilets, and taxes top the list. But as with contracting, if you have a system in place, these ills can be avoided. And to be sure that we avoid these issues, we are joining a mentoring group. After all, a wise man learns from his mistakes; a really smart one learns from the mistakes of others.
So my question is: has anyone diversified in this direction? And if so, what was your experience?
Brian Phillips