Category: Investing

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 …

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 …

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 …

Important Traits to Be a Successful Real Estate Investor

Passion to build a career

Passion might sound a bit overwhelming and dramatic but it is the core of success. If you want to be successful as a real estate investor, you need to ensure that you are passionate about it. You don’t count your hours like a 9-5 day job because you want to build a career out of it. You want to create passive income that would give you the freedom to live your life according to your own terms. This passion drives you to go through the difficult times that you’ll face at the start of your real estate investing career.

Determination

If you are passionate about something, it gives you the determination to endure bad patches. Yes, they will get bad. You might find problematic tenants or depreciation in the market or trouble contractors or too expensive property. But you need determination to keep going, to ensure that all of this is temporary and there’ll be a time when you would see the fruits of your efforts.

Patience

Patience is the key to success. It is a trait that helps you keep out of trouble. It’s OK to have passion and determination to make it big …

Buying a House Is an Investment

Buying a house could be a great investment option but unlike other investments, you need to look after the property to continuously provide a source of income.

When it comes to balancing the risks and rewards in purchasing a house, locations close to Bay Area is ideal. Mountain House is one such location, which is known for its diverse demographics and affordable home prices. You can easily lay hands on your dream house, all you need to do is to find the right Real Estate Services in Mountain House.

Buying a house is a great investment!

Buying a house is a big financial responsibility but a rewarding one. We will give you enough reasons to make up your mind to buy the house. Keep reading to find out more:

Income = Rents

You are sure to have a steady source of income with rental payment coming every month. If you are savvy investor, the rental income should be higher than the mortgage to pay off the loan without any extra efforts over a long run.

Tax deductions await you

Descent portion of the expenses associated with an investment property are tax deductible. For instance, property maintenance charges, interest and fees …

Knows for New Investors

  1. Take advantage of free resources. Things like internet searches, downloadable documents, and networking events accelerate your efforts. Back in action, ready for a deal. Yes! I just knew I’d have more properties in no time. Unfortunately, it wasn’t that simple. I kept running into properties that didn’t pan out. I couldn’t believe it! I had financing options with no deals to close. Then I realized why I was stuck, AGAIN. Solely focused on financing, I placed no effort in actively pursuing a deal. At the time, I figured I had to achieve one goal before beginning on another.
  2. Success is not linear. Work on your goals simultaneously to maximize on time and efficiency. Had I owned this mindset, I would’ve closed on my next deal sooner.
  3. JUST GET STARTED, embrace risk. Never stray away from pursuing what you want regardless of the challenge. Things may not happen as planned. Commit to the end-goal and you will earn the result you desire.
  4. Don’t place all your eggs in one basket. Although necessary, risk should never be painstaking. Fortunately, my investment was cash-flowing and I officially became an entrepreneur. High on investing, I planned to move forward with another deal. What does

Rent for Lifestyle, Leverage for Investment

If you ask any REAL investor about this, they will tell you – that they have plenty of home loans for their investments, but rent the roof over their head! In fact, we have spoken to more than a few successful investors and they all have this in common. Only after achieving financial freedom did some of them get a home loan for their dream home.

So why were these people doing the exact opposite to what we have been told? The truth is, you don’t need to get a home loan to have a roof over your head. You should be using your savings and the banks to generate income for you. Wouldn’t it be better if your investments pay for themselves and your rent? (PS: That means you’ll be living for free!) Of course, you will have to be mindful to find the right deal, i.e. the positive cashflow property deal, one that gives you positive net income post expenses! They are not easy to find, but once you know how to do the numbers – you will not look back!

Best tip for all aspiring investors – is to use as little of your own money as …

Pros and Cons of Becoming a Hard Money Investor

Hard money loans range from anywhere to $20,000 to $150,000, or more, depending on the lender’s funds. Most loans also cap at 3-5 years although you’ll be able to find some who offer options for longer terms or for subsequent payments. Loans also differ. You’ll find a variety from commercial to rehab to so-called Social Lending and personal business. These are the most common.

Hard money loans are also called ‘bridge’, ‘rehab direct loans’ or ‘personal’ since the hard money lender provides you money that bridges your need, be it for fixing or for buying a home (or related emergencies) and he or she loans from his own pocket. The advantages of the hard money scenario are that the process is flexible, smooth and fast. Lenders set their own terms and schedules that are usually adjusted to suit you. Meager paperwork is filled out and the whole occurs within as little as 7-10 days. Disadvantages largely consist of the high rate of interest and the low loan to value ratio. Hard money lenders need to be certified by organizations such as the American Association of Private Lenders (AAPL), through their state regulatory agency and through the National Mortgage Licensing System …

Benefits of Investment Groups

One of the options they have is with investing in a real estate investment group. This type of investing fits in perfectly with the kind of scheme they are looking for. When people buy flats as a group they are primarily looking for a place where they can live with their family and friends. They want to be surrounded by those they know and love. This is also a good idea for people who want to own some property but do not want all the legal, economic, and emotional hassles of being a landlord.

These investment groups build flats or a group of homes or condos. They build them all close together and in a small vicinity to each other. There are other groups where the company buys a set of flats or homes. Then they allow the investors to buy the property through the company that makes them the owner of a flat or if they want more than one they can even invest in a set of flats.

The owners do not have to look after the flats or condos or homes. The company will do it for them. The company will take care of the maintenance of …