WHAT IS THE BEST TYPE OF MORTGAGE FOR A NEW REAL ESTATE INVESTOR?
We’ve all heard the old saying “ buy low, sell high. But what does that really mean? It means getting a great deal and then turning around so you can pass those savings on to your customer! MY SMART COUSIN helps as an experienced Real Estate Investment Coach position Black or Brown folk (especially women) to purchase their investment property quickly and knowledgeably by leveraging our skill set which has already helped many like ourselves achieve what everyone deserves – ownership of their own home! With our strategies and guidance, we help them buy a house for the price of a car. Are you thinking of investing in real estate? It can be a great way to build wealth over time, but it’s important to choose the right type of mortgage. So, what’s the best type of investor mortgage for a new real estate investor? Read on to find out! WHAT IS AN INVESTOR MORTGAGE AND HOW DOES IT WORK? An investor mortgage is a type of loan that is designed for people who are looking to purchase property for investment purposes. The key difference between an investor mortgage and a regular home loan is that the interest rate on an investor mortgage is typically higher. This is because lenders view investment property as a higher risk than a primary residence. As a result, people who are looking to take out an investor mortgage need to be prepared to make a higher monthly payment. However, the potential return on investment (ROI) can be much higher for an investment property than a primary residence, making an investor mortgage an attractive option for many people. WHAT ARE THE BENEFITS OF USING AN INVESTOR MORTGAGE FOR A NEW REAL ESTATE INVESTOR? When you’re first starting out as a real estate investor, it can be tough to get approved for a traditional mortgage. That’s where an investor mortgage comes into play. Investor mortgages can be particularly helpful for new real estate investors, and they offer a number of benefits. YOU CAN ALSO READ: FEE SIMPLE OWNERSHIP VS. LEASEHOLD: KEY DIFFERENCES FOLLOW US: @MYSMARTCOUSIN
FEE SIMPLE OWNERSHIP VS. LEASEHOLD: KEY DIFFERENCES
When you’re considering buying a property, it’s important to understand the difference between fee simple ownership and leasehold. Why? Because with fee simple ownership, you own the property outright – there are no restrictions on what you can do with it. With a leasehold, on the other hand, you only reside in the property for a limited period of time; after that, the property reverts to the owner. Additionally, leaseholders may be subject to certain restrictions, such as not being able to make changes to the interior or exterior of the property, something that can be particularly important when considering a commercial property that may need to be redesigned to accommodate a particular business type. So before you open your wallet, be sure to fully understand the implications of each type of ownership. MY SMART COUSIN Want to get into property ownership? We can help you move from vision to execution! At MY SMART COUSIN, we provide the expertise and resources for budding property investors and homebuyers of all stripes, especially those who are looking to buy a house for the price of a car, the same way we have dozens of times. As Real Estate Investment Coaches, we work with aspiring homeowners and investors, with a particular focus on Black and Brown folks and women, to develop and implement an investment strategy, including, whether you should consider fee simple or leasehold ownership. WHAT IS FEE SIMPLE OWNERSHIP? Fee simple ownership is the most complete form of ownership. The owner has full use and enjoyment of the property and can dispose of it as he or she wishes. There are two types of fee simple ownership: Fee Simple Absolute and Fee Simple Defeasible. · Fee Simple Absolute is the most common type of fee simple ownership. The owner has an unrestricted right to enjoy and dispose of the property. · Fee Simple Defeasible is less common and may be subject to certain conditions, such as the payment of taxes, or compliance with zoning regulations. In either case, fee simple ownership gives the owner a great deal of control over the property. WHAT IS A LEASEHOLD? When you hear the word “leasehold,” you might think of leasing a car. But in the context of real estate, a leasehold is an ownership interest in land that is leased from a lessor. · The most common type of leasehold is a residential lease, in which a tenant pays rent to a landlord in exchange for the right to live on the property. Leasehold structures are often used for manufactured housing, where the manufactured house itself might be owned by the resident, but the land that the house sits on is leased. · Commercial leases are also common and can involve anything from office space to parking lots. Leaseholds can be either short-term or long-term, and usually include an option to renew the lease at the end of the term. In some cases, a leasehold may also give the tenant the right to purchase the property outright. Whether you’re looking for a place to live or a place to do business, it’s important to understand the basics of leaseholds before signing any documents. SOME OF THE KEY DIFFERENCES BETWEEN FEE SIMPLE OWNERSHIP AND LEASEHOLD When you purchase a home, you may choose between fee simple ownership and leasehold ownership. While both options offer the potential for long-term stability and security, there are some key differences that you should be aware of before making your decision. · Fee simple ownership gives you full and unencumbered ownership of your home. This means that you will own the property with effectively no strings attached, and can do with it as you please. Because you own the property in full, you also own all of the attendant obligations including responsibility for maintenance, repairs, property taxes, and property insurance. Leasehold ownership, on the other hand, does not provide the same level of control and the same scope of responsibility. Instead, you will be leasing the property from a landlord for a set period of time. During the lease period, you will be responsible for paying rent and following any rules or regulations that are set by the landlord. You will also be responsible for paying utilities and other expenses that the landlord assigns to you in the lease, such as trash, pest control, and landscaping. At the end of the lease, the property will revert to the landlord. Another key difference between fee simple ownership and leasehold ownership is the length of time that each option provides. · Fee simple ownership is typically permanent, meaning that you will own the property for as long as you wish. Leasehold ownership, meanwhile, is typically much shorter in duration. Most leases are for a maximum of 99 years, after which point the property will revert to the landlord. This means that if you purchase a leasehold property, you should be prepared to relinquish ownership at some point in the future. Next, it is important to note that fee simple ownership typically offers more security than leasehold ownership. This is because fee-simple ownership gives you full control over your property, while leasehold ownership leaves many decisions up to the landlord. As such, fee simple ownership may be a better option if you are looking for a long-term investment. · Fee simple ownership is typically more expensive than leasehold ownership because you are buying the property outright, and with it, the attendant risks, taxes, and obligations of ownership. With a leasehold, you are only paying for the right to use the property for a set period. Some leases, particularly very long-term leases, require that some portion of maintenance be paid by the lessee, so you will want to explore and negotiate this. · The duration of a fee simple ownership property is effectively forever, or until the owner sells it. Leasehold properties usually have a maximum lease duration of 99 years, and in practice, are
HOW TO BUILD UNSHAKABLE CONFIDENCE AS A REAL ESTATE INVESTOR
Real estate investing is a process that can be both thrilling and nerve-wracking. On the one hand, it’s an opportunity to earn passive income and grow your wealth. On the other hand, it’s also a big risk. This is where MY SMART COUSIN comes in! At MY SMART COUSIN, we offer tailored solutions in every aspect of real estate investment and homeownership, with a particular focus on Black, Brown, and women real estate investors. Whether you’re looking to buy a house for the price of a car, or are looking to buy at a higher price point, we can help you proceed confidently and take you from strategy to a targeted list of matching properties, to negotiation, financing, closing, and property management. There are so many things that can go wrong when considering property investment, and it’s easy to second-guess yourself. So, how do you build confidence and knowledge in your gut that you’re making the right decisions as a budding real estate investor? The answer is simple: knowledge. The more you know about real estate investing, the more confident you will be, positioning you to grow your experience, the second component in building confidence. And the best way to gain knowledge is by doing your research and learning from others who have gone before you. Here are a few tips to get you started: · READ BOOKS AND BLOGS ABOUT REAL ESTATE INVESTING There is a wealth of free information available. Of course, caution is a must, as not all that glitters is gold. To sharpen your Spidey senses and ability to find hidden property gems, start reading and educating yourself about the process of real estate investing. And don’t stop at just one book or blog post—keep reading and learning as much as you can. The more you know, the more confident you will be. · JOIN A LOCAL OR ONLINE GROUP OF REAL ESTATE INVESTORS These groups are full of experienced investors who are happy to share their knowledge with newcomers. By joining one of these groups, you’ll have access to a wealth of information and experience that you can tap into when needed. · MEET WITH OTHER REAL ESTATE INVESTORS IN YOUR AREA This is a great way to network and learn about different investment strategies firsthand. You might even find some partners for future deals! · DO YOUR DUE DILIGENCE Before making any investment, you must do your due diligence. This means doing your research and being armed with as much knowledge as possible about the property and the market. When you have all the facts, it’s easier to make decisions with confidence. If you’re ever feeling hesitant, go back and review your numbers. This will help remind you why this is a good investment. · HAVE A MENTOR Having someone who can guide and support you is crucial when starting any new venture—and real estate investing is no different. Find someone who has been successful in this business and ask for their advice. Having a mentor will help boost your confidence because you’ll know that there’s someone in your corner who believes in you and wants to see you succeed. · TAKE SMALL STEPS Investing in real estate doesn’t have to mean buying a huge property, sight unseen. Start small by focusing on wholesaling or low-cost fix-and-flip properties in your local area. Once you have some skin in the game and see first-hand what it takes (and how rewarding it can be), then you can start thinking about bigger investments down the road. · SET SMALL GOALS AND ACHIEVE THEM One of the best ways to build confidence is to set small goals and then achieve them. When you take the time to celebrate your wins—no matter how small they may be—you’re reminding reiterating yourself that you can achieve your goals. This will give you the boost you need to keep going when the going gets tough. · GET OUT OF YOUR COMFORT ZONE One of the best ways to grow as a person—and as an investor—is to regularly get out of your comfort zone. When you challenge yourself and step outside of your norm, you’ll expand your learning, gain new skills, and build your confidence in the process. You may not always succeed when you attempt something new, but each time you try, you’ll become just a little bit better and more confident. FINAL THOUGHTS Building unshakable confidence as a real estate investor takes time and effort. But it’s worth pursuing because when you’re confident in your abilities, you’re more likely to succeed. So start reading, join some groups, and get out there and meet people. The more you know, the more effective you can be! YOU CAN ALSO READ: WHAT IS THE GROSS RENT MULTIPLIER (GRM) IN REAL ESTATE? FOLLOW US: @MYSMARTCOUSIN
WHAT IS THE GROSS RENT MULTIPLIER (GRM) IN REAL ESTATE?
If you’re a real estate investor or just in the market to buy a home, then you’ve likely come across the term “gross rent multiplier” or GRM. But what is it, exactly? And what does it mean for you? When you’re buying a property, one of the most important things to understand is your potential return on investment or ROI. This is calculated by multiplying the annual rent by the gross rent multiplier (GRM). At MY SMART COUSIN, we want to help you make your first step in real estate investing as straightforward and painless as possible. As seasoned Real Estate Investors and Investment Coach, we lead aspiring homeowners and investors, and especially Black and Brown folks and women, through the process of implementing real estate investment goals. We develop custom-designed strategies and roadmaps that are tailored to your particular situation and interests. And if you’d like to buy a house for the price of a car, our personal favorite way to invest, we’ve got you covered there too. In this blog post, we’ll break down everything you need to know about GRM and explain how it can help you make better investment decisions. Stay tuned! WHAT IS THE GROSS RENT MULTIPLIER? The gross rent multiplier, or GRM, is a tool that investors use to estimate the potential return on investment for a rental property. To calculate the GRM, you simply take the purchase price of the property and divide it by the annual gross rent. For example, if you purchase a property for $100,000 and the annual rent is $10,000, the GRM would be 10. Or said another way, if you purchase a house for $100,000, then it would take you ten years to reach breakeven on a rent revenue basis. However, it’s important to remember that the GRM is just an estimate and doesn’t take into account other factors that could affect your actual return, such as vacancy rates, competing for rental options for tenants, and market conditions. So while the GRM can be a helpful tool in your investment decision-making process, it shouldn’t be used as the sole deciding factor. HOW IS THE GRM USED IN REAL ESTATE INVESTING AND ANALYSIS? The gross rent multiplier helps investors quickly get their arms around the potential value of a property of an income-producing property. Generally speaking, a lower GRM indicates a better deal, as it means that you are paying less for each dollar of rental income. Or said differently, it is taking you fewer years to recover your investment cost through rent revenues. In addition to being used as a valuation tool, the GRM can be used to compare properties against one another. For instance, if one property has a GRM of 8 and another has a GRM of 12, then the first property is considered to be a better investment because it has a shorter breakeven period and requires fewer investment dollars per dollar of rent revenue. While the GRM is not a perfect measure, it is a useful tool for taking a quick snapshot of the value of an income-producing property. WHAT FACTORS INFLUENCE THE GRM FOR A PARTICULAR PROPERTY OR MARKET AREA? There are a variety of factors that can influence the GRM for a particular property or market area. · One of the most important factors is the current state of the housing market. If there is high demand for housing, the price of entry for an investment property will generally be higher, leading to a higher GRM. · Another important factor is the location of the property. Properties in desirable areas will often sell for a premium, resulting in a higher GRM, which may outweigh the value of the higher rental income. · Additionally, the size and condition of the property can impact the GRM. Larger properties or those in better condition will often sell for more, resulting in a higher GRM. · Ultimately, the GRM is impacted by a number of different factors, all of which should be considered when evaluating a potential property purchase. WHAT ARE SOME OF THE PROS AND CONS OF USING THE GRM IN REAL ESTATE INVESTING DECISIONS? The GRM is a powerful tool that aids in making real estate investment decisions. THE PROS · The GRM can be used to quickly and easily compare different properties. · It can help you evaluate whether a property is a good investment, · It can provide valuable insights into the market. THE CONS · The GRM does not take into account all of the factors that affect real estate values. It is important to remember that the GRM is just one tool, and the number should not be followed blindly as a rubber stamp of whether the property is a good or bad investment. YOU CAN ALSO READ: CAP RATE EXPLAINED AS WE BEGIN EYING 2023, AND WHY IT MATTERS WITH RENTAL PROPERTIES FOLLOW US: @MYSMARTCOUSIN
THE HIDDEN BENEFITS OF OWNING TURNKEY RENTAL PROPERTIES
Turnkey rental properties have been growing in popularity over the past few years. Many investors are considering them as an option for their portfolio, and for good reason—they can be a great way to get started in real estate investing. Whether your focus is buying one investment property or a large portfolio, buying a high-end property or a low-cost one, you need a strategy that is customized to your interests, and a coach dedicated to making it happen. In other words, MY SMART COUSIN. At MY SMART COUSIN, we offer tailored solutions in every aspect of real estate ownership, with a particular focus on Black, Brown, and women real estate investors. Whether you’re looking to buy a house for the price of a car, or are looking to buy at a higher price point, we can take you from strategy to a targeted list of matching properties, to negotiation, financing, closing, and property management. If you are considering investing in a particular type of real estate— turnkey rental property— you’re not alone. Turnkey rentals have been growing in popularity, thanks to their many advantages. But before you dive in, it’s important to understand what turnkey properties are, and what to look for when choosing one. In this blog post, we’ll discuss the pros and cons of turnkey rentals and help you decide if this investment is right for you. Stay tuned! WHAT ARE TURNKEY RENTAL PROPERTIES AND HOW DO THEY WORK? A turnkey rental property is a property that is ready to rent out as soon as you purchase it. This means that everything from the kitchen appliances to the furniture is included in the sale. The value of this structure is that you won’t need to make any additional investments in the property after you close, bringing you that much closer to earning immediate rental income. While turnkey properties can be more expensive than properties that require some renovations, they can also be a great way to get started in the rental market without any additional hassle. And, since the property is already generating income or can be positioned to generate income in short order, you’ll have a much easier time qualifying for a mortgage to finance the investment. If you’re thinking about purchasing a rental property, be sure to ask your real estate agent if there are any turnkey options available. ARE TURNKEY RENTAL PROPERTIES A GOOD INVESTMENT? Turnkey rentals typically come with a higher price tag than properties that need some work. That’s because you’re paying for the convenience of having a property that’s immediately lease-ready, as well as the cost of the renovations, fixtures, and in some cases, even furniture, that the seller paid for. And while turnkey properties can be a good option for busy investors who don’t have the time or inclination to take on repairs, it’s important to remember that you’ll trade off some control over the design and layout of the property if you go this route. That can be a good thing or a bad thing, depending on your preferences. So, is a turnkey rental property right for you? If you’re looking for a property that is wrapped up in a pretty now and can offer immediate cashflow, a turnkey rental can be a great option. Just be sure to do your homework before making any decisions – and remember that there’s no such thing as a perfect investment! WHAT ARE THE PROS AND CONS OF OWNING A TURNKEY RENTAL PROPERTY? The concept of owning a turnkey rental property can be appealing to many investors, but it’s important to consider both the pros and the cons before making a purchase. · On the plus side, turnkey rental properties will take much less time to bring to market versus a property that has to be gutted and renovated. · Additionally, turnkey rentals are often located in desirable neighborhoods or areas that are primed for growth, which can make them easier to rent and command higher rents. On the downside, turnkey rental properties can come with some risks. If the seller went over budget on the cost of renovation, or perhaps worse, if the seller totally ignored or cut corners in some areas of the property to save money, then the seller’s bloated budget or shortcuts will become your problem. In short, it’s important to do your due diligence before investing in any turnkey property. HOW DO YOU FIND THE RIGHT TURNKEY RENTAL PROPERTY TO INVEST IN FOR YOUR NEEDS AND GOALS? There are a lot of factors to consider when you’re trying to find the right turnkey rental property to invest in. Front and center should be your budget, your goals for the property, and what kind of property will be a good fit for you. If you’re not sure where to start, it can be helpful to talk to a real estate agent or property investment coach who specializes in turnkey investments. They’ll be able to help you figure out what your options are, and what kinds of properties are available in your price range. Once you’ve narrowed down your search, you can start looking at specific properties and see which ones seem like they would be the best fit for your needs. With a little bit of homework, you should be able to find the perfect turnkey rental property for your needs. FINAL THOUGHTS So, are turnkey rental properties a good investment for you? That answer depends on a lot of factors, including your goals, budget, and the market where you live. But as with any investment, it’s important to do your research and understand what you’re getting into before making a decision. We hope this article has helped give you some insight into what turnkey rental properties are all about and how they work. If you have any questions or want more information, be sure to reach out to us – we’d be happy to help! YOU CAN ALSO READ: WHAT HOMEBUYERS WANT: THE MOST IMPORTANT FEATURES FOLLOW US: @MYSMARTCOUSIN
WHAT HOMEBUYERS WANT: THE MOST IMPORTANT FEATURES
It’s no secret that the housing market continues to be hot, even with high prices and higher mortgage rates in the mix. In May of this year, average home prices hit a record high of $400,000 and then some, despite surging inflation and the resulting downward pressure it placed on sales. But even when prices are generally high across the board, there are always bargains to be had, if you know where to look. What if I told you that you can buy a house for the price of a car! At MY SMART COUSIN, we help you achieve your real estate investment goals, using tools and channels that are often overlooked by others. As your Real Estate Investment Coach, we have the skills and expertise to position almost everyone, with a particular focus on Black & Brown folks and women, for success in this competitive market. With planning, persistence, and guidance, you can buy a house for the price of a car and finally get your foot in the door of home ownership and property investment! If you’re in the market for a new home, you know there are a lot of things to consider. How big should it be? What’s the commute like? What’s the neighborhood like? It can be tough to figure out what’s important to you, and even tougher to find the right home that meets all your needs. But don’t worry – we’re here to help. In this blog post, we’ll take a look at the top features homebuyers are looking for in a new property. So whether you’re just starting your search or you’ve been looking for months and still haven’t found “the one,” read on for some valuable advice. WHAT ARE HOME BUYERS LOOKING FOR? Homebuyers are looking for features that will make their lives easier, as well as add value to the home. Popular features that continue to stand the test of time include energy-efficient treatments throughout the house (think insulation and solar panels as well as efficient appliances and windows), open floor plans, and smart technology. Homebuyers are also interested in outdoor living spaces, a flexible space that they can use as an office (given the COVID ripples felt in the work world), and everyone’s favorite— updated kitchens and bathrooms. Let’s dive into some of the most important attributes at the top of that homebuyers’ lists. · LOCATION, LOCATION, LOCATION The location of the house is one of the most important features that a homebuyer looks for, as centrality to required locations (school and work) and neighborhood favorites (shopping and restaurants) is key when choosing a home. The factors that you prioritize are ultimately a personal choice. For instance, most homeowners want to live near the city, but not smack-dab among the bright lights and car horns of downtown. Likewise, many homeowners rank peace and quiet high on their list, but not at the expense of living far from civilization (particularly if playmates for children are important). The perfect balance is a neighborhood that’s close enough to the city center for accessibility, but far enough away from noise and chaos. Also high on many people’s lists is an established area. An area that has plenty of amenities like schools, hospitals, parks, and shopping centers is far more attractive than the prospect of living in a construction zone. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort · UPDATED KITCHEN AND BATHROOM When it comes to buying a home, everyone has different tastes and styles. But some features endure no matter your preferences. A modern kitchen and bathroom are two of the most important attributes that home buyers look for. A kitchen is the heart of the home, and a bathroom, particularly one that has a spa-like sense of tranquility, is a place to relax and rejuvenate. Neither of these rooms should feel dated or cramped. A well-designed kitchen should have plenty of storage space and counter space, while a bathroom should feel clean, uncluttered, and serene. · HARDWOOD FLOORS Flooring is one of the most important things that home buyers look for when they are purchasing a new home. Many people believe that hardwood floors are the best type of flooring to have in a home. Although hardwood floors are beautiful, they can also be very expensive. Great alternatives are vinyl plank flooring which comes with the added advantage of being waterproof, and laminate or tile. · ENERGY-EFFICIENT EQUIPMENT According to a recent study, the most important features that home buyers look for are energy-efficient equipment such as solar panels, draft-free windows and doors, high-efficiency furnaces, water heaters and appliances, and a well-insulated and solid structure. While energy-efficient fittings can add to the purchase price of the home, the savings can last for many years. If the cost of adding solar or other equipment is beyond your budget, other options include adding energy efficient lighting and thermostats, and low-flow shower heads and toilets. · A LONG-LASTING ROOF One of the most important features that home buyers look for is a roof that is built with quality materials and still has many years of life left in it. A tile roof can last for decades and comes in many attractive finishes. Asphalt shingles, which are the most common type of roofing materials, are durable, fire-resistant, and have a lifespan of approximately 20 years, depending on your climate. Metal roofs made out of steel are also becoming more popular because they are low-maintenance and energy-efficient, and can last as long as 50 years. · PATIO AND DECK ADDITIONS A slice of backyard greenery is popular across the board with most home buyers. Potential uses range from having a play space for kids to backyard barbecues and entertaining, to having an open area for pets to run around. Patios are natural additions for backyards as they extend your indoor living area, convert your lawn into usable space, and add significant value to your
NO SECRETS – THE FUNDAMENTALS OF REAL ESTATE INVESTING SUCCESS
There’s no hiding the fact that real estate investing can be incredibly lucrative. But like any other business venture, there are no guarantees. If you’re looking to get into the world of real estate investing, it’s important to arm yourself with as much information as possible so that you can make informed decisions and increase your chances for success. 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! In this blog post, we’ll discuss some of the basics of real estate investing, and highlight key factors to keep in mind if you’re just starting out. Let’s dive in! THE BASICS OF REAL ESTATE INVESTING- WHAT YOU NEED TO KNOW Real estate investing is a great way to make money and build long-term wealth. However, it’s not a get-rich-quick scheme. There can be pitfalls aplenty, and patience, expertise, and persistence are required to be successful. The basics of investing in real estate are as follows: · First, you need to find good properties that have the potential to appreciate in value. If the properties will be rental properties, they also must provide steady rental income. A good rule of thumb for rental properties is to buy the property for no more than 100 times the monthly rent. Is it a single-family house renting for $1,000 a month? Add two zeros to the end, taking you to $100,000, which should be your maximum purchase price. Are you looking at multifamily that generates $5,000 a month in rental income? Adding two zeros means you should pay no more than $500,000. The two-zero rule, of course, has many exceptions, but it gives you a quick snapshot of the property’s price relative to its income potential. · Once you’ve found a good property, you need to finance it. You can do this by taking out a loan from a third party such as a hard-money lender or private individual, obtaining seller financing, bringing in others as equity partners or investors, or using your own savings. If you’re using a loan, you’ll need to make sure that the interest rate, any fees, and other terms still make the deal profitable and affordable for you. If you’re involving partners or equity investors, you’ll need to ensure that your investment strategy and goals for the property are aligned, and roles are clearly defined. You will almost certainly want to engage the services of a lawyer for partnership and equity investment deals. · After you’ve purchased the property, you’ll need to manage it properly in order to maximize its value. Property management can either be handled by you, or by a third-party professional manager who is paid a fee. In either case, property management boils down to making sure that the property is well-maintained, good tenants are identified and in place, customer service is a priority, maintenance is timely, and rent is collected on time. Real estate investing is not for everyone, but it can be a great way to build long-term wealth. If you’re willing to put in the work, it can be a very profitable endeavor. HOW TO FIND THE BEST PROPERTIES AND MAKE THE RIGHT OFFERS You’ve finally decided you’re ready to take the plunge and buy an investment property. But where do you start? And how do you make sure you’re getting a good deal? Here are a few tips to help you find the best properties and make the right offers. · First, do your homework. Research the market and talk to experts to get a feel for what kind of property is likely to appreciate in value, and how to assess the rental rate for a unit. Explore MeetUp and Facebook groups as a first step in learning from others. · Next, once you’ve found a few properties that meet your criteria, it’s time to start making offers. It’s important to be realistic with your offers, based on the current market value of the property and its potential for growth. Don’t be afraid to negotiate hard – but also be prepared to walk away if the seller isn’t willing to meet your terms. WHAT KIND OF RENOVATIONS WILL GIVE YOU THE BIGGEST RETURN ON INVESTMENT When it comes to renovations, there are a lot of factors to consider. How much will the project cost? How much value will it add to your property? And how long will it take to recoup your investment? If you’re planning a renovation and hoping to get the biggest return on your investment, here are a few projects to consider: · Updating the kitchen is always a good bet. A well-designed kitchen can add significant value to your investment property, and it’s something that potential buyers and renters alike will definitely notice. · Adding an extra bathroom, even a half bath, is another great way to increase your property’s value. Particularly if you’re flipping the property, an extra bathroom can be a real selling point. · Finishing your basement is another great option. A finished basement can be used as extra living space or even rented out for additional income. Whatever renovation you decide to undertake, make sure you do your research and plan carefully. With a little forethought, you can make sure your renovation adds both value and curb appeal to your home. HOW TO MANAGE YOUR PROPERTY PORTFOLIO FOR MAXIMUM PROFITABILITY As a property investor, you know that there’s more to success than simply acquiring as many rental properties as possible. To really maximize your profitability, you need to carefully manage your property portfolio. Here are a few tips for
LANDLORDS, ARE YOU AT RISK OF YOUR TENANT BEING ABLE TO LEGALLY WITHHOLD RENT? READ ON TO AVOID THIS SCENARIO!
Imagine this scenario: you’re a tenant who has agreed to rent a property from a landlord. However, after moving in, the house leaks and creaks, and all manner of other problems begin to crop up. Even more frustrating, the landlord, who seemed ultra-responsive when you were considering renting the house, is now nowhere to be found! The thought of solving the problem by moving seems overwhelming. Fortunately, there is another option: withholding rent. Rent withholding is a law that allows tenants to withhold part of their rent payment to make repairs if the landlord does not fix critical issues with the rental unit. Investing in real estate can be both exhilarating and profitable for existing and aspiring property investors. But as the above rent withholding example shows, it also has its share of risks and requires ongoing investments for the life of the property. At MY SMART COUSIN, we know that great investments don’t just happen. You need the right strategy and expertise to make them work, which is why we’re here! As a Real Estate Investment Coach who focuses on Black, Brown, and women real estate investors, in particular, we offer tailored solutions in every aspect of real estate ownership. Whether you’re looking to buy a house for the price of a car, our personal favorite way to buy, or are looking to buy at a higher price point, we can take you from strategy to a targeted list of matching properties, to negotiation, financing, closing, and property management. In this post, we’ll discuss what rent withholding is, how it works for landlords and tenants, and some common misconceptions about it. Stay tuned! WHAT IS RENT WITHHOLDING AND WHY DOES IT HAPPEN? Whether you’re a tenant or a landlord, chances are good that even if you haven’t heard the term ‘rent withholding’ per se, you’ve heard of cases of tenants being fully justified to pay less than the full amount of rent. But what is rent withholding exactly? In short, rent withholding is a temporary stoppage in some or all of the rent by the tenant, typically granted in response to a critical problem with the property, such as required repairs yet to be made by the landlord to make the property habitable. When the stoppage is made by the tenant without the landlord’s agreement, that is typically referred to as rent withholding or repair-and-deduct. When the stoppage is a reduction rather than complete non-payment, and mutually agreed to by the landlord and renter, that is usually referred to as a rent abatement. While at first blush it may sound like a landlord is at risk of having a rent stoppage occur for any and all repairs, the criteria for withholding rent is often quite strict. Rent withholding rules vary from state to state, but at their core, the damage caused cannot be due to tenant neglect or improper use of the rental unit. Further, the poor condition of the property must be severe enough to be hazardous to the health and safety of the renter and no longer livable. Examples include no running water in the house, a broken furnace causing no heat in the winter, a badly leaking roof, or dangerous wiring. Importantly, rent withholding laws don’t require that wear-and-tear or maintenance issues that don’t affect the livability of the unit to be addressed. Only serious defects are covered under the law. WHAT IS THE PROCESS FOR REQUESTING RENT ABATEMENT? If the landlord and tenant are in mutual agreement that the rent be totally or partially reduced for a certain period of time until the agreed repairs are made, then the landlord and renter together will submit a written request to the city housing department requesting rent abatement. The reduction request must include the following information: · The address of the rental unit · The dates of the rent reduction period · The reason for the request · The signature of the renter and landlord Once the request is received, a housing inspector will visit the rental unit to determine if the conditions warrant a rent abatement. If so, the inspector will issue an order granting the rent abatement. The order will specify the amount of rent that is to be abated and the duration of the abatement period. Landlords and tenants are responsible for making sure that all other terms of the rental agreement, including any rent that is not reduced, are met. WHAT STEPS SHOULD A TENANT TAKE FOR WITHHOLDING RENT? Tenants should be aware that rent withholding can be tricky business, and should only be pursued as a last resort, and after obtaining legal counsel. Below is a high-level roadmap of steps to take when withholding rent. Step 1 – Tell the Landlord About the Problem. Tell your landlord, in writing, what the problem is and what you plan to do about it. For example, if there is no running water in the house due to a plumbing issue, then tell your landlord that you will withhold your rent because of the plumbing issue that occurred on X date, causing there to be no running water in the house. While most communications these days occur electronically, it is best to send a letter by certified mail. Be sure to keep a copy of the certified mail receipt and the letter itself to prove that you notified the landlord. Step 2 – Give Your Landlord Time to Make the Repair. Most states have laws that give landlords a reasonable amount of time to make repairs. In the case of an emergency such as a broken furnace on a winter day, only 24 hours might be allowed. For non-emergency issues such as a broken furnace in the summer, the landlord might be given 30 days or more to make the repair. Step 3 – Collect Evidence to Prove That the Landlord Did Not Make Repairs. You can show that the landlord did not make repairs through pictures, witnesses, or a report from a
WHY FF&E IS A HIDDEN GOLDMINE WHEN BUYING A HOUSE!
When you’re buying or selling a house, you’ll likely hear the term FF&E. But what exactly does that mean? Furniture, fixtures, and equipment – or FF&E for short- is everything in the property that’s not permanently attached to the walls or floor. In most cases, that means appliances, furniture, window treatments, and anything else you might find in a typical home. FF&E is an asset, much like the house itself. But as the old saying goes, one man’s trash is another man’s treasure. The furniture or appliances that a home seller leaves behind can be particularly valuable for flips when staging a house for buyers, for Airbnbs as part of the furniture package required for long-term stays, and even for rentals to give an interior designer’s touch to otherwise bare walls. Whether you’re considering buying a single-family or multifamily investment property brimming with FF&E or one that’s completely empty, MY SMART COUSIN can take you through the critical steps of buying and owning real estate— from evaluating markets and identifying appropriate strategies, to securing financing and managing properties. As a Real Estate Investment Coach, we specialize in helping you buy a house for the price of a car, our personal favorite way to invest or to buy at a higher price point. If you’re new to real estate investing or are looking to buy your first home, it’s important to know what FF&E is and how it affects your purchase. This guide will teach you everything you need to know about FF&E in real estate transactions. WHY DOES FF&E MATTER IN REAL ESTATE TRANSACTIONS? FF&E, or furniture, fixtures, and equipment, is everything inside a property that isn’t part of the structure itself. As an example, window air conditioners that sit in a window and can be removed, are not part of the structure and thus would be FF&E. A central air conditioning system, on the other hand, is part of the heating and ventilation systems for the house, and would not be considered FF&E. When you’re buying or selling a property, FF&E can be an important factor in the transaction. For sellers, FF&E can add value to a property. If you’re selling a furnished property, buyers will be willing to pay more for the convenience of not having to buy their furniture. Likewise, if you’re renting the property, the ability to attract tenants and long-term guests increase significantly when the house is already outfitted with homey touches. For buyers, FF&E can be a valuable asset. If you’re buying a furnished property, you’ll be able to use the furniture right away. And if you’re buying a commercial property, equipment that is left behind can be useful if you’re in the same line of business, or if not, sold online to buyers who use that equipment. If there is FF&E at the home or commercial business that you want to be included in the purchase of the property, stipulate this in the purchase agreement or you may find that the seller removes it prior to close. In short, it’s important to factor FF&E into your real estate transaction. Whether you’re buying or selling, make sure you know what’s included in the deal. HOW DO YOU DETERMINE THE VALUE OF FF&E IN A PROPERTY? There are a few different ways that you can determine the value of FF&E in a property. · First, you can look at the replacement cost of the items. This is the cost of buying new items to replace the existing ones. · Another way to determine value is to look at the depreciation schedule. This takes into account how much the item’s usefulness or operating life has been used up and how much remains. · Finally, you can look at the resale value of the items. This is what you could expect to get if you sold the items on the open market. All of these methods have their own pluses and minuses, and it’s important to consider which approach makes the most sense when determining the value of FF&E in a property. WHAT ARE SOME KEY CONSIDERATIONS WHEN NEGOTIATING FF&E IN A DEAL? When it comes to commercial real estate, furniture, fixtures, and equipment can often be one of the most expensive aspects of a deal. As such, it’s important to carefully consider all of your options before making any decisions. Here are just a few key things to keep in mind when negotiating FF&E in a deal: · First and foremost, you need to determine what kind of FF&E is included in the deal. This can be anything from office furniture to kitchen equipment and everything in between. Make sure you have a clear understanding of what’s included so there are no surprises down the line. · Next, you’ll need to take a close look at the condition of the FF&E. If it’s well-maintained, in good working order and already installed, you may be able to rationalize paying a higher price to keep it. However, if the furniture is old and outdated or the equipment or appliances need repairing, you’ll likely have to pay more than the items are worth to get everything in working order. · Finally, don’t forget to factor in delivery or removal costs when negotiating FF&E. If the buyer wants the seller to remove FF&E before close, the cost of clean-out can be steep. Be sure to include these costs in your overall budget. By keeping these key considerations in mind, you’ll be better prepared to negotiate FF&E in your next real estate deal. HOW DO YOU MANAGE FF&E DURING OR AFTER A PROPERTY TRANSACTION? When it comes to managing FF&E during or after a property transaction, there are a few things to keep in mind. · First, it’s important to inventory all FF&E items and documents their condition. This will help to ensure that everything is accounted for and that any damages can be noted and repaired before the transaction is finalized. ·
HOUSE DEED: WHAT YOU NEED TO KNOW ABOUT PROPERTY DEEDS
If you’re a real estate investor or just own a home, it’s important to understand what a property deed is and what it means for you. A property deed is basically a document that shows who owns a piece of property. There are different types of deeds, and each one has its own pros and cons. At MY SMART COUSIN, we help aspiring homeowners and investors, with a particular focus on Black and Brown folks and women, make their Real Estate investment journey a success. As experienced and successful Real Estate Investors and Coaches, we help you determine your strategy and implement a custom-designed business and financing roadmap. And if your focus is on the lower end of the market, we help you buy a house for the price of a car, our personal favorite way to buy real estate! Did you know that house deeds are some of the most important legal documents when it comes to property ownership? In this blog post, we’ll explain everything you need to know about property deeds so you can make sure your interests are protected. Let’s dive in! WHAT IS A PROPERTY DEED AND WHAT DOES IT INCLUDE? A property deed is a legal document that transfers ownership of real estate from one person to another. The deed must be signed and notarized by the seller and delivered to the buyer. The buyer then records the deed at the local land records office. The deed should include a description of the property, and the names of the buyer and seller, and be signed and notarized by the parties involved. It’s also common for the deed to include language that gives the buyer certain rights, such as the right to use the property for certain purposes, or the right to terminate the sale under certain circumstances. The inclusion of these rights is generally negotiable between the buyer and seller. Ultimately, the goal is to create a legally binding contract that clearly sets forth the terms of ownership for all parties involved. HOW DO YOU TRANSFER A PROPERTY DEED TO ANOTHER PERSON OR ENTITY? There are a few different ways that you can transfer a property deed to another person or entity. · One way is to simply sign the deed over to the new owner. You will need to include the date of the transfer, your signature, and the new owner’s signature. · Another way to transfer a property deed is to sell the property and have the new owner file a new deed. This is a more complicated process, but it does have the advantage of giving you some money for the property. · Finally, you can also donate the property to a charity or other organization by filing a deed of gift. Whichever method you choose, be sure to consult with an attorney to ensure that the transfer is legal and binding. WHAT ARE THE BENEFITS OF HOLDING A PROPERTY DEED IN YOUR NAME? If you own a home, chances are good that the property deed is in your name. But what does that mean, exactly? And what are the benefits of holding the deed in your name? There are several benefits to having the deed in your name. · First, it provides evidence of ownership if there is ever any question about who owns the property. · Second, it can help you to get a loan against the property if you need access to liquidity. · Third, it can help to ensure that your heirs inherit the property if you pass away. · And finally, it can provide peace of mind knowing that you have your paperwork in order, should you ever sell the property. If you’re thinking about buying a piece of property, be sure to have the deed transferred into your name or the name of your LLC or corporate entity. It’s one of the best ways to protect your investment. HOW CAN YOU CHANGE THE NAME ON A PROPERTY DEED IF NEEDED? If you need to change the name on your property deed, the process will vary somewhat depending on your situation. For example, if you are changing your name after getting married or divorced, you will need to present a certified copy of your marriage certificate or divorce decree. However, if you are changing the name for any other reason, you will likely need to go through a more formal process. This may involve contacting your local registry office or getting a court order. In any case, it is important to make sure that the deed reflects the correct name, as this can help to prevent problems down the line. ARE THERE ANY RESTRICTIONS ON WHO CAN HOLD A PROPERTY DEED? The answer to this question depends on the jurisdiction in which the property is located. In some jurisdictions, there are no restrictions on who can hold a property deed. In others, there may be restrictions based on factors such as age, citizenship, and criminal history. For example, some jurisdictions may require that deedholders be 18 years of age or older, while others may impose additional requirements such as a minimum length of residency in the jurisdiction. In most cases, however, the requirements for holding a property deed are relatively straightforward and can be easily met by most individuals. As such, it is generally not difficult for someone to obtain a deed to a piece of property. SUMMING IT ALL UP So, what is a property deed? A property deed is a document that shows ownership of the real estate. The deed includes the name of the owner, as well as information about the property itself such as its legal description, square footage, and address. It’s important to hold a copy of your property deed in your own name, as it provides evidence of ownership and can be used for security purposes, or in case you need to transfer the deed to another person or entity. If you