Since January, I’ve been paying the price for not adequately organizing my financials last year after purchasing a multi-family rental property. As any good business owner knows, keeping good records in an organized manner is extremely important. My disorganization meant the past five weeks was spent wallowing in a mess of papers instead of spending free time binging on Netflix.
I’ve since purchased Quicken and I’m taking care of business responsibly. I’m allocating all purchases to expense categories and being more careful about tax deductibles now that I am itemizing expenses for the business. After meeting with my tax professional this week, I’ll have an even better grasp on what I need to track and how.
When I took to leap and purchased this huge asset, it was scary since there were so many things about owning, renting, contracts, repairs and taxes that I didn’t know. Maybe that stops a lot of people from taking the plunge…the fear they will mess up. But guess what? Everyone screws up here and there and you learn from it. I am learning more by doing this business than I ever did by reading every book in the library about owning and maintaining rental property. Until you dive in and get wet, you just don’t know what it entails.
Fortunately, I have a good crew of advisers. I have an excellent lawyer, friends and family who currently own rentals, I am a member of a local group of rental real estate owners who really are interested in helping each other out, and my financial advisers are serious about informing me how different decisions will result in different outcomes.
Are you sitting on the fence, afraid of making mistakes? Not all assets come with the risks of rental real estate. But for me, this venture has so far been both challenging at times and rewarding the rest of the time. As we close on another month, I am always excited that the first of the month brings that influx of CASH that has made a tremendous difference in our lives at NDQ HQ. It makes the little stumbles worth it and is actually an inexpensive education.
p.s. Check out the new NDQ Guide: 500 Tips the guide that will give you actionable steps to jump start your savings and investing immediately.
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