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|Posted on August 15, 2015 at 7:23 AM||comments (0)|
5 Hints To Help You Be A Better Landlord
By Michael Barnes
December 5 2009
Are you a landlord? Do you want to be? Do you or are you planning on buying residential property to use as rentals?
Well if you answered yes to any of the above, this article is for you.
First let me start out with the cold hard truth, being a landlord does not mean just collecting a rent check once a month and spending the rest of your time on the golf course. Being a landlord can be frustrating and can take a lot of effort.
The other truth though, is that if done right, being a landlord can be fun and rewarding, both personally rewarding and financially rewarding.
The key is to know what you are doing and take your job seriously.
Here are 5 tips that I have picked up through the years dealing with my portfolio of rental properties.
1 - HAVE A WRITTEN LEASE
A written lease is CRITICAL; I can not stress this enough. A written lease protects you and your tenants and prevents potential misunderstandings from become nightmares. There are tons of places online where you can get sample leases for your state. Do not skimp or take a shortcut on this. It will only take one time for your lease to save you and it will have more than made the time you spent putting it together worthwhile.
2 - KNOW THE LAW
While it is always good to have a competent attorney available to you, it still does not eliminate the need for you to know the laws in your state regarding residential tenancies. Take the time and read and understand the laws as they pertain to you. Just as with the lease, all it takes is one time where your knowledge of the law kept you out of trouble, and your investment of time and research will pay off handsomely.
3 - BE FRIENDLY, FAIR & FIRM
One of the things that I have learned is a key part of my success is how I treat my customers (tenants). I have tenants from all walks of life, all economic situations, all races, colors, religious, you name it. One thing that they all will say is regardless of what may make them different, I treat everyone the same. This is not only because there are laws against certain types of discrimination, but because it builds a stronger relationship with my customer. Along those same lines though, I am also firm. I am clear from the beginning about how I handle late fees, and other expectations. I do not waiver from this.
4 - BE VISIBLE
This one can be hard if you are a part time landlord, or have properties spread out over a large area. I find it useful to be visible to my tenants and the neighbors of my properties. I make it a point whenever I am in a part of town where I have properties, I drive by them. If I see someone outside I stop and say hi, if I see a neighbor that I have spoken to before, I say hi to them. This helps in a number of ways; first, it lets your tenants know you care about the property. Being visible also helps to build relationships with neighbors, which can be a great set of eyes and ears to tip you off about any problems before they get out of control.
5 - NEVER FORGET YOU AND YOUR FAMILY COME FIRST
This is probably one of the hardest lessons a landlord must learn. First, ask yourself why did you or are you getting into the rental business? The answer is obvious, you want to make money. Money either for current use or to build a nest egg for later. As a landlord you will be presented with a variety of stories and excuses. Some of these will be true and others may not be. I have found it is easier to deal with the people telling you a story that is just an out and out lie. I have no trouble not showing any compassion and simply boiling it all down for them to a simple truth, "You do not pay, you do not stay". The stories that are true are actually the difficult ones. I can not tell you how to handle every situation, and each of us is different in our thoughts and beliefs. I can tell you this, as you evaluate how to handle the situation, never loose sight of the fact that the needs of you and your family HAVE TO COME FIRST.
Michael Barnes - <a target="_blank" ["rel=\"nofollow\" "]href="http://www.trailerparkriches.com">http://www.trailerparkriches.com</a> - <a target="_blank" ["rel=\"nofollow\" "]href="http://www.landlordtutor.com">http://www.landlordtutor.com</a>.
|Posted on April 21, 2015 at 12:52 PM||comments (0)|
|Posted on April 21, 2015 at 12:51 PM||comments (6)|
How To Make A Big Profit On Real Estate
By [http://ezinearticles.com/?expert=Christianne_Child]Christianne Child
Right now, the housing market is one area where you can really make money. With housing prices right now at historic lows, you can buy properties inexpensively and earn a profit as the market rebounds. The reality is that this type of investment is a good way to increase your cash flow.
Even if you have other investments, investing in real estate is a great way to diversify your investment portfolio. Adding real estate to an investment package that includes stocks and bonds is very wise, especially if you are nearing retirement age.
Keep in mind that investing in property and housing is different than other types of investments. For example, when you purchase bonds, your work is done after you complete the transaction.
Yes, you probably will check to see how much interest your bond is earning, but that is about it. With real estate, you will need to maintain the property in order to rent it out or to sell it.
This will take work. Of course, if you keep the property and rent it out, then you will have ongoing expenses and maintenance. However, you will also have an ongoing source of income.
As with anything in life, there are good and bad things about any decision. If you do not mind home maintenance tasks or if you are handy enough to fix things yourself, you may not mind this process at all.
If you do, you may want to consider selling a property once you have remodeled it. Then again, you may want to hold on to the property for a little while until the prices of real estate rebound.
Of course, before you purchase a home for investment purposes, you should definitely get the opinion of someone who has experience with construction.
Some homes will need so much work that there is no way you could ever re-coup the cost of your investment. It is best to avoid these types of properties.
Before buying a property, make a list of the repairs that will be necessary to either sell or rent the home. Then, create a budget which you will need in order to properly finish the repairs.
After you have done that, estimate the amount of rent you would need to charge in order to get back your investment in the property. Then, check the area to see how much rent you could possibly ask for in your area. This will tell you if the investment is a good idea or not.
If you want to sell the home, you will need to calculate what the selling price will be in order to recover your initial investment. Then, check the prices of homes in your area. If home prices are extremely low for comparable homes, it may not be a good idea to invest in a property in that particular area.
Even if it takes a little bit of time to recover the money that you put into renovating the property, it still may be worth it. Of course, everyone has different needs and expectations.
Carefully evaluate your options as well as the reality of your financial situation before taking the plunge into the real estate market. [http://www.chrischild.ca/about-me.html]Christianne Child is an award winning real estate agent with HomeLife Realty Limited Brokerage. Everybody who knows Christianne knows that her professional focus has always centered around Customer Service Excellence. [http://www.chrischild.ca/contact.html]Contact her about any property that is in the MLS listings, or for a free market analysis on your home.
Article Source: [http://EzineArticles.com/?How-To-Make-A-Big-Profit-On-Real-Estate&id=7998844] How To Make A Big Profit On Real Estate
|Posted on November 15, 2014 at 9:08 AM||comments (0)|
How To Build Wealth Through Assets
By [http://ezinearticles.com/?expert=Dan_Cavalli]Dan Cavalli
It is not impossible to build personal wealth. Some people have the misconception of becoming wealthy. Wealth may mean a lot of things for different people. Economically speaking, wealth is basically a mixture of financial prosperity and gaining physical assets.
This may also mean fewer liabilities and more savings.
If that is the description of wealth, then be happy because you have ways on how to build wealth especially in these modern times. One of the best ways to start your wealth building program is to invest your money on assets.
There are many advantages in putting your money on assets. May this be on real estate, financial investments or on a business, you will have greater chances to build your wealth than in any other means. It gives you the sense of security that the money you invest will also reap double the amount you put in.
And because the returns are amazing, you will definitely see why a lot of people prefer this wealth building system. In order to understand this more, take a look at some ways to invest on assets as one of your wealth building strategies:
Business: One of the best ways on how to build wealth is by finding means to sustain a steady flow of income into your pocket. How do you do this? You can start your own business that will bring regular income into your account. Having a business that continues to grow and flourish will enable you to pay for your expenses, debts, save money and re-invest this in other means.
Real Estate: This is one physical asset that appreciates over time. This is probably why a lot of people are investing on real estate especially when the markets are low because they can re-sell this for a higher amount that what they got it for.
This is a long term investment and you may probably not see the returns right away. However, if you are really serious in your wealth building program, then the waiting period would not be much of a problem to you. Most people who invest in real estate usually has an eye for really good properties and can foresee the rise in value of these properties over the years.To know more about this, you should efficiently do your research and study the trends of the industry.
Investments: Whether it is in stocks, bonds or equities, investing on financial or paper assets is a great way to go. It is a form of passive income that does not take all of your time but will still generate a substantial amount of returns.
You can also put your money on mutual funds, foreign exchange and gold. Before you put in your investments, make sure you study the stock market first. Learn about the trends and research on good stocks and bonds to invest in.
If you are not able to manage this by yourself, solicit the advice and help of a fund manager that can help you allocate your funds better and double your returns.
You can learn all about how to build businesses, make money, get rid of debt and turn money worries into infinite sources of cash but its all a waste of time unless you get the real secrets of how to get it done. Get his famous introductory 20 FREE lessons eCourse about Making Money that over 179,000 people have studied and applied at: [http://www.the-richest-man-in-babylon.com]http://www.the-richest-man-in-babylon.com
Article Source: [http://EzineArticles.com/?How-To-Build-Wealth-Through-Assets&id=5043485] How To Build Wealth Through Assets
|Posted on November 5, 2014 at 9:12 AM||comments (0)|
By [http://ezinearticles.com/?expert=Bob_Foust]Bob Foust
How can real estate make me money? Very good question. There are several ways, both long and short term, and in varying degrees of risk. Yes, risk. All investments involve risk, but we need to avoid undue risk and manage the unavoidable risks. We can help.
Real estate investments - we will outline and discuss investments, not "flipping" and not "making a quick buck"-that is speculation- rather, we want to consider solid investments. Think of real estate as long-term, not a fast buck. Real Estate Investing is like a marathon, not the 100 yard dash.
Why invest? - to increase wealth and/or increase income over time.
When is the right time? - Time is your ally in the real estate market. What I mean is that time will produce shocking results if you invest wisely. My favorite answer for those asking "When" - is a tongue in cheek "yesterday." The sooner you start a mortgage, the sooner it will be paid off (by your renters of course).
How to invest? - income producing property, usually rentals, either residential or business (not your home, that is not liquid). We are talking about investing in addition to owning your home.
Become a Landlord
Benefits of investing;
A - Renters will pay the mortgage on your property for you. After the mortgage is paid off, all the rent will then be pure income.
B - The value of your property will increase over the years. For example, California residential values have grown at an average compound rate of 5% per year for the last 27 years (this is prior to the last two year downturn). This is classic wealth building, and your personal net worth will soar, all the while using other people's money (OPM) to pay the expenses. And by the way, you are applying leverage to increase your wealth.
C. - Immediate income tax deductions -- all operating losses of an income producing investment (rental) are deductible against your current year's income (some restrictions apply). This is a substantial tax advantage for the owner.
D - Another income tax deduction -- depreciation of the income property is also a deduction for the owner in the current year. For example a $400,000 rental home is depreciated over 27.5 years to give the owner a $14,545 deduction applied to each year's ordinary taxable income. Nice!
E - Positive cash flow -- as the owner raises the rents regularly, cash flow increases for the owner, who then has a nice source of monthly income. In the long term, especially after the property is paid off, the rent can be viewed as a nice retirement income.
We've touched on some of the very positive benefits of investment property, but the subject is so important that much more detail must be presented and studied.
Please contact us for any question and our in depth reports on Risk, Operating Guidelines, and our Hints and Tips for Landlords.
About the Author: Bob Foust is the chief executive for the FOUST Team at C21 Discovery; one of the top-selling real estate teams in Southern California. He specializes in Orange and Los Angeles Counties and operates one of the area's most informative real estate websites. To contact him or learn more about real estate in Orange County, please visit [http://www.FOUSTonline.com]http://www.FOUSTonline.com. For additional pertinent real estate information see our blog at [http://www.foustonline.blogspot.com]http://www.foustonline.blogspot.com.
Article Source: [http://EzineArticles.com/?Wealth-Building---Creating-Wealth-and-Income-in-Real-Estate&id=1869151] Wealth Building - Creating Wealth and Income in Real Estate
Many of life’s failures are people who did not realize how close they were to success when they gave up.” - Thomas Alva Edison, Inventor and Entrepreneur
|Posted on November 5, 2014 at 9:09 AM||comments (0)|
|Posted on October 28, 2014 at 4:14 PM||comments (0)|
By Chris Clothier
July 7 2011
This post will not apply nor make sense to every investor out there, because part of the reason these ideas work is due to volume and consistency of work. That does not mean that individual investors cannot use these ideas to greatly improve the relationship with vendors regardless of volume. That better relationship should absolutely be used to improve over-all quality and reduce costs.
If you are an investor or own an investment company that provides services to other investors, implementing a few of these ideas will go a long way in reducing costs and improving the quality of the work.
1. Schedule Two Annual Meetings With Your Vendors
The first meeting should be held in the Spring and should be an appreciation day. A chance for you to provide lunch and a little relaxation for your vendors. Don't be scared to let them invite their families and get behind the table and serve. Whether its pizza and coke or spaghetti buffet, taking the time to serve those who are working for you is a great way to build trust & camaraderie as well as strengthen the ties that enable you to negotiate better pricing.
The second meeting should be held in the Fall and should be a standards meeting. This is where you lay out to your rehab crews and every contractor or company servicing your properties EXACTLY what you expect from them. This is your opportunity to lay down the law on exactly how you expect your renovation jobs to be completed. From conduct while on site to the condition you expect the site to be left in at the end of the day, if you are very clear with the standards you expect to be upheld, then there is no mi-communication in regards to your expectations. Do not forget - nothing is too small! From where contractors park to no smoking, drinking, drugs, pets, loud music or girlfriends at the job site; this is your project and you are providing the payments. Make sure your standards are clear.
2. Simplify the Details
When working in volume, the fewer questions a contractor has, the quicker they can complete the work. With that in mind, create materials list complete with detailed name and serial code of all products used on your renovation jobs. This list should include every material from carpet, tile, grout, wall color, trim color, lighting package, hardware package, lock package, types of doors, windows, preferred water heater brand including size as well as all HVAC materials. Be specific and provide a copy of all materials used in your renovations. If you can reduce basic questions and focus on the scope of the job, your contractors can go to work quickly and they will be much more efficient.
3. Inspect What You Expect
This should be a mantra repeated every day on every job. Your contractors and renovation crews should know with absolute certainty that you will be inspecting every job and paying attention to every detail. It is not enough to expect them to do the job correctly. They should know you are inspecting the work as well and will hold them accountable to your expectations. If you are clear, it will only take a couple of times with you taking a vendor to task on poor quality, for that quality to improve and them to begin to police themselves. This is key to keeping quality high when volume rises.
4. Pay On time - Every Time!
A great policy to institute if you want to insure that you are getting the lowest rate possible is to pay often and reduce the lag time that a vendor waits for money. I would suggest a policy as such: IF the vendor provides the invoice by Wednesday at noon, You will provide the check by Friday at noon. This is a very basic policy, but it guarantees safety for your crews and their employees. It allows them the freedom to work on smaller margins because they have reduced carrying costs and general overhead. They can guarantee work and payment to their employees which helps them to retain their crews and stay active.
I do not just make these suggestions because I think they are good policy - these are the exact policies that are instituted in my business. I know they work and the results they lead to are real.
Best of luck with all of your investing endeavors!
Chris owns and operates http://www.MemphisInvest.com with his family and today they are the largest home buyer and seller in West Tennessee behind only the federal government. In the first 6 months they have completed 157 transactions in Memphis, TN. for their clients.
The author has permitted the reprinting and redistribution of this article.
|Posted on September 5, 2014 at 9:23 AM||comments (0)|
By Don Chambers
I procrastinated for several years before finally buying an investment property; now I have 13 rental houses. In the last month I have begun moving into flipping and I am documenting the steps and results at my blog. I now have 2 houses under contract that I intend to flip and I am learning a lot as I go. However, I do know how to buy bank owned properties, and rent them out for a profit. There is no need to procrastinate - just get out there and do it. This article will explain how to get started by buying bank owned properties and renting them out.
Rentals may not be the best way to go but they do provide a safety net. If this is your first investment house you should be able to get a 30-year fixed mortgage at a low rate. This should help ensure that you will have positive cash flow, even if end up spending more than should have. Do not rely on this crutch, but it is a good safety net.
10 Steps to Getting into Real Estate Investment
1. Determine your rent range. In my area, rentals around $800 seem to rent faster. Over $1,000 and the pool of tenants is too small, below $600 and the house is usually in a terrible area. You want to spend no more than 60 times rent, so about $48,000 will be the max you will spend to purchase and rehab (numbers in your area may vary).
2. Get pre-approved for a conventional 30-year fixed mortgage. After doing the rehab with a commercial construction loan you will refinance to this long-term loan. This will make the construction loan lender more likely to loan to you. Get approved for a little more than the maximum value you calculated in step 1.
3. Find several houses. I use a site called Equator that has real bank-owned properties listed. You can also find good deals at the HUD HomeStore. Find houses priced less than 145% of your upper limit. If your upper limit if $50k, stick to houses at $70k and under.
4. Make offers on several houses; I usually try about 6 at a time. Offer low, about half of the listing price. The contract will say that your earnest money is available when a deal is reached. Most offers will be ignored. Sometimes you feel silly making these low offers (good). I work with a single agent that understands my approach and does not mind these offers. Some agents will hate it; just find the right one.
5. When you get a counter-offer you know the seller is ready to deal. Only then do you need to go see the house and make a rough repair estimate. Just count the big things like roof, AC, carpet, and paint then add some cushion for unknowns. Use this repair estimate to calculate the maximum you will spend on the house and do not go over it.
6. Counter their counter. In most cases, their counter-offer is only a small discount so only move up a little - maybe $2k. If you found the repairs are too high you can just drop the deal here since they countered (they always counter with these offers).
7. When negotiating, you want to respond to their counters fast - in a few hours. They will be slow and take days to respond. Move up a little at a time and do not go over your limit. Don't be afraid to have several deals in negotiation at the same time. Getting too many deals is a good problem. Keep the value of the house in mind but this is mainly a cash-flow deal. You want to spend less than 80% of the value and 60 times rent is usually cheap enough. Do not pay too much for the house.
8. When you reach a deal make a detailed repair estimate then add some cushion to the numbers.
9. Start approaching local lenders. Explain your plan and show the pre-approved letter from step 2. Let them know that after the rehab you will refinance the house and their exposure is over.
10. Close the deal and do the rehab. Then stick a for-rent sign out and wait for a tenant. If you price the rent properly you should have it rented in a few weeks.
It is a little more complicated than this. Doing the rehab and finding the tenant takes some experience but that is beyond the topic of this article. The main point is to start moving forward - then momentum will complete the deal.
Once you have done your first deal the rest get easier.
ties. This is intended to quickly get a new investor into the business with minimum risk.
Don Chambers is a successful real estate investor in Warner Robins, GA. Follow along with his blog [ http://realestateadventurer.com ] to learn how to invest in real estate. If you want to invest in real estate in the middle georgia area you can join his wholesale buyers list.
The author has permitted the reprinting and redistribution of this article.
|Posted on September 5, 2014 at 9:21 AM||comments (0)|
|Posted on June 30, 2014 at 9:01 PM||comments (0)|
A Quick Guide on How to Create a Real Estate Investment Business Plan
By [http://ezinearticles.com/?expert=Sherry_Ann_Smith]Sherry Ann Smith
When creating a project or finishing a task at work, are you the type who makes an outline or a checklist of tasks to do or are you the type who wings it? The latter may not be a very good idea especially if you are starting out a business. Let's take property investing as an example. Over the years, more and more people are starting to consider this as a profitable venture in addition to their day jobs. If you want to be in this business, it's important to have a real estate investment business plan so you can achieve your goals in no time at all.
Why It Pays to Map Out an REI Business Plan
Why is it important to create a business plan when getting involved in property investing? With a solid plan, you increase your chances of success. If you wish to earn profit with as little ground work as possible, for instance, you may join a property investment group that manages an apartment complex or condominium units. You can invest in several units but the investment group does the maintenance tasks for you in exchange for a percentage of the profit. With a solid business plan, you can weigh the advantages and disadvantages of each real estate investment instrument available and decide whether you can profit from them or not.
Step 1: Establishing Your Financial Goals
So what's the first step you can follow when creating a real estate investment business plan? First, establish your financial goals. Are you looking forward to using the profits from your REI instrument as retirement money or do you need an extra source of income? Set a schedule for achieving these financial goals whether they're five or ten years into the future. Better yet, determine your desired net worth. The more specific you are, the better; you can work on achieving those financial goals effectively.
Step 2: Choosing the REI Program to Go for
There are several REI programs that you can go for. First, there's the basic rental property investment. Here, you purchase a property and rent it out for profit. It's entirely up to you to decide whether you want to act as landlord or hire someone else to do it for you. As mentioned earlier, you can join a real estate investment group. You may also dabble in real estate trading. Think of it as the equivalent of day trading in the stock market. You're basically holding on to a property for a few months, after which you sell them again for profit. This technique is also called flipping properties. Finally, you can invest in REITS or Real Estate Investment Trusts, which are similar to dividend-paying stocks. Unlike other types of real estate investment programs, REITs allow you to invest in commercial properties such as malls or office buildings for a better profit yield.
Step 3: Planning How to Achieve Your Financial Goals
After deciding which REI program to go for, plan how to achieve your financial goals. This is where a lot of research is needed because you have to calculate down payment amounts, monthly mortgages, operating expenses, and so on. Once your business plan is finished, you now have a clear series of steps to follow when it comes to growing your real estate venture.
If you wish to succeed in your real estate business, you need to devote time to developing a solid [http://www.realestateinvesting-gurureview.com/real-estate-investment-business-plan.html]real estate investment business plan. Your plan serves as your blueprint, as the real estate business is vast and complex. Having a plan can help you minimize your risks and losses. For more information, visit [http://www.realestateinvesting-gurureview.com/real-estate-investment-business-plan.html]Real Estate Investing Guru Review.
Copyright � Sherry Ann Smith
Article Source: [http://EzineArticles.com/?A-Quick-Guide-on-How-to-Create-a-Real-Estate-Investment-Business-Plan&id=6616334] A Quick Guide on How to Create a Real Estate Investment Business Plan