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Posts Tagged Landlord

Should You Become A Landlord

Dec 30

Posted by admin in Real Estate

Benefits from real estate also sometimes take extra steps and responsibilities. If you are thinking of becoming involved in real estate, then you may also be looking at the job title of landlord. While this is a good way to make an investment and a living, you will want to consider several things before designating yourself to this job.

Before beginning the process of becoming a landlord, you will want to make sure that you can profit from it. This means finding the right place for potential tenants and having the ability to market and find the right demographics that you may want in your home. Having the ability to reach out to the right people can help you if you are thinking about renting property to others.

If you decide to become a landlord, you will want to make sure that you are made for it. You will want to ask yourself whether you are fit to deal with different personalities from tenants. Paying rent late, taking advantage of the property, and other problems will often arise. This causes maintenance and upkeep of different rental areas to be part of the job. You will want to make sure that you can handle different situations effectively and make sure that you can find the right way to take care of the different needs for everyone in the area.

Of course, becoming a landlord could be beneficial for you. If you have the right people in the right place, you won’t have to do much work and will only have to collect the rent. Most landlords, if they have a larger amount of property, will have hired help such as property managers in order to handle extra problems that may arise. If you are able to invest and grow enough this way, then you will have the ability to take a year long vacation while the rent is collected.

If you are one that wants to work with renting property and collecting extra profit from it, then becoming a landlord is a good option for you to consider. By finding someone else to live on your property, you will have the ability to collect rent instead of pay it.

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Property Investment Strategies

Oct 9

Posted by admin in Real Estate

If stocks and shares have been too much of a roller coaster ride over recent years or you are simply looking to diversify your investment capital, you may want to consider the following property investment strategies.

Buy-to-let

The term \’buy-to-let\’ first came about during the mid-1990s and describes the practice of purchasing property to rent out to tenants.

Over recent years, buy-to-let has become very popular and with many people priced out of the housing market, there seems to be plenty of demand for rented accommodation.

When buying-to-let, ensure that you pick properties with rental appeal and that the rent you charge each month will cover the costs of the mortgage and management fees.

Property development

This strategy ranges from renovating run-down homes to purchasing land and building completely new houses.

Usually the developer will be able to spot some unrealised potential in the property and immediately after purchase begin making the changes to release that potential and increase the value.

Speculating

Put simply the speculator will buy the property cheap and go on to sell it at a higher price to produce a profit.

There are many ways for this to be done, including buying off-plan at discounted prices or predicting where the next property hotspot is going to be.

Speculators can also increase the value of their property by obtaining planning permission to build on the land, before selling it to developers.

Property speculation is often a medium to long-term activity, but a short-term version, often known as \’flipping\’ exists, where the property is immediately sold again shortly before or after purchase.

An example of flipping would be a property investor purchasing a house at auction and then putting it straight back on the auction the following week with the intention of selling at a higher price.

Degrees of risk

All of these strategies carry varying degrees of risk, but can also provide a good return on investment if properly managed. As always, investors are advised to seek professional advice before entering into any transaction.

Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development.

For more information and advice, search our property investment pages

Writen By : Don Suter

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A Million Dollar Real Estate Investment Business Plan For Anyone!

Oct 7

Posted by admin in Real Estate

Using a very simple plan, anyone who really wants to can make an extra million dollars by consistently investing in real estate. In fact, because it\’s so simple most people won\’t do it. All your real estate investment plan needs to do is follow these simple steps:

>> STEP 1. Go out and borrow one million dollars.

>> STEP 2. Use the million dollars and buy one million dollars worth of well-selected investment real estate.

>> STEP 3. Get other people to agree to pay off the million dollar loan for you.

This sounds to easy, Right? Well it really is if you think about it. Let me give you some more details.

If you set out to buy just two little single-family houses per year with a value between $100,000 to $200,000 or whatever price a starter home is in your area currently sells for. If you did this for just five years. At the end of those five years you would own 10 little single-family homes, with an accumulated value of approximately one million or more dollars worth of real estate. You would be able to borrow most of the money needed (in some cases all the money needed) from banks, mortgage companies, sellers, other investors, etc..

Now the only thing left is to find people willing to pay off your loans on those houses. Those people are all over the place and they are called RENTERS!

At the end of ten to twenty years, what will you have?

You will have more than a million dollars worth of real estate that somebody else bought you! Why more than a million? It\’s because of inflation and other factors in our economy that will increase the value and not only will you have a million dollars worth of real estate you will have an income of $100,000 from renting them out because they are all paid for.. and your income will increase as your rents increase.

If you\’re saying to yourself that a million dollars isn\’t enough and $100,000 of annual income isn\’t enough, the solution is simple?. BUY MORE!!

HOW TO GET STARTED…..

>>> Learn how to get the money.

The first step to get started is that you should learn the rules of the lenders and their programs that they have available for rental properties. To do this you should spend a few hours or more on the phone calling different lenders and asking them what loan programs that they have available for investment real estate. Ask them what are the requirements to qualify. If you hear something you don\’t like or doesn\’t fit what you are trying to do, Just hang up and call another lender.

>>> Learn to find the houses

Now that we have an idea about financing we have to start looking for the right properties and analyze the numbers. You want to start by trying to find smaller starter home that a young family or couple would like to live in. Here is a short list of some ideas where to look and how to find properties.

1. Newspaper ads

2. Real Estate MLS system

3. Driving through neighborhoods

4. Advertise yourself

5. Tell people that you are looking to buy houses.. get the word out

6. Get business cards that tell people that you are interest in buying real estate

7. Ask real estate agents to look for you (if you are an agent, ask other real estate agent to let you know if they know of any properties)

This is a short list, but you only need to find a couple of properties a year to make this plan work and this short list will do the job. If you want to find more than a few properties a year you should expand your marketing efforts.

Once you find a property that appears to make sense you\’ll need to calculate the numbers. This can be done by hand using an investment property worksheet or by using a computer software program. You can get a free copy of an investment property worksheet at the following website: http://www.landlordtools.com/Freeform.htm

If you prefer to calculate the numbers quickly using a computer software program, you can get a excel spreadsheet program at: http://www.landlordtools.com/realestateanalyzer.htm

After you run the numbers and everything still makes sense, it\’s time to pull the trigger and make an offer to the seller.

Once the offer is accepted you now want to start the third step? Find a renter who will rent out the property.

>>> Learn to get good renters.

Get permission from the seller to allow you to show the property to prospective renters before the day of closing. You should start by advertising in you local paper and contact real estate offices to let them know you have a property available for rent.

Repeat the process to buy more and more houses until you reach your goal.

Dave Schneider is a professional real estate investor. As a landlord over the last 25 years he has created a real estate investment and management system that provides a step-by-step process to create more cash flow with less work. For details and free investment real estate and management lessons visit this site now: http://www.landlordtools.com.

Writen By : Dave Schneider

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