Posts Tagged landlording

5 Tips For Setting Your Rent Price

One of the first questions I had when deciding to rent out my property was, how much rent can I ask for?

The answer to this question was going to determine if I would become a landlord or not.

I made a video for you to tell you how I went about setting the rent price for my first rental.

 (Let me know what you think about the glasses!)

 

In this video I talk about the 5 things that I used to set my very first Rental Price including:

1) Your Gut

2) Friends in the Industry

3) Comparables

4) Test Ads

5) What you need to be Cash Flow Positive

Let me know what you think in the comments below!

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Posted in: Cash Flow, Real Estate Market, Rent Price

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Should You Allow Pets In Your Rental?

One question I get many times is, Should you allow pets in your rental.

I answer that here in this video. In the video I tell you my pet policy.

I also tell you my secret to making everyone happy and opening up the number of potential tenants that see your rental.

Let me know your thoughts on pets in your rental in the comments below.

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Posted in: Tenants

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Do You Have These 3 A-Team Members On Your Real Estate Team?

ATeamYou have often heard that it takes a team of people to make one successful. While that is usually hard for me to accept (I’m very much an “I can do it myself” person), I truly do believe it and I have seen proof that this quote is true. I will often spend hours working on something trying to figure my problem out by myself at my computer in my basement. The next day I’ll ask someone for help and BAM! The person has a solution right away for me.

This of course also rings true in Real Estate and rentals. You are only going to be as strong as your team. So make sure your team is top notch. Of course you may not be able to do this when you are first starting out. Which is why it is really great to offer to be on someone else’s team. Be their gopher. Offer to do leg work for free. You’ll gain a ton of experience and when the time comes that you need help these folks will be more than happy to be on your team.

 

So what types of people should you have on your real estate team? Well, that depends on what type of skills you bring to the table. You will obviously want to fill the skill gaps on your team with other folks that may have those skills.


And if it’s not skills you need per say then it’s abilities. Such as the ability to access things a real estate agent may have access to that you don’t (if you are not a real estate agent). Like the agent version of the multiple listing service. The agent version of the MLS is a must-have tool. This provides you with comps so you can tell if you are getting a property below market value.


So I would say a real estate agent is on A-Team member you must have on your team. They will be in the “know” regarding your target area or the area that you have rental property in. They will see what other people are renting for. The agent will be able to spread the word quickly when you have a property for rent or if you are looking for a property to buy.


Another person you need on your team is a banker or lender. The banker will be able to loan you money when you need it. They will know you and trust you (hopefully). The banker is the person who will enable you to hold multiple rental properties. They will save you tons of money by getting you the best deal on financing saving you money on interest rates and points. Make sure you have a banker on your team.


The third member to round out an A-Team of Real Estate is the lawyer. This may have more to do with where you do business but in New Jersey, having a lawyer on your team enables real estate deals to happen very quickly. The alternative is going to some random lawyer who doesn’t know you from anybody and also practices a million and one types of law besides real estate. This type of lawyer will not process your deal quickly. They will sit on your deal and delay closings. They will give you issues when trying to evict bad tenants because they would rather be working on the higher paying cases. So make sure you find a good real estate lawyer and make them part of your team. You will save money and be able to close deals quickly by having this A-Team person on your side.

There are of course more than 3 people that you should have on your team but if you are just starting out I think these 3 folks are key to have working with you. I would throw in a bonus fourth person who will save you from yourself. That is a real estate mentor.


A good real estate mentor is worth their weight in gold. They will save you time from chasing down the wrong deal. They will save you money by showing you a cheaper way to to go about a deal. They will make you money by networking you into the best deals. A great real estate mentor may take you some time to find but always be on the lookout for one.


So who does your real estate team consist of? Who did I leave out? Tell me in the comments!

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Posted in: Real Estate Team

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Real Estate Market Still Looking Awesome!

In my opinion the real estate market is very cyclical and I know many others agree. The good news is, it looks like we are on the up side of the cycle again. If you have not bought real estate already, NOW IS THE TIME!

I have created this video blog post to tell you about the latest bit of news that I have heard about to support my thinking.

Here is the article I quote from: http://www.gainesville.com/article/20140120/ARTICLES/140119596/1002/NEWS01?Title=Foreign-buyers-key-players-in-real-estate-local-Realtors-try-to-capitalize-on-trend&tc=ar#gsc.tab=0

I would love to hear your outlook on the real estate market! Let me know in the comments!

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Posted in: Real Estate Market

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Thinking of Becoming A Landlord? Check Your Cash Flow!

Are you thinking of becoming a landlord? Not sure you are cut out for it? Afraid of getting calls in the middle of the night because your tenant has a clogged toilet?

Well…if I can become a landlord, anyone can become a landlord. I truly believe that. That means you! Yes. You can become a landlord. And as far as the calls about clogged toilets go, that’s what plumbers are for. Unless you ARE a plumber. Are you a plumber? If not then stop worrying. If you are then get your tenants to call another plumber. Or your plumber buddy.

My point is that you are worrying about something that probably won’t happen and definitely should not stand in your way of becoming a landlord. The first thing you should worry about is if your potential rental property is cash flow positive or not. To figure this out you’ll want to make an informed estimate of your potential income (rent) and your potential expenses (maintenance, mortgage payments, taxes, etc.).

Subtracting these two figures will give you a very rough estimate of what your potential cash flow could be but I would recommend putting a lot more effort into figuring out your cash flow than just what I have mentioned here. The more homework you do on figuring out your cash flow the better your chances of success when renting out your property.

So instead of worrying about getting calls in the middle of the night from problem tenants I would put your effort into figuring out your potential cash flow. This is time much better spent by a new or soon to be landlord.

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Posted in: Cash Flow

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