Whether it is a fix and flip or a cash flow property, real estate investing is addictive. Many real estate investors are constantly on the lookout for financing to purchase the perfect property at a great price, and then turn that excellent purchase decision into profit.
Real estate investment is a capital hungry endeavor from the initial property purchase through to renovations and repairs. Maintaining adequate capital reserves is of the utmost importance, but for some investors finding the right source for funding is a challenge. Traditional banks and other lenders have strict guidelines and focus on an individual's credit history as a main criteria for credit worthiness. They are also bound by the rules set forth by the Dodd-Frank Act of 2010 which was enacted in response to the financial and housing crisis. What's more, the loan application and approval process can be slow, which doesn't always work well for investors.
Being a landlord is a complicated job and the responsibilities seem endless. But being a great landlord is key to your success as an entrepreneur and investor. So what does it take to be a successful landlord? While every person and situation is different, there are a few things all successful landlords have in common.
If you are thinking about buying and renting out an old home, you may be tempted to update it. However, you should think carefully about what to update...and what to leave unchanged. Obviously, you should replace bad wiring and improve the air conditioning, but here are some features you should leave untouched:
Your rental property is an important investment--and like any investment, you need to pay close attention to it in order to keep things moving smoothly. If you have a rental property, make sure you're taking care of the basic maintenance necessary to leave your property in great shape. Not only will this help attract better tenants, it will increase the odds that the tenants in the property will take better care of it.
Real estate investment is a tricky subject that requires knowledge, expertise and excellent execution. Fortunately, anyone can move from a novice to an experienced investor by doing a deal or two and reading several books to make sure they do not make any major mistakes. There are 5 books in particular which are especially useful.
Your tenant screening process is one of the biggest steps in protecting your property and your investment. You want to end up with great tenants who will stay with you long-term, pay their rent on time, and take great care of the property. Do you need to improve your tenant screening process, especially after a bad renter? Try some of these strategies.
All economies, big and small, are made up of just two inputs: labor and capital. This is why when looking at investing in property one should take into account the labor market. California is broken into five Metropolitan Divisions (MD), which the U.S. Census Bureau defines as:
Sara Malek Barney, an interior designer, suggests on the website, FitSmallBusiness that the best return for your investment when flipping a house is to stick with Paint, Hardware, and Lighting. This fits in with the general philosophy behind buying houses for resale. Remember: you are not going to live there.
Real estate has long been one of the great wealth creation vehicles in the U.S. Despite the seemingly endless success stories, real estate investing is not a simple get rich scheme. It's a risky endeavor that has the potential to make, or break, an investor. It requires many hours of research, planning, negotiations and physical effort. Even the most seasoned investor makes mistakes, and sometimes they're costly. In fact, there are three common mistakes experienced, and novice, investors make. Avoid them and you'll have a better chance of succeeding in the real estate investment arena.