After many personal experiences – good and bad –hiring property management companies and managing properties on our own, we’ve figured out some key elements to keep in mind when choosing a property management company. Here are four that we think lead to a successful business partnership.
It may seem like a cliché to put integrity on the top of the list; however, a property manager’s decisions and actions have an effect on the property owner’s profit. Tracing the actions and decisions that result in a lower return on investment after the fact is difficult.Therefore, integrity is the most important component to look for from the onset. The best way to find out whether the property manager in question is reputable to use the following tools:
• Have a face to face meeting to get a sense of the person or team and their attitude.
• Check references from current property owners who entrust their property to the property...
“The fight is won or lost far away from the witnesses, behind the lines, in the gym, and out there on the road; long before I dance under those lights.”
We just finished rehab on a new rental property in a great location in Philadelphia, close a major transportation hub and a University. However, majority of the work in entrepreneurship is not glamorous. These are stories that don't come with cool shiny photos, these are stories that will definitely not make it to Instagram. This post is highlighting one of those stories and the lessons learned from that. I wanted to share this because it will help a new investor navigate through adversities in their journey. The day we closed on the property, right before we could even change the locks, there was an unfortunate theft at this property. One of the items stolen was the boiler among many other things. My contractor called me genuinely upset about this. A theft can...
Have you ever had an idea brewing in your head for years and then woken up one day and decided—no excuses—you’re going to just do it?
And you do, going so far as to execute it with the fervor you had dreamed about. You’re unstoppable!
This is the attitude I had the day I jumped into real estate full time.
However, after rehabbing a few properties, my progress came to a standstill. I was held up by the second-to-last “R” in the BRRRR strategy—the dreaded “refinance.” I wouldn’t have more cash to deploy in more deals until I was able to refinance.
Limited capital is the single biggest reason newbie investors are unable to scale. But I wanted to avoid knocking on the doors of private lenders or exploring partnerships. To keep growing my real estate portfolio, I had to find more capital within my existing properties.
And I did! How? Through the power of home equity.
In one year, I grew my portfolio from three to 20...
One of the acquisition strategies many seasoned real estate investors swear by is REO properties. However, it is a very challenging field to step into and requires patience, relationship building, and risk taking that might not be for the novice investor. There are certain aspects that one needs to be aware of when trying to acquire an REO property. Perhaps the most important aspect is that investing in the REO market is a strategy that requires a high level of sophistication and diligence. The learning curve is far beyond what most people realize. This overview is intended to get you familiar with complexities the REO property market.
So, what are REO properties? REO stands for “Real Estate Owned”; a real estate owned property is a property whose ownership has lapsed back to the bank or mortgage lender. There are many steps through which a property goes before attaining the infamous REO title. Below is the life cycle of an REO Property.
“What would you do if you weren't afraid?”
After my father passed away when I was very young, my mother – a teacher – dreamed to see me in a steady full-time job. Climbing the corporate ladder was the gold standard. So, when I made it to a managerial position she was thrilled, and I was too – for having made her proud.
For us 9 to 5 folks this dream, the gold standard, trains us to be risk averse. It makes us comfortable in the cycle of steady paychecks – despite marginal yearly wage growth, mortgage payments, and retirement accounts. Saving for a few weeks of vacation, cars, or some other indulgences reinforces our feeling of security, though rarely satisfies our desires. This tentativeness is generally even more pronounced in women, who are conditioned to keep their head down and be grateful for what they have. A risk averse 9 to 5 job further closes women off in a society which already puts them into a box.
Have you considered investing money into a passive rental for additional income but not sure where to start? This blog post is a peek into how I choose properties to invest in. The number one thing to remember is that picking a passive rental different than choosing a home for yourself to live in. When it comes to investing in a passive rental, it is all about numbers and not about falling in love with the property. Though the analysis is complex, I have broken my strategy down into four key components for simplicity.
Location is key in any real estate investment. For single family passive rentals, this is specifically important in finding tenants quickly and also for retaining tenants which in turn is helpful in reducing the vacancy rates. I look at these specific elements:
a. Access to public transport and expressways
Note that if public transport isn't available and expressway proximity is what you're considering, ease of parking becomes a factor as well.
For a new investor, finding a contractor can be an intimidating affair. The time and cost invested into the remodel of a property will affect profitability, while the quality of the work will be part of your reputation as either a Fix-and-Flip or Rehab-and-Rent investor. Below are five steps that can help you find the contractor you can build a long-term relationship with.
Investors are often looking for reliable contractors that don’t break the bank – or undercut the profitability of an investment. There are multiple ways to track down viable candidates:
• Ask other investors for recommendations. Don’t know other investors yet? Ask your current network – someone has likely had a kitchen or bathroom remodeled.
• Visit local networking events. You can meet contractors there (and those other investors!).
• If you see a house being rehabbed, well, walk over and ask for a business card!