THE HIDDEN BENEFITS OF OWNING TURNKEY RENTAL PROPERTIES
Turnkey rental properties have been growing in popularity over the past few years. Many investors are considering them as an option for their portfolio, and for good reason—they can be a great way to get started in real estate investing. Whether your focus is buying one investment property or a large portfolio, buying a high-end property or a low-cost one, you need a strategy that is customized to your interests, and a coach dedicated to making it happen. In other words, MY SMART COUSIN. At MY SMART COUSIN, we offer tailored solutions in every aspect of real estate ownership, with a particular focus on Black, Brown, and women real estate investors. Whether you’re looking to buy a house for the price of a car, or are looking to buy at a higher price point, we can take you from strategy to a targeted list of matching properties, to negotiation, financing, closing, and property management. If you are considering investing in a particular type of real estate— turnkey rental property— you’re not alone. Turnkey rentals have been growing in popularity, thanks to their many advantages. But before you dive in, it’s important to understand what turnkey properties are, and what to look for when choosing one. In this blog post, we’ll discuss the pros and cons of turnkey rentals and help you decide if this investment is right for you. Stay tuned! WHAT ARE TURNKEY RENTAL PROPERTIES AND HOW DO THEY WORK? A turnkey rental property is a property that is ready to rent out as soon as you purchase it. This means that everything from the kitchen appliances to the furniture is included in the sale. The value of this structure is that you won’t need to make any additional investments in the property after you close, bringing you that much closer to earning immediate rental income. While turnkey properties can be more expensive than properties that require some renovations, they can also be a great way to get started in the rental market without any additional hassle. And, since the property is already generating income or can be positioned to generate income in short order, you’ll have a much easier time qualifying for a mortgage to finance the investment. If you’re thinking about purchasing a rental property, be sure to ask your real estate agent if there are any turnkey options available. ARE TURNKEY RENTAL PROPERTIES A GOOD INVESTMENT? Turnkey rentals typically come with a higher price tag than properties that need some work. That’s because you’re paying for the convenience of having a property that’s immediately lease-ready, as well as the cost of the renovations, fixtures, and in some cases, even furniture, that the seller paid for. And while turnkey properties can be a good option for busy investors who don’t have the time or inclination to take on repairs, it’s important to remember that you’ll trade off some control over the design and layout of the property if you go this route. That can be a good thing or a bad thing, depending on your preferences. So, is a turnkey rental property right for you? If you’re looking for a property that is wrapped up in a pretty now and can offer immediate cashflow, a turnkey rental can be a great option. Just be sure to do your homework before making any decisions – and remember that there’s no such thing as a perfect investment! WHAT ARE THE PROS AND CONS OF OWNING A TURNKEY RENTAL PROPERTY? The concept of owning a turnkey rental property can be appealing to many investors, but it’s important to consider both the pros and the cons before making a purchase. · On the plus side, turnkey rental properties will take much less time to bring to market versus a property that has to be gutted and renovated. · Additionally, turnkey rentals are often located in desirable neighborhoods or areas that are primed for growth, which can make them easier to rent and command higher rents. On the downside, turnkey rental properties can come with some risks. If the seller went over budget on the cost of renovation, or perhaps worse, if the seller totally ignored or cut corners in some areas of the property to save money, then the seller’s bloated budget or shortcuts will become your problem. In short, it’s important to do your due diligence before investing in any turnkey property. HOW DO YOU FIND THE RIGHT TURNKEY RENTAL PROPERTY TO INVEST IN FOR YOUR NEEDS AND GOALS? There are a lot of factors to consider when you’re trying to find the right turnkey rental property to invest in. Front and center should be your budget, your goals for the property, and what kind of property will be a good fit for you. If you’re not sure where to start, it can be helpful to talk to a real estate agent or property investment coach who specializes in turnkey investments. They’ll be able to help you figure out what your options are, and what kinds of properties are available in your price range. Once you’ve narrowed down your search, you can start looking at specific properties and see which ones seem like they would be the best fit for your needs. With a little bit of homework, you should be able to find the perfect turnkey rental property for your needs. FINAL THOUGHTS So, are turnkey rental properties a good investment for you? That answer depends on a lot of factors, including your goals, budget, and the market where you live. But as with any investment, it’s important to do your research and understand what you’re getting into before making a decision. We hope this article has helped give you some insight into what turnkey rental properties are all about and how they work. If you have any questions or want more information, be sure to reach out to us – we’d be happy to help! YOU CAN ALSO READ: WHAT HOMEBUYERS WANT: THE MOST IMPORTANT FEATURES FOLLOW US: @MYSMARTCOUSIN
WHAT HOMEBUYERS WANT: THE MOST IMPORTANT FEATURES
It’s no secret that the housing market continues to be hot, even with high prices and higher mortgage rates in the mix. In May of this year, average home prices hit a record high of $400,000 and then some, despite surging inflation and the resulting downward pressure it placed on sales. But even when prices are generally high across the board, there are always bargains to be had, if you know where to look. What if I told you that you can buy a house for the price of a car! At MY SMART COUSIN, we help you achieve your real estate investment goals, using tools and channels that are often overlooked by others. As your Real Estate Investment Coach, we have the skills and expertise to position almost everyone, with a particular focus on Black & Brown folks and women, for success in this competitive market. With planning, persistence, and guidance, you can buy a house for the price of a car and finally get your foot in the door of home ownership and property investment! If you’re in the market for a new home, you know there are a lot of things to consider. How big should it be? What’s the commute like? What’s the neighborhood like? It can be tough to figure out what’s important to you, and even tougher to find the right home that meets all your needs. But don’t worry – we’re here to help. In this blog post, we’ll take a look at the top features homebuyers are looking for in a new property. So whether you’re just starting your search or you’ve been looking for months and still haven’t found “the one,” read on for some valuable advice. WHAT ARE HOME BUYERS LOOKING FOR? Homebuyers are looking for features that will make their lives easier, as well as add value to the home. Popular features that continue to stand the test of time include energy-efficient treatments throughout the house (think insulation and solar panels as well as efficient appliances and windows), open floor plans, and smart technology. Homebuyers are also interested in outdoor living spaces, a flexible space that they can use as an office (given the COVID ripples felt in the work world), and everyone’s favorite— updated kitchens and bathrooms. Let’s dive into some of the most important attributes at the top of that homebuyers’ lists. · LOCATION, LOCATION, LOCATION The location of the house is one of the most important features that a homebuyer looks for, as centrality to required locations (school and work) and neighborhood favorites (shopping and restaurants) is key when choosing a home. The factors that you prioritize are ultimately a personal choice. For instance, most homeowners want to live near the city, but not smack-dab among the bright lights and car horns of downtown. Likewise, many homeowners rank peace and quiet high on their list, but not at the expense of living far from civilization (particularly if playmates for children are important). The perfect balance is a neighborhood that’s close enough to the city center for accessibility, but far enough away from noise and chaos. Also high on many people’s lists is an established area. An area that has plenty of amenities like schools, hospitals, parks, and shopping centers is far more attractive than the prospect of living in a construction zone. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort · UPDATED KITCHEN AND BATHROOM When it comes to buying a home, everyone has different tastes and styles. But some features endure no matter your preferences. A modern kitchen and bathroom are two of the most important attributes that home buyers look for. A kitchen is the heart of the home, and a bathroom, particularly one that has a spa-like sense of tranquility, is a place to relax and rejuvenate. Neither of these rooms should feel dated or cramped. A well-designed kitchen should have plenty of storage space and counter space, while a bathroom should feel clean, uncluttered, and serene. · HARDWOOD FLOORS Flooring is one of the most important things that home buyers look for when they are purchasing a new home. Many people believe that hardwood floors are the best type of flooring to have in a home. Although hardwood floors are beautiful, they can also be very expensive. Great alternatives are vinyl plank flooring which comes with the added advantage of being waterproof, and laminate or tile. · ENERGY-EFFICIENT EQUIPMENT According to a recent study, the most important features that home buyers look for are energy-efficient equipment such as solar panels, draft-free windows and doors, high-efficiency furnaces, water heaters and appliances, and a well-insulated and solid structure. While energy-efficient fittings can add to the purchase price of the home, the savings can last for many years. If the cost of adding solar or other equipment is beyond your budget, other options include adding energy efficient lighting and thermostats, and low-flow shower heads and toilets. · A LONG-LASTING ROOF One of the most important features that home buyers look for is a roof that is built with quality materials and still has many years of life left in it. A tile roof can last for decades and comes in many attractive finishes. Asphalt shingles, which are the most common type of roofing materials, are durable, fire-resistant, and have a lifespan of approximately 20 years, depending on your climate. Metal roofs made out of steel are also becoming more popular because they are low-maintenance and energy-efficient, and can last as long as 50 years. · PATIO AND DECK ADDITIONS A slice of backyard greenery is popular across the board with most home buyers. Potential uses range from having a play space for kids to backyard barbecues and entertaining, to having an open area for pets to run around. Patios are natural additions for backyards as they extend your indoor living area, convert your lawn into usable space, and add significant value to your
LANDLORDS, ARE YOU AT RISK OF YOUR TENANT BEING ABLE TO LEGALLY WITHHOLD RENT? READ ON TO AVOID THIS SCENARIO!
Imagine this scenario: you’re a tenant who has agreed to rent a property from a landlord. However, after moving in, the house leaks and creaks, and all manner of other problems begin to crop up. Even more frustrating, the landlord, who seemed ultra-responsive when you were considering renting the house, is now nowhere to be found! The thought of solving the problem by moving seems overwhelming. Fortunately, there is another option: withholding rent. Rent withholding is a law that allows tenants to withhold part of their rent payment to make repairs if the landlord does not fix critical issues with the rental unit. Investing in real estate can be both exhilarating and profitable for existing and aspiring property investors. But as the above rent withholding example shows, it also has its share of risks and requires ongoing investments for the life of the property. At MY SMART COUSIN, we know that great investments don’t just happen. You need the right strategy and expertise to make them work, which is why we’re here! As a Real Estate Investment Coach who focuses on Black, Brown, and women real estate investors, in particular, we offer tailored solutions in every aspect of real estate ownership. Whether you’re looking to buy a house for the price of a car, our personal favorite way to buy, or are looking to buy at a higher price point, we can take you from strategy to a targeted list of matching properties, to negotiation, financing, closing, and property management. In this post, we’ll discuss what rent withholding is, how it works for landlords and tenants, and some common misconceptions about it. Stay tuned! WHAT IS RENT WITHHOLDING AND WHY DOES IT HAPPEN? Whether you’re a tenant or a landlord, chances are good that even if you haven’t heard the term ‘rent withholding’ per se, you’ve heard of cases of tenants being fully justified to pay less than the full amount of rent. But what is rent withholding exactly? In short, rent withholding is a temporary stoppage in some or all of the rent by the tenant, typically granted in response to a critical problem with the property, such as required repairs yet to be made by the landlord to make the property habitable. When the stoppage is made by the tenant without the landlord’s agreement, that is typically referred to as rent withholding or repair-and-deduct. When the stoppage is a reduction rather than complete non-payment, and mutually agreed to by the landlord and renter, that is usually referred to as a rent abatement. While at first blush it may sound like a landlord is at risk of having a rent stoppage occur for any and all repairs, the criteria for withholding rent is often quite strict. Rent withholding rules vary from state to state, but at their core, the damage caused cannot be due to tenant neglect or improper use of the rental unit. Further, the poor condition of the property must be severe enough to be hazardous to the health and safety of the renter and no longer livable. Examples include no running water in the house, a broken furnace causing no heat in the winter, a badly leaking roof, or dangerous wiring. Importantly, rent withholding laws don’t require that wear-and-tear or maintenance issues that don’t affect the livability of the unit to be addressed. Only serious defects are covered under the law. WHAT IS THE PROCESS FOR REQUESTING RENT ABATEMENT? If the landlord and tenant are in mutual agreement that the rent be totally or partially reduced for a certain period of time until the agreed repairs are made, then the landlord and renter together will submit a written request to the city housing department requesting rent abatement. The reduction request must include the following information: · The address of the rental unit · The dates of the rent reduction period · The reason for the request · The signature of the renter and landlord Once the request is received, a housing inspector will visit the rental unit to determine if the conditions warrant a rent abatement. If so, the inspector will issue an order granting the rent abatement. The order will specify the amount of rent that is to be abated and the duration of the abatement period. Landlords and tenants are responsible for making sure that all other terms of the rental agreement, including any rent that is not reduced, are met. WHAT STEPS SHOULD A TENANT TAKE FOR WITHHOLDING RENT? Tenants should be aware that rent withholding can be tricky business, and should only be pursued as a last resort, and after obtaining legal counsel. Below is a high-level roadmap of steps to take when withholding rent. Step 1 – Tell the Landlord About the Problem. Tell your landlord, in writing, what the problem is and what you plan to do about it. For example, if there is no running water in the house due to a plumbing issue, then tell your landlord that you will withhold your rent because of the plumbing issue that occurred on X date, causing there to be no running water in the house. While most communications these days occur electronically, it is best to send a letter by certified mail. Be sure to keep a copy of the certified mail receipt and the letter itself to prove that you notified the landlord. Step 2 – Give Your Landlord Time to Make the Repair. Most states have laws that give landlords a reasonable amount of time to make repairs. In the case of an emergency such as a broken furnace on a winter day, only 24 hours might be allowed. For non-emergency issues such as a broken furnace in the summer, the landlord might be given 30 days or more to make the repair. Step 3 – Collect Evidence to Prove That the Landlord Did Not Make Repairs. You can show that the landlord did not make repairs through pictures, witnesses, or a report from a
WHY FF&E IS A HIDDEN GOLDMINE WHEN BUYING A HOUSE!
When you’re buying or selling a house, you’ll likely hear the term FF&E. But what exactly does that mean? Furniture, fixtures, and equipment – or FF&E for short- is everything in the property that’s not permanently attached to the walls or floor. In most cases, that means appliances, furniture, window treatments, and anything else you might find in a typical home. FF&E is an asset, much like the house itself. But as the old saying goes, one man’s trash is another man’s treasure. The furniture or appliances that a home seller leaves behind can be particularly valuable for flips when staging a house for buyers, for Airbnbs as part of the furniture package required for long-term stays, and even for rentals to give an interior designer’s touch to otherwise bare walls. Whether you’re considering buying a single-family or multifamily investment property brimming with FF&E or one that’s completely empty, MY SMART COUSIN can take you through the critical steps of buying and owning real estate— from evaluating markets and identifying appropriate strategies, to securing financing and managing properties. As a Real Estate Investment Coach, we specialize in helping you buy a house for the price of a car, our personal favorite way to invest or to buy at a higher price point. If you’re new to real estate investing or are looking to buy your first home, it’s important to know what FF&E is and how it affects your purchase. This guide will teach you everything you need to know about FF&E in real estate transactions. WHY DOES FF&E MATTER IN REAL ESTATE TRANSACTIONS? FF&E, or furniture, fixtures, and equipment, is everything inside a property that isn’t part of the structure itself. As an example, window air conditioners that sit in a window and can be removed, are not part of the structure and thus would be FF&E. A central air conditioning system, on the other hand, is part of the heating and ventilation systems for the house, and would not be considered FF&E. When you’re buying or selling a property, FF&E can be an important factor in the transaction. For sellers, FF&E can add value to a property. If you’re selling a furnished property, buyers will be willing to pay more for the convenience of not having to buy their furniture. Likewise, if you’re renting the property, the ability to attract tenants and long-term guests increase significantly when the house is already outfitted with homey touches. For buyers, FF&E can be a valuable asset. If you’re buying a furnished property, you’ll be able to use the furniture right away. And if you’re buying a commercial property, equipment that is left behind can be useful if you’re in the same line of business, or if not, sold online to buyers who use that equipment. If there is FF&E at the home or commercial business that you want to be included in the purchase of the property, stipulate this in the purchase agreement or you may find that the seller removes it prior to close. In short, it’s important to factor FF&E into your real estate transaction. Whether you’re buying or selling, make sure you know what’s included in the deal. HOW DO YOU DETERMINE THE VALUE OF FF&E IN A PROPERTY? There are a few different ways that you can determine the value of FF&E in a property. · First, you can look at the replacement cost of the items. This is the cost of buying new items to replace the existing ones. · Another way to determine value is to look at the depreciation schedule. This takes into account how much the item’s usefulness or operating life has been used up and how much remains. · Finally, you can look at the resale value of the items. This is what you could expect to get if you sold the items on the open market. All of these methods have their own pluses and minuses, and it’s important to consider which approach makes the most sense when determining the value of FF&E in a property. WHAT ARE SOME KEY CONSIDERATIONS WHEN NEGOTIATING FF&E IN A DEAL? When it comes to commercial real estate, furniture, fixtures, and equipment can often be one of the most expensive aspects of a deal. As such, it’s important to carefully consider all of your options before making any decisions. Here are just a few key things to keep in mind when negotiating FF&E in a deal: · First and foremost, you need to determine what kind of FF&E is included in the deal. This can be anything from office furniture to kitchen equipment and everything in between. Make sure you have a clear understanding of what’s included so there are no surprises down the line. · Next, you’ll need to take a close look at the condition of the FF&E. If it’s well-maintained, in good working order and already installed, you may be able to rationalize paying a higher price to keep it. However, if the furniture is old and outdated or the equipment or appliances need repairing, you’ll likely have to pay more than the items are worth to get everything in working order. · Finally, don’t forget to factor in delivery or removal costs when negotiating FF&E. If the buyer wants the seller to remove FF&E before close, the cost of clean-out can be steep. Be sure to include these costs in your overall budget. By keeping these key considerations in mind, you’ll be better prepared to negotiate FF&E in your next real estate deal. HOW DO YOU MANAGE FF&E DURING OR AFTER A PROPERTY TRANSACTION? When it comes to managing FF&E during or after a property transaction, there are a few things to keep in mind. · First, it’s important to inventory all FF&E items and documents their condition. This will help to ensure that everything is accounted for and that any damages can be noted and repaired before the transaction is finalized. ·
HOUSE DEED: WHAT YOU NEED TO KNOW ABOUT PROPERTY DEEDS
If you’re a real estate investor or just own a home, it’s important to understand what a property deed is and what it means for you. A property deed is basically a document that shows who owns a piece of property. There are different types of deeds, and each one has its own pros and cons. At MY SMART COUSIN, we help aspiring homeowners and investors, with a particular focus on Black and Brown folks and women, make their Real Estate investment journey a success. As experienced and successful Real Estate Investors and Coaches, we help you determine your strategy and implement a custom-designed business and financing roadmap. And if your focus is on the lower end of the market, we help you buy a house for the price of a car, our personal favorite way to buy real estate! Did you know that house deeds are some of the most important legal documents when it comes to property ownership? In this blog post, we’ll explain everything you need to know about property deeds so you can make sure your interests are protected. Let’s dive in! WHAT IS A PROPERTY DEED AND WHAT DOES IT INCLUDE? A property deed is a legal document that transfers ownership of real estate from one person to another. The deed must be signed and notarized by the seller and delivered to the buyer. The buyer then records the deed at the local land records office. The deed should include a description of the property, and the names of the buyer and seller, and be signed and notarized by the parties involved. It’s also common for the deed to include language that gives the buyer certain rights, such as the right to use the property for certain purposes, or the right to terminate the sale under certain circumstances. The inclusion of these rights is generally negotiable between the buyer and seller. Ultimately, the goal is to create a legally binding contract that clearly sets forth the terms of ownership for all parties involved. HOW DO YOU TRANSFER A PROPERTY DEED TO ANOTHER PERSON OR ENTITY? There are a few different ways that you can transfer a property deed to another person or entity. · One way is to simply sign the deed over to the new owner. You will need to include the date of the transfer, your signature, and the new owner’s signature. · Another way to transfer a property deed is to sell the property and have the new owner file a new deed. This is a more complicated process, but it does have the advantage of giving you some money for the property. · Finally, you can also donate the property to a charity or other organization by filing a deed of gift. Whichever method you choose, be sure to consult with an attorney to ensure that the transfer is legal and binding. WHAT ARE THE BENEFITS OF HOLDING A PROPERTY DEED IN YOUR NAME? If you own a home, chances are good that the property deed is in your name. But what does that mean, exactly? And what are the benefits of holding the deed in your name? There are several benefits to having the deed in your name. · First, it provides evidence of ownership if there is ever any question about who owns the property. · Second, it can help you to get a loan against the property if you need access to liquidity. · Third, it can help to ensure that your heirs inherit the property if you pass away. · And finally, it can provide peace of mind knowing that you have your paperwork in order, should you ever sell the property. If you’re thinking about buying a piece of property, be sure to have the deed transferred into your name or the name of your LLC or corporate entity. It’s one of the best ways to protect your investment. HOW CAN YOU CHANGE THE NAME ON A PROPERTY DEED IF NEEDED? If you need to change the name on your property deed, the process will vary somewhat depending on your situation. For example, if you are changing your name after getting married or divorced, you will need to present a certified copy of your marriage certificate or divorce decree. However, if you are changing the name for any other reason, you will likely need to go through a more formal process. This may involve contacting your local registry office or getting a court order. In any case, it is important to make sure that the deed reflects the correct name, as this can help to prevent problems down the line. ARE THERE ANY RESTRICTIONS ON WHO CAN HOLD A PROPERTY DEED? The answer to this question depends on the jurisdiction in which the property is located. In some jurisdictions, there are no restrictions on who can hold a property deed. In others, there may be restrictions based on factors such as age, citizenship, and criminal history. For example, some jurisdictions may require that deedholders be 18 years of age or older, while others may impose additional requirements such as a minimum length of residency in the jurisdiction. In most cases, however, the requirements for holding a property deed are relatively straightforward and can be easily met by most individuals. As such, it is generally not difficult for someone to obtain a deed to a piece of property. SUMMING IT ALL UP So, what is a property deed? A property deed is a document that shows ownership of the real estate. The deed includes the name of the owner, as well as information about the property itself such as its legal description, square footage, and address. It’s important to hold a copy of your property deed in your own name, as it provides evidence of ownership and can be used for security purposes, or in case you need to transfer the deed to another person or entity. If you
HOW TO FIND THE RIGHT REAL ESTATE MENTOR FOR YOU?
When it comes to real estate investing, there are a lot of things to learn. And if you’re new to the game, it can be tough to know where to start. That’s why finding a good mentor is so important. A mentor can teach you the ropes, help you avoid common mistakes, and give you the guidance you need to succeed in this business. At MY SMART COUSIN, we’re all about providing guidance so you can prosper in business and real estate. Whether it’s buying a house for the price of a car or investing in real estate at a higher price point, MY SMART COUSIN can catapult aspiring investors and homeowners from tentative, initial ideas to confident implementation. We work with new and seasoned investors, with a particular focus on Black and Brown folks and women, in developing a customized strategy and roadmap that takes you through every step from identifying markets, to securing financing, to purchasing and managing property. Finding the right real estate mentor can be a daunting task. You want someone knowledgeable and experienced, but you also need to make sure that they are a good fit. Here are a few tips on how to find the right mentor for you. WHAT TO LOOK FOR IN A REAL ESTATE MENTOR? A real estate mentor is someone who can provide you with guidance, support, and advice as you pursue your real estate investing career. But how do you know if someone is a good mentor? Here are some qualities to look for: · First, a good mentor should have significant experience in the real estate industry. They should be familiar with all aspects of the business, from finding and financing properties. to understanding the economics of the real estate business, to real estate operations including serving tenants and carrying out property management or working with property managers. Ideally, they should also have a successful track record as an investor. · Second, a good mentor should be willing to share their knowledge freely. They should be patient and eager to help you learn more without making you feel uncomfortable about asking questions. A mentor-mentee relationship is built on trust, so it’s important that you feel comfortable confiding in your mentor. · Finally, a good mentor should be someone whose judgment you trust. They should be honest and straightforward with you, even when the advice differs from your own thoughts. The goal is not to find someone who is a carbon copy of your experience and opinions, but rather to find someone who stretches you and guides you toward success. If you can find someone who meets all of these criteria, you’ll be well on your way to success as a real estate investor. HOW TO FIND THE RIGHT MENTOR? A mentor can be a huge asset when it comes to reaching your goals, whether professional or personal. A good mentor will have experience in the area you’re looking to grow in and can offer advice, support, and guidance. But how do you go about finding the right mentor? · One way to is to reach out to people you admire and respect. If there’s someone whose career or lifestyle you aspire to, don’t be afraid to reach out and ask if they’re open to a brief conversation with you. You may be surprised at how willing people are to help. · Another option is to look for mentorship programs offered by organizations or groups you’re already involved in. These programs can provide structure and support, and make it easier to find a compatible mentor. · Finally, don’t forget that your network of family and friends can also be a great resource. Talk to people you trust about what you’re looking for in a mentor, and ask if they know anyone who might be a good fit. Sometimes the best mentors are closer than you think. TIPS FOR BUILDING A SUCCESSFUL RELATIONSHIP WITH YOUR MENTOR A good mentor can be hard to find. And once you’ve found one, it can be even harder to build a strong, lasting relationship with them. So how can you make sure that your relationship with your mentor is successful? · First and foremost, it’s important to be transparent with your mentor regarding your goals, challenges, and areas where you want to grow. They can’t help you if they don’t know what’s going on in your life, professionally, and the issues that you’re running up against. · Second, be respectful of your mentor’s time. They’re likely very busy people, and they’ve chosen to spend some of their limited time helping you. So make sure that you’re punctual for online and in-person meetings, and that you’re prepared to discuss whatever topics you’ve agreed to discuss beforehand. · Last but not least, be proactive in setting the agenda and following up on leads and introductions that your mentor provides. Taking initiative and communicating follow-through to your mentor will make for a more productive relationship. THE BENEFITS OF HAVING A REAL ESTATE MENTOR Being new to the real estate industry can be challenging. There’s so much to learn and it’s hard to know where to start. Having a mentor can make a big difference. · A mentor can help you learn the ropes, avoid mistakes, make better choices, and reach your destination more quickly and cost-effectively. · A mentor also can introduce you to key players in the industry and broaden your network of business colleagues, vendors, and policymakers. · Finally, a mentor can help you develop a realistic business plan and set achievable goals. · If you’re serious about making a success of your real estate career, finding a mentor should be a top priority. FINAL THOUGHTS Now that you know what to look for and how to find the right mentor for you, it’s time to get started. The benefits of having a real estate mentor are vast, so don’t
HOW TO BUY INVESTMENT PROPERTY IN SEVEN SIMPLE STEPS
Are you thinking of buying an investment property? If so, you’re in good company. Investment property is a great way to grow your wealth, and there are plenty of opportunities out there for savvy investors. But buying an investment property can be a daunting prospect, especially if you’re not familiar with the process. One little-known but very valuable real estate investment strategy is to target the low end of the market. At MY SMART COUSIN, we specialize in helping new property investors conceptualize, fund, and build their Real Estate empire. As seasoned Real Estate Investment coaches, we work with clients to penetrate the lucrative market of buying a house for the price of a car, or buying at a higher price point if preferred. Our expert team works with aspiring homeowners and investors, with a special focus on Black and Brown folks and women, and customizes a tailored strategy and roadmap to gain entry into the real estate industry and thrive. Are you looking for ways to invest your money and see a good return? If so, buying an investment property may be the right choice for you. But, investing in Real Estate can be tricky – especially if you’re new to it. That’s why we’ve put together this guide on how to buy an investment property. Keep reading for steps that will help make the process smoother and more successful. WHY BUY AN INVESTMENT PROPERTY? When it comes to investing in real estate, there are many different options to choose from. However, one of the smartest choices you can make is to invest in an investment property. Here are three reasons why an investment property is a wise choice: · First, an investment property will provide you with a steady stream of income. Unlike other investments, such as crypto, precious metals, stocks, and bonds, an investment property will generate rental income that you can almost set your watch by every month. This rental income can help offset the costs of the mortgage and other expenses associated with owning the property. · Second, an investment property can appreciate over time. While housing prices have cooled some since the Spring-time highs earlier in the year, prices remain robust throughout most of the U.S. due to high demand among renters for affordable housing. This underlying foundation will likely support the value of investment properties for many years to come, providing solid annual returns when you eventually sell the property. · Finally, an investment property can offer significant tax advantages. The IRS allows owners of investment properties to deduct a portion of the mortgage interest paid on their taxes. This deduction can save you thousands of dollars each year, making it easier to afford your monthly mortgage payments. Buying an investment property is one of the smartest choices you can make when it comes to real estate investing. With a steady stream of rental income and potential for appreciation, an investment property can offer significant financial rewards. And with tax advantages that can save you money each year, owning an investment property is a wise choice for any investor. SEVEN STEPS ON HOW TO BUY AN INVESTMENT PROPERTY 1. FIGURE OUT JUST HOW MUCH YOU CAN AFFORD Just because a property is a good deal doesn’t mean it’s a good deal for you. If you can’t afford it, then it likely will be a terrible and painful investment. Be realistic about your budget and make sure to factor in all of the associated costs, such as repairs, preventative maintenance, property insurance, and property taxes. Once you’ve done this, add a contingency factor of ten percent, or more, to account for any expenses that were under-estimated, or never estimated at all. As the old saying goes, you don’t know what you don’t know. Thus the reason for a contingency: is to add a fudge factor that helps absorb these expenses. 2. RESEARCH THE MARKET Not all investment properties are created equally. It’s important to do your homework and understand the market conditions in the area where you’re looking. Look through news articles and property valuations to see what the trends have been over time. Likewise, read forward-looking city plans and local economic reports to see what’s on the horizon for your target market. If an environmental hazard has recently occurred in the area with the little political will or economic focus on fixing it— think Flint, Michigan’s water crisis in the early days— view these as red flags. 3. GET PRE-APPROVED FOR A LOAN Once you know how much you can afford to spend, it’s time to start talking to lenders. Getting pre-approved for a loan will give you a better idea of what kind of interest rate you can expect to pay, and will help streamline the property-investment buying process. You want to ensure that when you make a purchase offer, you can actually follow through on it if it is accepted. Lining up financing in advance will lend credibility to your offer. 4. HIRE A QUALIFIED REAL ESTATE AGENT A good real estate agent will have experience with investment properties and will be able to guide you through the process of purchasing an investment property, which can differ from purchasing a primary residence. An investor-focused real estate agent can also offer helpful advice on negotiating prices and finding contractors. 5. MAKE AN OFFER ON THE PROPERTY When you find a property that you want to buy, your real estate agent will help you make an offer that takes into account the current market value of the property as well as any repairs or upgrades that may need to be made. 6. HAVE THE PROPERTY INSPECTED Hard money and other non-conventional lenders may not require a property inspection. That said, a property inspection can still play an important role, especially for new investors. An inspection shines a light on what needs to be fixed or replaced, and how urgently. This information is vital in helping to determine the fair market value of
HOW TO ACHIEVE FINANCIAL FREEDOM WITH AFFORDABLE RENTAL PROPERTIES
Are you tired of working for someone else? Are you looking for a way to achieve financial freedom? If so, then investing in affordable rental properties may be the answer for you. By buying low and keeping your expenses manageable, you can create a steady stream of income that will allow you to live comfortably, without having to rely on a 9-to-5 job. Buying a house for the price of a car is an even straighter path to saying goodbye to your 9-to-5, as the number of years required to break even and begin earning a pure profit on your investment is much shorter. Although the housing market remains strong, there are always opportunities to find a great investment, no matter how hot the market is. At MY SMART COUSIN, we work with aspiring homeowners and investors who are looking for their own slice of heaven in a home-sweet home or are looking to buy an investment property. Whether you’re just getting started or have a few years of experience under your belt and are looking to quickly build, we are able to help you develop and implement a strategy to buy a house for the price of a car— our personal favorite way of investing— or buy a great investment property at a higher price point. As your Real Estate Investment Coach, and a dedicated supporter of Black and Brown investors and women, in particular, we’ll help you move from idea to execution. If you’re like most people, the prospect of financial freedom is incredibly enticing. In this blog post, we’ll explore how to invest in rental properties and what to look out for when making your purchase. So whether you’re a first-time investor or just curious about the topic, keep reading for some helpful tips! UNDERSTAND WHAT FINANCIAL FREEDOM MEANS TO YOU Financial freedom is a term that gets bandied about a lot, but what does it mean? For some people, it means being debt-free, while for others, it means having enough passive income to cover all of their expenses. Either way, achieving financial freedom is no easy feat. But there is one tried-and-true method for building wealth and achieving financial independence: investing in real estate. Real estate, especially rental properties, offers several advantages over other types of investments. · First, rental properties are a long-term asset that in theory, will never go away when you consider the land beneath the property, and the ability to continually renovate, expand or rebuild the house that sits on it. This is in stark contrast to stocks and bonds where the investment doesn’t have the same forever-quality associated with it. · Additionally, unlike stocks or mutual funds, rental properties offer multiple ways to earn a return, be it renting the property by the room Airbnb-style, house-hacking by taking on a roommate or renting the property in its entirety through a traditional one-year lease. · Finally, rental properties are a solid long-term investment. With proper care and maintenance coupled with strategically selecting neighborhoods poised for growth, the property will appreciate over time, providing you with a nest egg that you can tap into when you retire or hold onto as part of building generational wealth. RESEARCH THE RENTAL MARKET IN YOUR AREA Achieving financial freedom through rental properties is a great way to increase your net worth and build long-term wealth. But it’s not without its challenges. Before you start investing in rental properties, it’s important to do your homework and understand the local market. Keep in mind that the goal is to find an area with high demand and limited supply. This will help ensure that your property is always rented and that you’re able to charge a premium price. Another key consideration is the local job market. COVID-19 has increased the amount of remote work to some extent, making the strength of the local job market less of a factor. However, a community that is ringed by high-paying job sectors such as technology and finance, for instance, has a much larger pool of renters who can afford the rent than a community with few good-paying jobs. By doing your homework upfront, you’ll be in a much better position to achieve financial freedom through properly located rental properties. CALCULATE THE NET OPERATING INCOME FROM THE PROPERTY BASED ON MARKET RENTAL RATES AND OPERATING EXPENSES For many people, the dream of financial freedom is just that – a dream. But it doesn’t have to be that way. With careful planning and a smart rental investment strategy, you can achieve financial freedom. The key is to look past the top line, the amount of rent you’re collecting, and hone in on the bottom line, the number of rent revenues you’re ultimately keeping. The top line can be determined by evaluating the market rate for similar properties and minimizing your vacancy rate. Keep in mind, though, that no matter how high the rent, a vacant property earns no revenues, so minimizing turnover is key. The bottom line will be a function of property management costs, property insurance, and property taxes. When considering investment properties to purchase, spend time calling insurance companies and checking county tax rates to gauge your potential expenses. Once you’ve estimated your expenses, add a ten percent contingency to that amount to serve as a shock absorber for unexpected repairs or unbudgeted expenses. By taking these steps, you’ll ensure that your rental property generates enough income to cover its cost of investment, and upkeep and then eventually set you on the path to financial freedom. FIND A PROPERTY MANAGER TO HELP WITH TENANT SCREENING, MAINTENANCE, AND OTHER TASKS Most people will never achieve financial freedom because they’re too busy being tethered to their financial present, courtesy of the demands of their 9 to 5. The way to hop off this treadmill lies in asking for help, or more pointedly, paying for help through property management, office assistance, and other services. While these expenses will feel unjustified initially,
HOW TO MAINTAIN YOUR INVESTMENT PROPERTY LIKE A PRO
Maintaining your real estate investment property doesn’t have to be a daunting task. By following some simple tips and tricks, you can keep your property in top condition and protect your investment. At MY SMART COUSIN, we help aspiring homeowners and investors, with a special focus on Black and Brown folks and women, find Real Estate Investment opportunities that will allow them quick access to buy a house for the price of our car, our personal favorite way of investing, and maintain their investment property like a pro, no matter the investment price point. In this blog post, we’ll share some easy ways to maintain your property and make sure it stays rent-ready and in great shape. Read on for more information! · KEEP THE PROPERTY CLEAN AND WELL-MAINTAINED When it comes to maintaining your rental property, first impressions are everything. A potential tenant driving by should see trim bushes and low-cut grass. Elaborate landscaping or a veritable botanical garden’s worth of flowers is not necessary, the key is a house that looks neat and well-kept from the outside. Beyond their visual appeal, another benefit of well-trimmed bushes and trees is that it lowers the risk of storm damage, should a large branch fall onto your roof or hit a window. Bushes that are cut a ways back from your property also create fewer pathways for insects and other critters to climb straight from a branch onto the side of your property. Once a potential tenant steps inside the property, they should be greeted with a clean, well-lit, and pleasant-smelling space that exudes comfort and warmth. As a landlord, it’s your responsibility to make sure that your property is always in top condition, meaning regular cleaning, preventative maintenance, and prompt repairs when issues arise. Of course, this can be a time-consuming and expensive task, but it’s a great habit to start and an essential step in keeping your tenants happy and your property value high. Luckily, there are some easy ways to stay on top of maintenance without breaking the bank. · One way is to hire a professional cleaning company to do a deep cleaning of the property between tenant move-ins. Likewise, while keeping the garden trim may be a responsibility of the tenant in the lease, hiring a company to perform annual landscaping and vigorously cutting back bushes and trees that may be out of reach for renters, pays dividends in avoiding citations and keeping Mother Nature firmly outside. · Alternatively, if your tenant is handy with small tools and yard work, you can pay them to perform handyman tasks and do annual landscaping. Whatever approach you choose, make sure that you develop and follow a schedule to ensure that major items don’t fall off your radar— your investment will thank you for it in the long run. · REGULARLY INSPECT THE PROPERTY FOR DAMAGE OR NEEDED REPAIRS As a landlord, one of your most important responsibilities is to regularly inspect your rental property for damage or needed repairs. By staying on top of small issues early, you can prevent them from turning into larger, more expensive problems down the road. Ideally, you should inspect your property every few months, or at least once a year. · During your inspection, take the time to walk around the outside of the building and check for any signs of damage, such as cracks in the foundation or missing shingles. · Then, go inside and check all of the rooms, paying close attention to the condition of the floors, walls, and ceilings. · Be sure to also test all of the appliances and fixtures to make sure they are in good working order. · If you notice any problems, make the necessary repairs as soon as possible. By following these tips, you can help ensure that your rental property remains in good condition for years to come. · RESPOND QUICKLY TO ANY TENANT REQUESTS OR COMPLAINTS So how can you make sure you’re responding quickly to tenant needs? · First, it’s important to have a good system in place for tracking requests and complaints. There are numerous online options for tracking everything from rent to new and closed maintenance tickets to photos of completed repairs— making use of one of these tools can save you valuable time. · Once you have a system in place, it’s important to be responsive to every request or complaint. By being responsive to tenant needs, you show concern and respect for your customer and help prevent small problems from becoming big ones. That will go a long way towards keeping your customers happy and rental property in tip-top shape. · MAINTAIN A POSITIVE RELATIONSHIP WITH YOUR TENANTS As any experienced investor knows, one of the most important keys to successful real estate investing is maintaining positive relationships with your tenants. After all, without happy tenants, it would be very difficult to keep your properties rented and generate income. There are a few simple things you can do to keep your tenants happy and make sure they keep renewing their leases. · First, promptly address any maintenance issues that arise. No one wants to live in a property that is in disrepair, so by keeping up with repairs, you’ll show your tenants that you care about their comfort and well-being. · Second, where possible, work with your tenant to accommodate requests such as a financial payment plan if your tenant is having difficulty paying the rent. Being proactive and coming up with an arrangement that works for both of you and that your renter can stick with, can build goodwill, help your tenant stay afloat until they’re back on their feet, and meet your income objectives. · Lastly, take the time to get to know your tenants and build relationships with them. Just as you would with any other business, get to know what other business needs your customers to have and how you might
SYNDICATION INVESTING 101 – HOW TO INVEST PASSIVELY IN REAL ESTATE
In real estate, as in any other industry, there are varying levels of investment. For the average person, buying a home is their biggest investment. And as sweet as buying a home of your own is, almost nothing beats the feeling of buying a house for the price of a car. However, for those who want to put more money to work and see greater returns, a real estate syndication is an option worth exploring. Syndication investing can be done passively, which makes it a very attractive proposition for those who don’t have the time or inclination to become full-time real estate investors. Whether you’re an investor, home-buyer, or seller—MY SMART COUSIN can help. We specialize in real estate investments for aspiring homeowners and investors, with a special focus on Black and Brown folks and women. As your Real Estate Investment Coach, we walk you through all aspects of owning property, from evaluating markets and identifying appropriate strategies, to identifying opportunities and securing financing. Whether you’re seeking to buy a house for the price of a car, our personal favorite way of investing, or purchase higher-end property, we’ll help you develop and execute a strategy that is custom-tailored for you. In this blog post, we will explore what syndication investing is, and how you can get involved without having to do a lot of legwork yourself. Let’s get started! WHAT IS SYNDICATION INVESTING AND HOW DOES IT WORK? Syndication investing is when a group of investors pool their money together to purchase a property. The group will then elect one or more people to act as the property manager. The property manager will be responsible for day-to-day operations, ranging from screening and securing tenants, to addressing maintenance issues and keeping the property move-in ready. As an example, if a group of ten investors is interested in purchasing a $1 million apartment building, with each contributing the same sum of money, each investor would only need to contribute $100,000 to secure a property that would otherwise be way outside of their budget. Syndication investing also can provide passive income for investors, as each investor will receive a portion of the rent collected each month without taking on full-time operation and management duties. While there are many benefits to participating in a syndicate, it is important to remember that it still has risks, just as buying a property as a stand-alone investor does. Before investing, be sure to do your research and consult with a financial advisor to ensure that you are making a wise decision. THE BENEFITS OF SYNDICATION INVESTING If you’re thinking of investing in real estate, you might want to consider engaging as part of a larger group. In syndication, a group of investors comes together to pool their money and purchase a property. This can have several advantages: · First, it allows you to buy a property that you couldn’t afford on your own. · Second, it gives you access to an experienced management team who can make decisions and manage the property through the benefit of multiple perspectives and resources. · Finally, it spreads the risk among many investors, which can protect you if the property doesn’t perform as well as expected, or faces issues that you alone wouldn’t be able to address. HOW TO GET STARTED WITH SYNDICATION INVESTING A real estate syndication is a great way to invest in large-scale projects that require more manpower, time, and money than you can handle on your own. But it can be tough to get started if you don’t know where to begin. Here are a few tips: FIND A SPONSOR A sponsor is an experienced and often well-heeled real estate investor who will help you raise capital, find and purchase a property, and manage the day-to-day operations. Look for someone who has a successful track record and deep industry relationships. CONDUCT YOUR DUE DILIGENCE Once you’ve found a potential project, do your research to make sure it’s a good fit for your pocketbook, timetable, and risk tolerance. You’ll also want to vet the sponsor to make sure they’re experienced and trustworthy, and that you share a common investment philosophy. UNDERSTAND THE COMMITMENT While syndication investing is a passive investment, it is not without any work. Just as with a mutual fund or real estate investment trust, you will want to spend time analyzing the opportunity, both at the front end and ongoing to determine if performance metrics are being met. HOW TO FIND SYNDICATION INVESTMENT OPPORTUNITIES IN YOUR AREA Commercial real estate and large multifamily projects tend to be particularly fertile ground for syndications. The reason is that the amount of equity, debt financing, and technical expertise that must be brought to bear is more than one person has at their disposal in abundance. This means that there is a huge opportunity for those looking to invest in real estate to find syndication investment opportunities in these sectors. There are a few ways to go about finding them: · First is to search online for real estate syndicators, either by region or by property type. This can be done by searching for terms like “real estate syndication” or “property syndication” followed by your target geographic location (a state or region) or target real estate type (shopping center, apartment building, etc.). Online groups provide another avenue for finding syndicators. · Another option is to attend local and online real estate investor meetings. These are often advertised through real estate publications and networking groups. · Finally, you can reach out to accountants and financial advisors specializing in the real estate sector, real estate agents, and real estate brokers, and ask if they know of any syndication entities or upcoming syndication deals. FAQs ABOUT SYNDICATION INVESTING Here are the answers to some frequently asked questions that will help you better understand syndication investing. · WHAT IS A SYNDICATION? Syndication also called a syndicate, is simply a group of investors who come together