Real Estate Investing Facts

I’m writing with some great news!

I’m sure that your life would be simplified if you could earn more rental income from your properties!

Maybe friends and relatives have suggested that you raise your rent?

You and I both know that arbitrarily raising rent just creates a revolving door of tenants coming in and out. If tenants leave, income goes down, not up, and who wants that?

I’d like to share with you some other ways to increase income from your rental properties. I typically find my rental properties through the Foreclosure Insiders Club who provide me access to bargain properties in my area that are in pre-foreclosure.

Investor Education

Needless to say, I’ve rented many of these properties out and to the dismay of my contemporaries, I don’t charge ridiculously high rents! I’ve compiled this list of alternative income generators from my investment properties!

1. Coin-operated washing machines. If you don’t have the money to do this yourself, you can find a company that will do it for you, and share the income with you.

2. Rent parking space. I got tired of a renter’s extra car, so I just started charging a weekly fee. A little extra income and I didn’t mind so much.

3. Raise rents. Okay, we dismissed ARBITRARY rent hikes as a cash-flow solution, but check on rates for similar units. You may be renting at below-market rates.

4. Storage sheds. If your apartments are small, your renters might need a place to store their things. Why let them spend their money elsewhere? Put a few rental storage sheds on the property.

5. Late fees. It’s perfectly fair to have a high fee for late payment of rent, and guess what? Those who are chronically late usually won’t even complain – they just don’t look at these things the way others do.

6. Improvements for rent increases. If it’s worth $25 more rent to a tenant, install that dishwasher. Even on a credit card you’ll be paying less than that per month for it.

7. Vending machines. With large enough rental properties, others will do this for you for free, and give you a share of the income.

8. Rent rooms. A four-bedroom house could make more money if you include utilities and rent by the bedroom. This has made many fortunes for investors in college towns. It will mean a lot of management, however.

9. Rent-to-own deals. Usually you’ll charge a non-refundable deposit, and higher than market rents in these deals. When renters change their minds, as they’ll often do, you got the deposit and better cash flow during their stay. This is great when poor cash flow makes you want to sell, because you either sell or get the better cash flow as you repeat the process.

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10. Reduce your expenses. Every dollar of expense you cut goes to the bottom line. List all expenses of your rental properties, and look at them one by one. How can you reduce them?

To Your Success!

Aiden Win

Mr. Foreclosure

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One of the greatest challenges to establishing a portfolio of properties has been the linked transaction rules of Stamp Duty Land Tax (SDLT).   These rules meant that if a property investor wanted to buy a few properties the rate at which SDLT was levied was based on the total cost of the properties. Consequently, in the event the property investor bought 5 properties at 150,000 pounds each for a total cost of £750,000 the SDLT due would be levied at a rate of 4% – £30,000.

According to the new provisions, the property investor can decide to pay SDLT on the average value of the properties with a minimum rate of 1%.  Applying the above example, the SDLT would be levied at 1% giving an SDLT bill of £7,500- a decrease of £22,500!  The relief shall be introduced in the Finance Bill 2011 with effect from Royal Assent.

No upper cap on the number of properties has been imposed, and therefore the new relief will override the present rule under which a purchase of six or more dwellings is handled as the acquisition of non-residential property.

This new relief on SDLT for bulk buying is long awaited with organisations such as the National Landlords Association having lobbied for this for some time.   The concession is broadly praised as being the biggest boost that the Chancellor has provided to the Property Market in the 2011 budget.

As well as possibly increasing the supply of rented properties, it is envisioned that it will stimulate activity within the property market especially at the lower end of the market.

The immediate effects of the concession on SDLT are likely to:

• Encourage institutions (for instance pension funds) to invest in the residential market.

• Make it simpler for the smaller property portfolio holder to exit the market finding it easier to sell their portfolio as a whole as an alternative to individually.

• Encourage investors who maintain their portfolio in their individual names to switch them to limited companies to gain access to commercial funding as opposed to BTL mortgages.

Coupled with the removal of the 2% conversion charge for Real Estate Investment Trusts, the relief with its impact on the property market in general as well as the rental market is a really welcome move and debatably the most effect boost to the property market with all the self-proclaimed provisions within the Chancellors Budget.

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Where are you looking for investment properties or where would you like to purchase investment properties.

Leave a comment letting me know what you are looking for and where (United States or Canada) you would prefer to purchase investment properties.

I just may be able to help you out.

Hans Anderson

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Whenever you select carpet, you have to consider cost, and many aesthetic as well as technical concerns. Today you have thousands of combination’s to choose from as it refers to buying new carpet for your property.

Carpet is available in several different textures, constructions, colors, and designs – which will open the doors to just about any interior design that you can imagine. The combination of texture and color will complement the look of both stately and casual environments, while helping to bring continuity to the overall room designs. The most important thing to consider when you shop for carpet is the amount of traffic that will be on the carpet that is going to be installed as well as the area you hope to use it in. The construction and the texture are both key aspects when selecting a carpet for a specified area. Nylon, polyester, and olefin are the most widely used fibers with carpet manufacturing, with each one displaying qualities that make them great for specific applications and uses. Even though nylon is the most expensive type of fiber, it is also the softest and most resilient, which makes it great for any room in your home, including those areas that have a high level of traffic.

Polyester fabric is less resilient than nylon, although it is the more cost efficient and offers a high level of resistance to stains, which makes it a great option for areas such as bedrooms or dining rooms that are not subject to a lot of traffic. The fiber olefin is solution dyed, which results in a highly repellent stain carpet that can be cleaned easily using a water and bleach solution – without any loss to the color. Unlike the other types of fibers, olefin is fade, mildew, and mold resistant, which results in a carpet that performs well inside and outdoors. Keep in mind that olefin isn’t very resilient and as a result, it should only be considered with berber construction.You can get carpets in either plush or berber
construction. The berber type of carpets are well constructed with a continuous level loop, while plush carpets are constructed of loops that have been sheared, which results in the strands standing upright. Berber construction carpets don’t crush or mat, due to their high level loops. They are however harder underfoot, somewhat uncomfortable to sit or lay down on, and they can easily become damaged by pets with long nails. Berber carpets are well suited for high traffic areas, which include walk ways, living rooms and basements. They aren’t popular with bedrooms, as their hard texture makes them a less than attractive option.

The plush type carpets are much softer to walk or lay on and they offer better sound and thermal insulation. They tend to crush and mat though when they are subjected to high levels of foot traffic.

The use of nylon fiber paired with a tight low pile construction will help to limit the amount of pile and mat crushing, due to the high resilient nature of the nylon fiber and the added support that is gained from tight construction. The warranties for carpet ranges from 5 – 30 years, with the general rule being that you don’t cover the stairs. Most carpet warranties will require the installation of new carpet padding as well at the time of installation in order for the warranty to become valid.

Market your Commercial or Investment Properties Investment Property

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Real estate investing stands for taking care of the investment put in to real estate. This consists of the process of purchase, ownership, managing, rental and/or sale of real-estate for gain or profit. The developments done on a real estate property is a natural part of a real estate investment tactic of real estate investing referred to real estate development. Real estate is actually an asset since it’s an economic source meaning it will be competent at getting owned or operated and handled to help build value, or profit.

Virtual Short Sale Investing.

Real-estate comes with limited potential to be changed to cash while compared with various other purchases. It’s moreover money intensive and is usually highly determined by cashflow regardless how productive it is. These issues have to be perfectly understood and maintained by the investor; if not the real estate becomes a costly or expensive investment. A bad cashflow can be the basic trigger of investment breakdown for real-estate. The instant the investor goes into this situation for some time, the investment will never be lasting and the investor could commonly end up being forced to sell the property at a loss or even endure bankruptcy.

Investment properties like scottsdale az homes for sale can be sourced from market listings thru a Multiple Advertising Service or Commercial Information Exchange; from real estate property realtors; middlemen such as bank property owned departments and public agencies; public auction such as foreclosure sales as well as estate sales, and through private sales. Real estate assets are usually really extravagant when compared to some other broadly available investment options like shares or bonds. Real estate investors don’t often settle the total sum of the value of a property or home in cash yet this is generally financed by a home mortgage by using the property as collateral. To be successful, real-estate investors need to take care of their available  funds to generate sufficient favourable income from the property to at the least counteract the carrying fees.

Usually, investment property like scottsdale az homes for sale generates cash flows to a trader with 4 basic means: by net operating income or the value of all of positive income flows through rent and some other resources of ordinary earnings generated by a property, without the cost of continuous fees, such as preservation, utilities, service fees, taxes, in addition to some other items; from tax shelter offsets obtained through depreciation, tax credits, and carry-over losses that decrease tax obligation billed towards revenue from some other resources; equity build-up which can be the increase in the investors equity proportion as the portion of debt service installments dedicated to primary accumulate over time which counts as a beneficial cashflow and capital appreciation which is the gain in cost of the asset over time, understood as a income any time the property is marketed. Capital appreciation could be quite unpredictable although once formed a component of a growth and advancement scheme in investment, could become a form of fantastic cash flows.

Purchasing of a real estate, like the scottsdale az homes for which the majority of the expected cash flows are estimated from capital appreciation, is actually a guaranteed investment in real estate.

Virtual Short Sale Investing.

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