Posts Tagged ‘investing in rental property’

Utilizing Leverage When Investing In A Rental Property

Monday, February 16th, 2015

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1105

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1132

One of the greatest advantages to investing in rental property is leverage, namely obtaining a mortgage in order to obtain an investment.  The ability to borrow money in order to pay for a rental property is dependent on an investor’s borrowing power and those who are looking to secure a property now should do so quickly in order to take advantage of mortgage interest rates before they go up.

Investing in rental property is the most common real estate investment because investors can take advantage of both leverage and cash flow.  Investors who have a solid credit rating should be able to obtain a mortgage with ease.  This will allow them to purchase an investment that is much more profitable than they could otherwise.  This will also allow them to save their liquid cash for issues at their rental property, like repairs, maintenance, or advertising to tenants.

Those who use leverage when investing in rental property won’t likely be able to take advantage of the current rock bottom interest rates.  Investors who want to purchase a commercial rental, defined by a rental with five units or more should realize that they are going to have to deal with a mortgage interest rate that is about two points higher than a residential mortgage.  The amount of positive cash flow that a commercial rental property will take in should account for this factor however.

Those who are interested in investing in rental property with the lowest interest rate possible should consider purchasing an investment with four or less units, as this can still qualify under a residential rental property.  Investors who are able to save two points on their mortgage interest rate will end up paying way less to the bank on a monthly basis, however, they will have less positive cash flow with only four units in operation.

Investors who are interested in investing in rental property and want to obtain a mortgage should do so quickly, before the rates jump up.  Since the QE program has come to a close, expect that mortgage interest rates will increase considerably over time.  The investors who are diligent about their investment, yet move forward with persistence should be able to acquire an investment before the rates increase significantly.  Investors should contact a number of different lending institutions in order to obtain the one that has the best interest rates and terms, as this will have an influence on their profit margins.

Those who are considering investing in rental property should take advantage of leverage in order to allow their money to work for them.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

HomeVestors Knows That Investing In Rental Property At This Time Is A Good Choice

Tuesday, January 13th, 2015

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1105

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1132

Investors who understand the added advantage of rental property at this time, specifically an increase in tenants nationwide, should secure their investment now. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that real estate investors should consider investing in rental property before anything else for a number of reasons.  Of course, investors who do so can take advantage of leverage and cash flow, but the biggest factor at this point in time is the number of new tenants entering the market.  Investors who can offer housing to these individuals can take full advantage of their investment.

Investors who are looking at investing in rental property should understand the classic reasons for doing so.  The nice thing about rental property is that an investor doesn’t require the entire purchase price in cash, as they can utilize leverage in order to secure a property.  Investors can take advantage of positive cash flow to pay down their mortgage and earn a little income on a monthly basis.

Investing in rental property at this point in time is bound to be successful for those who research their investment before pushing forward.  Only invest in regions that are growing and are inviting to new businesses.  Locations that are catering to budding businesses are finding that their population is spiking and require further housing.  The investors who make their presence known in regions like this should be able to capitalize.

The overall trend is moving away from home ownership and into rental property.  Many potential homeowners are worried about getting stuck in a bad investment and would prefer to rent property.  When investing in rental property, investors should focus on catering to those who are between 18-34 years of age, as this group either, doesn’t have the money to purchase real estate or doesn’t want the responsibility of home ownership.

When investing in rental property, develop an advertising program that is likely to reach this group of people.  The younger generation operates online and investors should too, if they wish to keep their rentals full.  As such, investors need to focus on their Internet presence and be active on social media.  Spend the money necessary to be included in online rental directories, take out classified ads, and spend the time necessary developing a strong social media presence.

Those who are considering investing in rental property should take heed to the current state of affairs and capitalize at this point in time.

Investing In Rental Property – Slow But Steady Does It

Thursday, October 9th, 2014

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1105

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1132

One of the best choices for real estate investors is rental property because of its secure and systematic nature.  Those who are considering investing in a rental property need to decide whether the pursuit is appropriate for them.  Any investor who willing to be patient and willing to accept a slow but steady increase in wealth, should consider investing in rental property.

Before investing in rental property, have an understanding of the commitment that it requires.  Those who are considering rental property should have goals set up for years into the future.  Many investors may never sell their rental property and can capitalize on the monthly payments for the rest of their life.  Those who are looking to sell their property in the future should consider a long timeline and only sell if the market is calling them to do so.  Investors who have prepared themselves for the long road ahead will be able to become more and more financially independent, as they build up equity in their property.

There are many factors to consider when investing in rental property and investors need to have a fair understanding of the future housing market.  Those investors who choose to purchase a rental need to do their research in order to have an understanding of how profitable this investment will be in the future.  Only choose to purchase rental properties in an area of town that is growing in population and overall demand.  This will ensure that a property remains nearly full and allow an investor to earn the greatest returns on their investment.

When investing in a rental property, have a complete understanding of how the entire property will be managed before committing to the purchase.  Those who decide to purchase a rental without having an understanding of the amount of work it will take may become overburdened with everything they have to do.  Investors should consider using a rental property management company in order to handle everything that needs to be done.  Those who choose to do all the work themselves may end up earning a greater profit, but will be tied to their property 24/7.

Before investing in a rental property, make sure that it is bound to be profitable.  Obtain conservative numbers regarding the cash flow and only invest in properties that have been determined to be theoretically profitable.  This will give an investor confidence in going through with the sale and should end up earning them a small profit during the first couple of years in the business.

Those who have been considering investing in rental property can now enter the business with confidence.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

Investing In Rental Property Is An Intelligent Investment

Monday, August 11th, 2014

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1105

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1132

The amount of money that can be earned by investing in rental property is significant and investors don’t have to subject themselves to a large amount of risk when doing so.  The gains that are earned by rental property add up over a course of years and rental property is the preferred way to earn a comfortable living in the real estate field.

Those who are considering investing in rental property should have a good understanding of the benefits.  The main benefits of entering the rental property field involve obtaining lender financing and positive cash flow.  Properties that can continue to collect positive cash flow allow an investor to pay down their mortgage and earn equity in their property.  At some point down the road, an investor will have a property that is paid off and collecting maximum cash flow.

Investors who are thinking about investing in rental property should obtain the necessary understanding of the field and focus on researching markets that are likely to be profitable.  Investors who invest in a rental property in an up and coming market are bound to earn the most from their investment, if it appreciates and rental rates increase.

When investing in rental property, take the time to look at all the available properties in the region.  Talk with the sellers of these properties and get an idea for the cash flow of each property.  Inspect each property personally and professionally in order to end up with an investment that is bound to be profitable.  Remember that purchasing a rental property is a long-term commitment and isn’t liquid like other investments.  In other words,the due diligence required when purchasing a rental is even more important than with other investments.

Investors who have found an investment that they believe is going to be profitable should calculate the profits exactly before investing in a rental property.  Ask a seller for their tax receipts in order to get an idea for the positive cash flow and negative cash flow.  Investors who theoretically have a property that is profitable will be able to move forward with their investment with confidence.

After investing in a rental property, investors need to make sure that they attract high quality tenants and keep the rental full.  Those who are located in an ideal area shouldn’t have a problem with this and will be able to collect maximum positive cash flow.

Investors who are investing in rental property should understand the advantages for doing so and be willing to hold it for the long-term.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

Basic Rules To Investing In Rental Property

Monday, July 7th, 2014

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1105

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1132

Investing in rental property is one of the oldest real estate investments known to man.  Little has changed over the history of rental property and investors don’t need an encyclopedia worth of information to get started in this field.  Simple concepts, like treat tenants well and keep the property in order are bound to go a long way in order to earn a profit through a rental.

Those who understand the basic rules to investing in rental property are bound to find that they are able to profit in the field.  First, gain the necessary education in order to understand the procedures that are required to make a rental property thrive.  Then, take some time and look at the market in order to determine whether it is bound to be profitable.  After this, research all the rental properties in the area and pick the one that appears to generate the most positive cash flow.  Finally, fill the rental with tenants, making sure to choose them carefully in order to avoid long-term problems.

When investing in rental property, education is of the utmost importance.  Read everything on the subject and get a good idea of how the process is conducted.  Talk to other rental property owners and get their opinion on the subject.  Ask questions and learn from the mistakes of others in order to avoid problems, as they arise.

When investing in rental property, decide whether the market is calling for another rental.  If a market appears to be saturated, avoid it and move to another market.  Look at the long-term potential of an area before deciding if it is the best place to invest in.

After determining that an area is likely to be profitable, look at all the rentals that are for sale in the region.  Take some time when investing in rental property because choosing the best one is crucial to success.  Do the necessary due diligence and make sure that a property is bound to net a positive cash flow.

After acquiring a property, it is imperative to have a system set up in order to properly screen tenants.  Put each prospective tenant through a background check, credit check, employment check and check their rental history.  Choose the tenants that are bound to increase the value of a property and don’t get involved with tenants who are likely to cause problems.

Those who have been considering investing in rental property should continue to educate themselves and search for their first property.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com.  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

HomeVestors Knows That Investing In Rental Property Has Many Costs

Friday, September 6th, 2013

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1105

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1132

Rental property can be a profitable venture, but there are many costs to consider.  Those who are able to manage their money the best, end up with a good investment.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that investing in a rental property is a popular choice for real estate investors who want to earn money over the long-term.  As such, this investment is suited for those who have an in depth understanding of their goals.  There are many costs to consider and those who have a firm understand of what they are getting into can make an informed decision.

When investing in rental property, most investors have to borrow money from a lending institution.  Go to the various different lenders in town and find out who will offer the best rates.  Expect to pay a higher mortgage interest rate because lending institutions consider rental property to be a risky investment.  An interest rate that is about 1.5% higher than the advertised rate is generally standard.

When investing in a rental property that has more units, expect to have to pay an even bigger down payment.  Rental property that has two to four units usually requires about a 25% down payment.  Rental properties that are bigger than this usually require a 35% down payment with a credit score over 720.

When investing in rental property, be aware of the property taxes, the insurance and the estimated price for the utilities.  These costs can add up rapidly and many choose to push the costs of utilities onto their tenants.

When collecting rent money every month, put aside 15% for maintenance.  When investing in rental property, expect to put in a consistent stream of money on maintenance in order to keep existing tenants happy and attract new ones.  Set money aside in order to cover any long-term vacancies, as this can greatly alter cash flow.

Consider the costs required to search for tenants, as this process is generally time consuming.  Don’t forget about the costs associated with running background checks on potential tenants.  Consider charging a $35 application fee in order to cover for some of these costs.  When investing in a rental property decide whether to hire the services of a property management company and factor in their costs respectively.

Investing in a rental property has a lot of different costs that many investors don’t consider.  When calculating the ROI of an investment, make sure to factor all of these costs in.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.

Contact Information

HomeVestors Realizes That Investing In Rental Property Makes Business Sense

Tuesday, August 13th, 2013

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1093

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1105

Warning: Illegal string offset 'status_txt' in /home/britips/public_html/wp-content/plugins/share-and-follow/share-and-follow.php on line 1132

Rental property is almost always a good investment and the current market gives investors even more reason to be attracted to it.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that investors who are considering investing in rental property have picked a good time to enter the field.  Rental property is currently the buzz among investors because they can take advantage of the many different aspects of the field.  Rental property is currently priced right, there are many potential tenants, the mortgage interest rates are still low and the rental rates continue to increase.

When considering investing in rental property, look at both the positives and the negatives.  Currently the positives throughout the field of rental property outweigh the negatives.  Investors need to determine if the individual property they are planning on getting involved with has more positives than negatives.

When looking at properties in the area, make sure that the general area is improving economically and that there are likely to be a great deal of potential tenants in the area.  When investing in rental property, make sure that the property is in decent condition and can be obtained for a price below market value.  If so, negotiate the right price and secure it under a long-term loan, while the interest rates are still relatively low.

Those who live in areas of the country where property values and rental rates are increasing steadily should consider obtaining a rental property quickly.  An investor can than take advantage of the general appreciation of the property and the above average rental rates.  These rental rates will allow an investor to pay the mortgage each month, while collecting a little money on the top that is needed for repairs and emergencies.

Decide on the proper exit strategy when investing in rental property.  Investors should have an idea of how long they plan to hold onto a property before selling their investment.  Many investors are focusing on selling their rental property in the next couple years, as property values are expected to increase.  Other investors are deciding to continue to hold onto the property throughout the long-term, benefiting the most when the property is entirely paid off.

No matter the strategy, investing in rental property at this time makes sense for a wide variety of reasons.  Those investors who can obtain a profitable rental property are likely to have a successful future with their investment.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.

Contact Information