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.
Networking
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 to choose the perfect insurance company for you
After the effort it takes to acquire properties, you want to make sure your investment is as safe as possible.
Every home has different needs and with a whole array of insurance companies out there trying to get your business, it can be hard to decide which company suits you best, but we’ve got you covered!
Keep reading and learn our tips to choosing the perfect insurance company:
Compare every company
Do as much research as you can. Every company will promise the moon and the stars, so be careful and apprehensive. It is very important to compare the coverage each policy will provide and ask for the discounts they will give you.
Review their accessibility and digital management to see how easy they are to reach in case you need them.
You can use this website to compare rates by company.
Consider the location
The cost of an insurance policy varies according to state, city and zip code, so make sure you do your research before starting to look for a company. Some things you need to take into account are:
- Crime rates in the area
- Weather conditions
- Proximity to fire events
These factors can severely impact the cost of your premiums! You should keep them in mind and specifically ask about how the insurance company covers events related to those issues.
Check the policies thoroughly
Before you sign the contract, take your time to read it through. Ask for the forms you need to fill to file a claim to make sure you understand them. Here are somethings you should look for:
- Are the documents you need to file a claim easy to get?
- How is the reimbursement process?
- How long will it take them to reimburse you after the claim?
- How do they handle settlements?
It is very important that you ask these questions to be prepared for any eventuality that happens on your property.
If you feel like you need more guidance, our expert property managers will be happy to help you make the right decision!
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.
Market Approach
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.
Income Approach
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.
Cost Approach
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!
Common tenant complaints and how to manage them like a pro
It does not matter how well you keep your property, some issues are still bound to appear. Handling tenants can be tricky, so dealing with them in a proper and kind manner will be really helpful for a fruitful relationship.
Keep reading to see the most common complaints tenants make and how to successfully resolve them.
Maintenance
Ensuring that the property is in tip-top condition can be challenging, but it is so necessary. Maintenance requests left unattended is the number #1 complaint tenants make regarding their rental property. Letting them know you are interested in their comfort and security by tending to their maintenance needs can go a long way.
Having a clear line of communication and a simple system to send their requests is the best way to make sure that these issues are addressed.
Apart from emergency repairs, it is also very important to remember that seasonal upkeep must be properly managed. See our blog posts on seasonal maintenance here: Spring – Summer – Winter – Fall
Privacy
Not only is it a bit annoying for the tenant for you to show up unannounced at the property, but it can actually be a criminal offense if it even remotely resembles harassment against them. Having respect for their privacy is key to having a good relationship.
Unless it is imperative to visit the property because of an emergency, always ensure that you give them at least 24 hour written notice that you may be dropping by.
Noise
Noisy neighbors are not the owner’s fault, but it doesn’t mean you cannot help the tenants have a better time at your property.
If the problem is with a tenant also renting with you, you could offer to talk to them or mediate to help them reach an agreement amicably.
If not, you could look into helping them with the installation of insulation, or with soundproofing the property.
The best solution for these issues will always be to resolve them by talking with the tenant causing the discomfort, but offering something extra can make your tenant really happy!
Pests
One of the most awful things that can happen in your home is having unwanted guests invade you, so this one requires immediate action in most cases.
Calling an exterminator promptly can solve the issue right away, but periodical inspections and upkeep can help you be sure that the pests won’t cause any more problems.
Something to keep in mind is that the lease your tenants get will need to include how you will manage each of these items, and must strictly follow the Texas Property Code.
It can be really tiring dealing with all of this, so leaving your property in the hands of experts (like us!) can help you relax in the knowledge that things will be taken care of.
Don't know how to handle your tenants? We can help!
How to invest long distance
When it comes to real estate, it can be scary to think about investing long distance, since it can be a hefty investment, but don’t be afraid! Today, thanks to the internet and other tools, you can find the perfect property, check its condition and buy it with just a few clicks.
Here are a few tips on how to start the process:
Research diligently
The first and most important step to invest long-distance is to research everything you can regarding your target market. Some things to look out for are:
- Is it a growing population?
- What is the school district like?
- What are the crime rates like?
- Is there a considerable demand for rentals?
If you need a reliable source for this information, you can check the US Census website and do thorough research.
Build a team of local experts
You can keep an eye on your investment by searching local experts. Start by picking out the best real estate agent you can find and continue with finding the perfect Property Manager (like us!) for your needs. One of the biggest mistakes investors make is relying on family or close friends with no experience. Leaving your investment in capable hands is key to making the returns you are hoping to make.
See our blog post on building a perfect team here.
Do the numbers
Be as accurate as you can be to make sure that the property you are thinking of purchasing will really be worth it and that the ROI (Return of Investment) is what you are looking for. Just because a property is turnkey, doesn’t mean it is right for you, so start crunching numbers and stick with search until you find the perfect investment opportunity for you.
Why Texas?
The Texas Real Estate Industry is one of the fastest growing in the U.S. Since 2010, there have been 1.5 million homes sold in Texas due to the growth of 3.5 million in population (more than California and Florida!). Cities like Houston, Dallas, Austin and San Antonio are becoming technological hubs which has allowed thousands of young professionals to come flooding in, searching for homes to live in.
Reach out to us today and see how we can turn your long-distance investment into a dream investment!
Do you have a property you need help with? Contact us!
