The goal of any real estate investor is to earn as much as possible with minimal risk. This is only possible if you know how to make smart choices. To give you a foot in the door, consider the following three things that make a great real estate investment.
You can easily compare rental properties to stock markets. This is because most of us understand these and know that we need to spend money to make money. However, the problem with stocks is that they are so risky. It is comparable to retirement calculators, who make a guess in terms of when we die. If the estimate is wrong and you live longer, then you will end up broke before your death.
On a personal level, you need to learn to manage and negotiate and you need to have people skills. You also need to be able to do repairs, or have a team of people to do this for you. Finally, you need a property inspector. Generally speaking, investing in property means you will become a landlord. Hence, you will need to learn how to find good tenants and how to be a landlord too. Real estate investing is all about spending money to make more money. It will be nearly impossible to get involved in this world without having some money of your own. You are now ready to become an investor, which means you can start looking into locations. You can find out all sorts from the internet, local libraries and town board meetings. You must learn about what the location is like and how it is likely to develop.
Generally speaking, it is easier to get started with rental properties if you are younger, particularly if you don’t have a lot of money to put down. This is because banks usually want at least 20% as a down payment before agreeing on a mortgage. 20% can equate to a lot of money, particularly if you will also need to do repairs. However, if you are a bit younger, banks may be slightly more understanding. There are quite a few other things you need to look into. One of the things you will need to work out is which property to invest in at all. However, even this requires a whole lot of research and analyzing. You also need to work with a good realtor to represent your needs. Their goal is to make sure that you find good properties and make solid investments. Once you have your property, you need to learn what it means to be a good landlord, which will also take some time. However, overall, it is time well spent.
Step-By-Step Quick Advice When Looking At Selling a Property
A lot of people are beginning to invest in real estate because they really want to earn money later on. If you could buy a property for a specific value today, it’s going to absolutely be more pricey in the next couple of yours if the real estate market will continue to be stable. Nonetheless, you should also think about how hard it’s to sell a house. You’ll see tons of articles saying that selling a house is extremely easy or there are some adverts telling you that they could sell your house in just a few months. You may choose to bring the value down, but this will not be the right thing to do.
You could state that the supply totally outstrips the demand in the real estate market, but you could find different techniques to successfully sell your house. Here are a few of the suggestions on how to do this.
Check The Curb Appeal of your house
First impression lasts so you should make sure that your home is attractive enough for potential buyers. If you will put yourself in the shoes of a buyer, what are the things that you want to find out in the outside of the house? Is your home desirable enough to give a good impression to potential customers or is there maintenance that needs to be done? The outside of the house will actually be the first thing that the prospective buyers will see so you need to understand that they are checking out the external design of your home that they really want to buy.
Do Some Renovations In Your house
You need to make the necessary upgrades outside and inside of your house to make sure that you may attract the customers. They always look for a complete package when they buy a house so you should make repairs. If you’re the seller, you must make certain that everything is fixed. Nonetheless, you must not over improve the house because there are some enhancements that will not really make a big difference to the asking value of the house. Improvements can definitely raise the value of your home and its odds to be sold, but you cannot make an improvement that won’t pay in the end. You must do your homework and only invest on things that can provide the best return.
Depersonalize Your home
Some individuals state that adding more designs to your property will increase its odds of being sold, but you should understand that personal items, collectibles and art works must be removed because they will not really help in selling the house.
The best thing to do is to get rid of them all and leave out the essential furniture to help make the rooms larger. The objective here is to enable the buyers to picture themselves living in the house that you are selling.
Most buyers will begin pointing at every part of your house while visualizing what they really want to put there if they will buy your house so if there are unneeded and personal items in the space, it will probably be difficult for them to visualize what they need.
Put a Realistic Value
If you’ll sell a home in Lakewood, Colorado, you should make certain that you would place a competitive price. If you’ll place a lower value, this will be the same as leaving money on the table and if you set a high value, the buyers will ignore it. When you are referring to home buying, the customers will be looking at the homes that are similar with yours and compare the costs. If your house is too costly, they won’t buy it.
You have to understand that most customers are relying on home financing so you could assume that they will not think about a house that is very costly. If the value is low, you could sell your home faster, but your investments will not be given back to you.
Look for a Real Estate Agent
You are surely making a mistake if you actually believe that you could sell your house by yourself. You don’t have the knowledge and experience that a professional real estate agent have so it will not be a good idea to sell the house on your own.
If you’ll decide to do this on your own, it is possible that you won’t be able to sell your house or you’ll get a bad deal for this. You can get fortunate and find a good deal for your house, but you need to keep in mind that selling a property is not about lucky since we are referring to a huge amount of money.
It’s best to hire an agent and allow them to deal with everything. You’ll have to pay them, but it’s much better than acquiring a poor deal for your property.
Before you choose to sell your house, make certain that you follow all these simple guidelines. They might be very basic, but you can expect that all these will help you sell your home quickly.
For landlords, a common question they ask themselves is whether or not they should rent to college students. Even those who don’t necessarily want to, it can be tempting if the home is located near the university, or, if the house hasn’t been renting for a while. Keep in mind that there are benefits and risks no matter what demographic you rent to. Here are some benefits and risks of renting to college students.
• Many young people can’t find jobs and so they are returning to school. This creates a greater need for college housing, both on and off campus.
• Properties near universities typically can ask for more in rent.
• It is typical for parents to cover their child’s rent while in college; this should give you peace of mind, because rent will likely always be paid on time.
• Students usually do not have as high of expectations when it comes to where they live. They also do not usually have unnecessary demands the way that older renters do, and aren’t usually as picky when it comes to appliances.
• Sometimes they pay in advance. Sometimes parents would rather just pay for a semester in the beginning rather than continue to pay each month, worrying if their child is going to forget to give you the rent check or not.
• You can advertise the apartment on the college’s website, as well as around campus. College students usually begin their apartment search on their university’s homepage.
• Younger adults can be immature and lack control. They may have parties, be noisy, or not take care of the house. Beware especially if you have carpet.
• Students have little to no experience living away from their parents yet. They are used to everything being taken care of for them. They likely haven’t had to do their own laundry, clean the dishes, pay the bills, or anything of the sort.
• Students are harder on apartments that older adults as they don’t plan on staying long. This means they have less incentive to keep the place up.
• Certain institutions are known as party schools, increasing the risk that some students may do damage to their apartments.
• Have your attorney craft a special lease tailored to renting to college students. It should include co-signers as well as clauses on noise, maximum occupancy, and damages/repairs.
• Add both parents to the rental agreement as co-signers since minors can’t enter into legally binding contracts. Consider having parents co-sign even if the student isn’t a minor.
• Specify rules that may sound unusual but are probably necessary. They would include staying off the roof as well as banning candle burning, fireworks or fires, and charcoal grills.
• Have the student pay the utilities. They should see the result of having the air conditioning going all day or leaving the heat turned on full blast.
• Conduct tenant screenings on both the students and the parents. Students can be difficult to screen since they won’t have much, (if any) of a credit history. That’s why you should screen the parents as well.
• Find out from the school if whether or not your prospective tenant has been evicted from a dorm.
• Hire a third party to monitor the building, similar to a Resident Assistant in a college dorm. Offer free rent for them to keep an eye on things for you.
There are many homes for sale on the market with pools. In certain regions such as the South, for example, pools are very prevalent. Buyers that purchase properties for the sole intent to rent them out for a profit, are generally hesitant to purchase a house with a pool and many wonder if it is a good idea or not. Many of them are inclined to run, not walk away from the house.
On the other hand, if the property is in a hot climate, you could actually earn even more money in rent than you would without a pool. Here are some good thoughts to consider when deciding if you should rent a house with a pool.
Surveys have been done that show swimming pools are one of the top features that a Millennial looks for in a home. In this sense, a pool can be a major renting point for renters. On the other hand, families with toddlers might not want to rent a house that has a pool, and older people generally do not care for one. So, while a millennial may be willing to pay more in rent for the house, and older person probably will not, and will walk away as they don’t want to pay a higher rent for a pool they don’t care to use.
This is a major concern. If someone drowns in your pool, no matter who it is, you can be held responsible; even if it is a trespasser. If you have a rental property that includes a pool, it is essential that you have a fence around the pool with a gate that locks. You can also install sensors that let you know when someone is near the pool. Speak with a legal liability professional who can let you know what the pool safety laws are, so that you are armed with the information before you decide to purchase the house.
Maintenance and repairs
Maintaining a swimming pool is a lot of work. It involves skimming, vacuuming, adjusting chemicals, cleaning the filters, and chlorinating, weekly. You can do it yourself, or you can hire someone. Letting the pool be neglected will result in spending a lot more money later, as it is very expensive to clean a pool that has not been taken care of.
Before purchasing a house with a pool, call an insurance agent, as you’ll need an absolute minimum of one million dollars if you have one; you must make sure that your general liability coverage will cover the pool. Consider setting up an LLC, as this type of coverage will protect your personal assets.
Add-on to your lease.
Put an addendum on your lease detailing pool rules. Include whether or not the tenant will be responsible for maintenance duties, and also, a demand of notification if they notice any problems arising with the pool. Let the tenant know that she’s responsible for repairing or replacing anything she might have damaged.
Just about everyone who has renovated their home has a horror story. The unfortunate fact is that many homeowners could have avoided the mess had they hired the right person. Below are a few problems that can go wrong and how to avoid having them.
All of the quotes are too high
People tend to assume what they hear from television and word of mouth is what a renovation should cost. Do a lot of research to find out what yours will cost. Be realistic when it comes to your budget. If you can’t afford it, it is better to hold off for a while than hire someone who will do lazy and incomplete work.
Getting caught without a building permit
This happens all the time. Many homeowners don’t think that the permits will apply to them; or, they think nobody will notice they didn’t have one, or that they can play the ‘i had no idea i needed a permit’ card. Permits are legally required. If you decide to proceed with the renovation without one, you can pretty much assume you will get caught, and when you do, you’ll be paying a hefty amount in fees. Realize that permits are your friend. They are there to protect you, to be sure that the home is ‘safe.’ You should go to your City Hall, and let them know that you need a building permit. After you receive one, inspectors will stop by once and a while to make sure everything is running according to code.
Your contractor is a no-show
This is one of the most common complaints. Most of the time, this happens when your job is smaller than his other clients. If they are only painting your house, you can probably expect that they will spend less time at your house, and more on their larger jobs where they are making more money. Be sure to meet with a couple of contractors rather than just one, and always be sure to check for reviews.
He isn’t up to the job
Every profession has a specialty. Just because someone is a contractor, does not mean that they know how to do everything when it comes to renovating a home. For example, an electrician knows how to install outlets, but he won’t be able to install your roof. Ask to see the work they have done in the past. When they describe it to you, you should be able to tell if they know what they are talking about or not, even if you don’t know anything about the subject; look for confidence when they speak.
Communication between you and your contractor is paramount during a home renovation. Before you begin, you should sit down and discuss a schedule; find out how often they plan to come, and what other jobs they have going on, as well as prospective ones.
Your contractor has to juggle between you and a larger job
When choosing a contractor, you will find there are two types of companies: the larger company with an infrastructure to handle any size job and the smaller company. Most construction companies are run by just a few guys jumping from job to job. If they land a large project, they may have to pull resources from their ongoing jobs to meet the needs of the new client. If you have chosen a smaller company, you will be left with two choices: have patience or hire someone else.
Problems along the way
This almost always happens, especially in an old house. Older houses usually have internal problems that you’ll know nothing about until later down the road. Be sure to not spend all of your budget in case you run into any issues.
Maxing the budget out too early
One way to avoid this is to not select the most high-end materials and finishes. Instead, focus on concrete, windows, and drywall, for example. If you get into a real emergency, its possible that you may qualify for short-term financing. When the project is over, you’ll get an assessment done on your newly renovated home which should allow you to refinance to include all your higher interest loans and credit cards.
Not being pleased with the end result
Homeowners will sometimes rush into arrangements with contractors without working out details adequately. If you leave it up to the contractor to decide on your finishes and finer points, you can expect to be let down. certainly be disappointed.
Residential designers bring a lot of knowledge and skills to make sure all aspects of remodeling and custom home projects go smoothly. Situations arise for which only an experienced professional can apply his or her creative problem solving to save time and money. Here’s why it’s worth it to hire a designer.
You’ll save yourself a lot of time. You may not know how certain structural choices can impact installation; you also may not know about certain options for new materials or technologies that might be cheaper, better or more appropriate. Its also crucial to have someone who understands how your building assembly meets current building code requirements. links
Codes outside the building industry to understand. When designers submit drawings to the building authority, a plans examiner reviews them and issues a revision notice to address any variances from the current codes and construction standards. You’ll also get their expertise and understanding of the overall construction process. Depending on your needs and budget, a designer can guide you through the relevant building application process, research planning legislation, helping you hire contractors, recommend subcontractors and manage the construction phase of a project on your behalf.
They already know the lingo. So much of a project is communicated using 2D drawings, and they can be difficult to interpret, which can arouse confusion, especially if your contractor isn’t quite familiar with the drawings. It also is helpful, because sometimes a contractor is busy and hasn’t had the time to really look at certain parts of the drawings, critical elements of the details can be overlooked. A designer knows how to stay on top of this.
They’ll be on your side. If you’re having problems with contractors on your project, it might be tough for you to verify that they are properly carrying out the intent of the drawings, or even which contractor is actually responsible for the issue. Build-To-Suit
It can be hard to know where the responsibility for one contractor ends and the other begins. Time and again we’ve seen things get overlooked or improperly constructed early in the process, which affects contractors later in the job. And if that earlier contractor has left to another job, it’s oftentimes difficult to get the person back onsite to fix those mistakes.
If you want a space that has lasting appeal and adds to the value of your investment, you need to hire a designer. Designers have the skills to include the features that will maximize your house, while making sure your project runs smoothly.
Access to other professionals. Being in the design business means meeting lots of other pros who also work on residential projects. From structural engineers to painters, your designer probably has quite the network of skilled contractors who can get the job done within the given budget.