Becoming a Landlord
So, you’ve decided you want to try your hand at landlordship. We don’t blame you; even though there’s a lot of work upfront, the long-term return can be quite lucrative. We’ve put together this list of things to prepare and research before you purchase your first income property.
- Your Finances – Make sure your own finances are in order. It’s wise to have a little cushion in the bank because the fact of the matter is, it might be a few months before you start profiting.
- Property Selection – It’s not just about the neighborhood. Renters especially families will also consider the local schools, job market, crime rates and even amenities. This is especially true if you want to attract good, long-term renters, they’ll be looking to live and work in a safe area where they can easily access conveniences such as shopping and nightlife.
- Competition – Be sure to look into what future developments might be happening in the areas you’re looking to purchase your rental property. New construction could mean new competition.
- Vacancy Rates – These rates can affect your ability to generate income. High vacancy rates often force landlords to lower their monthly rent in order to attract tenants. Meanwhile, low rates often mean a landlord can increase the rental price.
- Additional Costs – Remember, you going to need to factor in the cost of insurance, taxes, legal fees, months where a unit or units are vacant, maintenance and a property management company among other things.
So before you begin, do your research, carefully manage your finances and plan ahead as best you can for both the expected and the unexpected expenses. If you’re ready to get started, click here to apply for financial assistance on your buy to rent property.
Flip & Investment Property Checklist
In a previous blog we reminded investors to consider the cost of landscaping in their overall evaluation of the property. Remembering to do this helps determine the renovation cost, loan amount, property list price and the potential profit. There are however, a few more things flippers and landlords often forget to inspect or consider prior to the purchase, here’s a helpful list of things to remember.
- Exterior features such as siding, brick and stucco
- Septic, well and indoor plumbing
- HVAC system
- Foundation and concrete work
- Decking/railings, banisters and other features which may pose a safety concern
- Any back taxes owed on the property
- Homeowners association fee
Additionally, if you’re going to rent the property or you are a landlord to the property you’ll want to factor in these things as well:
- Heating and cooling costs
- Routine maintenance
- Legal expenses (should you have to evict a tenant, etc.)
Have an eye on your next investment project? Join the hundreds of other investors who are applying for and receiving funding right from our website! Call or text today if you have questions or would like to speak to a hard money lending expert. 203-974-3322.
Pennies to Profits
How to Jump-Start Your Career in Real Estate
You may think you need a big pile of cash to jump start your career as a real estate investor. You know that not having a large amount of capital means you’ll likely need to borrow money to get started. Maybe that’s why you haven’t started, the entire traditional lending process can certainly be intimidating. However, let’s explore some ways you can turn your pennies, into properties and begin profiting in a short amount of time.
As mentioned, lending from a bank can mean some pretty ridged restrictions. For example, you may be required to put a certain amount of money down, your credit and income will be scrutinized and the overall process is time consuming. So, what do you do when you’re good for the money, but not in the eyes of a bank? Consider a private lender.
Securing money from a private lender is one of the fastest options available. We all know, time is money. The more time you save, the sooner you can buy, flip, rent or sell the property for a profit. One reason why lending from a private investor is faster, is because it’s not as complex. Private lenders put heavier consideration on the property to be invested upon rather than the investors income and credit history.
This can benefit you especially if you’re a first-time investor. Imagine having an entity with strong financial analysis and business analytical chops look at your investment and approve it. It’s validation that you’re likely to succeed in your new business venture. Of course, your success still relies on your ability to flip, rent, sell, etc. while meeting market demands, but a little reassurance never hurt anyone.
But how do you find a private lender and apply for a private loan? Start right here, at lendsomemoney.com. The application is quick and painless. You could be approved in as little as 24-hours. Our system is set up so that if we can’t approve your loan, someone in our network most likely can. Don’t wait, get the funding you need for your future, today!