Real Estate Investing Tips
Real Estate Investing Tips. Powerful real estate tips from real estate experts including Donald Trump, Robert Shemin, Robert Allen and Robert Kiyosaki.
Real Estate Investing Tips 1
Get started in real estate as early as possible. When Robert Shemin interviewed over 1200 investors, the single common regret they all shared was not starting early enough. Once you complete your first deal, the subsequent ones will be easy.
Real Estate Tips 2
Make as many offers as you can – Do not be afraid of making outrageously low offers. The worst that can happen is that your offer is rejected. The real estate investors who succeed big are also those who make the most offers – for some of those outrageous offers will actually be accepted!
Real Estate Tips 3
Penalize your contractors for late jobs; reward them for jobs done early – Rewarding them is a much better incentive, as penalities would only make them unhappy and lead to a poor working relationship.
Similarly, never pay for a repair or construction job until it is 100 percent complete. Otherwise, there would be no motivation to complete the remaining portion of the job fully.
Real Estate Tips 4
Put every repair bid in writing – Confirm exactly what will be done and what will not. Every material should be listed.
Real Estate Tips 5
Break every repair bid down so you never overpay – Break the bid into how much the materials actually cost and how many labor hours the job will take. Then find out how much the contractors are requesting for labor costs per hour. If it is more than $40 per hour, you are probably overpaying. Excellent advice from Shemin.
Best Real Estate Investing Tips
Real Estate Advice 6
Sell or rent property only to people who can pay – Differentiate between buyers who are preapproved and those who are prequalified. Prequalified buyers’ finances have not actually been verified by the banks; only preapproved buyers have had some form of financial verification.
Always run both a credit and a criminal background check on your tenants; make your tenants pay for these checks as part of the application fee. Check with two previous landlords and verify their employment status. Otherwise, you might end up having to evict them.
Real Estate Advice 7
Make sure you have the proper insurance – legal insurance, liability insurance and title insurance are crucial. Never buy a property without the three.
Real Estate Advice 8
Set up a system to handle the routine tasks: calls, bookkeeping, renting, selling. Set up standard operating procedures that others can simply follow, then outsource all the routine work.
Real Estate Advice 9
Raise your rents in small increments every year – If your tenants complain, remind them of the costs and hassle of having to move, and most of the time they would rather stay.
Real Estate Advice 10
Reward the good tenants every now and then – This will keep them happy. Clean the carpet, install a ceiling fan, install a screen door – tell them about the gift and make it a big deal.
Effective Real Estate Investing Tips
Real Estate Tips 11
Charge your tenants for damage. More importantly, are your tenants bothering you with their problems? You should then offer your tenants a lease-option agreement. Tell them about how home ownership will reduce their tax burden, even if they must pay more money per month to pay off the loan. However, Shemin also suggests that you have a separate lease and purchase agreement, or it would be difficult to evict them.
Real Estate Tips 12
Hate having to chase your tenant for rent? Through the Federal Government’s Section 8 Program, you can actually have the government pay your tenants’ rent to you directly! The lease is guaranteed for a full year, so long as you pass the Section 8 officer’s inspection. This is highly appropriate for low and moderate income housing.
Real Estate Tips 13
Inspect your properties at least once a month – This keeps your tenants on their toes and ensures that there will be no nasty surprises. It also allows you to fix the small problems before they get out of control.
Real Estate Tips 14
Rehabilitate your house so that it can sell – The most important areas of your investment property are the front, the kitchens and the bathrooms. In the front, the most effective rehabs would be to clean out the beds and weed, do a repaint, add shutters, brass doorknocker and perhaps a nice mailbox. Kitchens and bathrooms must be spotless. Also consider adding brass kick plates, brass entry lamps, ceiling fans and flowers – these are inexpensive, but can improve the cosmetic value of the property significantly.
Real Estate Tips 15
As Robert Kiyosaki advocates, make sure you take advantage of the special loan programs – Banks and their Community Reinvestment Act (CRA) departments are more than willing to offer you above average financing if you invest in the low-income to middle-income areas. The government will consider you as an important developer, and even give you various perks and tax reliefs.
Real Estate Investing Tips
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