Are you a landlord? Or are you considering becoming a landlord? Clark has long believed that real estate is a key component in building long term wealth. He’s owned rental properties for about 23 years now, and has earned wealth slowly with those properties. But many think being a landlord is a way to get rich quick. Those people quickly become disillusioned or burnt out, especially if the tenants are less than desirable. What people need to know is in the first three years, you’ll have what’s called “negative cash flow.” The cost of acquiring and fixing up the property will cost more than the money coming in. So, you need to be prepared for that. Running a background check is also important in the screening process. Just add the cost of that check into the application fee you charge people. Being a landlord also requires a certain personality and temperament. If you have tenants calling all the time about fixing things or questions about the place, you have to be able to let that roll off your back. You also have to consider whether you want to own an individual home or condominium. Most professional real estate investors prefer single family homes, but there are some maintenance plusses to owning a condo.