Property Management Services – A Real Estate Investor’s Best Friend

Do you own an investment property that you’re renting out, and you’re currently handling all of the chores of being a landlord yourself?

Are you thinking about investing in rental properties, but you’re not sure if you’re up for the task of being a landlord?

If you answered yes to either of those questions, whether you are holding onto or considering investing in a single-family rental (SFR), duplex, or triplex, you should think about engaging a professional property management firm to take the work off your shoulders.

Let’s take a look at what property management is, what a professional management company handles, and how to decide not only if it’s time to hire one but also how to hire the right property management firm.

What is Property Management?

Let’s start off with getting an understanding of what a property management firm does and doesn’t do. There are several critical tasks a property manager can help you with.

Setting the right rental rate: You can always ballpark this by looking through the classifieds, but a good property management company actually conducts thorough market studies to set a rental price for your property. This makes sure you have a great balance between maximizing your monthly income and keeping a low vacancy rate.

Collecting the rent: One of the most difficult aspects of being a landlord is collecting the rent. Property management firms have efficient, tried-and-true systems that will do a great job of collecting the rent and maintaining on-time payments.

Marketing and advertising your rental unit: When vacancies occur, you want the rental unit occupied as quickly as possible. A professional property management firm has experience that helps it market your property in just the rate way to make sure someone moves in quickly.

Finding and managing tenants: The property management firm will take the work out of finding and managing tenants for you. This means screening new tenants for criminal and credit checks, collecting references, and getting the lease signed. Once the home is occupied, handling routine and emergency maintenance and inspections are part of what a professional management company will do for you.

Managing relationships with contractors and other vendors: Do you have deep-seated relationships with all of the maintenance workers, tradesmen, contractors, suppliers, and vendors needed to properly manage your rental? Probably not. But a property management firm does and can get you the best work for the best price, while handling the burden of overseeing necessary maintenance projects for you.

Keeping you in compliance with the laws Housing regulations and property laws are complicated and confusing when you’re renting and maintaining your rental property. These can include local, state, and federal regulations, along with fair housing regulations like the Americans with Disabilities Act. A property manager can keep you out of hot water by keeping your property up-to-date and in compliance with all of these regulations.

Allowing you to invest from afar: If you’ve moved to a place where investing in rental units don’t make sense, you might think that investing in SFRs or other rental properties isn’t possible. With a good property management company by your side, you won’t be so limited in your investment opportunities.

I only have one property; so why do I need a property manager?

If just reading through all of the tasks that a property manager can handle for you isn’t convincing enough, consider this: do you want to be able to go on vacation without interruption? Do you really enjoy phone calls about backed up plumbing at 3:30 in the morning?

Chances are, you want the freedom to leave town for vacation or just have uninterrupted time with family for the holidays. You don’t relish the task of dealing with emergency maintenance chores in the middle of the night, and you probably dread the thought of trying to find a good tenant when your existing ones move out.

Even if you only have a single investment property that you’re renting out, you can benefit strongly from hiring a property management service. They have decades of experience that you’d be hard-pressed to match yourself, and can ensure your property is maintained impeccably while still maximizing your profit.

Okay, I’m convinced, but how do I know who to hire?

The best way to find out about quality management companies is based on the experience of others. If you are local to your rental property, attend your regional real estate investment association meetings to get recommendations from other landlords.

You want to make sure you find out how many units the company is managing, and how many employees they have doing the work. A trained employee with the right tools and proven processes can successfully manage between 30 and 40 units, as long as they’re not also playing accountant.

When you’re interviewing different qualified property management firms, here are the questions you should get answers to:

    • What is the cost? Generally, the monthly fee for property management is between eight and twelve percent, plus expenses. Remember you get what you pay for, so it is important to balance the cost and services.
    • How well do they communicate? You want someone who uses email, but is still responsive to the telephone. If you don’t get a response in a timely fashion, it’s time to walk somewhere else.
    • How easily can I terminate the agreement? If things work out, what will it take to terminate your agreement? Make sure you know this up front, along with any penalties.
  • How experienced are they with Section 8? This can be supremely important, since Section 8 housing and tenants are great income opportunities. Make sure they have adequate experience with such properties.

If you do your research, you can readily find a reputable firm to handle your rental investments for you. This will free you up to enjoy the fruits of your investment without as much of the hassle.

5 Essential Features That Make Real Estate Investing Profitable

Every now and then persons trying to make up their minds where to put their money ask me if real estate ventures are more or less profitable, compared to other businesses opportunities around.

My response is always that apart from its potential for yielding significant profits, investing in real estate often confers long terms benefits.

I discuss five such advantages below:

1. You Can Refurbish (to Enhance the Value of) Real Estate
After you buy a stock, you hold it for a period of time and hopefully sell it for a profit. The success of the stock depends on company management and their corporate success, which is out of your control.

Unlike other conventional investment instruments, like stocks, for instance, whose rate of returns, depend on third parties (e.g. company management), real estate investments are directly under your control.

Even though you will not be able to control changes that may occur in demographic and economic aspects, or impact of nature induced changes, there are many other aspects that you can control, to boost the returns on your investment in it.

Examples include aspects relating to adding repairs, or improvements/enhancements to the physical property and tenants you allow to live in it.

If you do it right, the value of your investment will grow, resulting in increased wealth for you.

2. Real Estate Investing, When Done Right, is Proven to be Profitable Even During a Recession (like the one we’re in right now)
It has on several occasions, been used to effect a bail out, from financial setbacks, such as those that many have experienced during the economic downturn happening in Nigeria today.

A considerable number of clients have confided in me that due to the present economic situation, they are not sure of profitable channels to invest their money. Some of them are done with bonds and treasury bills, but are in dire need of a new investment.

We had extensive discussions, and based on my expertise as a real estate consultant, I recommended landed property investment, as the most suitable and secure alternative channel of investment.

This is because, even if all businesses crumble, land will always appreciate greatly. Then to drive my point home, I ended by sharing the following apt quote, by a former American president:

“Real estate can’t be lost, nor carried away, managed with reasonable care, it’s about the safest investment in the world” – Franklin Roosevelt.

Not surprisingly, the client chose to take my advice – and signed up: it was the obvious, common sense thing to do!

3. Real Estate Investments Are Immune to Inflation
In other words, investing your money in ownership of viable real estate can protect you from the harsh effects that inflation usually has on other conventional investments.

This is because the value of real estate generally tends to rise in positive correlation with inflationary pressures. This is why property values and rental rates go up with rising inflation.

The nature of real estate, therefore affords owners the unique advantage of being able to adjust the rates they offer, to match inflation.

Monthly rents for example can be raised to compensate for inflation – thus providing a cushion effect against inflation induced losses that other monetary investments suffer.

4. Real Estate is Uniquely for Being Universally Acceptable as Collateral, Towards Securing Funding from Banks
Today, real estate in form of either building or lands, with proper titles (i.e. Certificate of Occupancy – aka “C of O”) is the most recognized and accepted form of collateral in Nigeria – and some other parts of the world.

It has the unique feature of being able to protect the interests of both the borrower and the bank (that’s doing the lending), so that funds can be released i.e. after due verification, and terms and conditions are agreed.

This is one of the key advantages a private C of O has over the global C of O, because the former (i.e. private C of O) is what will be needed by the intending borrower, in the event of any future financial dealings with bank in Nigeria.

5. Real Estate Investing Allows Use of Other People’s Money
In other words, you can do it even if you do not have enough money. You just need to know how.

This is possible because real estate is physical property or what is called a hard asset. That is an attribute that makes it attractive to financiers i.e. people with money to invest.

This is why many times real estate products are bought with debt – unlike conventional investment products like stocks which are NOT tangible, and therefore perceived as being more risky to invest in.

So real estate investment can be done using cash or mortgage financing. In the latter case, payments can be so arranged to allow payment of low initial sums, provided by you or a willing third party.

Those payments will be happening on landed property which will continue increasing in value throughout the duration of such payments – and indeed beyond. That further inspires confidence in the minds of those financing the acquisition, that their investment is safe.

Little wonder that real estate investing has continued to prosper for so long!

[A WORD OF CAUTION] The listed benefits notwithstanding, I still tell prospective investors that due diligence is a crucial requirement for succeeding.

Whether you do everything yourself or use industry professionals like me, it is imperative that you exercise caution and arm yourself with relevant information and education.

This is something I advice my clients to do all the time, so they can make good decisions in investing.

The importance of the above cannot be overstated, especially in Lagos where quite a number of individuals, have had their fingers badly burnt, because they failed to take the needed precautions.

My purpose is to help clients avoid having such horrible experiences, by bringing my years of experience in this field to bear in serving them.

Five Important Property Investment Ideas to Follow

Nowadays, planning for property investment continues to be high among individuals. Every investment should be about increasing your capital and secure the future. However, we cannot make sure that all real estate investment will deliver positive results. Thus, here are five important investing ideas that will be essential for every land investor.

Selecting the Right Real Estate Company/Agency/Broker

You may wish to buy an empty land, constructed home or plots for sale. If you are investing through a company, agency or individual broker, then ensure about their trust among people in the society. Further, check for their track-record and previous customer feedback or testimonials. This will be an important factor to end up with a successful property investment.

Know the Fundamentals of Realty Investment

While if you go for a property agent or broker for investment, then initially you should not rely on them. You should first gather information related to the condition of the current real estate market, and then know the fundamentals of investing in properties. As this will help you to avoid any possible risks and make a profitable investment in the city you live.

Types of Real Estate Investments

Since, there are different types of property investments such as, Buy-to-let, Below Market Value (BMV) and Off-plan properties. Thus, the type of stake is also important. So, make sure what kind of investment you are looking for to yield a good profit.

Location of the Property

The location of the property always plays an important role while investing in real estate properties. As you may want to use the property, or sell it to someone in the future. A residential or commercial property that is in a better location will always gain good future appreciation. Thus, a location of the property will be an added advantage and proves to be a wise investment.

Property (ROI) Return on Investment

While investing in a residential property and if planning to let it for rent, it brings you instant profit. In this case, it is vital to make sure that you can get tenants for your residential property and the rental demand in the locality. In addition, buying a rental asset depends on the location, home type and many other important factors. Some real estate companies also help home buyers for rental needs.

Therefore, make sure you stick on with these five important real estate investment ideas and follow it accordingly for a successful property investment.

Think Like a Millionaire: How to Invest in Real Estate

Many people fail to see that skills fade, but assets are forever.

They don’t know their entire financial education in their lives is completely WRONG!

Too many people believe that a good job, good skills, and a positive attitude will make them great wealth. The problem is that it just doesn’t work that way. People who make an hourly wage and an annual salary cannot build wealth. This is because their money doesn’t work for them, and instead they work for their money. This idea keeps them from understanding that the only way to build wealth is to invest in multiple sources of income that you don’t have to work for, but instead build yourself or purchase from someone else.

Another misconception of multiple sources of income and passive income is that people assume government and financial institutions offerings such as the stock market, CD’s, and many other financial instruments are passive income. Most of the time however, unless it is a note or bond that pays you regular interest. It is not actually passive income or a stream of income. As a stream of income or passive income is income that you make every day, every month, and every year continuously as cashflow. Stocks and the like only make you money on the sale and never anything in the meantime. Meaning they don’t ever actually cashflow. For example, it is the same as purchasing a piece of fine art and hoping that it appreciates the longer you hold onto it. Which is risky and locks your money up from better uses.

Real Estate as an Investment

Real Estate is the King when it comes to creating wealth for people. No other offering has the traits and abilities like real estate does. It is constantly appreciating and gaining value. It is always in demand because people need a place to live. And most important of all, it is a real asset that isn’t going anywhere soon. Allowing you to borrow against it as collateral and even to write off all expenses and costs associated off on your taxes. Now let’s not wait a moment longer to get into Real Estate as an Investment.

Real Estate You Can Buy as Investments

There is so many ways to invest in real estate and the major differences comes to how much capital you will need to put down to purchase them. This could be as little as $40,000 -$50,000 to buy a condo outright, to only $10,000+ to purchase a $100,000 single family home, or to as much as $20,000-$30,000 to purchase a multifamily home (2-4 units). All of which are Residential and can be easily financed.

Once you get past 4 units, small office buildings, and industrial properties. You’re going into commercial territory and have a lot more hoops to jump through as well as have to start working with commercial lending which can require sizable amounts of capital before they will lend. In the rear, is my personal favorite of mobile homes and parks. Which are hard to sell, but can cashflow in all sorts of amazing ways from lending on the mobiles themselves to charging them for renting the use of the land. All of which is taxed as land which is the cheapest tax rate you can have on property.

· Condos/Flats – Condos and flats are some of the best to buy for cashflow as they give the best cap rates. The only issue comes on the resale as many can be hard to finance as an investment property, preventing a large portion of the population from being able to purchase them.

· Single-Family Homes – Single-family homes are easy to rent, easy to sell, and easy to finance.

· Duplexes/Triplexes/Quads – Small multifamily properties (2-4 units). These property types combine the financing and easy purchasing benefits of a single-family home with the cashflow benefits and less competition found in larger investments.

· Small Apartments – Small apartment buildings are made up of between 5-50 units, they can make great cashflow, but can be very illiquid on the resale.

· Small Commercial Office Space – Buying small commercial buildings and renting out office space to business professionals.

· Industrial Properties– Manufacturing, warehouses, distribution centers, etc.

· Mobile Homes – Inexpensive way to enter the world of real estate investing and can also experience significant cashflow.

· Mobile Home Parks – The entire park in which mobile homes are situated on can also be bought and sold. Rent the individual lots to mobile home owners, and as well as have corporately owned and leased ones.

Strategies in Finding Investment Properties

Just as there are a million ways to skin a cat, there is a million ways to find properties for investment. Of the many ways to find the properties for investment. The most common ways are to find the owner directly and give them a cash offer, to find properties that are owned by a lender or bank that they want to get rid of at a discount, or purchase a lien on the property so you can foreclose on the property yourself.

    • Lease Options – Buying the property and “renting” it with the legal right to buy it later.
    • For Sale By Owners (FSBO) – Private owners sell their property themselves with a sign or newspaper advertisement, they may want to sell their properties at a discount to avoid paying a realtor
    • REO’s – Foreclosed Property owned by banks can be bought under market if the demand isn’t too high
    • Auction at the Courthouse Steps – During the process of foreclosure, a home is brought to the courthouse steps to be sold to the highest bidder.
    • Buying in Pre-foreclosure – Sellers on the brink of losing their home can be very motivated to sell their home and save their credit and their lives
    • Short Sales – A bank will often take less than the loan amount on a property to save from the hassle and costs of foreclosing and reselling.
    • Tax Liens – When homeowner’s refuse to pay their taxes, the government can foreclose and resell the property.
    • HUD Foreclosures – When a US government ensured loan is foreclosed on, it often becomes the property of the department of Housing and Urban Development.
  • VA Foreclosures – Similar to the HUD foreclosures, the US Department of Veteran’s Affairs sells their homes as well after foreclosing on one of their insured properties

Strategies in Buying, Renting, and Selling Properties:

When you finally have the property in your grasp, there are many techniques you can use to maximize your return. Some properties are great for buy n’ holding. Meaning you buy them for cashflow, but are expecting to also make a sizable return on the resale due to appreciation. Next up is Fixing N’ Flip/Hold, which is finding properties undervalue and fixing them up to either hold onto for cashflow or to sell immediately for instant profit. Then there is Turn-key-Investing, this is where you find the property, turn it into a profitable cashflow and sell it as a source of income to a big fish investor. For Big Commercial, there is NNN leasing that entails having the company renting the property takes care of all the trimmings of the property and pays you for leasing the space. Another Buy N’ Hold strategy that can make decent money is to turn your Buy N’ Hold property into a Vacation Rental and charge 3x as much than a normal lease. Then there is hard money lending, where you finance others in their fix n’ flips, buy n’ holds, or primary residence.

    • Buy-N-Hold – Buy real estate, rent it, and hold it until the market is up and a great buyer comes along
    • Fix-N-Hold– Buy below market value, remodel to force appreciation, and held until the market improves and sell it
    • Fix-N-Flip – Buy well below market value, remodel to market prices, and sell it immediately to get your return.
    • Turn-Key-Investing – fix-and-flipper, but sells remodeled properties to out-of-town individuals seeking a good place to keep their money moving.
    • NNN Lease – Big Businesses rent the building and pay all costs associated with the building such as maintenance, taxes, insurance, and more. We can own these buildings for highly-passive income.
    • Vacation Rentals – Buying vacation property and renting it out off and on season (Snowbirds)
  • Cash Purchase, Sell on Contract – Buy properties and immediately re-sell them to buyers who may not be able to conventionally qualify for a mortgage. Collect a large down payment when using this method.

How to Finance:

Financing is readily available to anyone who has a cash for a down payment. Below is the major ways you can finance your Real Estate Investments.

    • All Cash – Property with no mortgage attached is very stable and a safe return. May not be as great as when using leverage (like a mortgage)
    • Seller Financing – Seller owns a property free-and-clear (no mortgage), and can be negotiated with to find a finance deal
    • Unconventional Lending – There are many lenders who will lend on any deal you have as long as the number make sense, this can be anything from landlord loans, had money, and much more
    • Self-Directed IRA – If you have a 401(k), throw it out, it’s time to put that money in a self-directed IRA and make that money finally work for you than expecting some money manager who is just trying not to lose your money than make you any. You can use your money in your SD-IRA to do all the strategies in buying, selling, and renting.
    • 20%-25% Down Conventional Investment Mortgage – buy a real estate investment through a bank. Come up with 20-25% down payment and have the bank finance the rest
    • 10% HomePath Investment Mortgage– These loan types are only available on Fannie-Mae backed bank REOs, but can allow an investor to purchase the home for just 10% down payment with other benefits.
    • Home Equity Line of Credit (HELOC) – With significant equity in real estate, M&T can borrow a line of credit off M&T Real Estate equity.
  • Small Business Loans – Banks often will finance a line of credit or loan for small businesses- to include a real estate investment company

5 Creative Ways To Make Money in Real Estate

I talk to investors all the time that seem to be struggling in their business or struggling getting started. I guess as great as this business is, it is not as glamorous as you see on TV. The truth is, this business will provide everything you want, but you need to work at it. Cash flow is king, so your first priority has got to be generating income. Once you have your income stream and some reserves, then you can focus on hitting home runs with flips, larger deals, or focus on rental properties.

Obviously a job, whether its salary or commission, is the easiest way to generate the needed income, and I am in no way suggesting you quit your job to start into real estate full time. I am simply giving you some creative ideas to generate income if you are not currently working or to supplement your current income.

Flipping Terms Deals

I don’t know anyone doing this, so there is obviously a need. I would love to buy some terms deals and I know I am not alone. A terms deal means a deal where the seller of the property structured the transaction with quality terms and not necessarily the best cash price. For example, a seller might own a property free and clear and be dead set on a price. That seller might be set on the price but be willing to take the price in payments, making it attractive to investors who don’t want or can’t get their own financing. Some examples of terms deals include; subject-to, lease options, and other owner carry transactions.

The deal is high quality if it produces monthly income. Even $100 positive a month is quality with these deals. If you sell a deal that produces $100 a month after expenses for $6,000, that is still a 20% return on investment for your buyer and you get $6,000 without any cash, credit or risk.

Tenant Placement

I think this is finally becoming more popular, but there is still a need. Many investors want to manage their own property but hate showing it to new prospects and processing applications. It is also harder to market one property than several. With several, you can take a call and give the prospect options. This is why management companies are often more successful filling homes than you might be. They have lots of marketing out there, and lot of properties to choose from. It also makes each lead more valuable to the person doing the tenant placement because there is a higher conversion rate. It is really a win-win.

With all this said, tenant placement is still going to be a lot of work. You might be driving around showing houses and taking calls, and you will only get paid when you place a tenant. The most common fee that I see for this service is 1/2 of the monthly rent. It is not uncommon to place several tenants in a month working part time.

Become a Real Estate Assistant

I know that successful full time investors use assistants. The assistants normally do things like put together marketing campaigns, manage properties, handle the finances, and more. Successful investors normally focus on finding deals and look at their business on a broad scale. They need someone to help pay attention to the details. This could be a great opportunity to work in and learn the business while you make some money.

Sorry I don’t know any investors that currently need an assistant, but they are out there. Keep an eye on LinkedIn and be sure to attend networking meetings.

Bird dogging

This is a real beginner way to wholesale property. I say that because bird dogging does not require any credit, money or experience. It is a great way to make some money while you learn to wholesale. You will make much more money (twice as much, or more,) if you wholesale. However, wholesaling can be a little risky if not done correctly. Wholesaling often times also takes at least some money for the earnest money deposits.

Bird dogging is really just going out and finding leads on deals; not actually finding deals like a wholesaler. Investors will pay for those leads if they turn into deals. So a bird dogger just introduces a deal or a motivated seller to the real estate investor and lets the investor put the deal together. Fees normally range from $1,000 to $3,000, depending on the investor and the deal they are able to put together.

Foreclosure Consultant

You need to be VERY, VERY careful here. In fact, you should probably come up with a brief business plan and run it by a real estate attorney in your state. For example, if you are dealing with sellers in Colorado in foreclosure, and don’t take certain steps and have certain disclosures, you can face jail time. I don’t want this to scare you because this is a great income maker and could turn into a very profitable full time business.

Foreclosure consultants will generally speak with people in default about their options. Options could include; refinancing, modifications, short sales, or just selling the property if there is enough equity. There are certain ways you can charge fees and who you would charge the fees to. You can charge the borrower fees if you work out modifications or you can become a mortgage broker and charge fees on refinances. Normally it is best to work with the bank on a short sale and charge commissions, or charge fees to buyers of your deals. You can also pass leads onto investors or Realtors for fees. If you are giving leads to Realtors, you will either need to also be licensed, (which is not a bad idea to do by the way) or charge marketing fees for lead generation that is not tied to specific leads. For example, maybe the agent gives you $50 per door you knock on instead of $1,000 for a short sale lead. If you do decide to focus on foreclosures, I think you will do very well’ but I also suggest you get your real estate license so you can charge commissions AND be sure you are not violating any laws.

Out of all 5 options listed here, I think the foreclosure consultant has the highest upside and I strongly believe that people who focus their energy here will become very successful. If I was a licensed Realtor and wanting to focus on real estate as a business, I would be doing this.

Tips on Investment Properties for Beginners

When you have extra cash and want to invest it the best option is real estate because they have high returns. Although property prices in the short term may go up and down, they appreciate substantially in the long run. Investment properties are something that you can bank on as it will acquire value with the development of the areas in the vicinity of the property. There are risks that cannot be completely eliminated but if you do a thorough research and planning you can lessen the risks. If you are a beginner investor, investing in real estate can seem daunting at first. Here are some tips to help you make the right investment choice.

• Know the range of options for real estate investment-you can invest in buying commercial properties, residential houses, apartments, condos, or land so you need to study which would be a better investment for you. There are many options so you will need to do your research to see which one will align with your future plans and stay within your budget.

• Why investing-are you investing to buy to sell again for a profit or do you want to rent the investment property? If your investment properties are residential you can create a regular income by invent in rental properties. You can also be a “house flipper,” which is where you buy an older home, renovate them, and sell them for a profit. If you decide to invest in commercial property you can hold it until the prices go up and then sell it to make a good profit.

• Location-when buying an investment property remember it is all about the location. The price of the property is largely a function of where it is located. Where the property is helps to decide the price range. Make sure that you research the price trends according to different locations before you buy investment properties.

• Network with a real estate agent-they can make your job a lot easier finding the type of property you want to buy. When you network with real estate agents they can help point you toward investment properties that fit your plans. A real estate broker will handle the legal work that is involved with the sale and purchase of the property for you. They can also make an offer and negotiate for you.

• Make financial arrangements-once you chosen the investment property you will need to arrange a mortgage to pay what your savings do not cover.

The most important thing to remember when buying investment properties is to do your research.

Tips For Buying Investment Property

Buying an investment property single-handedly could be a complicated and overwhelming process, especially if it is overseas. Some of the hurdles you might face through the process include,

  1. Choosing a favorable neighborhood
  2. Selecting the right property with all the desirable amenities nearby
  3. Allocating enough time to contribute to all aspects of buying
  4. Analyzing the prospects of the house
  5. Fixing the right budget
  6. Succeeding to fix a desirable price
  7. Understanding and performing paperwork

These are some of the issues you have to face if you plan to buy it on your own. Without a realtor you might end up paying a fortune for a house that is nowhere near to deserve a price like what you actually spend. So the number one tip would be to get the job done from reliable realtors who have the experience and expertise in handling investment property of all sorts.

Here is a quick guide to help you get through the process of buying a worthy investment property anywhere in the world.

Finding the right property

When you decide to buy a house, condo, townhouse or a vacation house for an investment property, give more importance to the neighborhood quality than the size of the home. Another aspect that you probably should vote for is for a house that favors a shorter commute to the city’s main locations.

Determining affordability

Don’t go overboard as you come across various properties. Be clear with your priorities among which your budget should be your primary concern. Hire a realtor who has vast knowledge of his sector and is efficient in the process of not only finding your dream property but also closing the deal for an affordable price. A realtor with such credentials will be able to determine your affordability Vs the cost of the property.

Determining comparable properties for sale

Instead of blindly playing by the rules, follow your instincts by comparing the cost of the property that you select with all the other similar types of properties in that locality. Your realtor would able to assess if the property that you have selected is worth the quoted price.

Accurate documentation

If you are a first time buyer, especially if you plan to purchase an overseas property, you have to be clear with the analyzing and performing of all the paperwork and documentation. If you find it beyond your realm, a realtor on the other hand would be well-versed in what is to be done and also makes sure if it is done correctly.

Off-Market Properties: The Key to Real Estate Success

It was the “Wild-West” days of real estate! The market had just cratered, real estate agents were dropping like flies, and the implosion of “liar-loans” was decimating neighborhoods. Looking back, I sure picked one heck of a time to start!

When you begin in and survive a market like this, buying properties at the right price becomes permanently stamped on your being. It is very similar to how many people who survived the Great Depression would always keep an overstocked pantry.

So even though I have been a full-time real estate investor for seven years and the market is thriving, I still diligently seek out opportunities that will be financially sound in any market. In other words, I only buy really good deals!

The key driver of my real estate success has been OFF-MARKET properties. Using proven systems, I have consistently generated exceptional opportunities often on properties I never would have known were even potentially available!

So let’s look at three sources for off-market properties.

The first is working directly with homeowners. This is generally my preferred method and this is where I focus my marketing machine. It takes a little more effort but this is where you find those “once in a lifetime” deals. If you have a great system, you will find exceptional opportunities routinely.

The second is working with high-quality Wholesalers and Wholesale Brokerages. Here you have an entire group of people scouring the area looking for well-priced investor deals. Generally, they understand exactly what investors are looking for, how to estimate repairs, and what price an investor would pay for the property. So in addition to your own lead generation efforts, you have an opportunity to capitalize on the efforts of 10 or 20 other people as well.

Lastly, as counter-intuitive as it may seem, real estate agents can be a great source for off-market properties. You will often hear these properties referred to as “Pocket Listings.” A property where the agent knows the owner has an interest in selling, but for whatever reason prefers the property not be listed “on the open market” yet. This is very common with commercial real estate. If you want to learn about these opportunities before they hit the market, you will definitely need to have developed a strong relationship with the agent.

Off-market properties have incredible potential and can really accelerate your real estate investing success. They are going to take a little more effort but the payoff is definitely worth it. In today’s highly competitive property market, there is a tremendous advantage in being able to talk to potential sellers first!

How To Profit From Your Rental Properties

There are lots of people who believe that harvesting huge profits from rental properties is one of the easiest businesses they can do for enjoying a luxurious life. The reason which at first instance, seems to be responsible for this myth be no tension of establishing a personal office or factory, no tension of appointing huge staff for getting different tasks accomplished on time, no concern about the sinking of funds on etc. In simple words it can be said that lots of people think that earning rent from the property given on rent doesn’t require any huge investment.

But, is it really so as it seems to be or earning profits from rental properties is complex and requires the proper involvement of the person investing his funds in the property for giving on rent. This in-fact is the matter of debate which is mainly because of the discussions which they have from their known ones who have given their property on rent. Although, this can be true, but that is possible in the case if you have rented the portion of your house to only one or two tenants. But, in case if you have two to three properties which you want to give on rent then looking after those properties could be quite messy for you, especially at the time when your tenant calls you at some odd timings.

Moreover, if you some properties for rent located in another corner of your city or is some other city then looking after those properties could be quite daunting for you. Because looking after all the properties at the same time won’t be possible for you, anyhow, even if you succeed in managing it, you might have to struggle with your tenants for rent and other issues. Anyhow, even if someone assumes that investing in property is one of the easiest methods of earning, then they do not know that it is like hitting the bullseye. So, how a novice can get rid of various issues arising from Rental Properties Adelaide for earning expected profits from his property.

An answer to this question in simple words can be hiring the services of the rental property management group which is constituted by the group of mavens having vast experience in looking after the various aspects associated with rental properties.

Why you should hire the services of rental property experts:

As referred above that most of the people consider earning money from rental properties as an easy task, agreed that it is. But, do you know how to search for the prospective tenants, how to interview the tenants and get their documents verified, what are the legal documents required to be prepared before giving any property on rent or what to do in case if your tenant refuses to pay rent on time or tries to exhibit his ownership on your property? All these questions are just illustrations of the problems which as a newbie, you might face while investing your funds in property, there might be various other issues about which you might have even not imagined could disturb you once you have given your property on the rent.

Anyhow, if you are aware about all these problems and know how to get through them, then undoubtedly nobody can stop you from becoming rich in a few years. But in case if you do not wish to face all these issues, then it would be better to at-least will think of hiring the services of the property management experts to avoid any type of critical situation in the future.

These experts will work for you and take care of your property as their own property on your behalf and will look after all issues arising from the property, starting from the hunting of the tenants to sorting out different issues which might face because of your tenants. Let us, for instance, say that, you have not allowed your tenants to park their vehicle inside your garage during your absence, but still if they do so and argue with you that as they are paying rent for your house, they are liable to use the garage also. At that time if they did not stop parking their vehicle inside the garage at that time the only option left with you will be getting your house vacated from the tenants quite early before the expiry of their agreement.

Simply, it can said that if you have available properties for rent purpose, it would be better to go for the services offered by property management groups to avoid useless issues that might create a burden on your shoulders.

6 Benefits of Real Estate Investment for Savvy Entrepreneurs

As being a property investor isn’t always glamorous however it is among the how to build wealth within the Long haul, specifically for the entrepreneurial-minded. Listed here are six reasons why you need to consider purchasing rental qualities.

1. Income.

Lots of people purchase rental qualities due to the money flow – the additional money that’s left in the end the debts happen to be compensated. The money flow can offer ongoing, monthly earnings that are mostly passive, enabling you to spend time creating a business, traveling or reinvesting in additional property.

Income from property is stable and more foreseeable than other companies. That’s ideal for entrepreneurs long lasting the good and the bad of start-up existence. The money flow might help float you although the bad occasions and live well throughout the good occasions.

2. Tax benefits.

Allow me to inquire quick questions: should you earn $100,000 at the own small business and that I earn $100,000 through rental qualities, who get’s to help keep more?

Actually: I actually do. Since the government rewards apartment proprietors.

Not just may be the income caused by your rentals not susceptible to self-employment tax, the federal government offers tax benefits including depreciation and considerably lower tax-rates for lengthy-term profits.

3. The borrowed funds pay lower.

When you purchase accommodations property utilizing a mortgage, your tenant is really the main one having to pay the loan payment, thus growing your internet worth every month. Due to the loan pay, lower accommodations rentals are basically a checking account that grows instantly, without you depositing money every month.

Today you may owe $200,000 on the apartment, but the coming year you may only owe $195,000 since the tenant is making the payment for you personally, causing you to $5,000 more potent. Three decades lower the street, or regardless of the term of the loan, it’s compensated lower to $. You have a substantial asset that you could sell or continue renting, all because of your tenant having to pay the mortgage.

4. Appreciation.

As the loan has been compensated lower the need for the property, generally, rises. Yes, I understand, recessions do happen. Values do increase and lower. Use in the wrong duration of the marketplace. I receive it.

However…

With time, values do climb greater and greater. This is exactly why I am not within this property game for one year or perhaps a decade. I’m within this for existence. I understand my qualities continuously climb to ensure that 3 decades from now, everything is definitely worth way over I’m having to pay for this today.

5. A hedge against inflation.

Are you able to imagine having to pay $ 10 for any gallon of milk? Or $ 5 for any chocolate bar? While individuals prices appear exorbitant for you, this is actually the future due to inflation. Inflation is the procedure through which prices increase because of the worth of money decreasing.

Some people fear inflation, like an apartment owner, I expect it!

Once the cost of the gallon of milk hits ten dollars a gallon, you know what else will shoot over the top? Everything, including rents and property values! The main one factor that won’t increase, however, is my fixed-rate loan payment. As inflation pushes living costs greater and greater, my income is only going to increase. For this reason, the property is frequently known as “a hedge against inflation.” When inflation hits – I am ready!

6. Control.

I do not like my future associated with a boardroom on Wall Street or perhaps a nervous Chief executive officer in Plastic Valley.

For this reason, I select to take a position the majority of my earnings in tangible estate, knowing that I’m the one that accounts for my failure or success.

Basically, desire a better deal, I have to hustle to locate it.

When the rental market will get more competitive, I’m able to compensate by growing my advertising.

If values drop, I’m able to decide to wait for it or enhance the property they are driving the worth support.

Quite simply, I receive to manage the problem, and my financial future, with my very own two hands. Which suits me all right.

Don’t believe that simply by owning some rentals you’re instantly likely to begin building wealth. The property is effective – as long as you’re employed it right.

You have to learn to find bargains, how you can evaluate an investment and the way to finance any qualities you need to buy. Furthermore, you have to address it just like a business and nurture it as being it matures. It’s likely not really totally passive in advance, but because countless individuals throughout history have found, the payoff is worth the journey.