The key to surviving real estate investment challenges isn’t just about the numbers, it’s about proactive communication and relationship building, according to Dr. Jennifer Salisbury, host of My Life as a Landlord podcast and experienced property investor.
“When I get into weird situations, I pick up the phone and have the most awkward conversation,” Salisbury says. “I want you to hear it right from me. I don’t want you to send me a certified letter.”
The Human Element in Risk Management
Salisbury argues that while financial modeling and market analysis are crucial, the human element often determines whether an investment succeeds or fails during challenging times.
“I even do that when we do our builds,” she explains. “I do that with our neighbors. I go, ‘don’t call the mayor’s office. You call me. I’ll tell you straight up what’s happening.’ “This approach, she says, “helps prevent small issues from escalating into costly disputes.”
Building Trust Through Transparency
According to Salisbury, many real estate investors make the mistake of avoiding difficult conversations until problems become crises. She advocates for complete transparency, even when delivering bad news.
“It is true transparency the whole time,” she says. “Sometimes the answer is, you have to let it go. Sometimes it gets foreclosed on. You can fight sometimes the lender. You can work with the lender. I mean, anything could happen.”
The Personal Cost of Property Management
One often-overlooked aspect of real estate investment is the psychological toll it can take on investors, particularly those new to the field.
“You have to be able to sleep at night,” Salisbury emphasizes. “If this is going to stress you out, you either need to sell the property or hire a property manager, get some better team members, change up how you’re doing it.”
She points to cases where investors inherit properties or buy from neighbors without fully understanding the responsibilities involved. “If they have a nine-to-five job, they’re probably not an entrepreneur. They may not have ever owned a business or been a landlord. Welcome to a bit of mayhem here.”
Building Sustainable Investment Practices
For those committed to real estate investment, Salisbury recommends developing systems that match their personal capacity and comfort level.
“Real estate is not the end all be all for everyone,” she notes. “If you’re not okay with having awkward conversations, if you’re not okay with being in the ‘Oh my gosh, I can’t believe what we’ve done’ moment, it just isn’t for you.”
Looking Forward
As the real estate market continues to evolve, Salisbury suggests that success will increasingly depend on investors’ ability to build strong relationships with stakeholders, from tenants to lenders to local officials.
Tongo’s approach to property management represents one emerging solution, offering tools and systems to help investors better manage both the financial and human aspects of real estate investment.
