November – Read and research
You have established the niche you want to concentrate on, now it’s time to focus on becoming an expert. A great way to do this is to read and research on the subjects to really get into the inner workings and specifics of the industry.
Remember that the more you learn, the more you will likely earn!
Some benefits of continuing your real estate education by reading include:
Even if you have been in the business for a long time, it is really important that you can continue educating yourself since the real estate industry is always in constant flux and change.
If you dig a little, you can discover a lot of blogs and books written recently, and constantly, by successful people that can provide some insight and can help you know where the market is headed which will make it easier for you to flourish as an investor.
You can find our recommendation on what to read if you are interested in investing in multifamily here and single family here.
Helping you make better decisions
As you may be aware, each part of real estate investing is different and you need to educate yourself on how to handle each part so you can make the most out of your investments.
Reading diligently and researching constantly, not only in the kind of investments you want to take on but also in the market and the area you’re looking at, will make it easier for you to make great decisions and veer towards a great future.
Finding new opportunities
If you are constantly reading news and blogs with information on the real estate market, you can be on the lookout and learn to find telltale signs of a good investment opportunity, whether you want to keep investing in your own state or if you are looking to expand your portfolio to other places.
Don’t forget to check out the other articles in our blog and subscribe to our monthly newsletter if you want to read on a wide variety of real estate topics!
Do you have a property and are feeling lost on where to start? Contact us today!
Investor’s Basics Series: The details on buying off market
You have the timeline to plan for your next property purchase, now you can decide if it’s worth it to try and get properties that are off market.
Keep reading to get the details on how to find properties off the market and the pros and cons of doing so.
There are many reasons sellers will look to sell off the market, including privacy, flexibility, speed and tenants, so there are many options for you to choose a good property from. Of course, with it may come some good and some bad things:
- You get access to an inventory that other investors haven’t seen – Less competition means more chance of getting the property you have your eyes on.
- The process may be faster – Some owners will look to sell off-market because they need a speedy exit, so everything will most likely go faster than usual.
- Negotiations may be more flexible – Without the pressure of a normal bidding war you may have more room to negotiate to get the deal you want.
- The cost of repairs may be high – Some properties are sold this way because they are not in the best conditions, so getting it ready to rent may be more expensive.
- Determining fair market value may be tricky – Since they are available to less buyers, these properties may be more difficult to appraise. You can do a Comparative Market Analysis (CMA) to help you out.
Some ways you can find off the market properties are:
Use marketing tools to find potential sellers
We have said it before, marketing is a great tool for real estate investors. From direct mail marketing campaigns to offline strategies, you just need to work out the strategy that works for you and let it help you grow your portfolio!
Connect with local vendors
Don’t underestimate the power of having good rapport with your local vendor community. Consider making a good relationship with maintenance professionals, gardeners, home inspectors, etc, they may be able to notice distressed or abandoned properties, and could help you make connections with different owners.
Remember you can always enlist the help of an experienced property management professional in case you have bought a house off-market and are looking to get it ready and rent it out quickly!
Do you have a property you need help with? Contact us!
October – Find your niche
Now that you are great at finding new opportunities everywhere you can, it is time to learn how to find your perfect niche.
Having a niche is really important when you are looking to grow your portfolio and become an expert in a particular area of real estate. Doing so will give you an edge in this fast-paced, competitive industry.
Here are a few things to consider when working to discover your niche:
A geography-based niche is the most commonly practiced and it can be specific to a neighborhood, county, zip code or city.
You can also try to be hyperlocal, looking for properties in one very limited location, making the area you are selecting as small as possible to be able to completely specialize in it and look for the best opportunities there. The market can vary drastically from city to city and, in some cases, even from neighborhood to neighborhood. So make sure to do your research when looking for your geographical niche!
Find what property type interests you the most and research as much as you can about it. Some property types are:
- Single Family – Single residential structure.
- Multi Family – A building with multiple units for several families.
- Condo – An individually owned unit in a building with other units.
- Co-Ops – A property owned by a corporation formed by several different owners.
- Commercial – Buildings used for commercial use like office buildings, warehouses and retail.
- Historical – Properties over 50 years old with certain historical and cultural characteristics.
- Luxury – Usually defined as the top 5% of the market.
By taking on only one type of property, you can make sure you get the process of getting it ready down to a T. Each type has pros and cons so it is important to weight your options before deciding!
Find your passion
Try thinking about what you like from real estate and make sure you take it into consideration when choosing your niche.
It may sound cheesy but, working in something you love will make it easier for you to really get into it. Passion goes a long way when it comes to motivation and success!
After you have found your niche, you may want to find a good property management company that complements the niche you have chose and can help you take care of your investments so you can focus on growing your portfolio!
Do you need help with a property? Contact us today!
September – Keep an eye out for opportunities
Another big part of being a Real Estate Investor, after you have kept up to date with new laws and regulations, is learning to recognise a good opportunity when it shows up and being able to take it.
Keep reading to find our best tips on how to find and seize great real estate opportunities.
A great way to find opportunities on and off the market is to network as much as you can. Attending real estate events, both online and offline, and being part of a community with other real estate investors and other people in the business will make it easier for you to get access to opportunities that you would otherwise not have heard about.
Remember that most times other investors are not your competition, but they could be a great asset that could help you grow and bloom in the industry since they could have expertise in areas where you are lacking.
See how you can become a networking pro here.
Consider attending auctions
If you know how to navigate through auctions, they can be a great way to find off the market properties at a great price!
Auctions can be tricky, but if you are willing to do your research–and try attending an auction or two to see if you are up for the challenge–they could really help you grow your investment portfolio and gain more knowledge on difficult properties.
Online and Offline Marketing
Remember one of the most powerful tools for an investor it’s their ability to work with marketing to be able to find great deals.
A widely unknown method to find motivated sellers is to search eviction records to find for owners that may be tired of their responsibilities and may be looking to find someone to take their properties off of their hands.
If you have an area you are interested in, you can also take your time to scout it out and look for telltale signs of a property selling and then use marketing tools like Bandit Signs to search for owners willing to sell.
You can read our article on marketing here.
A great opportunity could be right around the corner for you, it is just a matter of keeping your eyes wide open and learning how to spot them.
Do you have a property you need help with? Contact us today!
How appraisers determine how much a property is worth
Whether you want to buy or sell a property, the appraisal process can determine what decision you make.
In Texas, each County Appraisal district is required to do an appraisal of the properties within their district every 3 years.
It is also important to remember that the value of your property determines the amount of property taxes you will pay each year, so you really want to make sure that you get a fair appraisal, and being aware of how the process works and what techniques appraisers use can be really helpful.
You can find more information on how appraisal works and appraisal experts in your county in this link.
There are three main ways appraisers calculate the value of your property.
This approach evaluates the market in the area where the property is located and makes tweaks taking into account the differences between the properties. This means, they look at properties recently sold and based on a Comparative Market Analysis (CMA), they make their appraisal after making adjustments depending on determining factors.
In this method, appraisers look at income and expense data to calculate the present worth of future benefits. Doing this, they try to determine how much a future investor would pay today for the possible revenue the property will generate in the future.
This last method calculates how much it would cost to replace the building on the property with another building of equal utility with certain improvements. Depreciation, which is the process used to deduct the costs of buying and improving a rental property, is factored in and it is added to the value of the land.
Some other factors
Appraisers do take other things into account. This includes:
- The condition of the property both of the exterior and interior.
- The size of the property.
- The home improvements made.
If you feel overwhelmed and need guidance through the process, you can reach out to our experienced realtors and property managers that will happily help you through every step of the way!
Need help managing a property? Contact us today!
May – Improve your ROI strategy ￼
After you have created the perfect strategy to find properties, now you will need to find ways to get the best out of them.
If you are not sure how, don’t worry! See below our tips for getting the most out of your properties by maximizing the Return of Investment on them:
Boost the value
One of the best ways to make sure you increase the value of your property, is to make improvements to it. Making home renovations or adding technological features can make the occupancy rate higher and more attractive to high-paying tenants which will help you get more money, faster.
You can check out our newsletter on home improvements that give the best ROI here.
If you have more than one rental property, you can automate the process of renovating them. Use the same paint color, the same fixtures, the same flooring and even the same design if possible. This will help you not only perfect the way you do the home improvements, but will also help you know the price of the renovations beforehand and can even help you save money if there is an option to buy the products needed in bulk.
Trust the experts
Get a dream team that can advise you. Getting a good agent and a good property manager can save you a lot of headaches and a lot of money. These experts in your area have done the work and understand the dynamics of the market, so you can be sure that they will know the best way to make the best out of your investment and will make it easier on you when it comes to things like picking out the right tenant for your property or what the best way to move forward is.
When it comes to choosing the right one for you, make sure you look at someone who you are comfortable with and with whom you have the right chemistry.
Crunch the numbers
Always be aware of the market trends, inflation and the overall real estate market before making any decisions, this will save you from wasting money unnecessarily and making any mistakes that could impact your investment negatively. Be aware of how much rental rates are in the area of your property to improve the tenant retention rate.
You need to keep in mind that the real estate market always has its ups and downs, so don’t get frustrated and remember it may take a little to get the ROI you were hoping for, but slow and steady wins the race!
Don't know how to improve your ROI? We can help!
April – Rethink your strategy for finding new properties
Now that you have created the perfect routine, what is the next step? One of the keys to being successful in any industry is to keep innovating, and Real Estate isn’t the exception. To grow and prosper, it is important to find new ways to do business and to hunt for the best opportunities.
In today’s housing market, having a great offer is crucial. Here are our tips for finding the best properties to invest in:
Do a thorough inspection
Make sure the property is in the condition you need it to be, whether it is a fixer-upper or a turnkey property in prime condition. Take your time and do as many visits as you need to really be able to inspect every nook and cranny of the property. Some things to look out for are the HVAC system, the plumbing and the roof.
Don’t forget to also do some research on the area, do some rounds around the block to see local restaurants, attractions, schools, and ask questions about crime statistics, flooding risk and any other pertinent information.
Don’t rush into buying a property just because you think you’ve spent too much time looking. Patience is really important when it comes to finding a property. See as many properties as you need to, but make sure it is the perfect option for you.
Do the math
Be really thorough when it comes to how much you can invest. Don’t get in over your head with a property you can’t afford or a property that will drown you with the repair or upgrade costs. Be decisive when you choose the property, but don’t jump into it before you are 100% confident about the property.
You may need to adjust your expectations as you go along through the process, but don’t lose hope! You will find the best property that fits perfectly with your needs and finances.
Have a clear purpose
Do you want to buy the property to lease? Do you want a vacation property? How long do you want to spend fixing it up? Have a clear idea about what you want and don’t stray from it. Stay within the range of what you can afford, how big of a project you want to take on and what you want to do with the property.
If you are thinking of investing long distance, you can see our suggestions on it here.
Not sure of how to start building an investment strategy? No problem! Reach out to us and we can help you get started.
Have a property you need help with? Contact us today!
February – Create a Strong Team
After you have networked like a pro, it’s very important to surround yourself and solidify your relationship with the people you feel give the most value to you and who will help you reach your goals.
Building a good team should be about finding people with complementary skills to yours that can complete tasks needed to achieve success. Follow these tips to build the perfect team for your business:
Start thinking like a leader
Remember no one can lead your team better than yourself, because no one knows where you want the team to be. So step up and take command. Communicate clearly what you need and keep an open mind.
Practice emotional intelligence
Have patience and remember your team members are complex human beings whose personalities and work styles are completely different. Try to understand them and see these differences as assets.
Create a respectful environment
One of the most important factors in a good team is respect, not just to you as the leader, but to and between every member of the team. In a respectful environment great ideas can flourish and grow into something amazing.
Know every part of your operation to pick the perfect person
Imagine how the perfect person for each role is and find someone who fits that idea. Let them know clearly what you expect from them and have a clear idea about how everything should work and how you can get it to do so.
Take care of even the smallest of details
The devil is in the details. Make sure every member of the team is as detail-oriented as possible to ensure that all parts of the operation are perfectly covered and that the needs and goals are being achieved.
Establish achievable and clear goals
Make sure everyone knows what you need them to do and when you want them to do it. Establishing what you expect from every person is a great way to make sure your team can grow into their own and accomplish everything they have to.
Calendarise meetings to keep everything in check
According to your necessities, keep weekly or monthly meetings calendarised so everyone knows the deadlines they have and what needs to be done by them.
Being really organised will also help your team have clear goals and being more organised themselves.
Celebrate the little and big successes
Encouragement is very necessary for the success of a team. Make sure to celebrate appropriately when someone does something good.
Positive reinforcement goes a long way and can do more than you expect.
Do you need help with a property? We can help!
Some Must Reads for Real Estate Investors: Multi-Family Edition
Real Estate investing can be a daunting industry to break into! Between determining how to obtain financing, picking a property, and figuring out how to get the best ROI (return on investment) there is so much to know and learn that it can be overwhelming to the point of discouragement. One of the best ways to learn about real estate investing is to read books written by investors and other experts.
Below is a list of some of the most popular books among multi-family real estate investors.
Multi-Family Millions: How Anyone Can Reposition Apartments for Big Profits
This book is often mentioned as one of the best books to get started in multifamily investing. It focuses on scaling up from single family residences into multifamily. He offers strategies for finding the properties, fixing or flipping them, and then selling them. It uses a step-by-step system for each part of the investment, which can be great to use as a starting point for creating your own efficient system.
Crushing It in Apartments and Commercial Real Estate: How a Small Investor Can Make It Big
Crushing It in Apartments and Commercial Real Estate is a beginner’s guide to investing based on Murray’s experience bootstrapping his way from newbie investor to award-winning CEO of Washington Street Properties. Murray shares the secrets to his success through straightforward, actionable advice that will help you get started no matter what your experience level, or how much cash you have on hand. You’ll learn how to:
- Find and creatively finance commercial property
- Grow a portfolio without any help from outside investors and without taking on excessive debt
- Use your small-investor status as a competitive advantage over corporate investors
- Identify simple, practical ways to increase profits while keeping costs low
The Complete Guide to Buying and Selling Apartment Buildings
Whether you’re a first-time real estate investor or a seasoned professional, The Complete Guide to Buying and Selling Apartment Buildings helps you map out your future, find apartment buildings at a fair price, finance purchases, and manage your properties. Now revised and expanded, this Second Edition includes tax planning advice, case studies of real acquisitions, and appendixes that add detail to the big picture. Plus, it includes a handy glossary of all the terms investors need to know, helpful sample forms that make paperwork quick and easy, and updated real estate forecasts. With this comprehensive guide at hand you’ll find profits easy to come by.
How To Create Wealth Investing In Real Estate: How to Build Wealth with Multi-Family Real Estate
This is not a book about flipping or wholesaling homes, its about investing in real estate that is a proven method for creating massive wealth.
This book is about how you can buy income producing real estate, protect your capital, and provide you and your family with passive while the property pays down debt and you wait for asset appreciation.
This book focuses on buying and holding income-producing multifamily properties to provide passive income to support you and your family. The author worked his way to nearly 1 billion in real estate holdings with 5,000 units and shares the tools he used to get there. It details how to properly evaluate a property and then secure bank financing for a secure long term investment.
How to Make Big Money in Small Apartments
How to Make Big Money in Small Apartments reveals the opportunities, strategies, myths, secrets, and internal obstacles for those considering investing in multifamily housing. Readers will discover step-by-step approaches for finding and qualifying deals, identifying buyers or investors, monetizing small apartment deals, and how to scale-up to larger apartment communities in a readily understandable format.
Sharing his experiences along with over forty case studies of other successful investors, Edwards offers a guidebook to success for every investor, instructing both beginners and professionals on how to make money by wholesaling, buying, and/or rehabbing apartment buildings without using their personal cash or credit.
Dive in to learn proven strategies for moving into the fast lane and making small apartment deals now.
Investing in Apartment Buildings: Create a Reliable Stream of Income and Build Long-Term Wealth
The author of 2 Years to a Million in Real Estate gives you a step-by-step plan you can follow to generate a business plan that scales up as you grow. He helps guide you through the initial deal finding, how to manage the properties, and then how to exit and roll the profits into your next deal. It will help you build your real estate portfolio so you have income-producing properties to rely on.
The Science Of The Deal: The DNA Of Multifamily & Commercial Real Estate Investing
From his roots in Hyderabad, India, to the heart of Texas, Shravan Parsi tells the story of his journey from pharmaceutical scientist to founder and CEO of successful real estate investment firm American Ventures. The secret to his investment success is like any science: a marriage between quantitative and qualitative facts, between abstract numbers and concrete action. Here Parsi outlines the technical information you need to learn how to invest in multifamily and commercial real estate, how to understand what makes a good potential investment, and when to walk away. In conversational style, the book shares ideas about how to identify, evaluate, and mitigate risks; how to learn from downsides as well as upsides; and how giving back to your community is as important to success as the right numbers. It’s wisdom that benefits any entrepreneur.
Do you have a property that you need help with? Contact us today!
Why Choose a Professional (And Licensed ) Property Manager?
As the demand for rental property increases more and more investors are turning to real estate as a reliable and timeless investment. And while real estate can be an extremely profitable investment, it can also be very time consuming and become extremely overwhelming if you are not well versed.
If you, like many, have ever wondered if professional property management is worth the expense. The answer is: Absolutely! As long as you partner with the right company. Here are a few ways that Frontline Property Management can increase your profits and improve the value of your investments.
Maximizing Rent by Monitoring the Market
Did you know that, in the state of Texas, professional property managers must also be licensed real estate agents? One of the many benefits to hiring a professional property manager is their vast knowledge of the real estate market. Knowing the market will ensure that you are listing your rental property at the right price and will get you the most bang for your buck!
One of the quickest ways to kill your profitability in a rental property is to approve the wrong tenant. While you obviously want to put focus on whether or not a prospective tenant can pay the monthly rent there are many other items to consider when approving a tenant. Some of these items include: How will they care for the property? Will they fulfill their lease obligations? Are they likely to be there long term, or will they be likely to move after just one lease term?
Hiring a property manager can help ensure each tenant is screened thoroughly before they move into the property.
Once the tenant has moved in, the monthly rent must be tracked meticulously. In addition to tracking the rent a professional property manager will have systems in place to ensure that any late payments are handled appropriately and that prompt and proper action is taken in the event of non-payment.
Keeping Your Property in Tip Top Shape
At the end of the day your investment is only as good as its value. Having a professional property manager on your side will ensure that your investment is well cared for. A good property manager will track and perform preventative maintenance resolving issues before they become costly.
Considering taking advantage of this knowledge by hiring a professional property management company?
Frontline Property Management has been dedicating itself to the well being of our investors for over 30 years. Reach out today to see how we can help protect your frontline in order to increase your bottomline.
Have a property that you need help with? Contact us today!