My latest ramblings.
Enjoy! I definitely got important things to say
My latest ramblings.
Enjoy! I definitely got important things to say
Real Estate Expert Nick Statman shares Property Management Tips for Entrepreneurs.
If you’re an entrepreneur, you’re no stranger to hard work. You know there is so much work that is done behind the scenes that leads to both personal and professional success. Entrepreneurs are also always looking for ways to work smarter, not harder, which is why many gravitate toward property investment.
Part of passive and profitable property investment is understanding property management. Whether you hire a property management company to handle the day to day responsibilities of your investment or do it yourself, these are the four things all entrepreneurs need to know about successful property management:
Get To Know Your Property
Property management starts with knowing the ins and outs of your property, understanding the systems and appliances in the home, and having an in-depth knowledge of the inner workings of your investment. Spend time getting to know the features of your property that make it unique, the areas that can be improved, and any issues that may send red flags to potential tenants. A property investment is something you can eventually step away from and earn a passive income but at the beginning, it’s important to get to know the property and understand the best ways to maximize your ROI.
Keep Up With Maintenance
While the draw to property investment is the ability to generate passive income, property management is a very active and important part of the investment strategy. If you’re going to do the upkeep yourself, it is important to be realistic about how much time and money it takes to handle the most common rental property repairs. If you plan on hiring a property management company, ask questions about their maintenance procedures. Ask about if they handle maintenance in-house or if they hire an outside company to take care of it. The key to a profitable investment is being proactive in taking care of it.
Understand What Causes Tenant Turnover
The best way to avoid tenant turnover and extended vacancies is to understand what causes them long before you invest in property. Some of the most common reasons that tenants leave a property include not being able to afford the property, needing more/less space due to changing life circumstances, or moving or relocating because of work.
Avoiding inconvenient and expensive turnovers starts with an intentional and thorough tenant screening process. It can be tempting to breeze through this part, but not screening tenants can end up being more expensive in the long run. Spend time checking the tenant’s background, financial history, and rental history. Check references and do an online search. You can avoid many of the most common turnover issues through careful screening.
Vet Property Management Companies
Owning a rental property can be a full-time job. It can involve late-night emergency calls, plenty of home repair and maintenance, and money and time spent on tenant screening, rent collection, marketing, and accounting. If you were hoping for a more passive investment strategy, you may want to hire a property management team.
This team of professionals can serve as extra eyes and ears on your property while you’re away, and take care of the responsibilities so that you don’t have to. But not all property management companies are the same. Some offer a flat rate for their services while others work based on a percentage of your rental income. Some do all of their work in-house while others contract the work out. Interview and vet multiple property management companies before deciding on one. Your success depends on how well they do their job, so it is important to take the time to find a team that can meet your needs.
If you’re an entrepreneur interested in property investing and generating a passive and low-risk stream of income, make property management a top priority. The better you take care of your property, the easier it will be to maximize your ROI.
More resources from Nick Statman.
Property Expert Nicholas Statman–
If you were to ask investors six months ago if they would have to learn how to host virtual open houses or worry about the extreme sanitation process as part of their home selling, almost everyone would say no. But here we are, months into the changes brought forth by COVID-19, and investors are quickly learning to adjust their selling methods.
Investors all over the world are adapting to a virtual selling method, and using innovation and technology to help them close deals in a brand new way. If you’re planning on moving forward with buying and selling properties during these rapidly changing times, here are three things you need to know about selling your home virtually.
Social media is your friend
Most property agents learn quickly that social media is their friend when it comes to buying, selling, and investing in property. An active social media presence not only helps you connect with the community but also helps to expand your reach and get your property in front of as many interested buyers as possible.
During a time when people are spending a lot more time connecting with friends and family on social media, your Facebook and Instagram platforms can be critical in selling your property virtually. Tools such as Instagram stories, Facebook Live, messaging apps, and other social media features help enhance your marketing strategy without having to meet anyone face-to-face.
If social media isn’t a significant part of your marketing strategy already, now is the time to focus on creating a powerful and authentic online presence to help you sell more property.
Invest in high-quality virtual tours
High-quality pictures are great, but virtual tours take showing a home to a whole new level. Since many interested buyers may not be able to come out and physically tour the property, they’re counting on sellers to give them as much information about the property upfront as possible. Hi-tech virtual tours and 3D experiences have helped completely immerse the potential buyer in the home showing experience. They can get a better idea of the flow and layout of the home, and feel like they are there.
Host video chats and buyer Q&A sessions
Traditionally, buyers, sellers, property agents, and investors would meet multiple times throughout the home selling process to discuss details, and ask or answer questions. Now, the buyer still needs all of this important information, but the channels in which they receive it are a little different. Host virtual video chats with potential buyers to discuss the details of the home. This can be more personal and productive than sending multiple emails back and forth.
You can also host virtual meetings for the community to cover topics like first time home buying, rental options in the area, or local market analysis. Just because we are social distancing doesn’t mean we have to be isolated. There are still many ways you can connect and communicate with buyers to give them the information they need to close the deal.
Follow guidelines for in-person home showings
Some sellers are choosing to continue with the traditional home showing strategy, and adjusting their methods to make health and safety a top priority. If you are still going to allow people to tour the home, putting protective measures in place will make buyers feel more comfortable and help you do your best to reduce risks. Some things you can do to host a productive and socially distanced open house include:
Selling property and closing deals requires creativity, innovation, patience, and quick decision making. Now more than ever, sellers are finding new ways to market their properties, serve the buyers in their areas, and close deals all while being mindful of social distancing.
As we continue to navigate our communities amidst the uncertainty, use the technology available to create virtual content that will help you sell your property quickly and connect with the buyers in your community in a more high-tech way.
Learn more about social distancing on the following sites
Nicholas Statman has been buying, selling and developing property since 2001, and in that period he has traded thousands of properties.
If you ask a successful property investor the tricks behind sourcing, revamping, marketing, and selling properties for profit, they’ll tell you it’s all about building a strong team. While one of the advantages to property investing is being able to work to your own schedule, it does require working with other industry professionals to ensure things are done well. To build a strong property investment team, you need people who are good at what they do, that are reliable, and are passionate about the industry. As you begin to put together an all-star property investment team, make sure you include these eight impact players:
Estate Agent or Property Sourcer
Finding the right estate agent can make the difference between a growing and profitable portfolio and remaining stagnant in the industry. The responsibility of an agent on your investment team is to bring a comprehensive understanding of the property market to your team. They also have access to multiple listings, and find deals on your behalf. Working with an estate agent allows you to stay connected with the current trends of the property market.
As you search for the right agent for your team, it is important to remember that estate agents work specifically with homeowners while sourcers work with investors. You want to work with an agent who has experience working with property investors.
Property investing is one of those investment strategies where you need money upfront to make money in the long run. Having a proactive mortgage broker on your side will help to speed up the loan process, a process that when delayed, can negatively impact the buying or selling of property.
Unless you are a general contractor yourself, you are going to need to have someone with this type of home repair and renovation experience on your team. As you acquire, sell, and revamp properties, you will need the expertise and resources of a contractor to get a lot of the work done. When you find a general contractor that you trust and work well with, keep them close. They have connections to specialty contractors such as painters, plumbers, electricians, and other industry professionals that you will eventually need as you buy and sell property.
Property investing can be an exciting and profitable investment strategy. However, it is essential to be very intentional about balancing the money that comes in with the money that goes out. A large part of property investing, especially in the beginning, is figuring out the details of financing. An accountant can also help prepare your tax returns and can give you professional tax advice. Is important to look for an accountant who has experience working with property investors and understands the market.
Being successful in the property management industry means always being aware of the legal requirements and guidelines associated with this type of investment. Laws and regulations are always changing when it comes to property investment, and it can seem impossible for someone unfamiliar with the legalities of property investing to keep up with all of it. A solicitor who has experience with the property market and investing can help you draft legally binding documents and execute them correctly. Property investment solicitors can be extremely helpful for investors who specialize in commercial properties. They can assist with:
If your goal is to buy a property, upgrade it, and then rent it out to tenants, it is recommended to have a trusted property manager on your team. Screening tenants, handling rent payments, and communicating with tenants daily can be a full-time job. Many property investors don’t have the time to dedicate to this part of the investment process. Having a property manager on your team allows you to hand off these responsibilities to another industry professional that you trust.
As you begin to buy and sell property, it is important to have an experienced set of eyes look over your property to ensure there are no defaults or issues that have been missed. Having a qualified surveyor that you trust on your team allows you to rest assured that your properties aren’t hiding any defects that could impact the transaction process. Once a surveyor does a thorough check of the property, his or her report can determine whether or not the purchase moves forward. Their findings can directly impact the sales price and gives the seller a chance to make necessary repairs before continuing with the sale.
In any investment, there is a risk. Where there is a risk, there is a need for an experienced insurance broker. This type of specialist is an expert in property insurance and risk management. They work on behalf of the client and work with a wide range of insurance companies directly. Having this type of industry professional on your team makes it easy to understand the details of a complicated insurance policy. They can also help you determine what level of coverage you need. An experienced insurance broker can assist you in ensuring long-term and short-term construction projects and even offer business liability coverage.
Your success in property investment depends significantly on the team of industry professionals you have behind you. While it is impossible to do it all on your own, it is also costly and time-consuming. It is important to build a network of experienced, qualified and trusted industry professionals to leverage time and money, work harder not smarter, and maximize your ROI.
You can make a ton of money with real estate investments, but you can lose a lot, too. If you would like to be successful in this market and not lose your shirt, you will want to read the great tips that follow below. Keep reading to learn how to be a better investor in real estate.
Take time to properly access the market before you go out and make a real estate purchase. Look at between fifty and a hundred properties in the area of interest. Compare them using good note taking and a spread sheet. Predicted rent, repair costs, and current prices ought to be considered. Thinking about these factors can assist you with separating good deals from bad deals.
Never purchase a property without an inspection. A seller might pay for the inspection, but can you really trust them if they use someone they know? Hire your own person.
Think about partnering with a company that specializes in property management. Although it’ll cost some of the profits you make, it can be well worth it. The company that does the property management will screen potential renters and deal with costly repairs. That frees up your schedule to focus on finding more investment opportunities like Cafelavista.
Real estate investors generally experience both highs and lows. Take the difficulties as they come, but do not let them discourage you. As long as you are persistent, you should find success. Continue to learn, keep working, and the results will come your way.
Stay away from new realtors. When it comes to investing in real estate, you really need someone experienced to provide you with the best opportunities. This will only happen if you use a realtor that is well connected and not one that is just starting out. At the bare minimum, go with an experienced firm.
Always try to keep extra money allocated for paying the mortgage on the property in case it becomes vacant. Having extra money for this will make it easier to cover the mortgage until you get a new renter.
Stay away from buying a fixer-upper. While it might seem like a bargain, you may end up investing a lot of money to get it in good shape. The ideal purchase is one that has been well-maintained and only requires minimal care. An even better investment is one that is up an running with tenants that have a good history of payment.
Screen any potential tenants you are considering letting live in your rental property. The wrong tenants can cause major damage and reduce the value of the property. A background check won’t totally protect you; however, it can reduce the chances of getting a bad tenant in your property.
Learn the terms and buzzwords of real estate. You must be able to talk the talk. You may be taken advantage of if the seller senses that you’re new. It is smart to use lingo and know-how to gain leverage. You will be more effective during discussions if you understand the terminology.
Make sure that you have a plan before thinking about investing. Think whether you desire to be a flipper, a wholesaler or if you want to buy and hold. Understanding your goals helps make purchasing a property that much simpler.
Real estate investing is not for anyone that gets scared easily. It involves taking on risk, having the skill of negotiation, as well as financial stability. While certain properties seem profitable with minimal effort, there is often a great deal of stress involved.
Don’t try renovating properties because the latest trends are to do so. People have different tastes and preferences. Choose classic fixtures and styles as well as neutral colors. Not everyone has the same tastes as you.
In order to have money to invest, it is important to set up a budget. Make a budget and stick to it. Let yourself have some extras, but keep focused on your goal. If you’re into frivolous spending, you’re not going to be successful when it comes to investing.
Be aware of how rapidly you can expect to get your investment back. You can usually sell stocks, bonds, and shares in mutual funds whenever you want. Although, you are never guaranteed to get back what you invested. Other investment options, including limited partnerships, tend to have restrictions when it comes to cashing out.
Before entering into any investment agreement, know the guidelines on when you can cash out. You need to know this before you start putting your money in different investments. As an example, if you have a CD, there are penalties assigned if you don’t keep it until the terms set out when you got it. Many times limited partnerships prohibit cashing out.
Don’t sell your stocks as soon as there’s a problem. Panic is an emotion which can set off a landslide. Stay calm yet make sure you are aware of all the stock market happenings. Sell only when it is the logical choice.
Make sure you allow room for failures. Chances are, you are going to make a poor investment at some point. It is hoped that your losses will be small if it happens, but being prepared is the most important step. Don’t invest more money than you can lose.
Talk with a professional. There are many complicated parts of investing. There are many benefits to speaking with a professional about investing. Learn all you can from these people, and don’t get shy when it comes to asking for advice. You will see how helpful it can be.
Teach your children about investing wisely. Show them how to make wise decisions. A lot of children know how to waste money, but they don’t know hoe to invest and save. Instructing them by using simple terminology will pay dividends well into the future.
As you have read, investing in real estate works really well when you the the right advice. Read these tips as often as necessary. Tell others what you have learned so they can benefit from your knowledge too.
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