Hard money investing is an investment strategy where investors provide short-term loans to individuals or businesses in need of quick access to capital. These loans are typically secured by collateral, such as real estate, and carry higher interest rates than traditional loans. Hard money investors need to be able to assess the risk and profitability of each potential investment quickly and accurately, which is why data analytics is an essential tool for this type of investing. In this article, we will explore some of the best data analytic tools that hard money investors can use to evaluate potential investments.

Excel

Excel is a powerful tool for data analysis and is widely used in the financial industry. Hard money investors can use Excel to create financial models that help them evaluate the profitability of a potential investment. Excel can also be used to perform complex calculations, such as calculating loan-to-value ratios, debt service coverage ratios, and other key metrics used in hard money investing. Excel’s ability to create pivot tables and charts makes it easy to visualize and analyze data, which can be particularly helpful when dealing with large data sets.

Google Analytics

Google Analytics is a free web analytics tool that allows users to track website traffic and user behavior. For hard money investors, Google Analytics can be a valuable tool for evaluating the online presence of a potential borrower. By analyzing a borrower’s website traffic and user behavior, investors can gain insights into the borrower’s business model and customer base. Google Analytics can also help investors identify potential red flags, such as high bounce rates or low conversion rates, which may indicate that the borrower’s business is struggling.

Tableau

Tableau is a data visualization tool that allows users to create interactive dashboards and reports. For hard money investors, Tableau can be particularly useful for analyzing real estate data. Tableau allows users to create maps and heat maps that show the location of potential investments and the surrounding area. Investors can use this information to evaluate the potential value of a property based on its location, as well as identify any potential risks, such as nearby environmental hazards or crime rates.

Enodo

Enodo is a real estate analytics platform that uses machine learning to analyze real estate data. Enodo can be used to quickly evaluate the potential profitability of a real estate investment by analyzing factors such as rent trends, vacancy rates, and property characteristics. Enodo also provides investors with a comprehensive analysis of the competition in the local market, which can help investors make informed decisions about potential investments.

CoStar

CoStar is a commercial real estate data provider that offers a comprehensive database of properties for sale or lease across the United States. For hard money investors, CoStar can be a valuable tool for evaluating potential investments in commercial real estate. CoStar provides detailed property information, including location, size, and price, as well as market data such as vacancy rates, rental rates, and absorption rates. CoStar also offers an online platform that allows investors to search for properties based on specific criteria, such as property type, location, and price.

Yardi Matrix

Yardi Matrix is a real estate market intelligence platform that provides data on multifamily, office, industrial, and self-storage properties across the United States. For hard money investors, Yardi Matrix can be a valuable tool for evaluating potential investments in these property types. Yardi Matrix provides detailed property information, such as location, size, and amenities, as well as market data such as vacancy rates, rental rates, and absorption rates. Yardi Matrix also offers an online platform that allows investors to search for properties based on specific criteria, such as property type, location, and price.

As we move further into 2023, technology continues to advance and make our lives easier. Smart homes have been a growing trend over the past few years, with more and more homeowners looking to upgrade their properties with the latest gadgets and devices. In this article, we will explore some of the best smart upgrades to a home in 2023.

Smart Thermostat

One of the most popular smart home upgrades is a smart thermostat. These devices allow you to control the temperature of your home from your smartphone, even when you’re not there. You can set schedules for when the heating or cooling system turns on and off, and some models even learn your habits and adjust the temperature accordingly. Smart thermostats can also save you money on energy bills, as they can detect when you’re away and adjust the temperature to conserve energy.

Voice-Activated Assistants

Voice-activated assistants have become increasingly popular over the past few years, and for good reason. These devices can be used to control other smart home devices, answer questions, play music, and much more. They are compatible with a wide range of smart home devices, including smart speakers, smart bulbs, and smart locks. With a voice-activated assistant, you can control your entire home with just your voice, making your life easier and more convenient.

Smart Lighting

Smart lighting is another popular smart home upgrade. With smart bulbs, you can control the brightness and color of your lights from your smartphone or voice-activated assistant. You can set schedules for when the lights turn on and off, and even set different scenes for different times of the day. Some smart bulbs can also sync with your music or TV, providing a more immersive experience.

Smart Locks

Smart locks are a great way to increase the security of your home. With a smart lock, you can lock and unlock your doors from your smartphone, even when you’re not there. You can also set up temporary codes for guests, so they can enter your home without having to give them a physical key. Some smart locks can also detect when you’re approaching your home and unlock the door automatically.

Smart Security Cameras

Smart security cameras are a must-have for any smart home. With these devices, you can monitor your home from anywhere in the world using your smartphone. You can set up alerts to notify you when there is activity in your home, and some cameras even have facial recognition technology to identify who is entering your home. With smart security cameras, you can rest easy knowing that your home is secure.

Smart Smoke and Carbon Monoxide Detectors

Smoke and carbon monoxide detectors are essential for any home, but smart detectors take it to the next level. With these devices, you can receive alerts on your smartphone when there is smoke or carbon monoxide detected in your home. Some smart detectors can also detect other harmful gases and pollutants, giving you even more peace of mind.

Smart Kitchen Appliances

Smart kitchen appliances are becoming more popular as well. With a smart refrigerator, for example, you can monitor your food inventory from your smartphone and receive alerts when you’re running low on certain items. You can also control the temperature of your fridge and freezer remotely. Smart ovens can be controlled from your smartphone, allowing you to preheat the oven or check on your food without having to be in the kitchen.

In conclusion, there are many smart upgrades you can make to your home in 2023. These upgrades can make your life easier and more convenient, while also increasing the security of your home. From smart thermostats and lighting to voice-activated assistants and security cameras, there are many options to choose from. As technology continues to advance, we can expect to see even more smart home devices in the future.

February 24, 2023

If you’re in need of financing and traditional banks aren’t an option, you may want to consider a hard money loan. These loans are typically used for real estate investments and are secured by the property itself. They’re often faster to obtain than traditional loans and have more relaxed eligibility requirements, but they come with higher interest rates and fees. In this article, we’ll go over the different types of hard money loans you might encounter.

Fix-and-Flip Loans

Fix-and-flip loans are a popular type of hard money loan for real estate investors. These loans are used to purchase distressed properties that need repairs or renovations, with the intention of quickly reselling the property for a profit. Fix-and-flip loans are typically short-term, with repayment due within six to twelve months. They’re secured by the property being purchased and the lender will typically require a down payment of around 20-30%.

Bridge Loans

Bridge loans are another common type of hard money loan. They’re typically used to bridge the gap between the purchase of a new property and the sale of an existing property. For example, if you want to purchase a new home before your current home sells, a bridge loan can provide the necessary funds. These loans are typically short-term, with repayment due within six to twelve months. They’re secured by the property being purchased and the lender will typically require a down payment of around 20-30%.

Cash-Out Refinance Loans

A cash-out refinance loan is a type of hard money loan that allows you to tap into the equity in your existing property. You take out a new loan that’s larger than your existing mortgage and use the difference to finance your project. These loans are typically used for home renovations or other investment opportunities. They’re secured by the property being refinanced and the lender will typically require a minimum amount of equity in the property. Cash-out refinance loans can have longer repayment terms than other hard money loans, with repayment due within one to five years.

Owner-Occupied Loans

Owner-occupied loans are hard money loans that are used for primary residences. These loans are typically used when traditional bank loans aren’t an option, such as when the borrower has poor credit or a high debt-to-income ratio. Owner-occupied loans are typically short-term, with repayment due within six to twelve months. They’re secured by the property being purchased and the lender will typically require a down payment of around 20-30%.

Construction Loans

Construction loans are used to finance the construction of a new property or the renovation of an existing property. These loans are typically short-term, with repayment due within six to twelve months. They’re secured by the property being constructed or renovated and the lender will typically require a down payment of around 20-30%.

Land Loans

Land loans are used to purchase raw land that will be developed in the future. These loans are typically short-term, with repayment due within six to twelve months. They’re secured by the land being purchased and the lender will typically require a down payment of around 20-30%.

Mezzanine Loans

Mezzanine loans are a type of hard money loan that sits between senior debt and equity in the capital stack. They’re typically used to finance larger real estate projects and have longer repayment terms than other hard money loans, with repayment due within five to ten years. Mezzanine loans are unsecured, meaning they’re not secured by a specific property, but they do come with a higher interest rate.

In conclusion, hard money loans are a viable option for real estate investors who need financing quickly or who don’t qualify for traditional bank loans. However, it’s important to understand the different types of hard money loans available and choose the one that’s best

February 17, 2023

Real estate investing has been a popular option for many years due to its potential to generate passive income and provide long-term wealth. However, the industry has experienced significant changes and challenges in recent times, with the COVID-19 pandemic leading to a drop in demand for commercial properties and a surge in demand for residential properties. As we move into 2023, it is important for real estate investors to understand the current state of the industry and the opportunities and risks associated with investing in real estate.

The Current State of the Real Estate Industry

The real estate industry is slowly recovering from the impact of the COVID-19 pandemic. The pandemic caused a significant shift in the demand for properties, with people opting for larger living spaces and moving out of major cities to smaller towns and suburbs. This shift has led to an increase in demand for single-family homes and a decrease in demand for commercial properties such as office buildings and retail spaces. While commercial properties are beginning to see some recovery, the demand for residential properties continues to be high.

In addition to the pandemic, the real estate industry is also experiencing other challenges, such as rising interest rates and inflation. These challenges can impact the affordability of mortgages and increase the cost of property maintenance and repairs. Additionally, changes in government regulations, such as tax laws and zoning laws, can also impact the real estate industry and the profitability of real estate investments.

Opportunities and Risks in Real Estate Investing

Despite the challenges, there are still opportunities for real estate investors in 2023. The high demand for residential properties presents an opportunity for investors to generate rental income through long-term leases or short-term rentals. Investing in properties in up-and-coming neighborhoods and smaller towns can also provide a good return on investment as these areas are experiencing growth and increased demand.

However, there are also risks associated with real estate investing. The high demand for residential properties can lead to a competitive market, making it more difficult for investors to find good deals. Additionally, changes in government regulations and tax laws can impact the profitability of real estate investments. Investors also need to be aware of the risks associated with property maintenance and repairs, which can be costly and impact the overall profitability of the investment.

Tips for Successful Real Estate Investing in 2023

To be successful in real estate investing in 2023, it is important for investors to do their research and understand the market trends and potential risks. Here are some tips for successful real estate investing in 2023:

1. Invest in properties in up-and-coming neighborhoods and smaller towns. These areas are experiencing growth and increased demand, making them a good investment opportunity.
2. Look for properties that are in good condition and require minimal repairs. This can help minimize the costs associated with property maintenance and repairs.
3. Consider investing in multifamily properties. These properties can provide a good return on investment and have the potential for long-term appreciation.
4. Stay up-to-date on changes in government regulations and tax laws. These changes can impact the profitability of real estate investments and it is important to be aware of any potential changes.
5. Work with a reputable real estate agent or property manager. These professionals can help investors find good deals and manage their properties effectively.
6. Have a long-term investment strategy. Real estate investing is a long-term game and it is important to have a plan that considers potential risks and rewards over the long term.

Conclusion

Real estate investing in 2023 presents both opportunities and risks. While the industry is slowly recovering from the impact of the COVID-19 pandemic, there are still challenges that investors need to be aware of, such as rising interest rates and inflation. However, the high demand for residential properties presents an opportunity for investors to generate rental income and potentially achieve long-term wealth in 2023.

February 9, 2021

Buying your first investment property can be a strange experience. Most people approach their own home with the attitude that whatever maintenance is required should be done as quickly as possible even if it is more expensive. Whereas, once you purchase a rental property, you suddenly have to think about things like your return on the investment and your overhead cost. If you spend too much maintaining the property, you could end up losing money. Below, we will look at a few ways you can better maintain your rental property, avoid major issues, and put a cap on your total maintenance costs.

Understand The Properties Unique Needs

One of the reasons why property owners dislike maintenance and repair costs is that they often come up unexpectedly. It’s hard to budget for improvements or set rent when you’re never sure when a major repair might pop up out of nowhere. To move past this, it’s best to get to know your property inside and out.  For instance, if the house has a known history for termite damage, that’s something you’ll want to have checked out shortly after closing. You should never assume the prior owners took care of the issue. Termite damage, in particular, can compromise your property’s structure and lower its value. Even if you don’t currently have an infestation, you’ll need to remain vigilant in the years to come.

This same principle applies to the entire property including the outside. If the home inspection indicated possible long term issues with the roof, or informed you that the water heater is getting old, you may save a lot of money down the road by fixing those known issues prior to them becoming an emergency.

Stay Ahead On Routine Maintenance

Preventative maintenance keeps the property in good condition and can reduce a lot of potentially expensive problems. It can also help you save money throughout the year. Getting the A/C serviced annually, for instance. A yearly tune-up usually costs between $75 and $150. If that tune-up, however, helps prevent a single major breakdown or repair, it has easily paid for itself many times over. The same thing is true for sewer line inspections, pest control, and other prudent maintenance.

To keep your maintenance costs down, divide your property’s maintenance needs into two categories: projects you can complete yourself versus projects you’ll need an expert to help you with. Some of the maintenance projects in the first group should include items such as repainting interior walls, deep-cleaning carpets between renters, or fence repairs. Is the second group, you’ll want to bring in a pro to help with items such as HVAC, plumbing, roofing, pest control, or electrical issues, unless you are very handy and have solid experience in those areas.

Resolve Problems Quickly

No matter how much time, money, and effort you put into preventative maintenance, you’ll inevitably have to deal with one or two major issues every few years. While you can’t predict exactly what you’ll have to face, you can control your response. You should always respond as quickly as possible and communicate clearly with your rental tenants. When your renters do call with a legitimate issue, you should try your best to make resolving the problem a top priority. Don’t hesitate to call in a professional as soon as possible. It’s a great idea to call several service experts in your area before you have a problem and establish a working relationship so that you have their contact information easily accessible when situations arise.  By being decisive in a crisis, you’ll help limit the damage to your property, saving you money and making future maintenance easier and less expensive.

January 27, 2023

When seeking a loan for an investment, it’s common to focus on interest rates, fees, and repayment terms. While all of these are important areas to consider, dealing with a legitimate company should out way all of these other considerations when deciding who to have fund your next investment project. Scammers often pose as personal loan providers to trick those seeking loans into giving up their hard-earned money.  Scammers can be tough to spot because many of them sound convincing. By understanding the most common types of scams and their warning signs, you can hopefully avoid becoming their next victim. Below we will look at some of the most common personal loan scams.

Loans Without Credit Checks

Getting a loan without the company requiring a credit check is appealing to borrowers with poor credit who may struggle to secure loans with legitimate companies. Often times, loan seekers are so relieved to find a company willing to work with them that they don’t do their due diligence before agreeing to the terms of the loan agreement. It is only after they hand over their personal information and possibly some fees to the scammer and the funds promised never appear that they realize their mistake. All reputable lenders assess credit when someone applies for a loan. Some legitimate lenders do occasionally offer loans to borrowers with poor credit, but they will still run a credit check and use it to offer a higher interest rate.  Instead of falling for this common scam, you should opt to apply for a secured credit card instead.  If you come across a lender offering a personal loan with no credit check, run.

Loans With Fees Or Collateral Upfront

Legitimate loan providers commonly charge origination fees, which are typically a small percentage of the approved loan balance requested. That said, these fees are almost always paid out of the loan amount, meaning, they deduct the fees from the full amount you borrowed. Investors don’t typically require an applicant to write the lender a check in order to receive funds.  Some scammers take advantage of the fact that not everyone is aware of this by requesting victims send in origination, application, or processing fee money prior to releasing funds to the applicant. The scammer take the loan victims money and simply disappear.

Unsolicited Loan Offers

Legitimate loan companies do send offers via mail, phone or email, but scammers often throw their letters into the mix, hoping you’ll mistake them for a legitimate company. Bold scammers may even show up at your front door to bully you into a deal that is often too good to be true.  No real loan company contacts prospects in these ways, so these methods are good indicator of a potential scam. Be careful of companies sending you links to fake websites, requests personal or financial information, high-pressure sales tactics, and grammatical and spelling errors in any documents you receive.

What To Do If You Discover A Potential Loan Scam

If a loan offer sounds too good to be true, it probably is. Never hand over funds or personal or financial information to the company until you’ve ensured the company’s reputation. You can check if the company is registered to do business in your state through your state attorney general’s office. The Federal Trade Commission requires legitimate lenders to be licensed in each state they conduct business in, so if it’s unlicensed in your state, that’s a good indicator you’re dealing with a scam. Additionally, all websites requesting financial information should be secured to prevent hackers from stealing it. You can tell if a site is legitimate by looking for “https” at the start of its URL. If the “s” is missing, that’s a sign the company isn’t taking steps to protect your financial information, and you should avoid them at all costs.  Perform a search of the company online and look for any negative reviews from other consumers. A missing address is another red flag. Some scammers pretend they work with a legitimate company, so compare the emails, websites, and phone numbers the scammer gives you with the ones that come up during your internet search.

If you confirm a scammer, you should report the company to your state attorney general’s office, the police in your area and the FTC. Try to provide as much information as you can about the scammer to help them track down the scammer and prevent future consumers from getting hurt.  If it is too late and you are already the victim of a scammer, you should pull your credit reports and look for any unusual accounts or activity you don’t recognize. If you see any, notify your financial institution and put a fraud alert on your account so lenders know to take extra steps to verify your identity before opening a new credit account in your name.

January 18, 2023

There are several different types of real estate investment projects, from rehabilitation to building new, each have their own potential risks as well as financial returns. For example, a rehab project has less risk because the structure already exists; therefore, overall the planning and workload are much less than with building a brand new property, however, the potential financial payoffs may ultimately be less.

There are many components to building new real estate that are unpredictable, which can greatly increase the risk factors. While every new real estate build is different, there are some consistent areas to consider in order to properly evaluate the investment potential when deciding whether or not to build a new real estate project.

Project Location

The physical location of a brand new project plays a significant role in determining the overall risk factors. Building new real estate in areas with higher prices and demand present far fewer risks than building in lower populated rural areas. Building in an area where there are buyers before a project is even finished further reduces the risk. You should look at data that indicates real estate demand, such as high employment levels, large-brand expansion in the area and the rate of adult population growth. While there is no perfect or foolproof formula, all of this data can be reviewed to help assess the overall risk level in a particular location.

Common Weather Patterns

Weather is one of the most important factors to consider when planning and budgeting a brand new construction project. Severe rain, snow and temperatures are just some weather factors that can lead to delays and add to additional costs and headaches.  If the project is located in an area that experiences extreme seasonal changes then you should factor into consideration when the project is suppose to start and how long it’s expected to take to finish. Coordinate this estimated timeline with the local weather and see if there are any potential concerns that you should account for before it’s too late.

Increased Material Costs

When first budgeting for a construction project, it’s important to accept that the cost estimates will often increase. A brand new project can take several months to over a year, depending on the project size, leaving plenty of time to see price increases on building materials.  It would be unwise to not expect increased material-related costs over the course of a build.  It is critical to have enough of a contingency built in to the project budget to absorb these increases with out killing the bottom line.  Thin margin deals can easily end up in the red at the end due simply to an increase in the cost of building materials.

Logistics and Management

Anytime you are dealing with contractors, you need to account for delays. Delays are going to happen; from getting tied up at a previous location and arriving late or simply not showing up at all.  It’s not a matter of if the project will experience contractor problems but whether or not they will be a minor or major problem that leads to a domino effect of delays.  Brand new real estate projects have many moving pieces that all need to work together in order to stay on schedule. A scheduling mistake or a logistical disaster can not only cause delays but possibly result in a complete shutdown of the project while things are being sorted out.

Overall Costs

A brand new real estate project involves every aspect of construction from foundation to final finishes.  This reality provides ample opportunities to change the plans which can ultimately increase the time it takes to finish the project as well as the total costs.  While minor pivots and changes are expected, major changes and multiple occurrences can put the project far behind schedule and over budget, which are the two concerns investors dread above all else.

At the end of the day, when evaluating the risks of building a new real estate project, you should look closely at who you have available to manage the project and perform all of the required work to completion. Someone with lots of experience and a proven track record will greatly reduce the amount of pitfalls that claim so many construction projects. The exact same deal with different contractors can have drastically different outcomes and will ultimately make the difference of whether or not a new building project is a good investment opportunity overall.

January 11, 2023

When many people think about investing in real estate, they often assume they should buy a single-family home. More and more investors, however, are looking towards multifamily commercial real estate like apartment complexes instead as an alternative to invest in new and lucrative real estate properties.  Below we will discuss a few key reasons why you should consider investing in multifamily commercial real estate.

Let us begin with discussing what is multifamily commercial real estate or MFCR. Essentially, multifamily commercial real estate (MFCR) is used to describe residential properties with more than five units.  Often, this term refers to apartment buildings but there are also quite a few different property types within MFCR such as mid- and high-rise apartment complexes and garden apartments.  Included in these types of properties are residential housing units such as assisted living facilities and student housing.  Regardless of what type of multifamily commercial property you decide upon, you’ll have the following asset classes to choose from as an investor.

Class A properties: which are essentially luxury buildings offering high end amenities like fitness centers and pools. These properties bring in the highest rents but require a larger investment.

Class B properties: still offer a good quality value and are in desired locations but they may have less amenities than class A properties.

Class C properties: tend to be more outdated but are the most affordable rent-wise for tenants on a tight budget.

Now that we have discussed the different types of multifamily commercial real estate and how they are classified, lets look at the benefits of investing in these types of properties.

The Benefits of Investing in Multifamily Properties

One of the best benefits of investing in multifamily units is that they are often easier to secure financing for than single family homes if you are intending to utilize them as a rental properties. This is because multifamily homes often come with less risk to the lender.  Since there is more than one tenant in a multifamily building, there will be less impact on the bottom line if something goes wrong, a tenant is unable to pay or the property is unable to be occupied for a period of time.  Additionally, since multifamily housing typically comes with shorter leases, there is more opportunity to adjust the rental rate to current market demands and for inflation.

How to Invest in Multifamily Housing

If you are interested in investing in multifamily housing it is critical to understand your financing options so you can get the best deal possible for your situation. There are several different financing options you should look into before moving forward, but in general there are three main ways to finance these properties we will discuss below.

Government backed multifamily mortgage loans: are typically the best fit for investors who intend to live in one unit and rent out the other units. These loans are typically easier to qualify for than conventional financing and have lower credit requirements.

Portfolio Loans: are worth looking into if you do not qualify for federally backed loans because financial institutions set the requirements to qualify.  Financial institutions also set the interest rates on a case by case basis and keep these loans on the books instead of selling them on the secondary market.

Short term multifamily financing: typically come in the form of a bridge or hard money loan.  These loans are often a good fit for fix and flip investors wanting to rehab a property.

Once you have researched and have an idea of the best type of financing for your situation, you should see what options are available in the particular area you are interested in and work with a real estate agent to zero in on the best possible multifamily property available.

Since multifamily buildings allow you to manage multiple tenants at once, they can be a great way for investors to diversify their portfolios and increase their cash flow. As with any investment, it’s important to understand the market and know what you are getting into ahead of time. Hopefully this article can be a useful guide in deciding if purchasing multifamily commercial real estate is right for you.

January 6, 2023

Real estate investments are one of the safest and most effective ways to build wealth. The real estate market fluctuates but people will always need homes. Perhaps you’re just now getting your feet wet in real estate investment, or maybe you’ve already begun developing your portfolio. Either way, acquiring real estate is a valuable and proven strategy to earning passive income and becoming your own boss.

There is no “one-size-fits-all” approach to investing in real estate. Variables include access to capital, the shape of the local economy, and intensity of competition. While remaining open to adaptation for your local market. In this article, we will look at some of the best tips for starting or growing your real estate investment portfolio.

Buying your first property

It’s never too late to take the first step in building your real estate investment portfolio. Don’t rush when choosing your first property but it’s important to not over analyze either. Most likely, your first property purchase is going to be a learning experience no matter how good your decision. For your first purchase, consider acquiring a property where potential improvements are easy to spot. It’s smart to start with a less expensive property if possible to become more knowledgeable about how real estate investment works. Once you’ve had your first successful experience, you can more comfortably move on to larger deals.

Leverage your equity

After you’ve acquired your first property, speed up growth by leveraging the equity of your portfolio. For example, if you purchase a property for $250,000 and, after making improvements, the appraisal value comes back at $350,000. You now have $100,000 in equity. You can access this equity by selling the property and reinvesting the cash profit, or you can borrow money against the equity. Be aware that borrowing power is often capped at 80% of property value so be careful not to take on too much debt. You’ll need to maintain a positive cash flow to repay your equity loans.

Find off-market properties

“Off-market” is a real estate term referring to properties that are for sale but not advertised on the Multiple Listing Service (MLS) or other public resources. Brokers will occasionally try to create interest in a property through word of mouth or by listing it privately on their network. These homes can sometimes be undervalued with motivated sellers. Investors often find off-market properties by networking directly with real estate agents or attending real estate auctions.

Invest in rental properties

There are several ways to make money with a real estate portfolio. Buying, upgrading, and flipping homes relies on the time-tested truth that property values increase over time and with improvements. But what about a rental property? Monthly rental income can provide an additional passive income stream that you can reinvest into your real estate purchases. Passive monthly income also boosts your cash flow, enabling you to make improvements on properties in preparation for selling them later on.

Hire a property management team so you can keep closing new deals

As your real estate investment portfolio grows, so will the amount of time it takes to manage your properties. You may successfully manage your first property by yourself, but any ability to scale your business will be limited by hours in the day. At some point, it might be helpful to outsource some of your management labor.  Many real estate investors hire a team of property managers, attorneys, and/or accountants. These teams typically handle daily operations, which frees the investor up to conduct research, network, and close additional deals. Be sure to study up on the differences between in-house management staff and a commercial team before you make your outsourcing decisions.

Don’t hesitate to cut your losses

Sometimes, the single most important skill for growing your real estate investment portfolio is knowing when to walk away. If you acquired an investment that isn’t profitable or takes up too much of your time, it’s probably not worth keeping. Don’t hold onto investments to save face. Accept a disappointing outcome and spend your energy on opportunities that have a better chance of success.

If you’ve held back on investing in real estate or had a bad experience years ago, take another look at the opportunities available today. Advances in technology have removed many previous barriers to entering this market, greatly reduced research time chief among them. Investing still requires property management, but nowadays most of the legwork can be done right from your home.

December 23, 2022

Most real estate investors spend a lot of time looking for creative ways to increase the income they receive on their rental properties.  While there are some obvious ways to increase the value of a property, like adding an extra room or upgrading the kitchen and bathrooms, there are also many ways to maximize your income on a rental investment without breaking the bank.  Below are just a couple of ways clever real estate investors can help ensure they are getting the most out of their rental property investments.

Allow Tenants to Have Pets

While many landlords have valid concerns and worry that allowing pets could damage their investment property, pet owners are becoming more and more frequent in this day and age. Pet owners are often limited in finding nice properties that allow pets and therefore will often settle for less desirable locations in order to live somewhere that will accommodate their fur babies.

Understanding this demand can easily add additional revenue to your monthly rental income if you are wise and know how to protect your asset accordingly.  Charging a nonrefundable pet deposit that will cover any deep cleaning and potential damages that a pet could cause is one smart way to create a win/win scenario for both you as a landlord as well as your prospective tenant.  Currently, a nonrefundable pet deposit of around $250 seems to be an industry standard in most real estate markets.  Additionally, many landlords will add on “pet rent” of around $25 to $50 per pet per month in order to offset any additional costs they may incur while increasing their overall rental income annually.

Consider Short Term Rentals

Considering lease terms shorter than 1 year can give you additional pricing power and a competitive edge over your competition.  Being flexible with tenants and offering them 6-month leases can easily add up to 10% additional monthly rental income compared to a 12-month annual lease.  Another often overlooked option is allowing for month to month leasing. Many renters who are in transition between housing or traveling for business are willing to pay top dollar for properties that do not tie them down to a long-term rental agreement.  Understanding the needs of your prospective tenants can help you secure the most out of your rental properties and set your place apart especially in a competitive market.

Supply Furniture

It is often the case, especially with short term rental agreements, that renters are looking for a place ready to go and set up with all of the furniture they need to move in and start living right away.  Whether a prospective tenant is needing to rent a place because they are traveling for business or they are a family in the process of building a new home, supplying furniture to your rental property is a need that many landlords overlook.  For those seeking furnished properties, the added convenience of a true turn key property adds a value that many are willing to pay top dollar for. Understanding the market you are in and being willing to offer a property furnished can set your property apart from the competition and secure you with happy renters for years to come.

Additional Amenities

There are plenty of creative ways you might be able to increase your property’s income potential if you are willing to think outside of the box.  For example, adding a doorbell or alarm system to a property in an urban setting can add additional security protection to your tenants and may significantly increase the amount a renter is willing to spend. Understanding exactly what your target audience is looking for and effectively delivering a desired amenity that other properties do not offer might leave you surprised as to how much additional rental income your property can bring in.

Understanding the growing demands of prospective tenants can be the difference of whether or not you are able to consistently rent out your investment property, especially in a competitive market. Allowing pets, agreeing to short term rentals, furnishing your rental property and adding additional security measures are only a few ways to set your property apart from the competition.  Regardless of what route you take to add additional value, researching the market you are in and being willing to step outside of the box will add the most potential income to your rental investment and leave your tenants happier and willing to spread the word to future prospects down the line.