Real Estate Investing 101: Intermediate

You’ve gotten your feet wet with a rental property or two! Now you’re ready to dive in a little deeper. You found that you enjoy owning properties, don’t mind keeping up with them, and feel real estate is where you want to invest. You have a lump sum of cash waiting to be invested and you want to purchase more investment properties. Here are some things to consider. 

  • Should I create an LLC? If you have purchased investment property in your own name, now may be the time to consider creating an LLC to use going forward. Using an “entity” to buy and own real estate provides a layer of protection in the case of lawsuits. (TIP: You should already have an umbrella policy.) Keep in mind that using an LLC to purchase property will affect financing. Terms are often similar to a commercial loan with a 20-year payment schedule. An LLC can also provide anonymity between you and your tenants, especially if you use a property management company. 
  • Upgrading to multi family units. Your first property may have been a townhouse or other similar property that was easy to purchase and rent. If you have more money to work with, you may want to upgrade to a two-, three-, or four-unit property. These properties usually have tenants with leases in place, which could be good or bad. Many times the property is under-rented and the rents need to be increased as leases are renewed. There may also be deferred maintenance issues and cosmetic upgrades that need to be done once a unit is empty. Over time, these properties have great potential for rent increases while your mortgage payment remains the same.
  • Cash flow vs break even. Sometimes you will have to weigh your priority over finding a property you can afford that provides cash flow now, or will provide great cash flow and appreciation in market value over time. You may find a multi-unit property with rents that only cover your monthly mortgage, but doesn’t provide cash flow. However, this property is in a great location and both rents and market value will appreciate greatly over time. You know it’s a solid investment, but your return will be realized later. 
  • Managing or property management. As you start accumulating properties, managing the tenants, payments, repairs, etc., can get to be too much. At this point you may want to hand over at least some of your properties to a third-party management company. They have all the connections for late-night repairs, dealing with problem tenants, and keeping records. 

Always talk to your accountant to see how purchasing and holding real estate will affect your taxes. Talk to your attorney about the pros and cons of using an LLC. Of course, work closely with your lender and realtor to see how much a property will cost you and how much you can make.


7 Don’ts for Buying a New Construction Home

With limited inventory for pre-existing homes, some buyers are turning to new construction. A new home could be exactly what you’re looking for and has many benefits. What could be better than brand new! Here are some things you may not have thought of. Don’t be caught unaware when you are considering new construction.

7 Secrets to Sell Your Home Fast!

You want to sell your home fast… and for the most money! You may be upgrading to a bigger home, relocating to a new location, or even downsizing for retirement. Whatever the case, once you’ve made the decision to sell, you want the best outcome! Here are seven secrets to get your home sold fast and for the most money.

How Quickly Will My Home Sell?

If you’re thinking of putting your home on the market, you are probably wondering how quickly it will sell. This depends on several factors! First, we have to look at what’s happening in the local real estate market to determine if it’s a home buyer’s market or a home seller’s market. Then we consider the condition of your home, any upgrades you’ve done, and any repairs that need to be made. Then we look at your specific location, neighborhood, and yard/land. All of these factors influence how quickly your home will sell.

Why Curb Appeal Matters! From Sale to Sold

You want the best return on the sale of your home that you can get! The first step is creating great curb appeal so when buyer’s pull up they are excited to enter your home. Then you want to stage your home to create as much buyer appeal as possible. Check out these tips to make buyers fall in love with your property!

Thinking About Buying?

Thinking of buying a home? There are so many steps in the process that it can feel overwhelming! But don’t worry 😃 We got you covered from the very first step until you have the key to your new home in your hand! Check out this video to learn how.