Category: Real Estate

Rental Real Estate Investing Tips

Owning rental properties isn’t almost as glamorous as some people might think and doesn’t provide the almost immediate profits that flipping homes may however it truly is a wonderful and extremely valid approach to rental real estate investing that will build a steady profit over time if you plan appropriately.

Rental properties are in demand now more than ever with so many people going into foreclosure and losing the residences they have worked hard to build for their families. Because of this rental properties are a good thing to possess at the moment, particularly those that are family homes.Read more details about article from Ssacpa.com

Here are your 5 AMAZING tips on rental real estate investing:

First, only purchase rental properties in areas that folks want to live in. It may be spot on that it is possible to purchase property cheap in several very run down sections of town but it truly is doubtful that you can turn those properties into profitable rental units. It is best to pay a little more for a more attractive address for tenants. You will find that your properties are inhabited more frequently, which will produce you more money in the long run.

Second, pay attention to your varieties of individuals in the area and buy rentals fittingly. It is certainly achievable to turn big homes into numerous smaller apartment units (in accordance with neighborhood zoning laws) that are ideal for college students. You do not want to do this however in an area that is geared in the direction of family homes and won’t be welcoming or tolerant of school students.

Third, don’t be greedy. The objective of possessing rental properties is obviously, to generate money. At the same time if you price your properties too high you may discover that they sit vacant more frequently than not. Each month that your property is unfilled is a month that you aren’t making money with your ambition of rental real estate investing.

Fourth, know the market. Study the local market for purchasing real estate and renting real estate. This can help with lots of things, not the least of that is determining whether or not one certain property will make a lovely rental unit. One more factor it can help you establish is what rent the units you’re considering can draw in month after month.

Finally, when renting properties you need to focus on your long-term goals as opposed to shortsighted goals. Rental real estate investing is a marathon as opposed to a dash with the greatest proceeds coming at the end. You will want to pay as little interest on the property as possible and pay the property off as rapidly as possible so that you can accomplish the maximum profit potential and acquire new properties. The true wealth when rental real estate investing is not in renting out a couple of units but twenty or thirty. The more rental properties you own the more money you stand to make from owning them.

Red Flags You Should Look Out For When Choosing A Realtor-Explained

Realtors have a National Code of Ethics. Their professional organizations, local, state and nationally all subscribe to this Code of professional behavior. Most Realtors follow and adhere to the Code; however, as in any profession there are the few who don’t. It is these few that give Brokers a public trust rating just above that of used car salesmen. So what can you, the public, do to insure that you are working with a professional real estate Broker?  Let me share with you Five Red Flags that signal “Look out, danger ahead.” Don’t even think about working with a Broker who shows any of these five warning signals. news

Five Red Flags

Most Brokers are ethical and truly provide professional service, the five red flags presented here refer to the bad apples, not the whole bushel. These few who engage in practices which may damage the public and discredit their profession are not representative but do exist and you need to protect yourself from them. The behaviors I’ve described in the five red flags, directly violate the Code of Ethics. These Brokers’ lack of ethical behavior does not connote competency, fairness and high integrity. No Broker should behave in a manner contrary to their professional Code. No inducement of profit or desire to grab a commission should justify their departure from the Code. The Code of Ethics is based on the golden rule.

Red Flag One:

A Broker shall not disparage other companies. If you hear a Broker saying things like, “well nobody works with that company.” Or “No one will work the flat fee listings.” These comments not only go against the Code of Ethics, but they are also against the Federal Fair Trade and Antitrust laws. This is a violation which is so serious it can warrant loss of license and perhaps jail time.

Red Flag Two:

A Broker tells you he can sell your house for a higher price than the market shows. The Code states that Realtors shall avoid exaggeration and over inflating a sales price just to get your listing. A higher price for your house is music to your ears but do you really want to just sit on the market? Be cautious of over inflated listing prices. Overpricing does not sell houses and the Broker violates the Code.

Red Flag Three:

A Broker solicits your listing when you are already listed with another broker. The Code specifically forbids a Broker from purposely soliciting your listing when you are listed with another company. A Broker offers to advertise your property for you, even tho you’re not listed with them. The Code states they may not do so without authority. Authority requires a written contract. Be aware. Be alert. There is no free ride.

Red Flag Four:

A Broker tells you that real estate commissions are a percentage fixed by law. Not true. A commission is determined by what the seller is willing to pay. A Broker may refuse to work for less then six percent; that’s up to them. You are not required to pay any set percentage or fee. Any attempt of any sort to gain unfair advantage of you or their competitors is a violation of the National code of ethics.

Red Flag Five:

A Broker pressures you to sign the contract immediately not wanting you to have time to think about it.

Brokers spend a lot or time in classes that teach them how to close, how to get your signature. There is nothing wrong with that; however, you do have the right to “sleep on” your decision. Don’t be bullied into signing before you’re ready.

Summary:

Be alert to these five red flags. If a Broker shows you any of these behaviors, run away, don’t walk, run from any Broker’s you feel are exhibiting these behaviors. You can help clean up the real estate profession by reporting these violators to the local board of Realtors.