Fundamentals of Property Business You Should Know

Real estate business is considered as one of the most promising industries. It also provides more opportunities to gain financial freedom. As investor, you can decide yourself which financial strategy to use for your investment. Of course, every one has different view and goal. Some of them choose to be part time investors and some others choose to be full time investors. No matter what you choose, it is important to treat your real estate business with dedication and passion. Without them, it is harder to gain success. Therefore, setting your goal from the beginning is important to make you stay motivated with what you are doing.

Fundamentals of Property Business You Should Know

Running property business with the right fundamentals

Property business always has its challenge. Especially in the beginning of your career, the challenges will seem to be so intimidating. It is even more challenging to grow and expand your business to another level because you have to make it steady first before anything. You need to find the grasp of your business entirely so you know exactly what to do. Here are fundamentals of real estate business you need to know:

  • The number of the transaction you do every year doesn’t define your business. To handle your business well, you need legal structure as your fundamental. It means you need legal entity to use for your business. It aims to protect yourself and your business. Most investors choose LLC but it is also optional. You can choose legal protection that you think fit your business and your option. To know exactly what your options are, you can talk to accountant so it is easier for you to choose the best one. In handling transaction and deals, you need to separate them from your personal expense. Make sure all your business expense has separate business bank account to make it easier to track down in detail.
  • Next fundamental for your real estate investing is business plan. This is the basic you need to know. With a set of guidelines and parameters, you will know exactly the direction of your business. it will also easier for you to deal with new deals. In your business plan, you will create strategy, priority, due diligence, as well as goals. There is always basic guide in making business plan. However, you can always make rule for yourself. You can get your own criteria about your investment such as specific are of property you are going to invest in.
  • The last but not least fundamental is due diligence. No matter how solid your legal structure and how thorough your business plan is, you still need to do your due diligence to see the effectiveness of them. In doing your due diligence, you need to commit your time because there are many things to handle. You need to spend your time dealing with marketing, networking, as well as office tasks. It is recommended not to treat your real estate investing as hobby or side dish if you want to grow and expand it to another level.

 

Finding the Best Flip Deals for Your Next Investing

Finding deal is not always ideal. Some investors find it hard and others find it pretty easy. There are always risks of what kind of strategy used to find deals started from potentially damaging to invaluable and priceless. When you are trying to find the best tips to find deals, there are many of them because every investor may use different strategy. However, there is always key point of to do it successfully. You need to do your due diligence properly. If you have self-discipline to do your due diligence without even complaining, the chance to get the best deal is higher.

How to find the best flip deals

In the market, there are always good flip you can find. However, you do not always know how to find them properly. You don’t have to be afraid to think and act out of the box. If you just wait your realtor, it won’t get you anywhere. It may be too late when it gets to you. Thus, being proactive is necessary in finding flip deals. Here are steps you need to take to find the bet flip deals:

  • First thing first, always find motivated sellers. If you target the wrong people, you will only find the wrong deals. Thus, try targeting vacant properties or sellers who are late on their mortgage. They will have the urgency to sell their property without thinking much. They will try to close the deal as quick as possible to deal with their problem. This is the same when you target vacant properties. If you see vacant properties with overgrown grass as one of indicators, try to find a contact for the owner. The next thing is to get the ball rolling.
  • Next thing to do is to not get embarrassed easily. Developing thick skin is necessary when you are trying to find flip deals. Sometimes you will face rejection. If you give up after one rejection or two, you won’t go anywhere. You need to find homeowners as many as possible since it can increase the chance for you to find the best deal. Things are usually easier when you have passed initial rejection.
  • Don’t get too satisfied of what you have achieved so far. You need to keep your pipeline filled so that you can achieve success for your real estate investing business. You need to be consistent in keeping your pipeline filled. You can purposely allocate certain amount of your time every day. You can also do it once or twice a week to find new deals. Thus, it will be easier for you to move on to another deal if the previous doesn’t work.
  • Be decisive and don’t be afraid to make an offer that you are comfortable with. If they are not up to your offer and reject it, then you can move on. Making reasonable offer is a must because real estate is largely about leverage. Thus, make your reasonable offer since you don’t know yet what the seller will say unless you try.

How Lucrative is the Real Estate Business and Should You Invest?

Undoubtedly one of the most popular investments, the real estate industry has ben viewed as a very lucrative investment option. How much you can make profit and returns out of your real estate investment depends greatly on the your type of investment as well. There are a few ways to invest in the real estate industry, here are some of the most common ones.

How Lucrative is the Real Estate Business and Should You Invest?

Income properties

The term “income properties” refer to properties that serve a purpose to be rented out to tenants. These properties generate money over time. Depending on your type of property and your target market, the returns on your investment may be as soon as 12 months or several years.

It’s important to remember that the process of investing in income properties is far from a get rich quick scheme. It’s not something that you would expect a fast return from. It takes time AND work to make income properties work in your favor. Regardless, this option had stayed among the most popular ways of investing. It’s a solid investment that you can depend on as long as you stick to it and be persistent. You’ll see returns in investment soon enough as long as you keep your expectations realistic.

There are basically two types of income properties, which are:

  • Rental for residential purposes. The most common rental option that almost anyone with a property can start from. The residential rental properties are going to pay off as long as the property is occupied by tenants. Some of the most profitable areas where you can rent out residential type properties are places close to school, especially colleges or universities. Other factors are also at play. One of the most important one is employment growth as well as economic growth. Both of which would contribute greatly to population growth in an area. It’s also important to note developments in the area’s infrastructures. New bridges, new roads, and other things that contribute to a development of an area can all affect population growth. In turn, it would also yield more potential tenants and investment returns.
  • Commercial rental properties. The commercial real estate property business is undoubtedly the most lucrative among the two option. However this option often needs a rather high starting capital compared to the residential rental properties because of several factors; one, a property at a good, commercial spot tends to cost very high; two, the property would often have more square meters compared to residential buildings. If you have the resources to start on commercial income properties then it would be one of the most lucrative investment option for you.

Buy low, sell high

This type of investment is often referred to as “fixer uppers”. The returns of these property investment depends a lot on the property an investor managed to buy, as well as how much fixing costs.  When done right, the fixer upper method may gain you returns on investment on a relatively shorter time period compared to when you’re investing on income properties. Spotting areas that would see significant growth within the next years is also one of the ways to yield high return on on properties.

 

 

 

Tips to Purchase Appliances for Your Property

Rehabbing is one of the most promising investing strategies in real estate business. However, it also requires long and developed system to finish perfectly. However, no matter what strategy you use in rehabbing, you must have one ultimate goal, which is to make more money than the cost of your initial investment.

There are many challenges to achieve this goal. However, one of the biggest is the details. One of the most upgrades important to the rehabbing process is new appliances.

Some investor may not pay attention to this detail. However, new appliances can give new look significantly to the home. They make it more appealing and can higher the prices as well.

Purchasing appliances for home the right ways

Purchasing appliances is important as mentioned earlier. However, lots of investors don’t pay much attention to the perfect time of doing so. If you buy them at the wrong time, the chance to increase the return of your investment will get smaller.

Purchasing appliances for home

Therefore, lots of experts say that the best time to buy appliances is when it is at the lowest price. It is simple logic yet many investors don’t know when it happens.

First is the timing that is everything, so paying more attention to it will give you more benefits to grow your business properly. It is highly recommended to buy appliance on Thursday.

The explanation for this is that Thursday is the perfect time before the weekend rush hits. Remember that when the weekend comes, it is going to be harder for you to buy appliances since you have to deal with too much crowds.

Hence, Thursday is perfect because you can still browse peacefully so you also have time to choose the right items without the need to rush the process.

Last few days of the month are also a great time for you to purchase new appliance for your home. Those days are the best because it is when stores are desperate to meet quotas.

Therefore, they tend to lower the price or at least offer more promising deals for buyers. You cannot miss this chance since it is hard to find a good deal anyway.

Generally, best month to purchase new appliances is in January, September, and October. During those months, retailers are getting rid of last year’s inventory to get ready for new models.

Therefore, the prices are also quite lower than usual. You can take this chance to save your money from excessive purchase. However, it’s not applied to refrigerator since its new model usually comes in spring.

The best seasons to buy appliances are during fall and winter, especially gas grills and air conditioners. During those seasons, not many people need those appliances so the price will be lower than when you buy it during summer or spring when people keep dealing with the heat and all.

That is why you need to purchase those items immediately if your rehab process finishes during fall or winter. Thus, you can save money for next necessities of your investment.

Advantages of Joining Local Real Estate Investment Club

In running real estate business, you need to take advantage for every opportunity in front of you. It is even better for you to seek them out so you can make significant progress for your business.

Advantages of joining in with local real estate investment club

There are many ways to optimize your real estate business. One of the most basic strategies is joining local real estate investment club. This kind of club consists of networking as well as educational opportunities. Even if you are not a big fan of socializing, this is a great opportunity to take because then you can accelerate your business growth positively.

Advantages you gain from joining local real estate club

By joining the club, it means you have to dedicate your time to attend the meeting. It can be a monthly meeting or more. It is common to wonder whether or not this dedication is worth it for your business. instead of daydreaming, here are advantages you can gain from joining local real estate investment club:

  • The first advantage is of course networking. It is one of the most important factors for business to grow including real estate business. Without networking you have smaller chance to gain potential leads. When you attend monthly meeting of the local real estate club, you have great opportunity to meet important people for your networking such as attorneys, local investors, contractors, real estate broker, etc. This type of opportunity cannot be found in random places. When you gain more networking, the more contact base you earn overnight. It is also a good place to start promoting your brand.
  • As mentioned earlier that this type of club provides you educational opportunity. In most meetings, there is likely educational speaker sharing information that will be useful for your business growth. There will be important topic to discuss throughout the meeting that you may not find in another place. By this opportunity, you will be able to discuss things better with others. Making conversation in this type of club will be meaningful because you can learn a thing or two. Every time you attend the meeting, there will be new knowledge to gain.
  • Local real estate investment club is the right place for you to learn how to apply practically not theoretically. There will be information shared here and there while making conversation. It can be good or bad news. Either way, it will be useful because then you know the real world of real estate business is. You will hear stories from fellow investors and pick up valuable information from them. Learning through experience will help you grow business better.
  • Remember that you will meet important people in local real estate investment club meeting. It opens more opportunities to gain leads for potential deals. It may not happen in one meeting. However, the more you know people there, the wider the opportunity you earn to close deals. You can first make connection that will lead you get to know people more. In the meantime, your chance to close deals will be higher.

Income Property as a Profitable Real Estate Investment Option

Having an income property is one of the most popular ways of investing in the real estate industry. You’ve probably been looking to invest on an income property of your own. There are numerous options available including the REITs, ETFs, and even in home constructions. However, among those options, one stands true and solid among the ever-fluctuating economy and real estate market. And it’s through owning income properties yourself. Whether you aspire to be a landlord of many lands or have enough starting capital to invest in a commercial income property, here are some of the basic stuff.

Definition of Income Property

The phrase income property refers to buildings or lands that generate money over time, most commonly through rental. The most common division of the income properties are the residential and the commercial. Which one is right for you?

Residential income property

Just as the name suggests, the residential income property is intended for rent for tenants. In this market, just like at any other business, defining your target “audience” or demographics would give you much more of an edge from your competition, as you are not targeting your tenants blindly. It all depends a lot on the location of your residential property, the surrounding facilities and commercial establishments, as well as things like schools or colleges.

Many residential income properties capitalize on their locations that are close to the nearest college or public school. The demographics of your biggest target market would also determine things such as the rental prices for your properties.

Commercial income property

Often owned by big corporations or simply families of old money, the income properties that fall into the commercial category makes the biggest returns among the two types of income properties. However, some individuals do manage to get good deals for properties that are intended for commercial income properties. This could be achieved through being able to see a potential of a property, land, and a location.

It requires long-term commitment

It seemed easy and simple enough. You have the property, you rent it out to tenants, then you get your money every month. Except it’s not as clear-cut as it may look, not at all. Depending on your properties and the state of the market, a lot of rentals can make return investment after a decade or so of renting them to tenants. You’d also need to pay mortgage and interests.

The process may take years and years. It may not seem very “profitable” in the residential properties sector once you’re actually in the process of making income from your properties. However, note that it will yield a return. Maybe later rather than sooner. But it’s still a very solid method to invest. People will always need a place to live. And if the economy and the infrastructure in your area grows, then more potentials to you. Both commercial and residential real estate business benefit from the growth of the overall economy. So keep on maintaining your properties in good conditions, be patient, be persistent, and it will yield a worthwhile investment.

Recognizing Individuals Value of Your Real Estate Company

Managing and handling your real estate business is a challenge. When you aim to build real estate company, the challenge becomes harder. It means that you need to work with different individual with different personality, skill, and knowledge that is valuable for your company.

Recognizing individuals value of real estate company

Thus, underestimating every individual value of your real estate company is a big no. Keep in mind that every employee in your company plays powerful role to make significant difference.

Even though you are more superior to others in your team, you will still need to rely on each of them.

How individual value have impact on your real estate business

It is true that in order to build strong and steady real estate company you will need the best out of the best. It means you need to hire the best people with the best skills and knowledge to make significant difference for your business.

However, it is not enough because you also need to build a team that work well with you. Only then you can optimize every individual value to build solid team and level up your business significantly. So, you have to know several things for you that is really matter.

The first thing I’d like to inform you is that it is important to determine the role for every individual in your team. This way, you will be able to measure how much you will have to babysit or how many you will need in each role.

It is also important to help you determine micro-management. In this matter, you will have to determine how much time and effort you need to go into training. After taking care of these matter, you will know what you need to focus on.

It is also important to hire people with talent and skills that will represent your real estate brand. Every individual in your company will directly impact what people think about your business and company.

People you hire have important role not only within your company but also within your target markets, at events, as well as for actual business. It is important to hire people who have great personality and traits. The way they carry themselves outside the company is also important to build and maintain the image of your real estate brand.

The next thing you need to pay attention to in recognizing individual’s value is efficiency. Remember that different individual can do significantly different amounts of work.

Some individuals are capable to finish a lot more per hour than others. As the result, they have significant impact to bring more efficiency to the company. If you are able to build efficient company, you will be at advantage.

With different individuals working for you, it is important to make sure that everyone working on the same page. It is because it will impact conversion rates and how your company achieves the same goals.

Thus, it is important to hire best employees that can optimize efficiency within your company. You also need to find the best way to afford so you can effectively unleash their full potential.

Challenges You Face When Investing in Student Housing

Student housing is one of the most promising and popular investing in property business industry. Of course, it is kind of a higher level of property investing due to its higher demand and rent amount.  When investors decide to invest in student housing, they need to dedicate their time to a higher level because of that. Thus, even though this is promising investing there are still many investors who are discouraged to do it. Student housing is an investment when the property is located near college or university so that the student who is attending the nearby campus rent it. This investing has a specific market but still promising because education is important in life and the number of students never decreasing.

Challenges You Face When Investing in Student Housing

Possible difficulties you find when investing in student housing

There are many benefits you can earn from investing in student housing. It includes a higher rent price, never-ending tenant, higher resale value, etc. However, there are also risks or difficulties which make some investor stay out of student housing. Here are possible hardships you face when student housing:

  • The annual turnover of student housing is considered more stressful than normal property investing. In student housing, you will have to deal with quite an intense turnover. For example, you have to deal with senior students where they will only need to stay for one year in your property. Thus, you have to start searching for new tenants at least every nine months. Finding tenants in student housing is easier but the process of finding the right tenants can be stressful. The constant turnover is what makes many investors stress the most.
  • Property damage and maintenance also issue that student housing investors should deal with. It is not a secret that student housing investor should look out more for property damage and excessive repairs. You may need a large deposit to provide a large level of protection. However, most investors are often stressed out due to minor things such as running toilets, clogged drains, cracked windows, or neglected appliances. They might look minor but are costly to repair.
  • The next challenges you will face when investing in student housing are regulations and guidelines. You must know that most college towns often have fairly strict rental rules and guidelines to follow. You need to find the right way to be allowed to rent your property to the students. There is a possibility that the town already closed the application window for the year and even permanently. Even if you can apply, you still need to go through the long process. Your property will have to pass a series of guidelines and regulations.
  • Another challenge that the investor might have to deal with is the annual fee. In addition, there is also constant town scrutiny to deal with. This is because the town should protect the living enjoyment for all property owners. Thus, you will have to monitor your property condition constantly. It even includes noise and parking regulations. It shows that student housing investors or landlords have a lot on their plate.

Get to Know More about Student Housing

There are various types of property investing and one of them is student housing. This particular investing has become more popular over the years. This is property investing which focus on the specific market, students. In real estate investor world, student housing becomes popular for many reasons. Student housing means the property is located near a university or college where most population students exist. The property is rented out to students who are attending the nearby campus. The demands are averagely high. It is known that the rent amounts are higher as well. The time needs to dedicate is higher as well. Thus, it is safe to say that this type of investing is not for every investor. You might as well consider many things before jumping in this investing.

Get to Know More about Student Housing

What you need to know about student housing

Many investors interested in trying this specific property investing is due to its promising benefits. Remember that education is one of the most important elements of life. People pursue education to have a better life. Thus, the number of education facilities keeps increasing. It leads to promising benefits for student housing business. Here are positive things that might make you interested in student housing investing:

  • The location of student housing property is nearby college or university. It means it has an ideal location which is one of the most important factors which can lead to success in property business. with an ideal location, the rent increased. Most students prefer local housing located near the campus they are attending to make everything easier for their education. With this high demand, you can increase the rent price and charge 10-20% more than normal circumstances. This is promising for your cash flow. That is why lots of investors are interested in this type of investing.
  • Students will constantly need a place to live as long as they attend their university. Therefore, the demand will keep high in this investing. Even though your old tenants have finished their education and move out of your property, you will have a high chance to fill it again with new students. The cycle is promising that you don’t even have to worry about finding the deal. You just need to make sure to choose the right tenants. You can even find new tenants through word of mouth. It is common for student housing investor to rely on student referral to keep getting their property filled in.
  • The resale value of student housing property is higher. Of course, the most benefit to earn form student housing investing is monthly income. However, there are also long-term benefits you can earn from student housing. It is when you decide to sell your property. The value will be increased. You can put the document on the listing so that the prospective owners will be able to sneak a peek of what kind of property you have. When you have higher rental amounts, it will lead your sales price upwards. With high profit you earn, you can even start new investment to expand your business.

Important Points to Consider for Selling a Property

When you own an asset in a form of property, there are many things you can do either to sell it or rent it out. By renting it out, you will earn a steady income each month. By selling it, you may earn a higher profit so you can even purchase another property for your next investing. However, selling a property can be challenging as well. There are different methods you need to choose and the process can be also overwhelming if it’s your first time. No wonder that many homeowners and investors hire a professional broker to help them deal with the selling process. It is a good decision since it makes everything more efficient.

Important Points to Consider for Selling a Property

Points to consider in selling the property

There are procedural processes when it comes to selling a property. Every transaction in property business should be taken legally since it is protected by law after all. The process of selling property includes property evaluation, hire property agent or broker, decide the method of selling, advertise your property, wait for potential buyers, and close the deals. After understanding the process of selling a property, you need to know as well important points to consider when it comes to selling a property. Here are they:

  • The purpose is an important point when you decide to sell your property. It is highly recommended to think of the reason why you need to sell your current property. If you decide to sell it because you want to use the profits to grow your business then it is reasonable to do it. However, you may be challenged with the market dynamic at this point. The proposition is tricky in the market. One thing for sure is that you have a clear purpose after selling your property which is to turn it into other properties or something that can help you generating future business.
  • Next point to consider is rental property costs. Remember that when the time goes by, your property is getting old. There is a possibility of something happen to it. For example, the older your property is, the more repairs need to be done. Any damage to the property will influence the value of it. Therefore, you need to take action and start finding the right way to sell your property once it becomes a burden than an asset to you. Then, you can move on to the next property to invest in.
  • The dynamic of the market keeps changing. It influences the interest rates or loan programs. As the result, it will also change the level of buyer demand. However, it is more important to find the list price that you are most comfortable instead of waiting for the market. It is important to watch the bottom line. However, you will know that it is not worth holding out for the maximum sales price in the market. The market is an important point in selling the property but it is not the ultimate consideration. It is one of the factors you should consider to make a decision that won’t make you regret later.