With the surge of short term rental websites like airbnb.com and homeaway.com, along with their ease of use for the consumer, short term vacation rentals are very much an option for today’s real estate investor. Location is everything in this scenario. If you live in a city that is popular with tourists, you may want to look into the vacation rental market.
Most of us have been in love before. Some of us fall in love more quickly or more often than others! Oh, that feeling! There is nothing like it.
Are you actually in love with with real estate investing? You could be. Some of the very tell-tale signs of love between humans are also indicators you have fallen - and fallen hard - for real estate investing.
PART 1: Chris Jameson just released a Hard Money informational podcast! This interview details the many misconceptions about hard money, and some new ways you can use it to get ahead! PART 2: Last week we sent out a survey. We asked you guys for some insight.A HUGE THANK YOU!! to everyone who sent in a reply. Here are the results!
So, you’ve bought and renovated a little house, and just listed it on the market. Your investment property is a 3/2 in a modest but upcoming neighborhood. A great starter home for a young family. You’ve done a good job - and the market is hot - so several offers come in quickly. One, as is typical, is a very low-ball, “as is” cash offer. Another is a little lower than you wanted to accept, and the buyer is prequalified for a conventional loan. And, a third offer comes in several thousand above the asking price! And these folks are also pre-approved - for a VA loan.
A Fix and Hold loan is ideal for the investor wanting to create a portfolio of rental properties. And so, with the dilemma of funding out of the way - with Freedom Private Money at the forefront - the rest of the process should be a breeze, right?
Not so fast. Being a successful landlord involves a lot more than collecting a bunch of money at the first of each month. Truthfully, to be a successful landlord you need successful tenants. What is a successful tenant? One that pays his rent on time, of course, but a whole lot more as well.
Fix and Flips are a favorite of the real estate investor and a perfect fit for the hard money loan. Simply put, buying a property that needs a facelift then quickly getting renovations done and back on the market is a great way to quickly increase wealth. Leveraging a hard money loan makes this scenario viable for many. A hard money loan funds quickly and leverages the value of the property as collateral on the loan. Using a hard money loan, an investor can grab a property quickly and then, with a good crew of contractors, renovate and sell it again, all within a matter of weeks.
When working on a real estate investment flip, cosmetics are very important - this is what your typical buyer will notice first. Many times, an investment flip is an older home, it may or may not need extensive physical repairs, but very likely it will have a dated appearance. This is where you get to put in an updated bathroom and kitchen, and new flooring and suddenly it’s a nice, modern home. New cabinets and tile, new countertops and hardware - these are sure fire hits with your buyers.
What about wall colors? The best approach when it comes to paint for your investment flip is to play it safe! Now is not the time to unleash your fierce designer inner spirit animal. Save that for your own home.
At Freedom Private Money, the 4th of July means a lot to us! As a veteran-run business we cherish the many freedoms we enjoy here in the U.S.A.!
We believe that together we can ALL achieve the American dream. Whether your goal is to own 100 rentals, flip 100 houses or become
the best real estate agent or wholesaler in the world, Freedom Private Money wants to help you attain those goals. Give us a call and let's talk about real estate goals and your financial freedom.
From all of us at Freedom Private Money, we hope you have a great 4th of July holiday!
P.S We are closed on July 4th & 5th, but we will be back in the office on
Monday, July 8th
Chris, CEO of Freedom Private Money fields a lot of questions from investors. Recently, one of the questions was about properties that are already listed on MLS. Are they something the real estate investor should be looking at? Can an investor come out on top when making an offer on an MLS listing?
There are a couple good strategies that Chris recommends. When dealing with a property that is listed on MLS, it’s important to keep in mind you will need to make the deal attractive to the seller to get the pricing needed for it to be a wise real estate investment.
The buyer/investor can differentiate his offer - even if it’s a low offer - by offering a cash deal and a short closing timeline. Keep in mind, in this scenario it’s important to let the title company know that private financing will be used.
As a real estate investor, you are probably always focused on the current deal you are working, working fast to complete a flip or get tenants into your new rental property. And probably, before that project is wrapped up, you are focused on looking for the next one. It’s a great plan, keep moving, keep growing, and wealth will come, right?
It IS a great plan. But, the successful real estate investor is also taking the time to use smart money management practices and tools, to maximize their financial clout.
The very first item on our list is using and sticking to a budget. In any flip or investment property, the budget is vital. Know going in approximately how much your rehab will cost. Of course, there needs to be some fluidity to the budget, but keep a record of expenses, and get granular about it. Not just $946 spent at Home Depot, but what was that for? How much went into bathroom upgrades and how much was spent on lighting? Keeping track of these numbers will help you become better at estimating costs upfront and will therefore make your future investments leaner and better