How To Be A Landlord Without The Headache

How-To-Be-A-Landlord-Without-The-Headache

It seems like just about everyone reaches a point in their life when they want to be a landlord. From reality TV shows to glamorous stories of how a few stand-out individuals went from working full-time to making hundreds of thousands of dollars off their rental properties, there’s really no wonder why people think being a landlord is so lucrative and enjoyable. After all, at first thought, it seems like owning a bunch of properties and waiting for the rent checks to come in each month would be so carefree and simple. Not to mention that you could make a lot of money by just making a bank-run every month.

Of course, in reality, life as a landlord is by no means simple.

Landlords have to deal with everything from small hiccups in the plumbing system to electrical problems, house updates, damage caused by tenants, and so much more. In many cases, they also have to provide lawn care for their properties, schedule maintenance check-ins, and pay for all kinds of repairs–most of which is likely caused by tenants who were on their way out. Staying on top of due dates and deadlines is yet another difficulty, and when you begin looking at the long list of responsibilities a landlord is expected to handle, it becomes apparent that it might not be such an incredible option after all.

But, despite all the headache, it remains very lucrative. And, if you get in the right tenants, you can save yourself a lot of trouble. However, even with these things in mind, landlords still have to be sure that the lawn is taken care of, that the house is maintained, that repairs are fixed in a timely manner, and that all issues tenants bring up are looked after. This means taking a lot of phone calls, scheduling a lot of handyman visits, and even fronting money for these things out-of-pocket. Typically, the rent checks are enough to keep landlords inspired to keep going since this hard-work surely pays off at the end of the money, but in-between paychecks, it can be difficult to handle everything.

That’s where a property maintenance company often comes into play. Whether you own one property or many, a property maintenance company can help you make sure that everything is taken care of quickly, easily, and with a smile. Rather than you spending countless hours talking to tenants, scheduling repairs, and meeting with the people you hire, a property maintenance company will take over that role and basically handle all of the headache of being a landlord.

Once you give the number to your tenants, they will from then on call the company to report any issues with the property. The company will then be responsible for handling all needed maintenance and repairs, and then giving you a summary of what’s going on each week. In other words, their job is to relieve your stress and assure you that everything is taken care of.

The end result is that you have more time and energy to put into marketing your properties, worrying about due dates, and cashing checks.

Article Source: http://EzineArticles.com/9879301


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

 

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4 Daily Habits to Adopt for Success in Real Estate & Life

4-Daily-Habits-to-Adopt-for-Success-in-Real-Estate-&-Life

Good habits are the foundation of wealth. If you watch successful people you will see their day is filled with consistent habits that save time, improve focus and ultimately help accomplish more daily. Successful people get up early, learn daily, make lists & set goals and track their progress.

• Get Up Early.

Make the first two hours of your day the most important. It will not only set the tone for the day but will give you a game plan for everything else that follows. These two hours can be used for activities you enjoy such as exercise, meditation or completion of a project or activity from the previous day. The early morning is free from distraction allowing you to do more of whatever you enjoy.

• 20 Minutes Of Learning Daily.

It is important in any business to know what is going on at all times. Trying to master every aspect of the business may seem intimidating but is less difficult if you spend some time on it daily. Regardless of how busy you may be you can squeeze twenty minutes of learning into your daily routine. You can find this time on an audiobook driving to or from an appointment or on the treadmill as you get some exercise in.

• Make Lists & Set Goals.

Success is often easier if you plan exactly what needs to get done. Before you go to bed you should plan for the next day. Tackle the toughest task first and go from there. Planning your goals not only makes you efficient but gives you a sense of direction and purpose. The most successful people in the world have one thing in common, they all say their goals out loud three times daily. This helps to reinforce their direction and keeps them on track in accomplishing their goals. Try it and see how much closer you get to reaching your goals!

• Track Progress.

If you don’t know what is working, is impossible to gauge the results? At the end of every day you should take some time to evaluate what you did to build on your progress. If you failed to do anything, you need to ask yourself why and then develop a new plan to stay on track.

You ultimately control where you go in Life. Changing habits is never easy but is essential for growth. Start by incorporating these four habits into your daily life and see the difference it makes towards your success.

Article Source: http://EzineArticles.com/9694131


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Home Repairs/Alternatives: 5 Pros And Cons

Home Repairs Alternatives 5 Pros And Cons

Many homeowners, at a variety of points – of – time, decide to pursue certain repairs and/ alterations. Some are out of necessity, because of damage, and/ or wear – and – tear, while others, are for cosmetic, and/ or taste – related reasons! One should consider a variety of factors, before undergoing costly expenses/ expenditures. These include: how long you will be living in this house; your alternatives; the Return on Investment (R.O.I.), etc. This article will review 5 positives (pros) and/ or negatives (cons), related to home repairs and/ or alterations.

1. Cosmetic changes: This category includes items, which improve the appearance of the property, but usually are minor, in nature! For example, inside or outside painting might be cosmetic. If you are painting, simply to change the look, color, theme, etc, it falls into the category, but if it is necessitated, because of structural damage (for example, from water damage, etc), it’s a far different scenario! If you plan to keep the home, for a substantial period of time, you have far more flexibility, in terms of color, etc, than if you are planning to sell it in the foreseeable, near future!

2. Kitchen: Does your kitchen need remodeling and/ or renovation, for structural reasons, or to improve its look and appearance? How much you spend on remodeling your kitchen, must be put into perspective! A well – considered amount of spending, usually makes sense and has a reasonable Return on Investment (R.O.I.), but exorbitant spending is another thing. A homeowner can spend whatever he decides, but should have a somewhat, realistic perspective of its value, especially to prospective buyers.

3. Bathrooms: What is the reason, you wish to renovate/ upgrade your bathrooms? Compare the options and alternatives, including determining, if a system, such as Bath Fitters, makes sense, as opposed to a complete demolition and rebuilding! Again, upgrading bathrooms, might. either, make financial sense, or not!

4. HVAC: What is the condition of your heating, ventilating and air conditioning, system (HVAC)? What is the useful life of your heating system, and should you change it (for example, converting from oil to gas)? Consider any decisions related to conversions, carefully and thoroughly. If you wish to put a central air conditioning system, into the house, should you go, the convention route, or the ductless one? Consider costs, economies, space – sacrifices, and the positives, versus the negatives! Before acting, always get several bids, and compare apples – to – apples!

5. Grounds maintenance: How much money, should you commit to grounds maintenance, landscaping, trees, bushes, plants, flowers, etc? Those thinking of selling, in the near future, should focus on curb appeal, etc!

Homeowners have options, in terms of the best way to proceed, for home repairs and alternatives. Know what you need, and want, and thoroughly consider!

Article Source: http://EzineArticles.com/9751203


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

 

Five Keys to Real Estate Flipping Success

Five Keys to Real Estate Flipping Success

Make your fortune in real estate. It is not that hard once you get the hang of it. Real estate flipping can be an extremely high paying career, but I see way too many people give up on it. The turnover in this industry is exceptionally high. I noticed the high turnover early on and have watched to learn why some people kill it while others disappear. This has been important to monitor to help myself and my clients last in this amazing business.

I have been in the real estate field for the last 16 years and my hard money lending company finances around 150 deals a year. Here is what that experience has taught me about being a successful fix and flipper.

Mindset: This is where it all starts. For the last 3 years, I have felt myself fall into a little lull and have realized that this occurred because of my mindset. Your mindset could be a lot of things, but the basic concept is that what you believe will happen… does. Sometimes just convincing your mind that you will hit a goal takes work. Not to mention the work that it takes to actually hit that goal.

Focusing your mind on positivity is a great start, but you really need to believe you deserve the success you desire. Meditation and affirmations are fantastic ways to accomplish this.

Hustle: Nothing is going to be given to you. When I was going through my struggles to hit some financial goals, I had to keep reminding myself of this. Times can get hard and things can feel unfair, but the reality is, no matter how much you don’t want to believe it, you are the only one responsible for your success. I would tell myself this over and over. “If I want it, I need to earn it” I had to get up in the morning. I had to deal with the problem on my plate. I had to stay up late or work on the weekend. I had to put in the work to get the results. Because I decided to be successful, I decided to work hard.

Network: As we have learned. It is not what you know, it is who you know. I constantly try to team up with people smarter than me, that can both help me learn and help me get results. This has resulted in millions in profits. I also feel very lucky to have a network that can solve just about any problem I run into. If I am rehabbing a house and run into a problem, I have a list of people I can call for help. If they don’t know how to help they will know someone who does. I lean on my attorneys, my CPA, partners, wholesalers, and other professionals on a regular basis.

Education: To make my top five list you know I believe this is important in your success. Constant improvement is essential and the exciting thing about this, especially early in your career, is that growth is exponential. As you learn and implement ideas into your business, your business grows at a faster and faster pace. Obviously, for this to work you will need to learn AND implement. Many people learn all about investing and never invest. That comes down to the investor mindset. That’s why, I believe, you need all five of these essential keys to be a great fix and flipper. The good thing is this is possible for everyone, including you.

Access to Money: So, this one might be self-servicing because I am a lender, and this could fall within the Network category but let’s face it, if you don’t have money you don’t do deals. Money can come from many sources including cash you have in the bank, money you borrower from institutions, partners, private and hard money loans. Many times, you will need a combination of these sources to get a deal done or to maximize profits. This can all be learned as part of your education or you can choose to work with a professional that can advise you on the best way to navigate this complicated subject.

Article Source: http://EzineArticles.com/9902738


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

 

Economic Actions, Interest Rates, And Real Estate – Related Ramifications

real estate

It is unrealistic, silly and potentially, harmful, to your best interests, to look at, or consider real estate, in a vacuum. Many factors impact this market, on a broad basis, in addition to the many personal considerations, one should consider. This article will briefly, attempt to evaluate, consider, and discuss, some of these economic factors, including the economic ramifications, of market conditions, job – related, interest rates, etc. Failure to consider these risks wasting certain qualified buyers’ time, as well as sellers’ potential price, and how long getting one’s home sold, might take. This will attempt to consider these factors, in an easy – to – understand, manner.

  1. Market conditions: Why is there, either, a buyers or sellers market, and will a particular trend continue, and for how long. The easiest explanation is often, supply and demand, but that does not explain, why these conditions exist. Is there something, in the national, or international economy, which is driving specific market conditions? Some considerations include the public’s faith in the strength of the present economy, and whether they perceive, it will continue, and for how long. Another is the inflation rate, and perceptions of its impact.

  2. Job – related: How strong and growing is the present job market? Are incomes rising, enough, to drive prices up? What price range and social group, does a particular area, appeal to? How close to transportation, how long a commute, and whether it’s convenient, affect prices. Similarly, for many potential buyers, the most important consideration is the community’s school system, and what it offers. Many factors go into determining pricing, within a local area.

  3. Interest rates: Since, the vast majority of buyers, use a mortgage, monthly carrying costs, which includes principal repayment, mortgage interest, real estate taxes, and escrow, are major issues. Relatively, small rises, in the rate of interest, affect, both, the amount one qualifies for, as well as their monthly payment. It also makes a huge difference, in determining, whether to use a fixed, or adjustable, type.

Obviously, someone must look for, and purchase a home, which meets or exceeds their needs and dreams, while being affordable, and making one avoid the House – rich, home – trap. The better informed, educated, attentive, prepared, and realistic, a potential buyer, the better his eventual results. Similarly, homeowners must understand their local market, and proceed with realistic expectations.

Article Source: http://EzineArticles.com/9935032


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

 

Do You Want to Buy a TurnKey Rental? Make Sure These Items Are In Your Due Diligence

Do-You-Want-to-Buy-a-TurnKey-Rental

Do you know why turnkey rentals are more prevalent in less expensive real estate markets? The economy has forced a lot of people into a foreclosure or unemployment for periods of time. Due to their inability to obtain traditional financing and stricter lending criteria, these people have migrated to the rental market. The resale amount for homes in these markets is not even close to what it use to be, so it does not make sense for real estate rehabbers to buy, fix, and sell these homes to a retail buyer. The appraisal will simply not come in high enough to justify the purchase amount, repair costs, holding and closing costs, and profit needed to take that risk on. But if these properties are bought, fixed up, and rented out, they can be sold to real estate investors for more than their current retail value.

An income generating property is valued by using the amount of income it can produce, instead of sold comparables. The demand for rental properties has increased the amount of rent that can be generated in any of the areas hit hard by the economy.

I go into quite a few real estate markets each month. I have seen this trend grow in popularity over the last two years. Most of these turnkey rentals will have property management in place too. These turnkey rentals are marketed to landlords who want an already stabilized and profitable investment property. These landlords have a variety of different experience levels too.

There are a lot of credible and ethical companies that are providing turnkey rentals, but there are a lot that are not too. I want to identify a few items to look into before you buy a turnkey rental, so you can make sure you are getting a good solid investment. Here are some items to check into or request from the party selling that amazing turnkey rental to you.

  • You need to make sure that you see a track history of rents coming in on the property for at least three months preferably six months
  • You should make sure there is a verifiable lease agreement for the current and existing tenant
  • You should make sure that there is documentation showing there was a legitimate background and credit check performed on the current tenant
  • You want to make sure that you have an extensive title search done to make sure that the turnkey rental has a free and clear title.
  • You want to verify that there are not any current building code or zoning violations on the turnkey rental and that it can be used in the manner that is being offered.
  • You should verify that the repairs stated and condition presented is valid and true.
  • You need to make sure you do a background search on the property management company and ask for referrals to verify their service and work. I would recommend doing an online search too.
  • You should do yourself a favor by doing some of your own real estate market research. You should call a few local property management companies to request information about the local vacancy rate, security deposits, & rental amounts for a property similar in all ways to your possible turnkey rental.
  • You should ask for sold comparables for like properties in the area to compare what retail buyers are buying properties for in the area versus what the current asking price is on the turnkey rental.

All of these items will show whether you are truly buying a sound investment or not. It is simply good practice to do this amount of due diligence on any income generating property. Please do not let a high pressure sales person cause you to disregard these things and miss some of the items you must verify. It will protect you from walking into a real estate nightmare.

Article Source: http://EzineArticles.com/7291163


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

 

5 Things to Do Before Renting Out Your House

5-Things-to-Do-Before-Renting-Out-Your-House

Renting your property may seem like an easy way to increase your passive income, but upon starting the process, you may find it to be more complicated than expected. Your house may sit on the market for months without a rental applicant because it is priced above the fair market rent. A bad tenant may be late or outright refuse to pay rent; they have the potential do thousands of dollars in property damage and may ignore your attempts to evict them from the property until authorities are involved.

So how can you avoid the headache of these common difficulties associated with renting a property? Here are five things to do before renting out your house to reduce the risk and stress of being a new landlord.

1. Take Photographs of the Property

Photographs of the property are necessary for several reasons. They are an important part of online advertising – otherwise favorable rental listings without pictures of the property are often passed over by potential tenants because they do not want to have to wait for a house tour to find out that the property does not have a layout or design that suits them. These photographs will also be helpful when your future tenants are moving out, as you can use them to measure any property damage that occurred during the rental period.

2. Assess Fair Market Rent

While it may be tempting to charge higher rent to make money back on recent renovations you may have done or moving costs from when you left the property yourself, the best thing to do is conduct market research: check with rental websites, newspapers, local landlords, realtors, and property management companies to determine the amount that properties of similar location, size and condition are renting for.

3. Create a Concise, Effective Rental Application

An effective rental application will not intimidate potential renters with its length, but will be comprehensive enough that it can be used for tenant screening purposes. Any additional information that you need from the tenant should they pass screening can be included in the lease documents. A good application will have spaces for the following items:

  • Name
  • Date of Birth
  • Social Security Number
  • Phone Number
  • Current/Previous Addresses (last 7 years, including landlord name(s) and contact information)
  • Current Employer (name, address, hire date, income, contact information)
  • Authorization to Obtain Consumer Report Statement
  • Tenant Signature

4. Consider Using a Property ManagerProperty managers will typically charge a percentage of the monthly rent for their services, but in exchange, they will take care of things such as finding new tenants, creating/signing the leases, collecting the rent, and issuing legal notices (including evictions). Hiring a property manager cuts down on the profit you will make from your tenants’ rent payments, so you should carefully consider the cost-benefit of these services.

5. Find Good Tenants

Finding a decent tenant is easier said than done – many applicants can be friendly, polite, and will seem to be a good fit, but will create a flood of problems for you. The best way to improve the quality of tenants that you are leasing to is to conduct tenant background checks – that is, choosing tenants based on measurable fiscal and rental responsibility. Most landlords will charge rental applicants an application fee to cover the cost of tenant screening.

 

Article Source: http://EzineArticles.com/expert/Angela_Pennington/2417040

 


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 12 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com