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
THE BEST REAL ESTATE INVESTING STRATEGIES
To make money in real estate, you need to be able to find the right strategies. If you’re a new investor who’s just getting started with investing your funds in fix-and-flips or rental properties, worry not, there are still plenty of options available. At MY SMART COUSIN, we want to help you make your first step in real estate investing as easy and painless as possible. As a seasoned Real Estate Investment Coach, we help aspiring homeowners and investors, with a special focus on Black and Brown folks and women, implement investment strategies custom-designed for their needs, and buy a house for the price of a car. We lead you through every step of the process with a personalized roadmap, and cash flow management services designed specifically around what is best suited for you. With so many ways to make money in the real estate industry, it can be daunting for beginners. This is why we’ve written this article! In this blog, we’ll outline a few time-tested strategies that work well for any investor looking to start their investing journey, or a more seasoned investor seeking to benchmark their approach. · INVEST IN A REAL ESTATE FUND OR TRUST There are almost as many channels for investing in real estate as there are real estate investors. However, not all of them are created equally. For a brand new beginner with limited-to-no time to spare on finding, evaluating, and managing properties, one of the best ways to learn the ropes is to invest in a real estate fund or real estate investment trust (REIT). Real estate funds and trusts offer several advantages over buying a physical and stand-alone asset: · First, they enable newcomers to leverage the buying power of a large collective of like-minded investors. A real fund or trust will purchase hundreds or even thousands of properties within a real estate class— shopping centers, for instance— or a broad segment such as commercial property. New investors with no or limited free time can participate in the returns on these properties entirely as passive investors. · Second, an investment that contains hundreds of properties versus one, by definition, has less concentration risk, and the potential for greater resiliency in economic downturns. · Additionally, funds and REITs are traded on an exchange, just as stocks, bonds, currency, and commodities are. Exchange-traded assets have much more liquidity than a single house or commercial property, which can take weeks or months to sell. As such, funds and REITS are great options for investors who want the flexibility to be nimble across funds or cash out quickly. · Finally, real estate funds and trusts often have access to exclusive deals and properties that individual investors would not be able to purchase on their own. For these reasons, investing in a real estate fund or REIT is one of the smartest, and certainly, easiest, ways to get started in real estate investing. · BUY A PROPERTY AND RENT IT OUT TO TENANTS A rental property can be a great investment, providing a steady stream of income and the potential for long-term capital appreciation. Additionally, with strong renters in place and the use of a property manager who is focused on customer service and operations, a rental property can be a great long-term and relatively passive investment. Finding renters that have a strong rental and credit profile can be among the biggest worry for new and seasoned investors alike. To attract and retain high-quality tenants, it is important to screen applicants carefully, and apply the same focus and enthusiasm to maintenance as was applied to acquisition. With planning and consistency, it is possible to find rental customers who will value your product— your rental property unit— and service, and engage in a mutually beneficial relationship. · PURCHASE A FIXER-UPPER AND RENOVATE IT YOURSELF If you’re handy with a hammer and don’t mind getting your hands dirty, then purchasing a fixer-upper and renovating it yourself may be an ideal real estate investment strategy. Not only will you be able to save on labor costs, but you’ll add value to the property through your improvements, and gain firsthand knowledge of the property’s strengths— perhaps a solid roof that has many more years of life— and drawbacks— maybe a furnace that can only last another winter or two. Whether you’re inclined to do the work yourself or hire contractors, be sure to do your homework first and consult with a real estate agent or contractor to get an accurate estimate of the renovation costs. Otherwise, you could find yourself in over your head—and in debt—before you know it. But if all goes well, you could end up with a solid rental investment that’s worth much more than you paid for it. And that, my friend, is the best kind of investment. · FLIP HOUSES FOR QUICK PROFITS If you’re looking to make a quick profit in the real estate market, typically on the order of three to nine months from purchase to sale, then flipping houses may be the perfect strategy for you. While it can be a risky venture, there are several ways to minimize your risk and maximize your profits. One key to successful house flipping is to choose properties that need only minor cosmetic upgrades. Additionally, it’s important to have realistic expectations about the value of the property after renovations are complete. Lastly, timing is everything when it comes to flipping. Seek to purchase properties when no one else is looking and competition is thin— Thanksgiving through New Year’s, for instance— and sell when demand is high— May through August when school is out and families are looking to move and get kids settled for a new school year. FINAL THOUGHTS So, which real estate investment strategy is right for you? There’s no one answer as it depends on your goals, financial situation, and comfort level with risk. No matter what route you decide to take, always do your research and consult with a professional
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
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 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
A HOMEBUYER’S GUIDE TO THE ESCROW PROCESS
When most people think of buying a house, the first thing that comes to mind is the mortgage. How will you afford it? How much can you borrow? What is the likely interest rate? Can you find an affordable property? These are all important questions to be considered. Despite inflation, high mortgage rates, and the newly declared recession-lite phase of the economy, the housing market remains hot. At MY SMART COUSIN, we work with aspiring real estate investors and homeowners, and particularly Black and Brown folks and women, to help you find properties that fit your needs! As your Real Estate Investment Coach, we will walk you through evaluating the current property landscape and develop a custom-tailored plan on how best to invest your money and buy a house for the price of a car. One element of purchasing a property is the escrow process. While this process can seem daunting, it doesn’t have to be. This guide will walk you through the key steps, from start to finish. So whether you’re a first-time homebuyer or an experienced pro, read on for all the info you need. WHAT IS AN ‘ESCROW’ AND WHAT DOES IT INVOLVE? Escrow is a system where two parties involved in a transaction (usually a buyer and seller) deposit all funds and property related to the transaction with a non-related third party. This third party holds the funds and assets until all conditions of the deal are met before finally releasing them to the appropriate party. This process helps to ensure that both parties uphold their end of the bargain before any money or property changes hands. In real estate transactions, for example, the buyer typically deposits funds with an escrow agent at the beginning of the sale process. Once all contingencies are met and both parties are satisfied, the escrow company will release the funds to the seller. Escrow can also involve other assets besides money, such as intellectual property or physical belongings. By entrusting these items to a third party, both parties can be sure that they will receive what they are owed promptly. HOW TO PREPARE FOR THE ESCROW PROCESS? The escrow process can be confusing and overwhelming, but it doesn’t have to be. Here are a few tips to help you prepare for escrow: · First, be sure to choose a reputable escrow company. Ask for recommendations from your real estate agent, attorney, or financial advisor. · Second, make sure you have all of your documents in order. This includes your purchase contract, loan papers, and any other pertinent paperwork. · Third, be prepared to pay any necessary fees. This may include an escrow fee, loan origination fee, and/or title insurance premium. · Fourth, be patient! The escrow process can take several weeks to complete. But once it’s finished, you’ll be the proud owner of your new home. WHAT TO DO DURING THE ESCROW PROCESS? Once you’ve found a home you want to purchase and made an offer that’s been accepted by the seller, it’s time to enter escrow. Escrow is the period between when your offer on a home is accepted and when the sale finally closes and you become the legal owner. During this time, your real estate agent will be working hard behind the scenes to make sure everything goes smoothly. Here’s what you can expect during the escrow process: 1. Your agent will order a title search to make sure there are no outstanding claims or liens on the property. 2. The lender will order a home appraisal to make sure the property is worth at least as much as the loan amount. 3. You’ll need to get insurance for the property. 4. The escrow company will prepare all the necessary paperwork for the closing. 5. You’ll need to sign all the paperwork and wire the down payment and closing costs to the escrow company. 6. The seller will transfer the deed to you and you’ll be given the keys to your new home! WHAT TO DO AFTER THE ESCROW PROCESS IS COMPLETE? So you’ve finally made it to the end of the escrow process. Congrats! You’re now the proud owner of a new home. But what comes next? Here are a few things to keep in mind in the days and weeks following the close of escrow: · Pat yourself on the back – you’ve just accomplished one of the biggest milestones in your life! Make sure to celebrate accordingly. · Get in touch with your homeowner’s insurance company and set up coverage for your new home. · Start thinking about any customizations or renovations you might want to make to your new place. A little bit of planning now will save you a lot of headaches down the road. · If you’re moving from out of state, start researching local schools and amenities so you can hit the ground running when you arrive. · Most importantly, take some time to relax and enjoy your new home. You’ve earned it. SUMMING IT UP So, there you have it! Your comprehensive homebuyers guide to the escrow process. Escrow may seem challenging at first glance, but with our helpful tips and a little preparation, you’ll be ready to take on this important step in the homebuying journey. Are you excited? We certainly are! If you have any questions about escrow or would like more information, don’t hesitate to reach out to us. We’re always happy to help. Until next time, happy house hunting! YOU CAN ALSO READ: HOW TO ESTIMATE YOUR RENTAL PROPERTY EXPENSES FOLLOW US: @MYSMARTCOUSIN