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
ARE NEW CONSTRUCTION RENTAL PROPERTIES A GOOD INVESTMENT OPPORTUNITY?
Are new construction rental properties a good investment opportunity? That’s a question that many people are asking these days. The answer, of course, depends on a variety of factors. But in general, buying and renting newly-built properties can be a great investment, if you do your homework and plan accordingly. The Real Estate Investment Coaches at MY SMART COUSIN are here to help you make your investment in new construction a success. At MY SMART COUSIN, we have the skills and expertise that can position aspiring homeowners and investors, and especially Black and Brown folks and women, to succeed in this competitive market and score one of the most elusive of all finds, a house for the price of a car. New investors will benefit from working with us and our approach of developing a customized plan, tailored just for you. If you’re like most people, you’ve been giving some thought for a while to investing in rental properties. And if you’re considering new construction properties, you may be wondering how they compare to investing in existing real estate stock. In this blog post, we’ll take a look at some of the pros and cons of purchasing new construction rentals. We’ll also help you decide if this type of investment is right for you. So, let’s get started! WHAT ARE NEW CONSTRUCTION RENTAL PROPERTIES AND HOW DO THEY WORK? New construction rental properties can be a great option for marketing to those tenants who are looking for a brand new place to live with all the bells and whistles, and a price to match. Often, these rentals come with amenities ranging from a dog park, to exercise and meditation areas, to on-site childcare and recreation facilities. Since the units are newly-built and often outfitted with high-end appliances and fixtures, there are usually no maintenance issues for you to address in the first couple of years. But how do new construction rentals work? Typically, when you buy a new construction unit, you’ll lease it to a tenant for a set period, usually one to two years. At the end of the lease period, you’ll decide if you’ll offer the tenant any incentives to renew, such as one month free, or a 30-60 days deferral on when rent increases will take place. The amount and type of incentives you offer will depend on what’s being offered in the market, as well as how much or how little rental inventory is available in the building and surrounding area. Many new construction rental properties offer flexible leasing options, so as the landlord of a condo that you’ve purchased and are leasing to a tenant, you can determine if you would like to offer a lease that’s less cookie cutter, perhaps 15 months, if this works best for a great tenant who needs to move due to a work relocation, for instance. WHAT ARE THE BENEFITS OF BUYING A NEW CONSTRUCTION PROPERTY TO RENT VERSUS AN OLDER PROPERTY? There are a few key benefits that new construction rental properties have over older ones. · First, newer buildings are built to present-day code requirements, which are often stricter than those in years past. This means that such buildings are typically safer and more structurally sound than older properties. · Additionally, newer buildings often have better energy efficiency ratings, due to efficient heating and cooling systems, insulated windows and doors, and the like, which can save tenants money on their utility bills as well as meet the objectives of tenants who are seeking a green-energy/low-carbon home. Newer buildings might also have faster and more wide-ranging broadband services, allowing for a better technology-enabled living experience. · Finally, new construction rental properties usually have a modern and sleek aesthetic, which can be attractive to high-paying renters. All of these factors make new construction rental properties a great option for landlords and tenants alike. ARE THERE ANY DRAWBACKS TO INVESTING IN NEW CONSTRUCTION RENTALS? There are a few potential downsides to investing in new construction rentals. · One is that the property might come with high maintenance fees to pay for high-cost and more expansive common areas, on-site pool, and tennis facilities, for instance. One way to offset these costs is to seek out properties that were built with tax credits, and offer savings on property taxes or other rebates. · Another downside is that new construction can have a lower charm factor due to few historical architectural features, ruling out some tenants who might otherwise be interested. · New properties often cost more per square foot than older properties, leading to a lower return on investment and a longer breakeven timeframe. · Additionally, new construction can be subject to unexpected construction delays, leading them to take longer to complete than a property that simply needs a few finishing touches to upgrade it. Construction delays can lead to unforeseen higher costs in addition to delaying when you start earning rental income. Ultimately, whether investing in new construction is right for you depends on your target rental market and goals. WHAT IS THE BEST WAY TO FIND NEW CONSTRUCTION RENTAL PROPERTIES IN YOUR AREA? There are a few ways you can go about finding new construction rental properties in your area. · One option is to drive around and look for signs advertising new developments. Dial into county zoning meetings and look for infrastructural projects such as new roads or sewer improvements as an early indicator of planned developments. · Another option is to search online listings or contact a real estate agent who specializes in new construction. When searching online, you can use keywords like “new construction” or “new developments” to help you find relevant listings. · Once you’ve found a few potential properties, you can then contact the property manager to schedule a showing. · Finally, when touring the property, be sure to ask questions about what a property like this would rent for, whether there are
THE BENEFITS OF INVESTING IN REAL ESTATE
If you’re like most people, you probably think of Real Estate as a place to live for work, vacation, or family, or as a location for your retirement. But what about using real estate to make money? There are many benefits to investing in properties. Educating yourself about the benefits and best ways to go about buying a property for investment or leveraging your current home for profit, is the first step to creating additional cash flow and growing wealth. At MY SMART COUSIN, we specialize in helping new property investors conceptualize, fund, and build their real estate empire, penetrate the lucrative market of buying a house for the price of a car, and develop a Real Estate asset plan that will grow with you over time. As seasoned Real Estate Investment Coaches we work hand-in-hand with our clients, with a special focus on Black and Brown folks and women, to implement their strategy and position them for success in today’s ever-changing market. Are you interested in investing in real estate, but at a loss on how to move from idea to action? If so, read on to learn the first steps you should take, no matter if you’re a first-time homebuyer or an experienced investor! THE ABC OF REAL ESTATE INVESTING Real estate investing is the process of acquiring, owning, managing, and typically improving real property (real estate) to generate income from rents, sell it for a profit, or use it as collateral to secure a loan. Real estate is an evergreen asset, meaning that it always has value. It can be a physical space like a house or office, or it can be something full of potential like an undeveloped lot or piece of land. One attribute that all real estate has in common is that the underlying land is a finite resource— as the old saying goes, they’re not making any more land! There are many different ways to make money through real estate investing. The most common way is by buying properties and either renting them out or selling them for a profit. Buying a house for the price of a car is both a low-cost and high-return option for entering the market Another avenue for investment is through real estate development projects. In these projects, your investment takes place through lending money to developers who are building new properties or flipping houses. Real estate development can involve buying properties cheaply and selling them after making improvements, or developing properties to hold for a rental. Real estate can also be used as collateral for personal or business loans. The key to this strategy is to ensure that you have a solid business plan that will generate cashflow near term so that you can service the loan. THE TOP BENEFITS OF INVESTING IN REAL ESTATE · STABILITY AND SECURITY Real estate has always been considered a safe haven and for good reason. Unlike crypto, high-risk stocks, and similar investments that can fluctuate wildly in value and even result in no underlying value, real estate is much more stable and always hold some residual value through the building or land. Even during times of economic recession, the value of land generally tends to remain flat or increase slightly. This stability makes real estate a great long-term investment, particularly for those who are incorporating real estate into a retirement plan. In addition to its stability, real estate offers a high degree of security. Once you own a piece of property outright, the only avenues for losing it are through unpaid and ongoing obligations such as property taxes and municipal services (water, sewer services, and the like). This makes real estate an ideal investment for those who are risk-averse. If you are looking for a safe and secure investment with long-term potential, real estate is a great option. · TAX BENEFITS There are several reasons why investing in real estate can be a smart move, but one of the most compelling is the potential for tax benefits. When you own a property, you can deduct a variety of expenses including mortgage interest, property insurance, repairs, and more. This can significantly reduce the amount of money you owe in taxes each year. Additionally, if you sell your property for a profit, you may be able to avoid paying capital gains tax on the sale by reinvesting the funds into another property— consult with a tax pro before proceeding with this. In short, investing in real estate can be a great way to save money on your taxes. And who doesn’t love being able to keep more of their hard-earned cash? · APPRECIATION POTENTIAL Real estate also offers the potential for appreciation of the asset— perhaps because of a growth in the economy increasing the price of the property, or an increase in rents, making the property more valuable. And while there’s no guarantee that your investment will appreciate, historical data shows that real estate values have increased at a rate of four percent to six percent annually over the long term. When it comes to appreciation potential, there are a few things to keep in mind. First, the location of the property is key. Properties in desirable areas tend to appreciate at a higher rate than those in less desirable areas. Second, the condition of the property is also important. Investing in a fixer-upper may offer the opportunity to add value through renovations, resulting in greater appreciation potential down the road. Finally, the type of property you invest in an impact appreciation potential. For instance, single-family homes tend to appreciate at a higher rate than condominiums or townhomes. So if you’re thinking about investing in real estate, be sure to keep these factors in mind. With a little research and careful planning, you can maximize your chances of seeing significant returns over time. · OPPORTUNITY TO LIVE IN THE PROPERTY YOU ARE INVESTING IN There are many benefits associated with investing in Real Estate, including the opportunity to live in
THE PROPERTY MANAGEMENT CHECKLIST EVERY LANDLORD SHOULD HAVE
Property management can be a lot of work, whether you are managing a property yourself or hiring someone to assist you. Owning a home or investment property is at the top of many people’s list of success markers. MY SMART COUSIN is here to help you get into the property ownership game and do what few others can—buy a house for the price of a car! As Real Estate Investment coaches we specialize in assisting aspiring investors, especially Black and Brown folks and women, to learn how they can reach their goals quickly, while also leveraging homeownership resources to lower down payments and maximize low-cost financing options. If you are already a landlord, then you know that property management requires discipline and attention to detail. Between finding tenants, collecting rent, and dealing with repairs, there’s always something to do. That’s why it’s important to have a property management checklist to help you stay organized and run your business smoothly. In this blog post, we’ll share a checklist to help ensure you manage your property or your property manager, more effectively. WHAT IS A PROPERTY MANAGEMENT CHECKLIST? A property management checklist is a useful tool for landlords and property managers. It helps keep track of maintenance tasks, rental payments, and other important details. The checklist can be used to create a schedule of when certain tasks need to be completed. For example, a landlord may want to check smoke and carbon monoxide detectors every six months to ensure they’re operable or change the air filters on a furnace each Fall to maximize the performance of the furnace. Even with the best of intentions, meeting these goals consistently can be hard to do without a calendar and formalized process. A CHECKLIST FOR PROPERTY MANAGEMENT · HAVE AN EMERGENCY FUND TO COVER SCHEDULED AND UNEXPECTED REPAIRS As a property owner, you should always have a reinvestment fund and an emergency fund set aside to cover routine maintenance, replacement of systems that can no longer be repaired cost-effectively (for instance, an old hot water heater), and unexpected repairs. – Establishing and replenishing these funds will help you avoid dipping into your personal savings or taking out a loan to pay for property upkeep. – In addition, having a maintenance fund and emergency fund will help keep your property in good condition and avoid withheld rent when tenants make repairs themselves after unmet responses or potential legal problems that could arise from deferred maintenance. To put together these funds, start by setting aside at least $100 each month per fund from rent payments or other income sources. Once you have built up a healthy reserve, you will be able to breathe a little easier knowing that you can cover both scheduled and unscheduled maintenance without putting your finances at risk. · SCREEN POTENTIAL TENANTS CAREFULLY As a property owner, you know that screening potential tenants are one of the most important steps in managing your investment property. After all, uncollected rent, damage to your unit, or refurbishing the property to a rent-ready state for another tenant, can leave you unable to cover your mortgage or earn returns for many months. When screening tenants, there are a few key rules to follow: beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort – First, be sure to check the person’s rental history to see if they have any red flags. If more than one adult will be living in the home, check the rental history of each person. – Next, run a credit check to see if the person is financially responsible. As part of the credit check, determine if any judgments have been ordered (for instance, due to a past eviction or vehicle repossession) and if the judgments have been satisfied. – Finally, do a criminal background check to make sure there is no history of violence or other serious offenses. If the person owns a pet, keep in mind that many property insurance companies will not provide insurance for certain breeds of dogs (and other animals such as pet snakes) that the insurer classifies as ‘dangerous’. As such, you will want to add a no-pet clause for these breeds to the lease agreement. By following these steps, you can help ensure that you find the right tenant for your property. · INSIST ON RENTER’S INSURANCE As a property manager, it’s important to keep your property and your tenants safe. One way to do this is by requiring tenants to get renter’s insurance. – Renter’s insurance protects tenants in case of damage to their belongings, or if they are held liable for damages to the property. – Renter’s insurance also provides some financial protection in case of a natural disaster or another emergency. – Lastly, renter’s insurance gives tenants peace of mind knowing that their personal possessions are covered and enables them to reach out to their insurance, rather than to you, if the furniture, keepsakes, or other items are damaged due to a leak, for instance. · INSPECT THE PROPERTY REGULARLY By regularly inspecting the property, you can identify problems early and resolve them before they become major issues. Here’s what to include on your inspection checklist: – Check the condition of the exterior of the property, including the roof, any large tree limbs on or near the roof, gutters, siding, and sidewalks in front of the property, and the driveway. – Inspect all windows and doors to make sure they are in good working order. Housing authorities and rental licensing departments will require that windows open and lock. and will disallow certain kinds of door locks and burglar bars that are unsafe in the event of a fire. – Walk around the perimeter of the property to look for signs of water or physical damage, pests, overgrowth of trees or bushes, pets that are not permitted per the lease, and signs of excessive wear and tear on gates, fencing, porches, and decks. – If
HOW TO ESTIMATE YOUR RENTAL PROPERTY EXPENSES
Breaking into the world of real estate investment can seem daunting, but it doesn’t have to be. By estimating your expenses, you’ll have a better idea of what you’re getting into and whether the investment is worth your time and money. MY SMART COUSIN is here to help you realize your real estate investment goals. As a Real Estate Investment Coache, we have the skills and expertise that can position almost anyone for success in this competitive market. We help aspiring investors and homeowners, particularly, Black and Brown folks and women, develop and execute a customized, step-by-step plan to scale their finances and move from idea to action. With planning and persistence coupled with guidance from us, we will help you develop a portfolio and break into the most elusive of all real estate channels— buying a house for the price of a car. When structuring your first rental property acquisition, it’s important to estimate your expenses ahead of time. This will help you determine if the property is worth your investment, and whether you can afford it. There are a few different factors you’ll need to consider when projecting your expenses, so keep reading for more information. WHAT ARE THE MOST COMMON TYPES OF EXPENSES FOR A RENTAL PROPERTY? There are several different expenses that you may incur when you own a rental property. · Acquisition expenses are those expenses associated with the initial purchase of the property. These include fees charged by the mortgage lender, legal fees, and municipal or county fees associated with recording the deed. Importantly, the real estate commission will not be paid by you as the buyer— the seller pays the real estate commission, and that commission is split between the buyer’s real estate agent and the seller’s real estate agent. For instance, if the property you purchase costs $50,000 and the real estate commission rate is 6%, the resulting $3,000 commission will be paid by the seller and split 50/50 by the seller’s agent and buyer’s agent. · Rental leasing expenses are those expenses associated with finding and signing a renter, such as advertising and background checks. If you are managing the property yourself, then you will incur these costs, both in money and time. If you hire a property manager, then the property manager will charge you the first month’s rent (or a higher or lower amount, depending on the property management company), and that fee will be used to pay for the advertising, screening, and other renter-onboarding expenses. As an example, if your rental property is listed for a rent of $1,000 per month, then the first month’s rent will be paid directly to the property manager as their fee for finding and placing a tenant. Each time a new tenant is placed in the unit, the one-month fee will be charged. · Operating expenses are those expenses associated with the day-to-day operations of the property, such as maintenance materials, repair costs charged by handymen or contractors, and property insurance. As with the rental leasing expenses, if you hire a property manager, the property manager will charge a fee, ranging from a low of 5% to a high of 15%, depending on the market and the services provided. That fee will pay for the manager to communicate with the tenant on any issues with the property. · Finally, owner expenses are those expenses associated with your involvement in the property, such as travel costs to visit the property. By understanding all of these expense types, you can be better prepared for the financial commitment of owning a rental property. HOW TO ESTIMATE YOUR RENTAL PROPERTY EXPENSES If you’re considering acquiring and renting out a property, it’s important to have a clear understanding of all the associated costs. · CALCULATE THE MONTHLY MORTGAGE PAYMENT One of the biggest expenses you’ll need to account for is your mortgage payment, which comprises principal and interest. To calculate the principal, simply take the total amount you borrowed and divide it by your loan term. For example, if you owe $100,000 on your mortgage and have 20 years, or 240 months, mortgage, the principal portion of your monthly mortgage is $416. Your mortgage interest expense will equal the interest rate on your loan times your loan amount. · ADD IN THE QUARTERLY PROPERTY TAXES In addition to your mortgage payment, you’ll also need to factor in property taxes. These are typically paid every quarter, so you’ll need to divide the annual amount by four. For instance, if your annual property tax bill is $2,000, your quarterly property tax expense would be $500. . ESTIMATE MONTHLY HOMEOWNER’S INSURANCE PREMIUM To estimate your monthly homeowner insurance premiums, start by looking at the average cost of premiums in your area. Insurance rates and provisions vary by the insurer so be sure to get quotes from at least three companies. · INCLUDE ESTIMATED MONTHLY MAINTENANCE AND REPAIR COSTS Next, you’ll need to calculate an estimated monthly maintenance cost. This can be done by taking into account the age of your rental property and the expected wear and tear that it will experience over time. If you think your rental property will need major repairs or renovations in the near future, be sure to factor that into your estimate. By taking the time to calculate these monthly expenses, you can get a good idea of what it will cost to rent out your property each month. This information can help you make informed decisions about the appropriate rental rate to charge. · FACTOR IN ANY APPLICABLE VACANCY RATES OR LEASING FEES You’ll also need to factor in any applicable leasing fees. These can vary depending on the type of property and the location, but they’re typically a percentage of the total rent amount. · SUBTRACT POTENTIAL RENTAL INCOME TO GET YOUR NET OPERATING INCOME (NOI) To calculate your net operating income, take your potential rental income and subtract any vacancy loss,
REFINANCING RENTAL PROPERTY IN 2022: A REAL ESTATE INVESTOR’S GUIDE
Have you been thinking about refinancing your rental property? If so, you’re not alone. Refinancing continues to remain popular with homeowners and real estate investors as a vehicle for locking in interest rates rather than chancing escalating rates under a variable mortgage, or unlocking the appreciated value of a property through a so-called cash re-fi structure. At MY SMART COUSIN, we help homeowners and investors, and especially Black and Brown folks and women, optimize their real estate investment, management, and ownership strategy. As your Real Estate Investment Coach, we’ll help you evaluate the residential property market in terms of the many opportunities that continue to be available, even in today’s high-priced market, and step you through our proven roadmap to buy a house for the price of a car! Whether you are a current or aspiring real estate investor, chances are high that one of the criteria you use to evaluate opportunities is ROI or return on investment. One way to increase the ROI of a real estate investment is to refinance the property at a lower interest rate, at a higher leverage rate, or both. This guide will get you thinking through the questions and answers needed to make the best decision for your portfolio. Let’s read on to learn more! WHAT DOES IT MEAN TO REFINANCE A RENTAL PROPERTY, AND WHY SHOULD YOU CONSIDER DOING IT NOW? Refinancing a rental property refers to taking out a new loan to replace an existing loan. There are many reasons why you might want to refinance your rental property, but some common reasons include: · To obtain a lower interest rate and thereby save money on your monthly mortgage payments. · To tap into the equity you’ve built up in the property by obtaining a mortgage that reflects the higher value of the property. · To switch from an adjustable-rate mortgage to a fixed-rate mortgage. · To shorten the loan term and build equity more quickly. In general, it’s a good idea to refinance if you can get a lower interest rate and/or reduce your monthly payments. Tapping into the equity value of the property through a cash re-fi can also be a great way to put the stored value of these funds to use. As for why you would specifically pursue refinancing in 2022, there are a few reasons: · Even with 30-year mortgage rates currently sitting at a relatively lofty 5.75% – 6% rate, a nearly three-point jump from July 2021’s rate of 2.8%, mortgage rates are forecasted to trend even higher in the next few years. As such, trading in a variable rate mortgage now for a fixed rate loan allows you to avoid the risk and cost of continued inflation and higher rates. · The housing market is expected to cool off in the next few years, so refinancing now could help you tap into equity while today’s housing prices, while they’re still high. · The government is expected to implement changes to the tax code that could make refinancing less beneficial. Refinancing before those changes go into effect may help you save money. Refinancing can be a complex process. When considering strategies that could impact your taxes, meet with your accountant first. Likewise, be sure to speak with your financial advisor to ensure that your specific financial position is considered in your strategy. THE BENEFITS OF REFINANCING A RENTAL PROPERTY There are several benefits to refinancing a rental property. · Perhaps the most obvious is that it can help to lower your mortgage payments. If you have been searching for ways to lower expenses, refinancing may give you the financial breathing room you need. · If a cash re-if is done, the funds obtained from the refinancing can be used to increase the value of your property. By taking out the proceeds from the loan and making improvements to your rental property, you can make the property more attractive to potential tenants, increasing retention and the rental amount. · Finally, refinancing can allow you to tap into the equity you’ve built up. This can be helpful in finding a growth strategy. In short, there are several advantages that accrue from refinancing a rental property. IMPORTANT CONSIDERATIONS TO BEAR IN MIND WHEN REFINANCING YOUR RENTAL PROPERTY Before taking the plunge into the refinancing market, there are a few things to keep in mind to get you started on your journey: · First, make sure you compare rates from multiple lenders to get the best deal. · Second, beware of prepayment penalties, which can cost you hundreds or even thousands of dollars if you try to refinance before your loan term is up. · Finally, remember that closing costs can add up, so be sure to factor them into your refinancing decision. If you keep these things in mind, refinancing your property can be a great way to save money and make improvements. THE PROCESS OF REFINANCING A RENTAL PROPERTY The refinancing process can be a bit complicated, but it essentially boils down to these steps: · Shop around for the best rates and terms. · Gather all the necessary documentation. · Apply for the new loan · Wait for approval and close on the loan. · Use the funds from the new loan to pay off the old one. HOW TO FIND THE BEST REFINANCING DEALS No one likes overpaying for anything, least of all when it comes to making expenditures on an investment that is meant to pay you money. If you’re looking to refinance your rental property, there are a few things you can do to make sure you get the best possible deal: · First, talk to multiple lenders and compare their offers. Pay attention to both the interest rate and any fees or points so that you can do an item-by-item comparison across lenders. · Second, don’t be afraid to negotiate. Let each lender
A GUIDE TO REAL ESTATE ASSET MANAGEMENT
When you’re buying a property, it’s important to think beyond the short-term horizon. You also need to consider what your long-term objectives are for the property, and how everything, from property management to tax planning to the eventual sale of the property, will be evaluated holistically to optimize the value of your asset. That’s where real estate asset management comes in. By using a professional asset manager, you can rest assured that a cohesive economic, operational, and financing strategy will be developed and implemented. When you’re looking to buy a house and structure a real estate asset plan that will grow with you over time, it can be hard to find the right Real Estate Investment Coach. At MY SMART COUSIN, we work with you to understand your resources and strategy inside and out so that we can position aspiring investors and homeowners, with a particular focus on Black and Brown folks and women, to buy a house for the price of a car and scale their finances. In this blog post, we’ll discuss the benefits of real estate asset management, and why it’s such an important part of owning property. Stay tuned! WHAT IS REAL ESTATE ASSET MANAGEMENT AND WHY DO YOU NEED IT? Real estate asset management is the process of analyzing the real estate market for opportunities, and capitalizing on these opportunities with an acquisition, financing, and operating plan. Real estate asset managers ensure that a property generates consistent revenues and cash flow, minimize operating expenses and risks, and leverage financing, tax benefits, and economic incentives to increase the property’s value. The terms ‘property management and ‘asset management’ are sometimes used interchangeably. However, property management, which focuses on property operations— think screening tenants, making repairs, and collecting rent— is a subsection of asset management and only one of several elements required to increase value. THE BENEFITS OF REAL ESTATE ASSET MANAGEMENT Fundamentally, the goal of asset management is to ramp up returns by taking a holistic view of the drivers behind property values and using those insights to make cross-cutting decisions. Chief among the benefits include: – Increased Profits: by carefully tracking income and expenses, analyzing market trends, and executing sound business strategies, asset managers can help to increase profitability and protect against financial risk. Lower Risk: because asset managers analyze all of the information regarding a property, from factors driving the local housing market such as housing prices and jobs to property specifics such as bookkeeper and property management reports, the asset manager serves as the effective chief executive officer of the property. This CEO role helps minimize the risk that critical information or opportunities will be overlooked. HOW TO FIND A GOOD REAL ESTATE ASSET MANAGEMENT COMPANY While there are many reputable and qualified firms to choose from, finding the right one for your needs can be a challenge. Here are a few tips to help you find a good real estate asset management company: – First, consider your specific needs. What type of property do you need to be managed? Are you looking for a firm that specializes in commercial or residential properties? Knowing your specific needs will help you narrow down your search. – Second, ask for recommendations. Talk to colleagues, real estate professionals, and trade associations for referrals and suggestions on asset management companies. – Third, check online reviews. Search for real estate asset management companies in your area. Read reviews to get a sense of what others have experienced. – Finally, schedule consultations. Once you’ve compiled a list of potential firms, reach out and set up meetings with each one. This will allow you to learn more about their services and decide if they’re the right fit for you. THE DUTY OF A REAL ESTATE ASSET MANAGER – A real estate asset manager’s job is to increase the value of a property and improve its cash flow. They do this through tasks including developing an investment strategy, finding lenders, helping you structure and negotiate to finance, and evaluating property insurance options and terms. – Cash flow management is a critical part of a real estate asset manager’s job. They must ensure that the property generates enough income to cover all expenses, including mortgage payments, taxes, and repairs and maintenance. – In addition, they must also find ways to increase the income from the property, such as by taking a close look at how property management is being handled and diving into the detail behind revenues and expenses. – By increasing the value of the property, a real estate asset manager can help to generate more income for the owner and improve the overall ROI of the investment. SUMMARY So, what is real estate asset management? In a nutshell, it’s the process of managing the risks and opportunities of a property on behalf of an owner. This could be anything from an office building to a portfolio of single-family homes. Are you considering using a real estate asset manager? If so, share your questions! YOU CAN ALSO READ: A HOW-TO-GUIDE: RENT-TO-OWN A HOUSE FOLLOW US: @MYSMARTCOUSIN
A HOW-TO-GUIDE: RENT-TO-OWN A HOUSE
Are you a renter who’s tired of never quite feeling like you own your place? Or maybe you’re a homeowner who’s been through one too many costly repairs and is looking for a more affordable option? Owning and renting are the two most common options that people think of in real estate. Despite the hot real estate market, or perhaps one reflection of it, owning an affordable home has become the preferred strategy for participating in real estate, particularly if you do so by Buying a house for the price of a car. With MY SMART COUSIN we help familiarize prospective investors and homebuyers with the benefits of investing in properties, and more importantly, walk with them, step-by-step, through a customized roadmap to buying their house for the price of a car. If moving from planning to action sounds like just the medicine you need, we’re here to help you take your finances and investments in a new direction. We specialize in helping Black and Brown folks and women understand the benefits and mitigate the risks of investing through real estate purchases, and building a portfolio of monthly income. If feeling like you’re a perpetual renter with no clear path on how to step into home ownership sounds like you, then examine your current digs and ask, is it exactly the kind of nest that you’d like to own someday rather than continue renting. If the answer is yes, then rent-to-own might be a great vehicle to acquire a house. Rent-to-own, while open to everyone, is well-suited for those who need a little more time to line up a down payment, or to raise their credit score to qualify for a mortgage. In this article, we will outline everything you need to know about rent-to-own agreements and how they work. Keep reading to learn more! WHAT IS RENT-TO-OWN AND HOW DOES IT WORK? Rent-to-own agreements are contracts between a tenant and a landlord that give the renter the option to purchase the property they are renting at a later date. These agreements are typically used when the renter does not have the necessary down payment for a mortgage or is not able to qualify for one. Under a rent-to-own agreement, the landlord agrees to hold onto the property for an agreed-upon length of time, usually one to three years. During that time, the renter pays an amount above the normal rental price, which goes towards the eventual down payment required to purchase the property. At the end of the rental lease, the renter has the option to purchase the property, typically at a price agreed upon in advance. If the renter chooses not to purchase, they simply vacate the property, just as they would if they moved from a typical rental home, with no further obligation to the landlord. THE BENEFITS OF RENT-TO-OWN Many people dream of owning their own home, but the upfront cost can be cost-prohibitive. In addition, the process of securing a mortgage— particularly in the midst of today’s market uncertainty, what with high inflation, rising interest rates, and a looming recession— can be complex and unnerving. Rent-to-own arrangements offer an alternative path to homeownership. · SUFFICIENT TIME TO SAVE FOR A DOWN PAYMENT Rent-to-own can be a great option if your finances have you sidelined due to insufficient savings. With rent-to-own, time is your friend, giving you the flexibility and structure you need to save a specific amount of money by a fixed date. · CONVENIENT FINANCING Rent-to-own agreements often come with less stringent credit requirements, making it easier to qualify for financing. And, because a portion of your monthly rent payments will go toward the purchase price of the home, you’ll already have a head start on the financing. · BUILDS EQUITY A percentage of your rental payment goes towards the down payment or equity value of your home. As a consequence, with each monthly payment, you’ll be closer to becoming a homeowner and building equity in your house. · AMPLE AMOUNT OF TIME TO TEST YOUR NEIGHBOURHOOD Rent-to-own can be a great way to look at your community through the eyes of a prospective property tax-paying homeowner. Conveniences and irritations regarding the neighborhood and nearby amenities can be evaluated anew and considered over a span of years before committing to a purchase. · THE OPPORTUNITY, AND OBLIGATION, TO OBTAIN FULL CONTROL OF THE PROPERTY Rent-to-own agreements can be structured to provide the tenant with both the right and responsibility to make a menu of maintenance decisions and design changes, without landlord input. In such instances where the tenant is given a free hand to customize the house, the costs are often paid by the tenant. Thus, should you decide to paint your home entirely in purple, for instance, your landlord’s approval, or more likely, swift disapproval, is not a factor. That said, the cost of this new aesthetic will be paid for by you. This latitude can be a big plus for people who want the flexibility to truly treat the home as their own and renovate it to their liking. · NO BURDEN OF TAXES OR PROPERTY INSURANCE Rent-to-own agreements often come with no requirement to pay property taxes or property insurance, which allows the tenant to try out homeownership without bearing the full cost of homeownership. If you’re considering a rent-to-own agreement, be sure to do your research and work with a reputable landlord. By understanding the process and being aware of the potential risks, you can ensure that rent-to-own is right for you. DISADVANTAGES OF RENT-TO-OWN While rent-to-own is a great way to get your foot in the door of homeownership, there are a few potential drawbacks to consider before signing on the dotted line. · First and foremost, once the lease period is up, you will still need to obtain a mortgage to purchase the property. · Additionally, the landlord may include clauses in the contract that make you responsible for their
A BEGINNER’S GUIDE TO A LEASE OPTION AGREEMENT
Are you thinking about buying a home but don’t want to commit to a mortgage just yet? With the average cost of a house peaking just north of $400,000 in May 2022, it’s no wonder that you’re on the fence. But what if I told you that there are still deals aplenty to buy a house for the price of a car, even in this sizzling housing market? At MY SMART COUSIN, we help aspiring property investors, and particularly Black and Brown folks and women, get into the home ownership and real estate investment game. As seasoned Real Estate Investment coaches, we help you find the right property, analyze and structure the deal, obtain free money as well as lender financing, and close on the transaction. We also help you discover the many channels where you can find a quality, low-priced homes, and invest as a homeowner, a buy and flip investor, or a buy and hold property owner. One vehicle for financing properties is through a lease. I have never heard of a lease option agreement, also sometimes referred to as a rent-to-own agreement, don’t worry – you’re not alone. A lot of people don’t know about this powerful tool for acquiring and selling properties, but it can be a great way to get started in building a portfolio. In this post, we’ll explain what a lease option agreement is and how it works. Read on to learn more! WHAT IS A LEASE OPTION AGREEMENT AND WHY SHOULD YOU USE IT? A lease option agreement is a contract in which the renter has the option, but not the obligation, to purchase their rented property, either during or at the end of their lease term. There are many benefits to using a lease option agreement, especially for those looking to eventually purchase their own home, or as an alternative to the method of selling a property, you already own. By entering into a lease option agreement, the renter can lock in the purchase price for the home and thus mitigate the risk that upon the purchase several years later, the future price is significantly higher. Additionally, a renter can qualify for a mortgage-type loan from the landlord in ways that their FICO score or financials might not allow them to. Lastly, lease option agreements often come with built-in flexibility, allowing the renter to choose a custom lease term length, typically ranging from two to five years. As a result, lease option agreements can be a great way to secure a future home purchase, buying into a neighborhood and home that you’re already familiar with and like. HOW TO CREATE A LEASE OPTION AGREEMENT A lease option agreement is a contract between a renter and a landlord that gives the tenant the right to purchase the property during or at the end of the lease term. The key terms of a lease option agreement include a non-refundable upfront payment which serves as an option fee giving the renter the right to purchase the home ahead of any other offers that the landlord might consider, and rental payments which often include an adder of $100 or more that is credited to the purchase price of the home should the renter choose to exercise their option to buy, the duration of the lease, property maintenance requirements— sometimes the renter pays some or all of the maintenance costs during the lease, and whether the tenant has the exclusive right to purchase the property. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort – If the lease contract includes an added payment that can be credited towards the down payment to purchase the home, the renter should ensure that this payment is placed in an escrow account. Doing so can facilitate the refund of these funds, should the renter not purchase the home. – If the purchase of the home at the end of the lease will occur through a balloon payment, the renter will need to ensure that they use the intervening lease period to get their credit score and finances in order so that they may qualify for a mortgage. – The term of a lease option is typically two to five years. This time period provides comfort to both parties. It is long enough for many tenants to begin the process of qualifying for a mortgage, and short enough for property owners to feel secure in fixing the purchase price 2 – 5 years into the future without risking a substantial and unforecasted run-up in prices, leaving them with unearned profits THE BENEFITS OF A LEASE OPTION AGREEMENT Importantly, a lease option agreement is an arrangement between a landlord and tenant that gives the tenant the flexibility to purchase the property at a later date, usually at a pre-determined price. There are several benefits to this type of arrangement. · First, the tenant may be able to pay, little by little, towards the eventual purchase price of their home while still renting it, through the added payment to the rent. This additional payment provides the tenant with a running start towards building equity in the home and can be used towards the down payment that a mortgage lender will look for when financing the purchase. Depending on how the contract language is written, the added payment may or may not be refundable if the tenant does not exercise their purchase option— renters will want to pay special attention to this section of the lease agreement, including hiring a lawyer or property investment advisor to assist. · Second, the lease option agreement may give the tenant additional time to qualify for a mortgage. This can be beneficial for tenants who are self-employed, have poor credit, or face other challenges that make it difficult to obtain financing. · Finally, the lease option agreement may give the lessee greater flexibility in terms of making changes to the property,
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 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. · 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 modernized 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 well-insulated and solid structures. 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 home. If you’re thinking about putting your house