If you don’t have the time to invest working on fixers or if you’re tired of working on fixers to make money investing in real estate, try this method.
Many real estate investors make thousands of dollars on brand new homes with little work. To test this money-making system in your area, call new development home sales offices that have most homes sold. Ask about their price for a 3 bedroom, 2 bath. Ask how much this model has gone up since they were first available. If this increase is a substantial amount, then this real estate investing system most likely works in your area.
One caution: your real estate market and employment in the area should be stable.
How to do the “new home” or “pre-construction” investing system:
1. Look for a new development with only a sales office trailer and pre-construction site.
2. Pick out the model you like and the lot you want. Get a corner lot inside the tract away from noisy streets. Avoid lots that could back up to a major street someday.
3. Secure the purchase of the home with a deposit.
4. After completion of home and purchase, the home should read more…
Once you purchase a real estate rental property, you virtually become the CEO of your own small business. Sure, you feel good about becoming a landlord and owner of your own private money-maker, but unless it’s raw land, your work has just begun.
Now you must manage the property. As a real estate investor who has chosen the renting of apartments as a business, your goal now is to keep the units full, and at the highest rent per square foot possible.
So let’s consider the big picture of property management and look at some rental management basics every real estate investor should be aware of inside real estate investment.
- Property condition. Getting the best tenants and commanding the highest rent starts with a sharp-looking building that has good curb appeal. Keep the structure, landscaping, common areas, and parking in good clean condition.
- Tenant applications and screening. Require each potential tenant to complete an application, and then follow up to verify their employment, rental history, and credit and criminal history. Remember, it is always easier to get tenants into your building then it is to get tenants out of your building.
- Emergency repairs. Be sure you have reputable maintenance personnel on-call to service emergency repairs. This may be your job or someone you hire, just be sure the tenant has a repair “help line” they can call 24 hours a day when something must be fixed immediately.
- Aggressive marketing of vacancies. Get the word out about an upcoming vacancy instantly. Use signage, advertise in the newspaper, or post it on the web.
- Move-in/move-out coordination. Always plan to get a unit “rent-ready” within a day or two after it becomes vacated. Even when you don’t have a new tenant in the wings, a clean unit ready to show a prospective tenant does help.
- Keys and locks. It is always a good idea to change locks each time you have a turnover in tenants. This added security is good for you and your new tenant.
- Learn the laws about eviction. Know what you must do to evict a deadbeat tenant even when you don’t think it is necessary.
- Keep accurate books and records. Maintaining a good income and expense history is vital to your rental property business and the cornerstone to profitability.
Many real estate investors simply turn read more…
My phone doesn’t ring often, but when it does, it usually means something very important is about to happen. This time it rang during a workshop that I was attending. I needed to keep my phone on since I am attempting to sell a house. This process has taken about 2 ½ years, and I was going to finally arrive at the closing table. Knowing that an actual closing was taking place gave me much needed relief. After I hung up the cell phone, one of my colleagues commented that oh that will mean big bucks. I looked at him, “Not necessarily sometimes it means breaking even.” My contract in which I signed with full agreement stated that I was to receive $3,000.00. This sounds like quite a bit of money, unless you know the whole story. Real Estate is somewhat riskier than mutual funds, CD’s and stock. In fact the few things that are more risky are valuable minerals such as gold or silver. This information came to me from my financial advisor who was helping me with my retirement investments, and borrowing money to help me become debt free.
I purchased my first home for $55,500.00 and it appraised for $66,000.00 which gave me nearly $11,000.00 in equity. This is good according to the real estate brokers, agents and my mortgage company. The house was a cute little cottage style brick and wood frame house in a small town in Oklahoma. This is one of the reasons the purchase price seems so good. Everyone told me that this was truly a great investment. I purchased the property with a nervous tick inside my gut, and all the time believing it was a case of new buyer’s jitters. In reality, this house became a true money pit.
From the moment I moved into this house till the day of closing this property has only taken from me. I spent quite a bit of money replacing the main water line, to fixing a leak inside the house, and adding a French drain to help with diverting water away from the back door, and the side yard when it rained. When the main water line had to be replaced two huge Sycamore trees had to be removed. I even took time to upgrade the bathroom, which was not an easy chore. read more…
