Making Serious Money From Your Rental Properties

As a landlord, you are probably already aware of many of the ways in which you can expect to increase your profit from your properties. However, you might not have considered everything you could do on this front, and it is a good idea to take a look at some examples of the kinds of things you can do if you want your portfolio to bring you as much wealth as you like. The truth is that there are no ends to the things you can do to improve the financial strength of your rental properties. In this article, we are going to look at just a few of the best examples.

Increase Tenant Interest

It should go without saying that you need to be able to draw enough attention in order to boost your yield. You need to get interests from many tenants so that you can be perfectly positioned to increase the rent as much as possible. There are many ways to actually go about increasing the tenant interest in your local area. One is to use a letting service who already have a good backlog of interested and respectable tenants. Click here for rental properties which might be able to make use of that kind of service. You can also consider drafting up a perfect ‘target tenant’ – in other words, the ideal candidate for your home. That alone can ensure that you are doing everything in your power to increase the interest you receive from tenants, and so give yourself the ability to keep rents high.

Decrease Vacancy

For any landlord, the worst nightmare situation is when you have a number of subsequent tenants, rather than one who is keen to be there long-term. Increasing the tenant interest will help, as we have discussed above, but it is also a good idea to do what you can to try and find those who are happy to stay for along time. Having this decreased vacancy is one of the simplest and yet most powerful ways of ensuring that you earn as much as possible from your rental properties. It also means that administrative costs are lowered, making it possible to lower the costs for the tenant – and thereby making your property even more desirable in the marketplace. It all helps.

Interest & Fees

Most tenancy contracts will have written unto them that if rent is late there will be interest added, with the possibility of late fees too. You should have these written into your contract – but not just as a deterrent. You should also make sure that you do actually follow through with this, and that you don’t allow your tenants to not pay rent on time. This will help in the long run, as you might be surprised how often your tenants will pay rent late – and in the end these fees and interest will make a huge difference to your final income. It’s worth following through whenever there is this possibility, as it will help you to make serious money.

Source: https://blog.themoneyshed.co.uk/making-serious-money-rental-properties/

Collaborative Post 

Is Property The Right Investment For You?

Most people tend to assume that, out of all of the investment options out there, the best for those who are just starting out is property. One of the main reasons for this is that it’s one of the most risk-averse investment methods out there due to the fact that, while it can change quite a lot over time, the property market isn’t prone to the same kind of manic fluctuations that you see in other forms of investment. However, it’s a mistake to assume that property investing is somehow easy, because that’s simply not the case. However, just because there are challenges involved, that doesn’t mean that it’s somehow impossible for a beginner investor. With that in mind, here are some things to consider when deciding if property is the right investment for you.

Get the right guidance

When it comes to investing in property, the biggest mistake you can make is to assume that it’s going to be a simple process. The truth is that property investment, like any other investment, is far more complicated than a lot of people expect. If you want to succeed in the world of property investment, the first thing you need is the right guidance. Luckily, there are plenty of people online who can help you with that. People like Paul Ainsworth Lord are online offering investment advice for those who need it. Make sure that you do as much research as possible before you decide to jump into the world of property investment.

Decide what you want to do with the property

Of course, investing in property can actually take a lot of different forms, and it’s a good idea to decide which is right for you. One the one hand you can flip properties. This simply means that you purchase them, raise their value through improvements, and then sell them on at an increased value in order to earn a profit. The other option is to let the property out to tenants. Neither of these is right or wrong; they’re simply different investment methods and which you choose will depend on a whole host of factors including how much time you’re able to dedicate to maintaining the property.

Ensure that you can afford it

One of the things that get in the way of property investment for a lot of people are the upfront costs. Now, this doesn’t necessarily mean your ability to apply for a mortgage, although that’s certainly a factor. What it does mean is that you need to think about all of the other costs involved in both buying and selling properties which include everything from legal fees to the cost of decorating and deep cleaning the property.

The most important thing to remember is that, while it is certainly one of the least risky investment options out there, that by no means makes it risk-free. The reality is that there are no risk-free investments and if someone tells you that they have found one, they are either deeply misinformed, or they are lying to you for their own profit.

Source: https://blog.themoneyshed.co.uk/property-right-investment/

Collaborative Post

Beginners' guide to mortgages - MoneyWeek investment tutorials

Isn't it funny that getting a mortgage is something we're all likely to need to do at some point in our lives (often several times over) but we're not taught anything about how in school!

Check out this great beginners guide to mortgages so you can start to fill that knowledge gap!

How to Invest Using Other People’s Money

Written by Kim Kiyosaki | Thursday, November 16, 2017

Read time: 3 min

Learn my not-so-secret four-step plan for raising capital

One of my absolute favorite business strategies is using other people’s money (OPM) for my investments. If you’re not familiar with the concept, it’s one of the cornerstones of the Rich Dad philosophy—looking beyond the limits of your own resources and finding sources of money elsewhere.

Sadly, many people only look to their own wallets and bank accounts to fund their businesses and investments. I now know that that’s pure laziness. Don’t worry, I, too, once was lazy. So it can be cured! But how?

My Initial OPM Lesson

First, let me share the story of how I came to learn about using other people’s moneyto leverage my way to financial freedom. It was a dear friend and mentor of mine who told me that only lazy people use their own money. I explained to him that I worked really hard to make my money, and then invested it—how could that be lazy? He responded, “Wouldn’t it take more thinking and more creativity to use someone else’s money instead of your own?” Hmmm, at first that sounded completely unrealistic. But the more I wrestled with the concept in my head, the more I realized he was absolutely right.

You see, it was easy to use my own money to buy whatever asset I had my eye on, but I’d have to learn new skills and strategies to persuade someone else to part with their hard-earned money to put into my investment. Since I’ve never been afraid of hard work and learning, I decided to roll up my sleeves and figure out how to do it.

What I learned (through trial and error) was that raising capital isn’t really the mystery many make it out to be. Lenders and investors (such as banks, private organizations or individuals) simply want to know that they are going to get a healthy return on their investment. So, the key to raising money comes down to four fairly simple factors that will help demonstrate the ROI they are seeking. I’m going to help you cut right to the chase with my efficient formula:

1. Project: What is the project the lender is providing you capital for? What makes this opportunity unique and attractive? Don’t just share the positives—also explain the negatives and how you plan to overcome them.

2. Partners: Who are the key players in the project? In other words, who’s putting the deal together and what is their track record? The experience each partner brings to the table, and thus their expertise, is a big part of the equation.

3. Financing: Show the investor, as accurately as you can, how the project (either a business or investment) will make money. Be realistic and don’t avoid discussing the roadblocks ahead—every business and investment project has problems, so pretending yours won’t makes you look like an amateur. You’ll want to show how much money you’re raising in total, where the money is coming from (private parties, traditional lenders, etc.), the terms of the money being borrowed and how the money will be allocated. Hint: If you even suggest that any of the money raised will be used to pay your salary, doors will close. If you want a paycheck, then go get a job. Potential investors want to know how soon they will get their initial investment back and what their return will be, so they will use all these numbers to determine if your financing structure and terms are attractive.

4. Management: Investors want to know who’s running the day-to-day operations, because this is crucial to the ongoing success of any venture. Explain who they are, their background, how they react under pressure, etc.

I know it can seem intimidating at first, but raising capital does not have to be a long, drawn-out affair. Your pitch to investors should be short and concise. If you can clearly and confidently address each of the four aforementioned issues when looking to raise capital, then the odds of securing the financing you seek are in your favor. Now, the only thing left for you to do is deliver!

Source: http://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/November-2017/How-to-Invest-Using-Other-Peoples-Money.aspx

Buying a House Vs Investing in Apartments - Real Estate Investing Made S...

Should you buy your private residence or rent?

Should you invest your money in houses or apartments?

Grant Cardone has a different opinion to most!

The Crypto Craze Continues

Cryptocurrencies are becoming a popular way to pay for high-end real estate

If you turn on the news, troll the Internet or stand around the water cooler, you’re likely inundated with talk of cryptocurrencies. Bitcoin and other virtual currencies are so exciting because they are relatively new and highly volatile.

Some analysts are predicting that digital currency is the future of the world’s financial system, while others believe it’s merely a trend that will disappear. Only time will tell, of course, but its extreme fluctuations make for some very dynamic investments.

At the time of this writing, one Bitcoin is worth $10,854.42 U.S. dollars. As such, many people are buying fractions of Bitcoins—investing $50 or $100 to get their hands on a piece of this pie.

Using Bitcoin in Real Estate

Now, you might be wondering how to pay for things using cryptocurrencies—you can’t exactly use it to pay for a manicure or your skinny latte (yet). But you can use it to buy household products on Overstock.com or a hotel room on Expedia.com. In fact, there are a slew of places jumping on this bandwagon, and you can check out all the participating companies here.

But one of the ways in which Bitcoin is being used that truly fascinates me is in—you guessed it—real estate. I recently read a news story about the owner of a $45 million mansion who is willing to accept Bitcoin as partial payment for his 9,000-square-foot home. He believes that purchasing brick-and-mortar real estate might remove some of the volatility when it comes to investing in cryptocurrencies.

Part of his logic? “According to current situation, if you buy the property with cryptocurrency, it’s difficult to identify the cost of the real estate because it fluctuates so much,” he said. “The government will have a hard time to tax or put a property value on the house you are going to sell.”

That’s an interesting way of looking at things—the value of the Bitcoins he receives for the sale of his home could increase or decrease almost immediately, essentially putting him in a position where he’s getting more or less for his home than he realized.

Now, there probably aren’t a lot of potential buyers in the market for a home with this price tag, but there are more millionaires as of late thanks to cryptocurrency gains. And these new millionaires (and some are even billionaires) are no doubt looking for ways to reinvest their gains—and old-fashioned real estate may be the ideal route to go.

A Whole New Playing Field

Clearly, converting large chunks of cryptocurrency into a less-volatile asset—like real estate—is a logical choice. And it’s happening more often than you think.

Luxury real estate agent Tony Giordano says he’s fielding more and more requests to use cryptocurrency to buy and sell property—and now asks his high-end clients if they would be willing to accept digital currency. Why? More options equals more buyers. This is especially true in the luxury market, where buyers like to maintain a low profile and avoid tax issues. Remember, cryptocurrencies are still largely unregulated.

As such, it’s also important to note that finding an escrow service that handles crypto sales (vs. traditional cash) is not easy because technology is, unsurprisingly, moving faster than government regulation. So you’ll likely have to convert Bitcoin into cash in order to buy a property.

Now might be a good time to dabble with cryptocurrencies to get a feel for the market. There’s a lot to learn about digital currencies (including that Bitcoin isn’t the only game in town), so do your research and start your journey with a small investment—$20 is enough to get your feet wet.

While you may not be in the market for high-end real estate (yet), if you play your cards right, you could easily join the ranks of the new crypto millionaires popping up all around the world. And if not, you’ll get some experience buying and selling, monitoring your investments and having fun daydreaming about achieving your financial dreams.

Source: http://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/February-2018/The-Crypto-Craze-Continues.aspx

Should I Consider Renting to Section 8 Tenants?

I am often asked about Section 8 and whether a landlord should consider renting to someone with a Section 8 certificate. They want to know if they should accept these tenants, what kind of rent they might get, and what are some of the pros and cons of this program. Quite often they initially start out with a negative view of Section 8, so I thought I would give some pros and cons and allow you to make better decision about this program.

What is Section 8

The PA Section 8 program, also known as the Housing Choice Voucher Program, provides rental assistance to low income families in the private rental sector. Funded by HUD (The United State Department of Housing and Urban Development) the Section 8 housing goals are to provide improved conditions for families while assisting them in obtaining low income housing, maintaining rental payments, and promoting a greater freedom of choice in housing conditions. This Federal program provides incentives to the owners of apartment complexes and private homes to ensure the continued availability of government subsidized homes. Locally, the Pennsylvania public housing authority (PHA) is responsible for qualifying applicants and disbursing the vouchers to eligible families.

Low income house rentals are listed by the PHA in each of the 67 counties in Pennsylvania, though each complex and home is privately managed. So, each county, Montgomery County, Chester County, even Philadelphia County manage their own Section 8 programs. Even within some counties there are individual towns that have Section 8 offices. For example, Chester, PA has its own Section 8 office.

Philadelphia County is a busy office and very difficult to work with. To be frank it is a struggle for Del Val and others to work with them. They are trying to improve their systems but are very bureaucratic. It is very difficult to reach them on the phone to get simple questions answered. The counties outside of Philadelphia are much easier to communicate with.

But it is a partnership between three people: the owner/landlord, the tenant and the Section 8 office. Traditionally there is a lease between a tenant and an owner/landlord. That is the contract that lays out how the lease is going to work. But with a Section 8 tenant there is a second contract, which is a payment contract that describes the payment amounts and when they will be made. That contract is signed by the Section 8 office, by the tenant and by the owner/landlord. So, this is an additional contract and in an exchange for them offering to pay the rent, the owner/landlord must agree to comply with their rules and regulations. One of those rules is that the owner/landlord will maintain the house in good shape and Section 8 inspections will occur on a regular basis to make sure that you're doing just that.

What are some of the Pros of Section 8

One of the pros obviously is its federally funded guaranteed rent from HUD, so there is no credit risk involved. Traditionally, Section 8 will pay probably 90-100% of the rent. The tenant may pay a small portion from time to time but 90-100% of the rent typically is going to get paid by the Section 8 office. You will get a one year contract, sometimes a two year contract. The county of Philadelphia offers a two year contract. So obviously once you put that tenant in there for the next two years you know your property will be rented and you'll be getting your rent.

Now, the question comes up about rent; Is my rent going to be higher or lower than it would be otherwise? In some cases, it's going to be a little bit higher but I typically tell owners that it will be within 10% + or - than other rents. Again, it depends on the county, it depends on the city and the area so everything's a little bit different in each case. Typically, five to 10 years ago the Section 8 rent would be probably 15% below a non-Section 8 person. But I think that gap has come down recently to no more than 10% that you will receive. In some cases, you might actually get more for Section 8 than you would get for a non-Section 8.

What are some of the Cons of Section 8

One of the negatives is they will perform regular inspections. So initially before the tenant moves in they do an inspection and you must comply with what they're asking you to do. They're not going to ask for you to do anything out of the ordinary. So you're going to have to make sure that your outlets work, your smoke detectors work, you have fire extinguishers, stairwell banisters are tight and secure and outside that your walkways and things are all safe and secure with no tripping hazards.

Another of the cons is the fact that the tenant may call Section 8 from time to time and say something's not working. And if Section 8 comes out and determines that is correct, it's not working, then they could stop paying your rent for a period of time. That is called an "abatement of the rent", meaning for that period you won't get any rent.

Why should you consider Section 8 tenants?

In some areas, Section 8 may be your only choice. There are certain areas where Section 8 is very prevalent and because of that there's not a lot of options and you may have to go with Section 8. There are certain areas of Philadelphia, Norristown, Pottstown, and Reading that have high concentrations of Section 8. So, it may be your only option in those areas.

Tenants tend to stay longer. If a tenant has a Section 8 certificate and they like your house, you're keeping it up and repairs are being made, for the most part they're not going to want to leave. For one reason, because there's not a lot of other Section 8 housing out there. Also, it is very difficult to move and there's a lot of paperwork involved and a lot of risk on their part. If they notify you they're going to move out and they can't find another house within a 60 or 90-day period, they are potentially going to lose their Section 8 certificate. Second, moving from one county to another county is very difficult. So, if they want to move from Philadelphia to Montgomery County there's a lot of paperwork involved, and the red tape is not easy. So, for the most part Section 8 tenants do stay a long time.

Section 8 requires you to keep your house in good shape, they inspect it and that's a good thing ultimately for you as the owner of the property. You want to keep your property in good shape.

There is also lots of demand for Section 8 tenants. When we put "Section 8 Welcome" in our ads they get a lot of attention and so that's obviously a great reason to use Section 8.

If you are a real estate investor or property owner and want to learn more about how we can help you buy investment properties and our property management program please go to our website at http://www.delvalproperty.com/.

Mike Lautensack is the owner of Del Val Realty & Property Management ("Del Val"). Del Val is a FULL SERVICE Philadelphia Property Management company with over 15 years' experience and manage over 3,00 single family homes, HOA units and multifamily properties in and around Philadelphia, PA. We advise property owners how to build wealth and financial security through hassle-free ownership of rental real estate with our NO "Hassle" FULL Service Management Program. This proven management system allows owners to enjoy the financial benefits of cash flow, tax savings, and wealth creation. All this while it GUARANTEES you will never have to deal with maintenance or tenant issues.

Article Source: https://EzineArticles.com/expert/Mike_Lautensack/63369

Article Source: http://EzineArticles.com/9858973

Winter Is Coming - It's a Great Time for Real Estate Investing

You've no doubt heard the concern that real estate sells best in the Spring and Summer - that the worst time for buying and selling houses is Winter.

And, Winter is coming! So what should you do?

First of all, don't panic! We've been investing in real estate full time since January 2005. Here's what we've found, not only for ourselves, but for most of the other investors we know. True: the number of calls you'll get from sellers and the number of offers you'll get from buyers will decline.

However, also true: the quality of those contacts will be much higher. Both buyers and sellers calling during these months are serious! So no, Winter is not the season to panic. In fact, some of our most profitable deals come at the end of the year.

I've heard many investors say that December and/or January are their most profitable months. Why?

A lot of investors as well as real estate agents get out of the business during these months. They cut back or stop their marketing all together and often use these months to vacation. So, as long as you're still active, you're the one who will get the buy/sell calls.

Many high net worth individuals need to use up cash to avoid taxes before year end and they turn to real estate. Now is a great time for you to be calling CPAs and tax advisors to let them know how you can help these clients.

While families are together over the holidays, decisions are made regarding what to do with their parents' home, or that it's time to stop dealing with inherited properties. These sellers call us in January needing to sell estate properties.

Fewer buyers during the holidays means less buying competition for us as investors and fewer buyers means sellers reduce prices to get their homes sold. This is the perfect time to buy at discount and begin renovating so your property is back on the market in time for prime selling season, Spring!

Bottom line, don't panic. Get excited and be prepared to provide solutions for those needing to buy and sell in the winter months. The market is less active, meaning less competition, and the buyers and sellers who are out there are far more serious than the casual shoppers who come back out in the Spring.

What has been your experience in the Winter months? What will you do differently this Winter?

Here's wishing you Happy Winter Investing!

My name is Karen Rittenhouse and I've been investing in real estate full time since 2004. I currently buy about 60 houses per year, most of which I wholesale.

And I currently own a HomeVestors franchise (the We Buy Ugly Houses People!). I love real estate investing!

Article Source: https://EzineArticles.com/expert/Karen_Rittenhouse/353660

Article Source: http://EzineArticles.com/9823884

Why the Rich are Getting Richer | Robert Kiyosaki | TEDxUCSD

Robert Kiyosaki is an entrepreneur and the author of “Rich Dad Poor Dad”, the #1 bestselling personal finance book of all time.  In his talk, he discusses the power of financial education and how it relates to income inequality.

Best known as the author of Rich Dad Poor Dad, Robert Kiyosaki has challenged and changed the way tens of millions of people around the world think about money. He is an entrepreneur, educator, and investor who believes the world needs more entrepreneurs.With perspectives on money and investing that often contradict conventional wisdom, Robert has earned an international reputation for straight talk, irreverence, and courage and has become a passionate and outspoken advocate for financial education.

This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at http://ted.com/tedx