Category: Real Estate

Economies of Scale in Multifamily Investing

ONE ROOF

Having many tenants under one roof provides you the ability to employ professional property management, allowing you to manage your manager from wherever you may be, no plunging toilets or chasing rent checks!

BETTER CLASS OF PROFESSIONAL

From Property Management to building trades, having a centralized property rather than smaller scattered site single-family homes will lend itself to hiring a better class of professional, as opposed to a handyman.

Making sure that your tenants get their service calls attended to promptly is essential in retaining that tenant. A property management renewal fee is a fee we’re happy to pay.

PROTECTION FROM VACANCY

Your risk is substantially reduced because there are many tenants paying your mortgage. One vacancy in a 50 unit building is planned for and hurts much less than when your single-family tenant moves out. These single-family “cheap” rentals are what many real estate investors are offered as an entry point to real estate investment – we challenge you to think bigger!

TAX ADVANTAGES

One of the tax advantages of investing in apartments is the deduction of furniture, fixtures and equipment. Standard disclaimer *I am not an accountant, so make sure that you go over all tax …

Real Estate Appraisal

  • Selling property
    An appraisal of the property is essential to get the correct price when selling your property. This service is performed by your real estate agent/appraiser. The agent first compares your property with other properties in the same area that were sold in past one or two years and that are similar to your property in terms of features, size and condition. The agent then adds or subtracts the value to your property based on the features found in comparables.
  • Buying property
    When planning to buy a home, a property appraisal is very important for getting the real and fair sense of what it actually is worth. In short, an appraisal of the property that you are willing to buy helps in verifying the amount you are agreeing to pay for the property is reasonable or not. Thus, appraisal is an essential condition in the purchase agreement which can either make or break the deal. Yet, property appraisal done once, you are on the way to close the deal successfully.
  • Refinancing
    A lending institution requires a property appraisal when you are planning to refinance your home. If your home does not have enough appraisal value, then the chances of

Property Maintenance for the Fall Season

Gutters

Gutters can become clogged with leaves during autumn, so you will need to make sure that you clean these out regularly. This will improve the rental appeal of the property, as well as preventing flood. As the leaves clog up the gutter, it can prevent water from flowing properly and this is the last thing you need when you have a property to run. Your property manager can also handle this issue, by sending out a designated cleaning team to render the issue.

Heating

The main problem that many property owners experience is heating. During summer, the pilot to the heating appliance can often burn out and unfortunately you do not realize this until the colder weather approaches. Make sure that you check the heating within the property before fall approaches, so you have time to make the repairs before the tenant suffers. Be sure to check every heating unit, replacing the pilot lights as required to make sure that the house will fully warm through during fall.

Plumbing and Piping

Winter can often freeze pipes, and the water inside expands to give you a range of leaks. The best time to check for damaged pipes is just before …

Stock Markets vs Real Estate

Real Estate

  • Pros: When you invest in real estate you are putting your money into something that is tangible and that you can see. Yes, the prices are still determined by the state of the market, but a house is never going to be worth absolutely nothing, whereas a stock may well crash completely. Furthermore, a lot of new investors feel comfortable with real estate because they have some level of experience with it. Buying or selling a house can give you some idea of the processes required, plus there are plenty of resources available for people who are curious.
  • Cons: Unlike stocks, investing in real estate means that you are going to have to do a lot of work to maintain and repair your properties. This means you can’t ever just sit back and reap any rewards, as you must stay vigilant of issues with your properties at all times. Furthermore, if one of your properties is unoccupied, you are going to find that it will cost you money, rather than make money. This is the exact opposite of what you want to achieve, so you must always ensure you have a budget outlined.

Stocks

  • Pros: Stocks have proven

Simple Property Investment

Properties

There are lots of factors when choosing properties. These factors are essential to help you find the ideal property that can accommodate your needs. Some of the most common properties you can choose are residential or commercial properties. These two options can provide you the benefits you need. However, you need to carefully choose which property can cater to your needs.

Property features

After choosing the kind of property you need to invest in, you need to determine the features of the property. This is important since these features can help you obtain better finances. For one, size is important when choosing. Large properties tend to provide better profits due to its size. Location is another factor when choosing. Of course, properties situated in good locations are more expensive. As a property owner, you can take this opportunity in your advantage.

Taxes

Some individuals may think that property investment is all about profits. Little do they know, individuals also need to pay taxes. With this said, you need to be knowledgeable about your taxes. By knowing these taxes, you can properly maintain your profits. On the other hand, property owners can also benefit from these taxes since expenses like …

Reasons for Building Green

One of the foremost benefits of investing in a green home is the multitude of economic benefits it can give. It may be a costly investment, but as years pass, the owner can actually reap the benefits of lowered electricity and water bills. Operating costs will likely depreciate in figures as compared with operating or maintain a non-green compliant home or building.

The market value of green properties surges as time passes by. Demand for this types of homes are projected to go up by 2020 with more millenials jumping into the realization that owning a dream house should be aligned with embracing environmental obligations as well. If time comes that the owner decides to sell his piece, gain is probably on his edge. Life span of green homes is projected to be longer than their non-compliant counterparts.

Families invest in homes because of their kids. Essentially, the social welfare of younger family members is in the high ranks of consideration when a house is built or bought.

With this come the associated health advantages that owners are likely to get. Planned ventilations and well-located air circulation appliances contribute to improved air quality. In general, windows of green homes are …

Energy Performance Certificates

Emergency & Maintenance House Guide for Tenants

It is very important to give tenants some guidance to help them look after your property in particularly those who have not rented before. Tenants need to be informed in case of an event of an emergency and how to deal with routine maintenance.

Here are a few typical scenarios the tenant will come across:

Explain to tenants that they are responsible for minor repairs like changing fuses and bulbs as well as prompt action and seeking help if anything more serious happens.
Make sure that tenants are aware of what to do or who to contact in an emergency. It is in their contractual duty to report anything that could damage the property, they could even be liable for the cost if they fail to report sooner.

Give tenants a written set of instructions to follow so they know what actions to take to protect the property and themselves. This could cover what to do in the event of a problem with plumbing, drains, gas, electricity etc. The delay of getting these fixed can result more costs in damage over time.

Get tenants to lookout for minor problems to the property and …

Alternative Financing for Investment Properties

Conventional Home Sale

Let’s take a look at a typical house sale and see what makes the most sense. Let’s say you have an investment home that you’ve bought and rehabbed, and you’ve set a sale price of $175K. It’s a fair price, it’s at market value and everything seems right. But what happens if the house doesn’t sell? Do you sit on it and hope for the best? Do you lower the price? If so, what do you lower it to? Let’s say you decide to lower the price and it ends up being sold at $152K. After closing costs and realtor commissions and seller concessions, you’re probably only going to net about $135K.

Alternative Method for Selling the Home

Let’s say you’re able to sell the home to a rent to own buyer or a lease option buyer, and you’re able to get full price of $175K. You also get their option deposit – let’s say they give you $8.75K (5% down) in option deposit money. But then you’ll probably have your own closing costs in the future along with real estate commissions. So you end up netting about $150K in net proceeds from that future sale. But

Making a Successful Investment in Luxury Real Estate

Analyze the plus points of location – In making your investment fruitful, the location of the property matters a lot. You must not invest in a plot or building just because it is available at low rates. The price of the asset could be low because of a number of factors, which you should analyze well before making the purchase. If expecting some handsome returns, you should judge all the aspects allied to the location. You should invest in a property that is situated at a well-connected, easy-to reside location. Buying property at a location, that has a decent connectivity from the main hubs of the urban and suburban area will be a profitable deal.

View from a long-term perspective – Real estate is an asset that proves to be lucrative if invested and kept well-maintained for a long period. You cannot become rich in just a blink. You need to wait and watch, and the value of your freehold mushrooms. Here is a secret tip: wait for at least one year, before you resell your asset.

Delve into the meaning of leasing – Many a people choose to give their property on lease. If you too are thinking over …

Real Estate Traps To Avoid

Don’t get attached. Okay, that was a bit too blunt! Basically, your real estate investment (be it land or a house/apartment) is beneficial to you both emotionally and financially, but it is currently only worth a specific financial amount to everyone else. Landlords, real estate agents, and potential buyers all assess the property based on the numbers, and when you start to become emotionally attached to a property or the possibilities of that piece of land you may miss some very obvious problems it might have.

They say you’ll know the right place when you see it and that is true, but don’t go overboard.

Don’t take anything at face value. You might feel compelled by the beautiful house that stands out so vividly from the rest of the neighborhood, but keep in mind that home values are influenced by the average market price of the homes in their area as well. The extraordinary house might not be worth so much if the houses around it continue to be average.

In the same way consider that a home’s sale price doesn’t reflect the amount you’ll pay on property taxes, in interest, and other variables that will affect your monthly payments. …