Investing in real estate is a fantastic way to build wealth and generate passive income over time. From house hacking to property management, the real estate investment opportunity is vast and multi-faceted, presenting options for investors of all financial backgrounds.
However, there's a big difference between being a real estate investor and being a successful real estate investor. Here are seven habits of successful real estate investors you should know before starting.Read more
Dallas is a great place for families to live. There are so many fun family-friendly things to do in the area as well as plenty of fantastic schools. The area you choose really depends on what type of vibe you're looking for. Here are some of the top places to look.Read more
Do you own multiple properties that are getting difficult for you to handle now? Are you unable to collect the rents from each property timely? Or are you fed up now of continuously needing to change tenants because of their untimely rent or nuisance in your property? Well, if this is your current state, it is time that you now hire a property management firm for your properties.Read more
Let's face it: we can all use a guide to home loans.
Nowadays, you can get financed for your abode through home loans with low down payments. This way you can make your dream come true.Read more
Are you looking for the latest home buying hacks?
Buying a home is one of the critical decisions one can make in life. From budgeting to finding the right property, the entire process takes a series of careful steps and robust planning. Even a single mistake or missing a simple step can lead to problems later, so a potential home buyer should be alert at all times.
There should be separate plans before and after finding the property. Whether you are a real estate investor or a family person, the following home buying hacks can help you create the budget for your house search.Read more
Are you house shopping right now?
Buying homes have earned a bad rap in the last years because of the subprime mortgage crisis and economic collapse that left many homeowners unable to pay for mortgages.
Fortunately, the real estate market made a comeback due to rent prices rising and housing prices falling, making the latest house and land packages in the suburbs extremely affordable.
However, if you're still struggling to decide whether to buy or rent, consider these six reasons to dive into homeownership.Read more
Thinking of owning real estate in the UK, you would likely be on the lookout for areas that are safe, great for families, and also not too expensive to live in. And you will agree that the UK has many such locations. So which one would be the best for your property investment?
Have you given any thoughts to Manchester? Below are some reasons why Manchester is one of the good locations for real estate and property investment right now.Read more
Homeowners Association fees abound in residential environments where you are the property owner. You’ve got to look into the care of landscaping. Does your home have a lawn? The region where your home’s located; is it conducive to landscaping? If it’s inhospitable, that may just mean a higher water bill.
How about home repair. Can you do plumbing repairs? What about flooring—are you handy enough to rip up old floorboards, put down some Luxury Vinyl Plank (LVP), then attach finish at the corners to hide the gap between the floor and the wall? Are you savvy enough to leave a half-inch of empty space at the end of the LVP for heat and cold expansion?
How about repairing wall damage, or painting the interior? Are you any good at electrical work? Can you affect mild roof repairs on your own? Would you be able to remodel a room in a home to put in a new wall, take out a wall, or add an exterior deck? Certainly, contractors can handle all these things, but the question becomes: how do you afford them?
Also, some contractors are unscrupulous individuals who do one day of work then disappear to drink their earnings, and are never seen again; leaving a job half done unless you hire more expensive contractors or go about finishing it yourself. This isn’t desirable, but it’s a staple of property ownership. Renting isn’t so intense, and eases you into these situations.
If you’ve never owned a home before, issues like these abound; and we haven’t even gotten into neighbors, neighborhoods, property values, community decline, housing shortages, or any of a thousand other similar issues.
Granted, sometimes your best choice as pertains to learning is to just “jump in”. If the water’s cold, just getting the shock out of the way can help you get used to the temperature. Well, maybe that’s your best bet with residential homeownership; but it’s also a great way to lose tens of thousands of dollars unnecessarily.
Getting on the hook for a mortgage with a sub-par property when you’ve never even rented before is a recipe for disaster. If you’re going to own a home, first be responsible for a property you’re renting. Sure, this isn’t the case for everybody, but it’s wise to consider for most people. And you don’t have to rent an apartment.
You can rent a townhome including a yard, recycling, neighbors, and all the rest. You can get used to monthly cycles with roommates, and getting rent to your landlord on time. In all likelihood, if you buy a home, you won’t own it outright; you’ll be paying a mortgage in monthly installments between $400 and $4,000, depending on the property. You need to be able to come up with that money regularly, or the bank will foreclose on you.
If you’ve rented for a year or two, then you’re more prepared for this recurring monthly bill, and you can structure your schedule around always having that cash on hand when it’s necessary. Also, as you rent you’ll be able to determine varying idiosyncrasies of a given neighborhood so you know what it would be like to live there permanently.
Once you’ve learned all these things, then it’s time to jump into the residential waters. So as you look at that future outcome, first consider where you are, and where you’d like to be. Are you in Texas presently? Well, take a look at these Uptown Dallas apartments for rent. There’s a broad variety in the hyperlink, and you can choose one near somewhere you’d like to buy.
Even in high-class neighborhoods, you can find rental options. Some homeowners rent out rooms as a means of supplementing income. Some purchase homes in good neighborhoods with the express purpose of renting them out—this is especially the case in college towns, where many residents come and go over an abbreviated period.
Whatever you ultimately choose, weigh your options carefully, and look at multiple units. At a minimum, look at five rental units before signing a lease.
With a home you’re buying, it may not be a bad idea to look at a hundred if you can manage it—many properties can be explored online until you narrow your selection down to a dozen or so in your target community.
So crunch the numbers. What kind of resources do you have on hand, what kind of experience do you have with renting, what’s available in your community, and what sort of risks are you willing to take? Because it makes a lot of sense to buy rather than renting; but if you’ve never been responsible for any property before, that could be a very big mistake.
As a landlord, you only get a return on your investment when you rent your property out. It should ideally also be filled with a good tenant that pays on time and keeps your place in mint condition, believe those at UMoveFree listing experts.Read more
As it turns out, realtors are perfectly willing to involve themselves with property sales that result in cash transactions. It’s something that ends up serving the realtor—it’s like the icing on the cake, cash-only sales. Now that said, these aren’t the only means by which a property can be moved, but just because this isn’t traditional doesn’t mean it isn’t possible.
It may have some level of traditionalism to it; it’s just not a way of selling that’s well-known by modern millennial buyers. The bottom line is if you can work a cash transaction, do so. However, even if you can’t, working with a realtor can certainly help you maximize your profit—but you’ve got to be savvy.
First, understand how realtors work. When you’ve got a house for sale, the average realtor will collect a commission that’s between 3% and 6% of the total property value. So if a home were worth $200k, the realtor would collect between $6k and $12k when the property sold. It’s going to more likely be a commission closer to the 5% or 6% figure.
Realtors who only take a 3% commission are going to try and flog your property off as quickly and cheaply as possible; their business model functions by moving as many properties as possible, as fast as possible. Traditional realtors take longer, and that’s one reason they’ll charge a higher commission: they’ve got to go longer without a paycheck.
So one house being sold a month at 5% commission, with an average home value of $100k, will bring a realtor $60k a year if they only sell 12 houses. But since they’re taking a low percentage, that means they’re less likely to hold out for properties where a buyer knows the home value and wants to get more money.
Imagine you knew your home’s value was worth $250k, but the realtor wants to sell it at $200k. It doesn’t make sense, right? Shouldn’t they want the larger commission? Well, it depends on how long it takes for that commission to come in. So at the $250k rate, the realtor is looking at $12.5k. At the $200k rate, they’re looking at about $10k (at the 5% rate).
If it takes three months for you to sell at a higher rate, you make more money, but the realtor has to tread water during that time, so they get antsy. If they sold at the lower price, they would be able to pull in their commission quicker, and they’d be able to more totally focus on other properties.
So though they make more money by waiting longer directly, they may lose money indirectly. Here’s the thing: if you lose their services, it could take you more than three months to move a given property. It may take a year or more—and do you have that kind of time?
If you’re moving owing to the attainment of a new job, and you don’t go with a realtor, you could be paying the maintenance or mortgage costs for your old property while you’re paying for the new one. That’s a recipe for stress. Also, what does it cost simply to maintain a property? It could be as much as a thousand a month.
So if you’re trying to sell a house without a realtor, and you don’t know what you’re doing, the prospect is likely going to be a difficult one, and there’s a high likelihood it will be more expensive. There’s a tradeoff. Going with a realtor will get your property sold much more quickly than from your efforts. However, this might require a lower listing price.
In that scenario, you’re making less money directly, but there’s a possibility you’re saving more indirectly. So the question becomes: how do you find the balance in terms of property value, swift sale, and the utilization of realtor services that put your home in front of the right buyer from the outset?
Get the property independently appraised. Get all the “Honey-Do’s” done. Add a new coat of paint. Refurbish the attic and finish the basement. Replace doors or windows or locks as appropriate. Sand, clean, and refinish the wooden floors with new coats of polyurethane and stain, as appropriate. Switch out the carpet for Liquid Vinyl Plank (LVP). Landscape carefully.
When you maximize the property you have a prior listing, include its most positive features in the listing, get good photographic coverage, and find the right realtor from the outset, you’ll be able to list the property at a higher cost and get it sold quicker. Some remodeling, upgrade, or other refurbishments can also increase property value.
A kitchen remodels prior sale can do much to expand the price you can command for your property—only seek consultation first to assure you don’t spend the remodeling money in vain. Working with a realtor can help you maximize property value potential, but you’ll need to carefully research beforehand for best results.Read more