As property owners and real estate investors, being able to assure that we will be generating money and continue on raking in profit with the least energy and time spent as possible. However, just because we want to go through the process of being able to find tenants as fast as we can, it does not mean we can skip the standard operation procedure of scanning our potential tenants with scrutiny.
As real estate investors, we have to make sure we are getting the right amount of money back for our investment which may be an apartment or a house, therefore, truly knowing the history and the paying habit of the potential tenant are the utmost priority.
So what is Credit history?
Credit history is basically a record of a person’s ability to repay his or her debt, this record will show you how responsible that person is when it comes to being accountable for his or her spending and being able to pay back. This credit history will also show you how much this person still owes, the amount of used available credit, whether or not the bills were paid on time or it was late and etc.
Discovering about their credit history is not an invasion of privacy, this is needed when it comes to real estate. Just as in job interviews wherein the Human Resource personnel would call one’s previous department head for any necessary background on the interviewee to see if he or she is being true to his or her data on the resume and if he or she has a bad record on the previous company. By learning and knowing about your potential tenant’s credit history, you will be able to dodge a bullet of future damage such as your tenant not being able to pay his or her monthly rent which will cause a hassle on your part as you have to take care of taxes and other utility bills for your property.
While we discussed about how to rent your apartment in the previous article, it is important to take note that it was more on advertising and marketing your apartment, when you want to properly deal with renting out your apartment, you would have to take note of these tips that will guide you on successfully being renting out your own real estate property that is your apartment.
- Understand the scope of the business and the responsibility involved
Diving into an unfamiliar water may just get you drowned. It is important to be well-aware and well-versed in the kind of business you want to get yourself involved in. Twinkling with real estate properties such as renting out your apartment will involve paying a lot of money for taxes, utility bills, and maintenance for your property. You need to anticipate that you will be shelling out a lot of money and your main goal here is to generate profit that can take you beyond just breaking even with your initial capital.
- Make sure your house is prepared for new tenants
Your potential tenants will inspect your apartment with so much scrutiny and you need to prepare yourself for that. As a landlord, the moment one tenant leaves, make sure all the broken things such as a burn out light bulb, broken door knob, cracked tiles, and stains on your walls have been fixed already. One faulty feature in your apartment may shoo away potential tenants.
- Consultation is key
As a landlord, surround yourself with the right professionals such as an accountant and your own attorney. In this way, they will keep you grounded when it comes to monitoring your finances and whether you are abiding by the law of the state. By keeping your own personal attorney, you will have someone to protect you from future lawsuits against a tenant.
- Set a realistic price
For sure, you have competitors just around the neighborhood, you need to scope out their prices and settle with one that could garner you more tenants while making a profit. It is important to take note that your price should not be too low or too high either, just right and realistic.
- Do a close examination on your potential tenants
Yes, these potential tenants are your key to making money, however, you cannot just hire anyone. You must do a close examination on your potential tenants by calling the previous landowner of the house they used to live into asking for a reference, reviewing their credit history, and learning about their main source of income. You cannot just hire someone whose paycheck says it’s impossible for him to pay the monthly rent.
Venturing into the real estate is an exciting experience as it opens up your mind to new tactics and ways to earn money by socializing with people, finding out what they need or want and serving it up to them on a silver platter if you may. Everyone is either looking for a new or a more comfortable abode they can settle into for either a short or a long amount of time, depending on their need, and this is where you, a real estate investor, come in.
Here at Nicholas Haley, where you are encouraged to train as a real estate investor, we will freshen up your minds with ideas and options for real estate investment.
One way to always earn money annually and maybe even weekly is through leasing an apartment to your e tenants. Compared to its obvious counterpart which involves selling houses, you can continue on earning money from it as long as you want whereas in selling houses it has a fixed timeline and a fixed price point bound by a contract. If earning money constantly and consistently is your goal as a real estate investor, then leasing apartments is for you.
Fixer upper homes, as what we have discussed here for a few times in our blog at Nicholas Haley, is a real estate investment wherein you take in a house that needs a bit of tinkering with. By tinkering, it means an improvement of small details such as a new wall paint, carpet or flooring, it may also involve replacement for the old doorknobs or broken glasses. It does not have to cost much but your goal here is to make it look more appealing to prospective buyers than it initially did.
Retail homes are the type that needs almost too little to no changes at all as it only requires for it to be sold right away to a prospective buyer. These are the type of homes that are usually sold in a rush due to varying reasons from its previous owners such as moving out of the state or out of the country and maybe even moving onto a better house.
Rehab homes involve more challenge but it also is the best way where you can train as a better real estate investor. It may cost a lot more than the previous options but the mere idea of flipping a drab of a house into something a lovely couple can imagine growing their families in is a sweet of an idea in itself.
If it is your first time as a real estate investor to rent out your apartment, it might be a wee bit intimidating, however, you should not fret. If you log into Airbnb accounts, you will discover just how much as many newbies there are when it comes to real estate investment and sales, but renting out your apartment is a great training for you towards becoming a better real estate investor.
- Make sure it is visually pleasing
No one wants to rent an apartment which looks like a drab and basically not conducive for living. It is a great real estate sales training to be able to make your property look appealing for prospective clients and buyers therefore it is not too late to start now.
- Enlist it in business listings
Make sure more people on the internet will be aware of your property if it is available for sale or leasing by enlisting your property in business listings online. No doubt, there will be more coverage and exposure for your property to reach more prospective tenants.
- Create an Airbnb account
This is probably the easiest way of raking in prospective tenants: by creating an Airbnb account. With Airbnb, rest assured you will be able to find great places to rent and prospective tenants will have more chances of finding your property as well. Make sure you take great photos or hire a great photographer, upload it and use it for your account’s marketing materials.
- Be accurate with your descriptions
You will be able to dodge people’s high expectations if you remain true and accurate with your property’s descriptions. Do not lie about an amenity or utility if your property does not offer it.
- Add perks
Whether there are complimentary bottled water available ready or that it has an air conditioning available for them, enlisting perks will make your chances for leasing higher as it helps your prospective tenants become more convinced to rent your property.
- List nearby and available recreational activities near your area
Whether the mall is nearby or that the local hospital and police station is just a 10-minute drive away from your place, listing the community’s essentials along with your property’s perks will heighten your chances of getting a prospective tenant right away as this equates to convenience.
To cut to the chase, selling a rehab home can be very challenging as you are trying to sell a drab of a house, a house that was once tattered and yet you transformed it into something that is undeniably gorgeous and makes sure it is marketable and profitable. This is the goal when you want to venture into selling rehab homes as a real estate investor.
Here at Nicholas Haley, the best real estate trainer, we will help you figure out just how you can sell your rehab home fast and easy without a hitch so that the next thing you know, you are welcoming money and profit with open arms.
- Invest wisely on the renovation/reconstruction
By investing wisely, we mean spending the only money you need to spend on the renovation and reconstruction. So no splurging and make sure you get the best deals and best suppliers for the operation itself. Fix even the tiniest of details and that means making sure there are new door locks, new floorings, new windows if needed, new wall paint, and new carpet. However, what you want to make sure at the end of the day is that n matter how much you spent on the renovation or reconstruction, the goal is to sell it at a higher price than how much you have spent on the operation itself. Therefore, you should be tight on money.
- Do not neglect the front lawn and the curb
The first impression lasts. The first thing that your prospective buyers will see about your real estate property is, of course, the exterior design. Meaning it includes the architectural design of the house itself, the front lawn, fences, and the curb. If these 4 remain unattended and still in a bad condition, you might be shooting away prospective buyers without even realizing it. This is why it’s so important to pay attention and spend a little money fixing the outer appearance of your house for it speaks multitudes about how you are as a real estate investor.
- Enlist it on business listings
These days, people are on their computers and smartphones most of the time. If they want to look for a shop or a house, they would just open Google and type the necessary keywords to come up with the desired results. Enlisting your house in business listings will make it easier for your prospective buyers to know about your property.
- Advertise and market it
Whether it means creating posters and signages all around the neighbourhood or as simple as hiring a professional photographer to take photos of your house so you will have marketing materials to utilize on social media, advertising and marketing your property on all platforms is important to cover more prospective buyers who may be looking for a house just like the one you are selling.
- Create a realistic price
Create a realistic price that is not too low and not too high, somewhere in between where it can be easily sold and where you can a huge profit as well. During these matters, you can consult Nicholas Haley, the best real estate trainer to give you a helping hand in becoming the best real estate investor that you can be.
As a beginner when it comes to becoming a legit real estate investor, selling your first retail home may be intimidating and nerve-racking, however, you should not fret because this is just the start of a great future when it comes to your career as a legit real estate investor dealing in real estate investment properties
- Establish a solid price
As an investor, you need to be able to establish a solid price wherein it allows you to gain a large amount of profit, making sure you can achieve the break even upon selling it. If coming up with an ideal price is still a challenge for you, try looking up existing business listings on the internet with regards to houses for sale and compare it to your ideal price. In this way, you will achieve a realistic price range on how expensive your house should be sold as.
- Include it in business listings online
There are some free services on the internet wherein it allows you to list your house for free. However, for the high-end ones, it may require you to shell out a few hundred dollars for which you must already be prepared for. By including your real estate investment properties in business listings, more exposure to your property will be achieved and more prospective buyers will be aware of your retail home.
- Market and advertise your property
Hire a great photographer who specializes in architectural photography to assure that he will be able to capture professional-looking photos that will look appealing to your prospective buyers, begin advertising and market them online through business listings and social media sites, into your neighborhood, and if you have a bigger budget, maybe all around the city or state. Somewhere, somehow, someone is looking for a house just like the retail home that you are selling. The larger your scope is for the marketing and advertising, the better.
- Hold an open house
By holding an open house, you are giving the chance to your prospective buyers to imagine and visualize how it feels to have your retail home as theirs. In this way, it will be easier to convince them just how perfect your property is to become a part of their life.
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