Why You Should Constantly Seek Investors—And How to Find Them

Those of you growing your real estate businesses already know that it requires a lot of capital. What better time to build those “pre-existing relationships” than when you have no offering to solicit? If you’ve never raised money before, forget about pitching your idea to wealthy, accredited investors that you’ve never met. It’s because it works, but more so it’s because no one other than the founder’s inner circle is likely to take the risk on an unproven idea. “But my friends and family don’t have any money!” Yeah, I’ve not only heard that before, but I’ve lived it. What to Say to People What do you say when talking to your inner circle? Tell them about deals you’ve done and deals you plan to do. It took me several years to get investors to believe in me. Keep Drilling As real estate entrepreneurs, we should always be in “capital raise mode.” This means whether we are currently trying to fund a deal or not, we are always seeking new investors. Don’t let yourself run out of water.

9 Real Estate Investing Tips for a Better 2018

It was fun, and the tips could really be anything somehow related to real estate, whether it was how to save time and money, avoid aggravation, or even increase yields. 9 Real Estate Investing Tips for a Better 2018 1. Use tax strategies. What one thing could you really leverage this year to take your business or your investing to another level? There are probably too many ways to mention, but another favorite strategy of mine is working with charities, or having a charity component to your business. One of my game plans as I approach retirement is pay off a rental home, move it to a family trust, then when the values and interest rates rise, sell it with owner financing to a real estate investor’s LLC, and place the loan into servicing for collections. So, whether you do a biweekly mortgage, send in next month’s principal with this month’s payment, or if you’re using a more advantageous strategy like utilizing sweep accounts, there are plenty of ways to shrink your debt service and increase your cash flow. Related: 7 Questions to Help Make Your Financial or Real Estate Investing Goals Reality 8. Build in asset protection and liquidity. Another area we can look at in 2018 is how we can take business or investment risk off the table.

Want to Sell Your Home Smoothly, Quickly & for More Money? This Book is...

Selling a house is a process—and if you’ve never done it before, you’ll have no idea what’s involved. Do you need to sell your home? How to Sell Your Home, The Essential Guide to a Fast, Stress-Free, and Profitable Sale is filled with practical tips and tricks from her real-life experiences, both as an agent and as a seller. Mindy shares: How to choose an agent: 9 questions to ask to make sure you’re using the agent who is right for you How to get your home ready to list and show—even if you have a tight budget The right (and wrong) way to market your house The differences between using an agent and trying to sell it yourself What to do during a showing How to handle inspection and appraisal The different types of loans commonly used—and why one loan may be better for your situation than another The common scam you should be watching for What to do if your home doesn’t sell And so much more! This book also explains many terms common to the selling process but probably unfamiliar to you. Learn all the best tips, tricks, and tactics to sell your next investment property or home for top dollar. In addition to the webinar, you will also get: Bonus Ebook: Selling Your Investment Property. Bonus Video: The Absolute #1 Top Tip for Selling Your Home. Real Estate Agent Questionnaire: Mindy shares top questions for interviewing real estate agents in her book. Any questions about the book?

An Intro to House Hacking: Here’s How I Get Paid to Live for Free

Although it is possible to do with just a single family house (by doing a “live-in flip”), the phrase is more often used to describe the practice of buying a small multifamily property (a duplex, triplex, or fourplex), living in one unit, and renting the other units out. • Close Monitoring of Your Investment: When you live in your investment property, keeping an eye on the property and making sure it’s running at peak performance is easy. • Saved Expenses: Because you live at the property, you can manage the other tenants yourself very easily and don’t have to worry about paying a property manager who will do substandard work! The Plan To start the first year, we will buy a triplex. We’ll start small, because it’s our first property, though we could start with a two or a four-unit property. Triplexes in this area run between $210,000 and $230,000, depending on the condition. At this point, if the property were 100 percent rented out to tenants, it would bring in a total of $2,850 per month. At this point, our expenses look like this: Mortgage: $1,200 Utilities: $230 Vacancy: $142.50 Repairs: $142.50 CapEx: $142.50 Total Expenses: $1,857.50 If you’ll recall, our total monthly income on this property with the other two units rented out was $1,900. So our cash flow is as follows: $1,900.00 – $1,857.50 = $42.50 Now, we are not only living for free, but we are also making a small sum of money each month for doing so! But in the case of house hacking, including this figure is OK, because you will not be living in one of the units forever, either.

Sorry, Investors, But What You Want Doesn’t Matter. Focus on THIS Instead.

It is the customer. The customer defines the business. “Who is the customer? And as Drucker notes, the customer defines our business. Related: Yes, Customer Service DOES Matter in Real Estate: Here’s How to Make Yours Top-Notch In a market economy, the only legitimate way to make money is to give people what they want. Are you renting out to working class people, students, Section-8—or are these luxury rentals? Let’s say it’s student housing. If that person just can’t get over the idea of selling the property for less than they bought it for or at a price that they will take a loss (very common, even if irrational, mental roadblocks many sellers have), offering a higher price but asking for great terms might make the deal go through. Private lenders, therefore, will care much more about your track record than a deal they will often feel they aren’t well enough informed to properly evaluate. With banks, it’s important to remember that they have to review financials all the time.

Why you Need These Landlord Forms (& How We Can Help!)

You need to make sure that you are protected and that your tenants are being treated fairly within the confines of the law. You can not rely on the free state landlord forms. The state cares about “fair treatment” and compliance with the law. Have a Solid Set of Landlord Forms Where do you find these forms? BiggerPockets is now offering a suite of the 7 most common state-specific landlord forms that have been reviewed by real estate lawyers in each respective state. Here’s What You’ll Get Comprehensive Residential Lease A 10+ page residential lease that has been reviewed by a real estate lawyer, specific to your state. These forms will help. Use this form to make a credible third party responsible for the lease being paid on time. Free eBook from BiggerPockets! Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks, and techniques delivered straight to your inbox twice weekly!

What Is a Privacy Fence? A Way to Hide a Home From Nosy Neighbors

Do you have to call your neighbors before you start the home improvement project? What is a privacy fence? Privacy fencing can also keep kids safe in the yard and pets contained in one space. "The wood pickets should have about an eighth-of-an-inch gap in between each picket. How much does a privacy fence cost? "Installing fences on hills is more expensive than installing on a flat yard." "You’ll just want to determine your property lines, and discuss your plans with your neighbors, along your proposed fence line," Michaels says. Although it's not typically required, it's common courtesy to let neighbors know in case the installation crew needs to access their property for any reason. You also need to contact your local building inspector to get a building permit. Privacy fence installation Installing a privacy fence is typically done in three or four phases: Post installation: This involves digging post holes (about 2 feet into the ground) and using cement to anchor the posts.

Will Stock Market Volatility Affect House Prices?

In recent years though, real estate staged its comeback. “The housing market is very strong still,” Blomquist said. “A bubble happens in the housing market when builders are irrationally building houses on spec when demand is falling or when buyers are seeing prices are going up and can’t really afford to buy but do so because they figure they can build up equity quickly.” There might not be a bubble to burst — but the market could still cool The housing market is unlikely to hurt the stock market much this time around. To some extent stock market investors and housing market analysts are focused on the same thing: Interest rates. “Because housing and other sectors are doing so well, there’s a concern the Fed will be raising interest rates,” Blomquist said. If rates were to continue to rise much higher, it could put a damper on the home price appreciation occurring in some markets, since prospective buyers would be less inclined or able to buy homes at such high prices, Blomquist said. “The stock market adjustment can help bring mortgage rates down a bit which could help the housing and the mortgage markets,” said Sam Heskel, CEO of Nadlan Valuation, a real-estate property valuation firm in Brooklyn, N.Y. Continued turmoil in the stock market could impact home buyers Institutional investors may view the recent stock market adjustment as an opportunity to re-evaluate their investment portfolio, Blomquist said. Those who are more bearish might view real estate as a better opportunity for an increased return, since the market’s fundamentals are so strong. “Even though it will still be a good time to buy, people will get spooked about investing in anything if the volatility continues — and that includes buying a home,” he said.

58% of renters believe it’s a good time to buy

According to the study, which is based on Q4’s HOME Survey data, 91 percent of homeowners and 80 percent of non-owners still believe homeownership is part of the American dream. Furthermore, 79 percent of owners and 58 percent of non-owners said they believe it’s a good time to buy, a sentiment that was consistent across age, income, city size and regional demographics. But the majority non-owners (56 percent) aren’t acting on their sentiments because of a lack of affordable housing options and the difficulty of saving a down payment (36 percent). “A tug-of-war continues to take place in many markets throughout the country, where consistently solid job creation is fueling demand, but the lack of supply is creating affordability constraints that are ultimately pulling aspiring buyers further away from owning,” said NAR chief economist Lawrence Yun in a press release. “These extremely frustrating conditions continue to be most apparent at the lower end of the market, which is why the overall share of first-time buyers remains well below where it should be given the strength of the job market and economy.” Although these non-owners aren’t buying homes now, 82 percent plan to do so in the future. That’s a 10 percentage point jump from Q3. Lastly, only 15 percent said a hike in their monthly rent would cause them to go ahead and purchase a home. “Otherwise, many would-be first-time buyers will be forced to continue renting and not reach their dream of being a homeowner.” About NAR’s HOME survey In each quarter of 2017, a sample of U.S. households was surveyed via random-digit dial, including half via cell phones and the other half via landlines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. A total of 10,823 household responses are represented.

Majority of Americans believe home prices will go up

A majority of Americans believe home prices will go up over the next 12 months, but whether now is a good time to buy or sell is still up for debate, according to a Fannie Mae survey of household decision makers released on Wednesday. Fifty-eight percent of Americans believe home prices nationwide will increase in 2018, according to the monthly Fannie Mae Home Purchase Sentiment Index (HPSI), which measures housing market perceptions and attitudes. Overall, the index rose 3.7 points in January to 89.5, a reversal from December, suggesting Americans are more optimistic about the housing market. “HPSI rebounded from last month’s dip to a new survey high in January, in large part due to the spike in consumers’ net expectations that home prices will increase over the next year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae, in a statement. “Results may continue to fluctuate over the coming months as consumers sort out the implications of the new...


The Best Way To Profit From REITs In 2018

I’ve spoken to a lot of investors who are still scared of real estate after the housing bubble burst in 2008. Note how RWR outperformed SPY both before and after the financial crisis? Look at FFO. When you look at the last four quarters of FFO, you can compare it to a REIT’s annual dividend payouts to get its dividend coverage ratio. Since Realty Income pays out $2.54 a share in dividends per year, its dividend coverage ratio is 119.7% (3.04 ÷ 2.54 = 119.68). This tells us that the REIT is earning more in rental income than it’s paying out in dividends—the dividend is safe. Rule #2: Look at the Portfolio The other neat thing about REITs is that they’re easy to understand. Realty Income even breaks down its top 20 tenants and how many properties those tenants are renting: Knowing the quality of tenants and their occupancy rate is key; these are the two factors that will predict future cash flow and stock price. Rule #3: Look at the Price The final step is something a lot of REIT investors overlook. By carefully looking not only at how much FFO a REIT is producing but also at how much you’re paying for a piece of that FFO, you can save yourself from big price drops like the one Realty Income suffered last year.