During times of a down market and people all around you are selling their stocks left and right, I am reminded of a passage that I heard (or read?) from Warren Buffet. It goes like this:
You are perfectly free to ignore Mr. Market or take advantage of him, but it will be disastrous if you fall under his influence. Suppose the price you could see your home at was quoted every day. For several; months the quotations steadily decline. Would you then sell your home, the home you were comfortable in and satisfied with, just because its price was declining? Of course not! In this sense, an attractive investment is similar to a home you are happy to inhabit – Warren Buffet
I think this passage is important for two reasons. Number one, is that if you have done your research, and you are confident that the reasons you hold a stock are still valid, even though the price of the stock has been dropping for a while then there should be no reason to sell into the market. A dropping price is no reason to sell if the fundamentals are still the same. Number 2, sometimes the market just acts funny. There are periods of down time and periods of up times – the trick is to ignore them and listen to the fundamentals and not let Mr. Market dictate your actions. This leads to another passage I often think about from Jim Cramer:
No one ever made any money panicking!
I am in the middle of reading The Intelligent Investor by Graham and just read that passage about Mr. Market except it was for the stock market. Good book, but it is so full of thoughts I can only read a page or two every once and awhile then I need I few days to digest it.
Do you trade online Dividend Guy? Would you suggest Ameritrade, Sogoinvest, Etrade, or any other site? I don’t have the time to check them all and I figured you would have some experience or know someone who did. Thanks
Tips for Being a Successful Landlord
In today’s apartment rental market there are several things that are “must do’s†for becoming a successful landlord. The reason you’re playing the real estate rental game is to have the check in your mailbox on the first of the month, right? Here are a few tips that can help you to achieve this with as little aggravation and frustration possible.
First and foremost is finding the right tenant to rent your apartment, house or other rental. This is the most important ingredient in the recipe. Checking the prospective tenant’s credit history to make sure they are paying their bills is one of the best ways you can screen. A tenant that pays their bills on time most likely will send you their rent on time. Establish a clear system on collecting rent, handling complaints from the tenant and how you will contact them if you need to gain access to the apartment.
Secondly, get all the important terms of the tenancy in writing. You have the option to have a basic rental agreement or draw up a formal lease. Whichever you decide, the important thing is to document the terms that you and the tenant agreed to. Clarify who is paying the utilities, the rental price and any other agreements made between you and your tenant.
It’s a good idea to stay on top of the repair and maintenance needs of your property. When you are notified of something that is broken or not working, repair it as soon as possible to prevent further damages. You may also lawfully enable the tenant to withhold rent, sue for injuries caused by defective conditions or move out without notice.
On a similar topic make sure you are carrying enough property and liability insurance to cover yourself in any situation. A well designed insurance program can protect your rental property from losses caused by everything from fire and storms to burglary, vandalism, and personal injury lawsuits.
I hope that this has been helpful to you. Just remember, as long as you follow these simple tips you will be on your way to a happy and fulfilling landlord future. Best of luck!
ABOUT THE AUTHOR: Eric Goldstein, associated with http://www.AllSpaces.com which Conveniently Connects All People with All Spaces in All Places, has been dedicated to the real estate rental market for over 8 years. He has assisted over 25,000 landlords with their renting needs. Any questions about renting apartments, houses or other rentals feel free to visit http://www.AllSpaces.com or email him at Eric@AllSpaces.com.