Tips For Better Real Estate Management

Tips-For-Better-Real-Estate-Management

Managing rental properties can be a tedious process sometimes landing you into legal issues. As a property manager or owner, you should think about preventing problems even before they occur to have an easier time maintaining order. Apart from making your tenants feel worthy, you should also find ways of making the management process easy for you especially when handling large properties or multiple properties. When you are organized in how you handle your property, it becomes easier to keep everything in check and a few tips can help you put in the best measures into the management process.

Tip 1 – Get a professional property manager

If you are a property owner with little knowledge of how to go about management, you should consider getting a professional property manager to ease out the process for you. Professional managers with some knowledge and experience in the real estate industry will know exactly how to go about the process and find organizational solutions to ease everything out. When there is a manager in place, you will feel more at peace and have fewer issues to deal with.

Tip 2 – Embrace technology

There are very effective real estate management solutions available thanks to technological advancements. Real estate management software is among the best solutions you can find to make the process easy and organized. Such a solution can improve communications and payments and data maintenance for the property. With the right system you will have an easy time collecting, returning and holding security deposits, as well as inspecting and documenting rental unit conditions before move-outs. There is just so much you can do with real estate management software to streamline processes so look for the best solution.

Tip 3 – Handle tenants appropriately

First of all you should consider screening tenants before allowing them into your property. It is a simple way of keeping troublesome characters off your property. It is also important that you put tenant landlord agreement in writing to keep things clear and ensure that you treat all tenants equally and without any discrimination. Discriminating prospective tenants based on sex, race, origin, disability or even familial status can land you into trouble. It is also important to respect their personal privacy even if the property is yours by notifying them prior to entering their rental units. Handling tenants appropriately will save you from a lot of trouble especially legally.

Tip 4 – Keep the property in top shape

Regular inspections are very important so you can make any improvements and changes where need be. Recklessness on your part leading to safety and security issues can lead to hefty losses in terms of compensations. You should therefore make a point of making prompt repairs and consider having a security system in place to give your tenants the sense of security they deserve as well as ensure that their safety is not compromised in any way.

Tip 5 – Oversee managers

They should be competent enough to keep your property in check. It is therefore important that as a landlord you choose and supervise property managers. Background checks and clearly spelling out their duties will prevent issues cropping out later.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Why You Should Never See Your Investment Property

Why-You-Should-Never-See-Your-Investment-PropertyWhenever I give this piece of advice, I often get blank stares. It is a very different approach to what most property investors take. But it is actually a smart strategy when you start to understand the reasons why.

But so what if you visit your investment properties?

Sure, if you’re okay with getting the results most investors get, feel free to ignore my advice and do what most investors do. But if you want to go further than most investors, I strongly recommend you stick to this rule.

Never see or inspect your own investment property.

A good investor never visits their property, as a general rule. In fact, you don’t even need to live in the same state as your property.*

* Side note: this is actually very exciting as it means you are FREE to invest anywhere in the country, opening up way more options for awesome locations. But that’s another topic entirely.

Why You Should Never Inspect Your Property

  • Before you finalize your purchase of the property, you’ll get a good building inspector to check it. They’ll do a far better job than you could ever manage, so checking the property yourself is a waste of your precious time.
  • Once the property is in your hands, you’ll get a good rental manager. It is their job to routinely inspect the property. As a professional, they will do a far better job than you could.
  • You should have full confidence in the professionals you hire to take care of your property for you. If not, you have the wrong people.
  • Inspecting the property in person will result in emotional attachment, which is bad for financial-based decision making.
  • Your time is worth more than that.
  • The real money is made in capital growth, something which you can’t see at an inspection.

So get the professionals in and get them to do it. It’s their job! Stay emotionally detached from the property and focus on making money – YOUR job as the investor.

Just because you shouldn’t visit the property in person, doesn’t mean you should ignore it. You should be looking ahead to see what the market is doing and anticipating what your capital growth is likely to do in the future. This will help you with growing your portfolio, which is how you really make money.

The exciting part is that you can do all of this online.

How to Inspect for Capital Growth

  • Check online sources for evidence of infrastructure projects and investment in the area
  • Is the population growth trending upwards?
  • Are more jobs being created?
  • What notable changes are happening in the area that might attract more people?

Inspecting Your Property is a Waste of Time

And sure, you could stop by your property and have a look. But what are you going to see? A house? Yep.

If you actually happen to notice any problems while you are there, you’re very unlikely to be able to solve them, unless you’re a qualified builder. And because you lack the qualifications and experience of a rental manager, you probably won’t understand the laws that govern how you should deal with your tenants. It’s best to avoid wasting your time and effort and let the professionals handle it.

Even though it sounds counterintuitive at first, it makes sense to never inspect your own property.

If you feel that you need to inspect your property, something isn’t right.

Perhaps you’re in a situation where things aren’t going as smoothly as they should. Or perhaps your team aren’t doing their jobs right.

If you’re struggling to find a good building inspector or rental manager, or your properties are causing you problems that you feel need your personal attention, find a good property investment coach to help you solve these problems as soon as possible.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Strategies to Become a Successful Investor

Successful-Investor

Real estate investing is one the pillars of wealth creation in the world today. The last time I looked at the Forbes list of 400 richest Americans, I could still count over 31 tycoons listed as billionaires.

In the same vein, you have individuals in your city and state who have made their fortune and hold their wealth in property investments.

Why you need to invest

In his essay “Theory of Human Motivation” first published in 1943, Abraham Maslow, father of behavioral psychology observed, that people are motivated to fulfill three basic needs. The three basic human needs are food, shelter and clothing. And many people will try to fulfill these three needs, before any other need.

When you invest in real estate, you add value to your customers in one of the important area of human needs-shelter. You are investing in an evergreen industry.This is why, I believe you should include property investing as part of your wealth-building portfolio.

However before you go out and buy your first property you need to have the right plan of action to succeed. The first thing you have to be aware of is that…

Goals are important.

Your need to know, what you want to accomplish:

Are you looking at wealth accumulation within a short time frame (3-7 years)?
Are you investing for the Long term (retirement)?
Do you want be a Full time investor and derive all your income from your real estate investment?
When you ask yourself these critical questions, you are able to focus and achieve your dreams.

You need to develop critical success traits.

It is important you develop or become aware of the traits, you need to win as a real estate investor. Five main traits are important for success:

  • Competency in your niche, this means you know about the basics, at the minimum and then become excellent in the niche you decide to invest.
  • Control over your emotions. This is important if you are going to stay in the investing arena for the long haul because there will always be difficulties in the real estate market. The difference between a novice and a professional is the ability to ride the eye of the tiger without getting into the belly of the tiger. Being a real estate investor takes guts and you need to have them if you want to become wealthy.
  • Comprehension. This means know your market cold. You understand who your customers are, what they are looking for, why they want to deal with you. If you lack these key trait-insight into your market-you are doomed to fail.
  • Consistency. This means you have focus and discipline to, take action daily, weekly until you accomplish your goals.
  • Integrity. You stay true to your principles, because integrity is important in real estate. This means you are trustworthy, to your bankers, investors and tenants.

Strategy vs. tactics

The strategy (what to do) is more important than the tactics (how to do) of real estate investing. Let me explain.

If for instance, you wanted to gain wealth in a very short term then to buy and hold real estate, which is a long-term strategy-will not be the right strategy to achieve your goals. Flipping and wholesaling properties- buying undervalued properties and selling at a higher price to gain profit-may be the best strategy.

Knowing enough vs. Knowing it all

I think it’s important to have an understanding of real estate investing, however you don’t need to know all about real estate investing to start.

You need to one thing that I think is important for an investor… You need know enough about the basics-how to analyse properties, how to get financing, and how to assemble you real estate team together. That is it.

If you wanted to make a full time career as a real estate investor, then you would have to know more. You would have to specialize in a niche.

I am not going to spend many hours learning about short sales, wholesaling and foreclosing investing especially if I am not going be a full time investor. It would be counterproductive for me, when I should spend my time doing what I am best at doing.

Let’s recap, to succeed investing in real estate…

  • You need to understand why you are investing in real estate.
  • You need to develop critical traits for success as a real estate investor.
  • You need to choose the right tactics to match your investing objectives.
  • You need to know enough about what you want achieve

This is how I have applied myself to real estate investing. Moreover, it has helped me transform my losses to wins and I enjoy the cash flow from my properties,with the knowing I will become financially free.

Article Source: http://EzineArticles.com/6054300


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

ABCs of Multi-Family Property Investment

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Multi-family real estate is a hot commodity these days. From institutional investors to the first time buyers, multi-family housing is considered a smart investment. Why?

For starters, the multi-family real estate market has not seen the same downturn as the other real estate market. Apartment housing has been in high demand over the past few years since many home owners have faced foreclosure and cannot afford single family housing. Additionally, multi-family housing offers an income annuity.

According to Findthedata.com, a marketing research company, the average rent for a 1 bedroom apartment in the United States is $800 per month. Certainly, rent varies by market size (rural and urban) and by quality, but selecting an investment property in a desirable area or high-need community will create an income stream for years to come.

When investing in multi-family real estate, it is important to recognize that not all properties are created equal. Doing your homework to understand the general state of the property and surrounding area is an important step to fully vet your investment requirements. Assessing a building includes items such as current and potential net operating income, repairs needed, structure, location, size, amenities, general condition, security, aesthetics, neighborhood trend, etc.

The good news is that the industry has created the following grading standards when classifying apartment buildings. They are Class A, B C or D.

Class A buildings are typically new, larger apartment buildings in prime locations. They are usually less than 10 years old and include a number of desired amenities like in-unit washer/dryers, pools, gyms, and the latest technology. These properties are usually targeted by Institutional investors and while they generate less immediate cash flow they have a greater long-term appreciation potential.

Class B buildings are older, typically 10-20 years in age. While they are more outdated, they are generally located in good areas with some of the basic amenities noted above. Class B properties are often owned by large investment groups.

Class C are older properties built within the last 21-30 years. They are usually located in working class areas and attract primarily blue-collar workers and even some subsidized tenants. While these properties may be in declining, less desirable areas, they are not necessarily in dangerous communities. The apartment units in Class C buildings are considerably smaller than those in higher graded properties and boast fewer amenities. However, the demand for affordable housing in low-income neighborhoods creates a higher occupancy rate for a Class C property. As a result, the cash flow is positive while the appreciation value may be lower over the long term.

Class D buildings are often considered deteriorating because these properties are older, and located in declining (sometimes less safe) areas. Class D buildings are usually in poor condition which means they have outdated features, and are in need of maintenance to attract tenants. As a result, the vacancy rate is often higher. This requires more hands-on management to oversee the property. All these conditions will negatively impact free cash flow available to the investor.

As an investor, finding the ideal location can sometimes be more of an art than a science. Yes, there is a structured approach to identify properties for sale. You can attend public auctions; work with commercial brokers/bankers; subscribe to real estate trade magazines and network with other industry experts to identify your next purchase. For Class A and B, these traditional approaches are most common.

However, there are many properties (Class C and D) which are not marketed aggressively. These properties are under the radar. They are not marketed aggressively for sale often because the owners are inexperienced or lack motivation to sell. It could be family owned or a group of investors that are at odds on how to sustain the property long term.

This is where personal tenacity and creativity can make the difference. Network with local building managers, drive around the community and communicate your investment desires. The “grapevine” can be a tremendous source for sharing information.

Once you have identified a location that appeals to you and your investment style don’t be afraid to approach the owner. It certainly can’t hurt to test the waters. And while that location may or may not be readily available for purchase, you may find that the owner is aware of other locations in the area that are equally as desirable and within your reach.

In closing, finding the right investment property is the first step to a whole new adventure. Whether you are an institutional investor seeking Class A or B properties or an independent investor seeking the high reward/high risk of Class C and D properties, there is no shortage of options for you to consider. Keep in mind that picking what you want is the easy part. Actually raising capital and structuring a deal is often the biggest hurdle for investors. With bank loans more stringent and credit requirements tighter than ever, “showing the money” can be a quick end to your investment dreams.

Article Source: http://EzineArticles.com/7534132


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Need To Learn About Real Estate Quickly?

Tips-For-First-Home-Investors

Investing in real estate can be very profitable over time. However, in order to do well you must know what you are doing. The tips below can help you become a great real estate investor.

Learn all you can about the market before investing a dime in real estate. There is a ton of knowledge to gain and many methods that can make or break you. Read every source you can get your hands on; you can’t be too informed.

Decide which type of investing you will focus on with real estate before you begin. Flipping a property may be for you. Or, maybe you prefer rehab projects. Look at your interests and skill set when making a determination.

Make sure you pick a comfortable niche. You will find more success by focusing on a single market segment, as opposed to taking on varied projects. It is very important that you stay with what works and what you are good at, and that is the best way to generate lots of success for you.

Don’t assume that any property values always rise. It is dangerous to assume that any piece of property will rise in value. You want to instead focus on those properties that can provide you with a cash flow. Property value appreciation will help you invest in future properties.

If you plan to rent a property, use caution when selecting a tenant. The prospective tenant needs to be able to afford both rent for the first month as well as a deposit. If they can’t get their money together at this time, they probably won’t be able to make the rent. Keep on looking for a tenant.

Consider business properties as well as residential ones when you are considering new buildings to buy. Not only can a business property be rented for longer terms, but they can bring in a lot of money. You might think about a mini-mall or an office center, allowing you to broaden your portfolio.

Work well and play well when dealing with other people. Try to lose the image of them as competitors. By working well with others, you can network and increase your overall success rate. You can have many satisfied clients if you help one another. This can better your reputation.

Search the market for foreclosures, as these can gross you the most income during your investing. These properties will be listed below the market value of the home, as you can get some great deals to turn a profit with. There will be a bidding war, but if you win you could be sitting on a gold mine.

If you hope to sell a property you buy, then you need to factor in any remodeling or upgrades and repairs you make. If you plan to rent it out, set aside a maintenance budget, as well. Regardless, you must have a little discretionary income to put towards these things.

Reputation is important in the investing world. Therefore, always tell the truth and try not to make any enemies. Most importantly, follow through on what you say you are going to do. If you are not sure if you can do something, do not make the claim in the first place. Your reputation could suffer and affect your business as a result.

Try to eliminate emotion while you are negotiating. You won’t live here; you’re making an investment. Control your emotions so that you never overpay and cut into your potential for profit. You’ll end up with more money this way.

There are many benefits to investing in real estate when it comes to wealth and income. It can be hard to figure out. With any luck, this article can help new investors get started.

Article Source: http://EzineArticles.com/9602895


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Tips for Tenant Improvements

tips-for-tenant-improvements

The best type of tenant improvements are those that not only make the place look better and the tenants happier, but those that improve your revenue thus increasing your ROI. These improvements can take on many faces and investments of time, but in the long run if things are made better, then they are truly worth your time and money.

But, are there ways to make tenant improvements fulfill both of these needs? Absolutely! In fact, here are several tips that can make the road of property improvement easier.

1. Do your own homework. Take the time to determine what changes need to be made and what the priority is for each. Talk to those who will be affected and learn when would be the best timeline.

2. Stay involved with the planning process. Be sure you understand the blueprints and design plans so that you can fully understand what changes will be made.

3. Be sure that lease agreement ensures that all the parties involved get the best deal possible. Take time to study the lease agreement to ensure that your proposed improvements are a fair deal and that it provides the rent that works for you and the tenant allowance is realistic.

4. Walk through the space with your contractor and be sure that the scope of the work and all the details are understood prior to signing anything. Anytime changes are made after the papers are signed, it will cost you time, and quite often more money!

5. Be flexible. As you do the walkthrough, be open to ideas and alternatives in materials or use of the spaces.

6. Think about the present as well as the future in regards to your lease. If you are considering a long list of tenant improvements, it may be possible to space them out over several years, thus making it possible to recoup some of your investment sooner rather than later.

7. If you are new to the tenant improvement process, be sure that you understand the zoning regulations and that the contractor you work with knows you expect them followed.

8. Be upfront about your budget. If your contractor understands that adding on a multitude of extras is not going to happen due to budgetary restraints, they will be less likely to push you towards something that is not achievable.

Tenant improvements do not have to be the things that nightmares are made of! Due diligence and patience will go a long way towards making the process simpler. Talk to your local contractors to learn more about to make this process easier and more efficient.

Article Source: http://EzineArticles.com/9536887


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Is It a Good Time to Hold Real Estate or Should I Sell?

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This is something that depends on your own circumstances. Remember that we are not now in the sort of market where you will naturally see a price rise after holding for a while. This is a flat market where the prices generally stay static. They might rise a bit and then fall a bit, but generally they’ll bump along for a few years now until the next boom starts. So whether you sell or hold is your own decision, based on your finances and your investment portfolio.

You might find that you need that extra bit of cash, so you’d be better off selling. Then again, if you bought them at the top of the boom you may have paid too much for them and if you sell now you’ll make a loss. Remember, if you decide to hold, it will be for a few years because the boom won’t come back in six months time, so ask yourself if you can afford to hold for at least five years.

If you can’t afford to hold for that long, it might be best to sell off now before the property starts to cost you even more. Another question to ask yourself is: “Will the property increase in value over the next five years?” If it won’t, there’s no point in keeping it.

When considering this question, look at the surrounding neighborhood. If it has good access roads and infrastructure, good schools and shops, parks and gardens and the people are renovating their own homes, then the likelihood of values increasing there is good.

On the other hand, the place may only be booming because some factory there that is expanding. In five years time if that factory has stopped expanding and is maybe even closing down, then what is going to happen to all those houses? The area will become something like a ghost town, with values at rock bottom. It doesn’t hurt to do a bit of research into the history of the area to see what has caused the place to expand and increase in value.

For the person who has several investment properties, it’s a good idea to sell four out of five and keep the quality one that will be worth heaps more when the prices stat to rise again. You make money both ways in real estate. You buy to flip and you buy to add value and hold a while. Real long-term wealth comes from buying quality property and holding it, but by playing both sides of the game you make extra money.

You can get a greater cash flow and use it to reduce your risk through debt exposure if you sell four out of five properties. Always try and keep a loan to value ratio of about 70% to 80% of the values. So if your house is worth $400,000, then your loan should be in the vicinity of $320,000. That way, if you are forced to sell at say, $340,000 or even $330,000, you have enough to cover your loan with a bit left over.

Just remember that winning in the real estate game is not about buying the most properties in the shortest time, now even about making a killer profit on every deal. It’s about creating a core strategy that will work in today’s market and every market, whether it’s a flat or a boom time. You’ve got to stick to that core strategy through thick and thin and only do those things that will maximize profits and minimize risks. That’s the way to become successful in real estate.

Article Source: http://EzineArticles.com/389440

Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com