Why the Holidays are a Great Time to Invest in Real Estate

Why the Holidays Are a Great Time to Invest in Real Estate

The holiday season can be a great time to pick up investment properties. Here are a couple reasons why you should push to make as many offers as possible during this time of year.

One of the biggest reasons is the amount of buyers in the market at this time. The holiday season is a busy time of the year and a lot of investors and retail buyers are not looking at properties. This means there is a lot less competition in the market during the holiday season.

Less competition in the market leads to properties staying on the market a little bit longer. This situation leads me to my next reason why the holidays are a great time to invest. It is the motivation factor of people trying to sell a property. When properties linger on the market longer than usual, sellers become a little more desperate and are more motivated to sell. This creates a great opportunity for us, because without a lot of buyers in the market, our offer may be the one they are waiting for.

To take advantage of this time of year, get your agents to really sift through the MLS for rundown properties that have been on the market for an extended amount of time, usually 30 days or longer. Also do your own marketing to get stressed-out sellers to come to you as well. The best time to make offers on properties is when there are less buyers and offers to compete with. You will be helping some stressed out sellers get rid of a property they are struggling with.

Mid-Michigan Sees House Market Moving on Up

Mid-Michigan Sees House Market Moving on Up

Mid-Michigan has always been a nice place to live. Unfortunately, the area’s housing market took a hit when the financial crisis hit in 2006, but could the area now be showing signs of recovery?

Recession Hurt the Area

When the financial crisis hit, housing prices plummeted and many people were left upside down on their mortgages. An additional side effect was a true wave of foreclosures, leading to many people losing their once valuable homes.

Demand is Now Up

Now, almost a decade later, the demand for homes is back at an all-time high. Recent trends show that it is not unusual for real estate agents to get multiple bids for the same home. This increase in demand is accredited to the stabilizing financial market.

Supply of Homes is Down

The higher demand for homes is not met though, since there are fewer properties available in the right price range ($100,000-$150,000). Even though there are a considerable amount of expensive homes, the homes that people are looking for are not widely available.

Bidding Wars

Not having enough affordable properties going around has led to intense bidding wars. These bidding wars also have had a direct consequence for the housing prices, causing them to go up dramatically over the past two years.

People are ready to buy again, unfortunately the supply is no longer present. With demand rising, the chance of young couples obtaining a good property is decreasing. However, with the housing market slowly stabilizing, there may be suppliers coming to the scene in the future.

Buy And Hold Strategy Is On The Rise

Buy And Hold Strategy Is On The Rise

Every few years, some investors change their strategies to tackle the challenges posed by the real estate market. Of course, some of these strategies regain their popularity again and again in a cyclical manner. In the current economic climate a wise investor should consider revisiting the tried and tested “Buy and Hold” strategy.

A long time ago, before 2002 at least, you could quite easily find property below the market rate. A sensible option in that scenario was to hold onto the property for the long term. You could be certain of a good profit within three to five years. This of course all changed once the market started booming and property prices skyrocketed. No long-term game was viable anymore and investors stopped buying. But the smart ones waited for the right market conditions to return.

Nowadays such conditions might exist once more. You can purchase properties that will bring a ROI between 23 and 25%, ideal for buy and hold.

To make it simple: Buy and hold is little different from buy low and sell high. If you want to use this strategy, you need to be aware of the long-term changes in the real estate market. Keeping track of supply and demand is essential in order to buy property just before others realize that values are low. Similarly you will need to sell property when the supply market is stretched and prices are at their high.

Having sailed through the recent financial crisis, the market is picking up slowly. This may be just the right time for you to try the Buy and Hold strategy and enter the real estate market.

The Recovery of Residential Real Estate

The Recovery of Residential Real Estate

Over the past several years, it has become evident that the residential real estate market is going through a recovery. Along with this, the number of unemployed workers has declined and interest rates have remained low. Obviously, the recovery of the real estate market is outstanding, but it is also uneven.

In other words, residential real estate in certain states is going exceptionally well, whereas in other regions, things are much slower. For states like Florida, Illinois, Michigan, Missouri, and Nevada, the market is moving in a positive direction. However, this causes certain concerns specific to the low inventory of existing homes, stiff competition among homebuyers, and longer wait times for new home construction.

Slowing in 2015

Even though the residential real estate market as a whole has stabilized and even grown in certain states, the housing market has begun to slow this year. Just in the past few months, the number of pending home sales is down. Part of this has to do with weather, but an increase in mortgage rates and a 12 percent jump in home prices are also to blame.

Prior to the recent market crash, we saw the biggest financial and residential real estate bubble, followed by the longest recovery period since the Great Depression. Fueled by easier financing, housing prices topped out by 2007. Then, the market completely crashed, taking almost six years to get into a healthy recovery mode.

Based on what people experienced, the buyer’s mentality completely changed. As a result, a large number of people began renting as opposed to buying, which caused a shift in the housing market.

The recent market crash is still very fresh in some people’s minds, but instead of worrying, people need to understand the recent residential real estate slowdown.

  • Fewer short sales and foreclosures
  • Historical slowing for a few months after residential real estate recovery
  • Slowing of bank and mortgage company failures

Overall, the residential real estate market remains in good shape with homes being affordable throughout the country.

Things to Keep In Mind While Setting Real Estate Investment Goals

Things to Keep In Mind While Setting Real Estate Investment Goals

Real estate is a fast paced industry and there is no doubt about it. As an investor, you will do whatever is required in order to make quick decisions. Additionally, you will need to act quickly when an opportunity presents itself. You will have the make the best of what you have got to take advantage of property deals. You will come across a lot of investors who invest in fixer uppers; they have such properties repaired and then sell them within a few weeks. But you have to keep in mind that despite all the time pressures, you will still need to set goals. Establishing a strategic plan beforehand will save you from a lot of problems later on.

-General Strategies

Before you make any decision whatsoever, it is important for you to do your homework beforehand. You will need to find out everything there is to know about real estate properties in the area. There is no harm in looking for profiles offering real estate properties and gathering as much information as you possibly can to aid your cause.

Depending on where you are planning to invest, you should consider studying public property records. This gives you all the information you need about the property including recent sales and purchases. Any and all information gathered can then be used to talk to the concerned parties. Additionally, you will also learn about emerging markets, concerns and trends, thus ensuring you make an effective decision while investing in a real estate property.

-Real Estate Relationship Goals

Being a real estate investor is not as easy as it may seem, to better your chances for success you will need to identify those individuals and parties that can actually help you achieve your goals.

Before you go any further, it would be wise to know what your goals are in the first place. For each party and individual, you will need to know what you are hoping to achieve from them. Whether you want to develop a relationship with brokers or lenders, it is necessary for you to be clear about what you want.

To better your chances for success, you can also consider creating a short term plan. The plan will give you everything you will need including the potential clients you need to meet to get the results you require.

-Profitability

Making a good real estate investment is not going to be enough. You will at the same time have to make sure it is profitable at the same time. Depending on the number of properties you are planning to invest in, it would be a good idea to estimate the average potential profits every year. Enough emphasis cannot be placed on the fact that research is vital for your success.

Keeping the aforementioned factors in mind, you have some of the tools to start investing in real estate properties. Even though it may seem complicated at first, setting real estate investment goals will make your job easier than it could have ever been before.

What is the Buy and Hold Strategy in Real Estate?

If you’re interested in real estate, then you may be interested in learning a bit about the buy and hold strategy. This strategy is essentially a long term investment strategy whereby an investor buys and holds a property for a time being. This form of investment is best when a market is developing and it may continue improving for a number of years.

This strategy has been around for a very long time and has oftentimes been the strategy used by the richest people in history. To invest in this, you will have to buy and hold a certain type of property. Instead of buying land, developing it, and then reselling it, you will only need to buy it and wait for its price to increase and then make a decision of whether to sell or not. Furthermore, while you wait for the land value to increase, you always have the option to rent the land out.

How to utilize the strategy

Always ensure that the market will develop. The first step in utilizing this strategy is determining whether you really want to buy and hold. Are you really ready to take such a risk? In real estate your gain is the difference between the purchase cost and the selling cost, so you want to do your research when it comes to the area you are thinking of purchasing. Ask around. Also, you have to be patient and willing to wait a while for the value to increase.

Find suitable property and buy. You will have to look for solid property to invest in. You should consider some elements like proximity to a school, general location within the larger community, and the immediate neighborhood. Finding a property in excellent condition can be beneficial. However, you do have the option to purchase less-then-optimal property and do some clean up and maintenance.

Decide on whether to lease it. Your main goal is to wait for the property’s value to increase and then sell it. However, having a short-term plan is also important. You can gain a monthly income by simply renting the property to a tenant.

Sell the property when its value increases. If your property highly appreciates in value, you should sell it and enjoy the long awaited profit. When selling this property, you may have to use the services of a real estate agent and also list it in newspapers and even online.

The buy and hold strategy works quite well when you do your homework when it comes to location and market. Learn more about this strategy and begin looking for properties that suit your budget and scope. You may just make some excellent money in the long run!

Real estate rehab and its importance

Real Estate Rehab and Its Importance

Marketing in real estate is associated with intense competition. All the players of the industry are doing everything within their power to attract buyers and tenants in cases where the real estate is meant for residential accommodation. If you have prospects of selling or leasing real estate, you need to ensure that its attributes are attractive. There are numerous ways in which real estate is improved for purposes of attracting clients. This is often referred to as rehabbing. It does not differ greatly from any form of rehabilitation; however, real estate rehab is primarily concerned with the improvement of real estate for purposes of attracting clients. The following methods are used to improve real estate in a bid to attract clients.

One of the most reliable ways of attracting clients in the real estate industry is through the transformation of the structures that are present on the property. This is aimed at enhancing the elegance of the property based on the demands of a client or on the basis of preconceived client demands. The latter is the most common basis for the transformation of real estate.

Sometimes real estate rehabilitation is based on the demands of targeted clients. In this case, property owners are mainly concerned about the attributes that are able to attract a certain class of clients. For example, some clients may be interested in property that is luxurious. In order to attract such clients, property owners can transform their real estate so that it meets the standards of these prospective clients.

The Pros to Purchasing Real Estate in Florida

The Pros to Purchasing Real Estate in Florida

Florida is one of the most attractive areas when it comes to residing, especially for those looking to buy or build homes in a warm, sunny climate. Whether you’re a snowbird looking for a warm place to stay or want to relocate permanently, the real estate market is prime right now in making the transition. There are plenty of advantages if you’re considering to venture into real estate in Florida, including:

Warm climate 

If you’re getting tired of the cold winters, you may just want to consider moving to Florida, as the warm weather and the housing market is heating up and everyone is looking at getting a piece of the sunny state for themselves. Both young and old flock to Florida to enjoy relaxing days in the sun.

Revenue from vacation homes

If you purchase a vacation home in Florida, feel free to rent the home out year round so you can enjoy the extra income to help with the house payment. With so many local and foreign people touring the state, it’s rare that you won’t be able to find someone to rent the home.

Florida’s fast economic growth

The rate of Florida’s economic growth is growing very fast and is a magnet for serious investors in the area and abroad. With tourism and a strong economic presence, you cannot go wrong with purchasing real estate in Florida.

Fierce competition

The competition, especially when it comes to vacation homes, is pretty good, so if your new in the game, you have to know what makes clients happy and what makes your competitors tick. The deals and price wars are very real to those venturing in this niche, and so be sure to do your research and hire a reputable real estate agent to help you get through the process.

Go ahead and look into purchasing a home in Florida, as the market is currently pretty strong. Whether you prefer inland or the coast, you’re sure to get great value for your investment.

4 Tips for Effective Goal Setting When Investing

4 Tips for Effective Goal Setting When Investing

Getting involved in real estate investing is a worthwhile endeavor, as it can be a wonderful means for creating consistent cash flow. With this in mind, it is important to be conscious of short and long-term goals when it comes to your investments and life in general. It’s important to set goals and make consistent steps toward achieving them. If you’re a real estate investor, negotiations and transactions are day-to-day tasks that you may have to contend with, as they help you take steps towards success.

To achieve your objectives, you must devise an effective plan that will assist you in reaching that particular short or long-term goal. Without a plan, you’re like a sailboat without a sail, so here are 4 tips for effective goal setting when investing in real estate:

  1. Set realistic goals
    Setting unrealistic goals is worse than not setting any goals at all, because it sets you up for failure. Go through your goals carefully and replace the unrealistic objectives with goals that you have a high likelihood of achieving. Set both measurable long and short-term goals. The short-term goals should be the precedent in line to accomplishing the long-term objectives.
  2. Know your limits Setting your goals and objectives means knowing your limits well. Know when you are going too far and when are still within your target. This helps you stay reminded of your duties as an investor. You might also want to run your goals by a seasoned investor to get his or her input.
  3. Set specific goals        The goals you set should be clearly defined and specific. At the beginning of every year, most people resolve to go to the gym more, lose more weight or save money in the New Year. But by the end of the February the same people find it difficult to measure how much they have achieved because their targets were too vague and they lost drive. A more effective target would have been to lose 5 to 10 pounds in January, spend at least 30 minutes doing cardio at the gym at least 3 times every week or to save 10 percent of their net pay every payday. Defined goals are important because they help you measure progress.
  4. Know the main purpose of your goals          Knowing why you are setting the goals helps you stay motivated to achieve them. This helps motivate you to work closely on your objectives and view them as your stepping stone towards success. Make sure you know the reason why you’re setting your sights on a certain goal. The stronger or more passionate the reason, the better chance you have of achieving it.

Setting goals is very important. If you talk to successful business men and women, most will tell you that setting goals and creating an action plan to achieve them has helped them achieve the level of success they have. If you haven’t done this, go ahead and devote some time toward doing so.

Of course there is bound to be a failure in some steps that you make towards achieving your goals but learning from those failures and mistakes should help strengthen your resolve to do better than before and help you become wiser when it comes to decision making.

Real Estate Markets in Florida, Illinois, Michigan, Missouri, and Nevada

Real Estate Markets in Florida, Illinois, Michigan, Missouri, and Nevada

For many real estate markets, including Florida, Illinois, Michigan, Missouri, and Nevada, recovery after the crash is going well. Interest rates are stable and home prices are on the rise. Right now, there are many good things going on with the market in addition to unemployment inching down.

There is no question that in the states mentioned, it is definitely a buyer’s market. That does not discount rental opportunities but shows that this could in fact be a good time for you to become a homeowner. In the past five years, the biggest price increase for real estate was seen. Considering the housing market was going through a meltdown just prior to that time, a stronger economy is evident. While things are going in the right direction, there are still important factors to consider before buying real estate.

Factors to Consider

With the market looking strong, some people are jumping in without first analyzing some key factors. If you want to build financial security, remember that the economy is still in a recovery phase. Although analysts feel strongly that the market will continue in its current direction, you still need to be somewhat cautious.

While the real estate market has finally turned the corner, the volume of home sales is where it was in 1999. In the meantime, inflation-adjusted prices are at 2000-to-2001 levels. Even construction is currently up, with a significant increase in the number of building permits issued. While this is all great news, current numbers are still not even close to recent highs.

Something else to consider is that while the real estate market for Florida, Illinois, Michigan, Missouri, and Nevada is doing well, other parts of the country are lagging behind. If you plan to purchase a home in one of these states, you may face challenges of low inventory and high competition.

Everything You Need To Know About Investing In Rehab Real Estate

Everything You Need To Know About Investing In Rehab Real Estate

Rehab is a great area of real estate investing, but where do you start. There are a few things you need to know about investing in rehab real estate before you can put your money into it.

The Basics of Rehab Real Estate

Rehab real estate falls into three different categories, which are:

  • Flip
  • Personal Use
  • Rental

Each category has its own pros and cons. However, if it is your first time, it would be wise to start by rehabbing a house for personal use. This ensures you keep risks to a minimum and you won’t have to worry about carrying added costs from another property. By living in the house while you rehab it, you will incur regular living expenses. Also, there are several other advantages of living in the house you are rehabbing. For starters, you don’t have to worry about meeting time restrictions. But if you rehab a property and wish to flip it, the value goes down with each passing day the property is not sold.

Additional Factors to Keep in Mind

  • Learn From Your Mistakes

No matter how well prepared you are, as a first time rehab real estate investor, you are bound to make mistakes. Try to learn from the missteps and your chances of success in the future will increase.

  • Keep the Buyer in Mind

If you are rehabbing a house with the intention to flip it, think from a buyer’s perspective. Consider making choices that will appeal to potential buyers to ensure a quick sale.

On the surface, rehabbing real estate may seem complicated but as you can see, the process is quite simple.

Rehab Real Estate – The First Steps to Success

Rehab Real Estate – The First Steps to Success

Starting out with investing in rehab property is a viable strategy, but how do you launch out? The first step is to establish a rock solid business plan and a detailed financial forecast. Once you have these, you can get started.

Rehab real estate can be divided into three main categories: personal, rental and flip. All three carry their own risk/benefit ratios. To start out, you should begin by revamping a property for personal use. Living in the house whilst doing the renovation will save you money as you will only have to budget for your living costs.

On the other hand, if you are rehabbing to rent or to flip you will have to think of your potential buyer. Hence, try to choose building materials and design elements that will appeal to many different types of people. In case your intention is to live in the property first but pass it on after, think carefully about modifications that may suit your personal taste but may not be favored by others.

Getting into rehabbing can be a risky business and you are bound to make mistakes. As matter of fact, treat your first property as a rehabbing course. Something where you can learn without the fear of making mistakes. Going back to the first advice, doing a renovation for personal use will give you the time and space to explore and develop.

When the time is right and you decide to sell your first property, look for a moderate deal with a satisfied customer. Chasing the millions from day one could leave you frustrated for a long time and make your first deal a miserable one. Going step by step will make both you and your business a long-term success.

Thinking about hiring a Property Management Company?

Thinking About Hiring a Property Management Company?

Many landlords and property owners choose to do all related property management tasks by themselves or with the help of a residential employee. However, if you own a number of properties or are looking to get more help you may want to consider hiring a property management company.

Such companies can be fairly expensive and often you will find that their services do not align with your needs. Hence, before making a decision about this investment be sure to consider the following points.

What Does A Property Management Company Do?

A good company will offer you to deal with the full cycle from advertising your property and interviewing prospective tenants right through to collecting rents and settling any issues that may arise. At the same time, look for companies who are interested in your individual situation and are prepared to go a long way to prepare a tailored solution that suits your needs. It is also important to remember that management companies are service providers and thus you will avoid all problems associated with being an employer.

When Should You Hire a Property Management Company?

You own several properties or estates. It’s a simple numbers game but if you have several properties that need to be taken care of, hiring a management service will be more cost effective.

Your property is located far away. If you don’t live in the proximity of your property, a management company could prove to invaluable. As part of their service they would take care of everyday tasks that you could not do from your home.

Means of acquiring residential real estate

Means of Acquiring Residential Real Estate

Residential real estate is real estate that is sold out or bought for purposes of accommodating those looking to live in a residential area. Such properties are often expensive to buy or develop from scratch. But, there are numerous ways of acquiring residential real estate properties. Each method is associated with its own pros and cons.

To start with, residential properties may be acquired through crowd funding. In this case, individuals come together and decide to purchase a certain piece of property. The cost of the property is shared among the individuals involved. Finding other assets, such as a piece of land that can be developed, can be done through consulting real estate listings. These help to locate residential real estate that is available for sale.

Another manner in which residential real estate is acquired is through a mortgage. There are numerous financial lending institutions that are interested in providing funds for the purpose of acquiring real estates. Mortgages are usually flexible long-term loans that are associated with reasonable interest rates. They can be used to purchase residential real estate.

Private ownership of residential real estate is not only done through joining hands with other potential owners. Rather, it is also possible to buy residential real estate without the involvement of partners. However, you need to have a firm financial base.

Understanding Trust Deeds

Understanding Trust Deeds

When entering the realm of real estate, you will inevitably need to understand trust deeds and how they work. We’ll answer both of those questions below.

What is a Trust Deed?

A trust deed is a deed held on a property. The trust deed is not held by a so-called borrower or lender, but by an independent entity better known as a trustee.

How Do They Work?

The trust deed is better known under the term “promissory note.” This promissory note basically asks the borrower to repay a certain amount of money within a given time period.

What Else Do They Include?

A trust deed will also specify a number of details including the amount of the loan, the applicable interest rate, repayment frequency and the time period in which the borrower is obligated to repay the agreed amount. In addition to that, the trust deed describes any penalties that will be implemented when the conditions are not adhered to.

How to Get One

In order to take advantage of the promissory note, the lender has to take out a loan or purchase an existing promissory note. The loan can be acquired from a private lender, but can also be arranged by a real estate broker. For that reason, the conditions of the trust deed may heavily depend on the conditions and requirements of the lender or private entity.

Even though a trust deed may be a good alternative for a traditional loan, especially for people who cannot acquire a loan for themselves, they are accompanied with a number of risks. Compared with other lending options, the trust deed is right on par with other popular lending solutions.

3 Real Estate Markets you need to Invest in Today

3 Real Estate Markets you need to Invest in Today

If you have finally decided to invest in real estate, there it is about time you start planning right away. Investing in real estate is not as easy as it may seem. It requires extensive research and in-depth analysis of the market you plan to invest in. You will need to do your homework and find out about markets that actually have potential in the first place. Failure to do so will not only cost you money, but you will end up wasting time, which could have been invested elsewhere. To make things simple, here are 3 real estate markets you need to invest in today for a better tomorrow.

-Cape Coral – Florida

Located in the Fort Myers locale, you will get to experience everything that the Gulf Coast of Florida has to offer. Even though it has suffered from the biggest decline since the recession, it gives you the opportunity to reap rewards as property values have substantially recovered and increased over time. Home values initially fell to 59% with a median price of $86,000.

-Las Vegas – Nevada

There is no doubt that the recent recession left no stone unturned when it came to real estate properties. Even Sin City itself felt the full blunt force of the recession. Most people assume that the glamour and glitz of the city kept things intact. Unfortunately, it was unable to do so as values fell by 36%. This means that you can easily buy a good home, but it can put you back around $150,000. But then again, who would ever consider missing out on an opportunity such as this?

-Saginaw – Michigan

Not far from the Grand Rapids, the locale is perhaps one of the finest you can ever consider living in. The area was hit hard as well; values fell by a staggering 54%. However, things are looking up for the residents currently living in Saginaw as real estate properties are slowly gaining traction once more. Keeping this in mind, it would be wise to make the most of the situation before it is too late.

Now that you know about three of the real estate markets you could invest in, you should make the most of the situation. Enough emphasis cannot be placed on the fact that you will need to do your research and find out as much as you can about the potential real estate properties that interest you the most. If you are uncertain, there is no harm in seeking professional assistance to make an effective decision.

What to Look for in Rehab Properties

What to Look for in Rehab Properties

When done correctly, there is significant money to be made in rehabbing properties. Also known as “flipping,” the process involves buying a distressed property for as little money as possible, making necessary repairs and improvements, and then renting long term or selling for a nice profit. Because there are always risks with rehabbing, it is critical to purchase the right property, possess the right knowledge, have necessary funding, and work with an incredibly talented and dedicated crew.

Financial Responsibilities

For starters, the economics of the deal, as well as specific financial goals, need to be determined. This includes not only the initial purchase price but also the expenses for labor and materials in order to bring the property to a productive state so it rents or sells quickly. There are also expenses for insurance, property taxes, and utilities.

Most importantly, you need available funds for unexpected expenses. For instance, you might discover the entire subflooring has to be replaced, hidden black mold, or structural damage. With rehab properties, anything is possible, so you have to be prepared.

Finding Great Rehab Properties

Choosing the right rehab properties is essential. Below are some helpful tips:

  • Identify who the renter or buyer is.
  • Consider the type of features/amenities most wanted.
  • Determine the current market value for specific geographical areas.
  • Calculate the estimated cost and time needed to transform the property.
  • Find out how long the property has been on the market.
  • Determine if the property is in an area that supports good renters or quick sale.
  • Research any liens or judgments against the property.
  • Identify any special challenges with building codes and permits.

Although tempting, you never want to purchase a rehab property just because the price is low. Even though a bargain is important, look for properties that will attract solid renters or serious buyers by being located in low-crime neighborhoods, close to good schools, and near parks, grocery stores, and hospitals.

Investing In Detroit Real Estate Could Be The Deal of The Year – Get In There First!

Investing In Detroit Real Estate Could Be The Deal of The Year – Get In There First!

For most of us Detroit is not much more than a collection of news stories related to crime and low economic output. It’s a sad image but a vivid one that is rooted deep in our memories ever since the downfall of Motor City.

But things are changing and in the near future a new image of Detroit will emerge, one of rapidly growing markets and of a high-flying economy. This also means that there are good reasons for investing in real estate.

  1. The startups are coming. As was foretold by Venture Beat News in recent weeks, major venture capital firms are investing heavily in newly created startups that see their future in Detroit. It is only a matter of time that some of the currently rough neighborhoods will turn into fashionable young professionals’ quarters.
  1. Buy cheap and keep it. Buy and hold strategy could work in Detroit like no other city before. Whilst the city is crumbling at the moment, give it five years and you will see impressive changes. The city parks will be cleaned up, the fountains will be turned on, and major corporations will put their names on the city’s skyscrapers. Just wait for it.
  1. Emerging market on your doorstep. Let’s call it what it is: Detroit is an emerging market. It is emerging in the sense that it has started to attract new investors with fresh ideas and a desire to settle new industries. Stakeholders have already invested over $1 billion to renovate sights like the Greektown Casino, downtown hotels, and restaurants. $650 million has been spent on a new sports complex and into rebuilding the arena district.

It all takes time and you will not cash in tomorrow, but Detroit will be a big hit for those willing to invest in real estate today.

Introduction to Property Management

Introduction to Property Management

Property management involves the operation, control, and oversight of commercial, residential, or industrial real estate. This involves a hired company with accountability for numerous aspects of the property. For residential rental units, the property management company will conduct background/credit checks of potential tenants, handle leasing contracts, collect monthly rent, maintain on-site amenities, and keep the owner abreast of any concerns or problems.

While the benefits of a property management company can be enjoyed by anyone, this service is often most advantageous for owners who live out of state or have multiple properties. Regardless, the company serves as the eyes and ears of the owner while handling the responsibilities of the property.

Licensing Requirements

In most states, a property management company must possess specific licensing in order to list properties, negotiate leases, conduct inspections, and accept rent payments, among other things. Most states, excluding Vermont, Idaho, and Maine, require a property manager to be a licensed real estate agent or someone working under a licensed broker. However, in South Carolina, Montana, and Oregon, a real estate license is not mandated, although a property management license is.

Benefits of Property Management

There are tremendous benefits in using a reputable property management company, which include:

  • Higher-Caliber Tenants – Because the tenant screening process is stricter, more people pay rent on time, stay longer on the property, take better care of the rented unit, and overall cause fewer problems.
  • Vacancy Cycles – Because of the services provided, a reputable property management company will perform critical tasks that shorten vacancy cycles. This includes making necessary repairs and/or improvements to the property, determining appropriate monthly rent, and conducting effective marketing.
  • Rent Collection – The success or failure of a property has a lot to do with how rent is collected and late payments are handled. The property management company will set payment criteria for everyone without exception. By enforcing the terms of the lease, tenants know that unless their rent is paid as stipulated, an eviction is imminent.

Real Estate Investing

Real Estate Investing

Real estate provides a great investment that can be used by investors to generate regular cashflow. While not without its risks, investing in real estate carries with it the potential to yield returns that help to supplement the income of the investor, with the generated cashflow helping to secure additional financial freedom.

How long it takes for certain real estate investments to generate cashflow depends on the asset, but it can also depend on the strategies and tactics used and implemented by the investor, which is why obtaining some form of investor education is important when beginning to invest in real estate. The quality of your real estate education, whether through an education program or the use of a mentor, could prove crucial as you go forward with investing in real estate.

Each property and asset could bring with it its own set of challenges, which can make it difficult to fully assess each deal before it’s made, but knowing what to look for and how to approach risks as an educated investor provides significant help and protection against such situations. The search for the right property typically involves a bit of research and hard work, but it can prove more than worthwhile in the end when done right! Investing is all about having the right set of tools and strategies, and knowing how to use them.

Rehab Properties

Rehab Properties

One major attraction of real estate investment is the ability it has to generate cashflow in a good amount of time. One of the more popular areas of real estate investing is that of rehabbing properties, which involves fixing up rundown homes and putting them back on the market with added value. Effective rehab starts when you know how to accurately evaluate the value of a real estate after, as well as before, you begin rehabbing the property. Some investors tend to overestimate the value of the property following its modifications. Others simply underestimate the prices or time required in selling the rehab property. The longer you hold on to a flip property, the more expensive it gets for you as the investor as you begin to make the payments on the property as well as taking care of all the needed items as part of the rehab.

Utilize lower price values, exaggerate repair costs, and think that the job will finish longer as you expected. When your detailed examination is based from these three assumptions and the deal still appears reasonable, then it is likely that the deal could very well work for you.

Be sure to keep the end in mind. Think of your potential buyers, and who they could end up being. Who are you targeting? Ideal rehab properties are in locations where homeowners are seeking to purchase, which will help you in securing a buyer.

Real Estate Investing in Detroit

Real Estate Investing in Detroit

Detroit, one of the most dejected real estate markets in the USA shows that nothing is impossible. Picking its bones from the ashes, Detroit is showing some real hope for first time property investors and even the professional investors are nodding their heads in agreement.

Being the largest city to have come under the blanket drive of bankruptcy protection, Detroit’s real estate is filled with a new-bound promise.

From being neck deep in debt with $18-20 billion, crippling the housing sector, leaving properties in depression, abandoning properties and leaving schools to the hands of wreck two years ago, Detroit is currently seeing a forecast of increased home prices.

Realtors are ecstatic as they are receiving multiple offers for desirable home within hours of listing.

Recent real estate investors are finding deals as they come to understand that their timing of investing in real estate in Detroit couldn’t be better.

Foreclosures, still being a part and parcel in the life of real estate in Detroit will not take away the present light dawning on the current real estate market with its housing sector selling properties at affordable prices.

Self-directed funds – your ticket to financial freedom?

Self-Directed Funds – Your Ticket to Financial Freedom?

Self-directing your IRA offers you the option to make your own investment decisions with a range of alternative investments for your savings – including real estate.

What’s in it for me?

Real estate makes a solid investment for your IRA and can give you a cash stream as well as long-term appreciation. It also means that you can buy and sell properties without taxation.

Self-directing real estate IRAs can put you in control of your funds. Stocks, shares and intellectual property are all common investments, but not as familiar to most us as real estate. By choosing to go with something you know, you’ll know the language being spoken.

What can’t I do through self-directing?

Any work on your properties must be done by a third party – meaning that you can’t provide any required labor yourself. You also can’t live in the property and self-dealing – selling a property you own to the IRA provider – is a big no.

How does it work?

The IRA provider uses the funds to purchase and maintain the property – and when it generates cash either through rentals or sales, those funds go directly back to the IRA and can be used to buy other assets.

Choose an IRA provider authorized by the IRA to handle real estate. You’ll be able to select the property and negotiate the terms for any deal, negotiated by the provider.

As with all investments it’s essential to do your homework and get legal advice, but with both a cash stream and appreciation, self-directed real estate funds have the potential to give you the financial freedom you’ve been looking for.

Disclaimer: The Company introduces general information and education concepts about self-directed retirement accounts (such as 401(k) and IRA accounts). Like any investment, there is risk in using retirement funds for investing in real estate assets. It is possible to lose a portion or all of an investment in real estate – including those purchased with retirement funds. Please review IRS Publication 3125 regarding the use of retirement funds for alternative investments. The document can be found at: http://www.irs.gov/pub/irs-pdf/p3125.pdf. Every individual is different, with unique circumstances. We do not offer tax, accounting, financial or legal advice. Prior to acting upon this information, you may consult your own accounting, legal and financial advisors to evaluate the risks, consequences and suitability of that transaction. The Company is not a retirement account custodian, trustee, or securities dealer.