How to Scale Your Investment Portfolio With Turnkey Properties

In this case, turnkey real estate investing might be an awesome option. So make sure you understand how much that bank can lend to you as you establish and grow your business. Make sure you understand where that bank will lend, especially if you’re looking out of your state. If you are planning to set it and forget the portfolio for a while, these can be a great option and highly scalable. Understand who you want to work with and how many properties you want to buy over what time period and in what location. Learn and grow as an investor. Build several great banking relationships, and execute your plan. Watch your real estate empire grow, and enjoy the success as you grow it. Where are you in scaling your turnkey portfolio? Actionable Advice for Getting Started, Discover the 10 Most Lucrative Real Estate Niches, Learn how to get started with or without money, Explore Real-Life Strategies for Building Wealth, And a LOT more Sign up below to download the eBook for FREE today!

Down Payment Dilemma: How Do You Know How Much To Put Down On A...

Even for those who have decent credit and make good money, the down payment is often the great homeownership killer. For many others, who do have enough money set aside to make a substantial down payment, the question is: how much? Conventional wisdom—not to mention most of the banks and a good portion of homebuying and financial experts—will tell you that 20 percent is the standard bearer when it comes to down payments. But is it really necessary to put 20 percent down? The short answer is: no. It's not, of course—"Mortgage insurance protects the lender in case you can't make your payments and the house is foreclosed on," said U.S. News—but that money can make a significant difference for those who are stretching to buy a home. Still, when your only option to buy is a low down payment, which can mean an FHA loan or one of the new low down payment loans from Freddie Mac and Fannie Mae—"At the end of 2014, the two government-backed companies announced plans to slash down payments from 5% to 3%," said CNN—PMI might literally be a small price to pay. When to make a substantial down payment When you're looking to keep your monthly payment as low as possible and have cash to spare When you just can't fathom paying PMI When your goal is to buy a forever home and own it free and clear When you are approaching retirement age and can envision a reverse mortgage sometime down the line When you want to buy your house and pay it off as quickly as possible When the rate is lower with a higher down payment. "The more you put down, the better position you are in for negotiating a lower interest rate with your lender," said When to go low When you don't have the funds for a higher down payment and can't earn or borrow them quickly enough When the rate on your FHA or Fannie or Freddie loan is comparable to that you'd get with a higher down payment When you need to escape a high-rent situation and the monthly payment on a house is lower than what you're currently paying, even with the PMI factored in When you're confident your home will appreciate quickly, allowing you to refinance and get rid of PMI quickly When your investments can't be touched without a penalty or are returning better than the interest rate you'll get on your home If you have something better to do with the money.

Where Are All The Opportunity Zone Deals?

It turns out the answer to that question is not as simple as one might hope. The main issue that we continue to see as we evaluate potential Opportunity Zones (OZs, or OZones) is, "Do the deals make sense on their own merit, independent of the potential tax advantages an investor might realize?" If a deal doesn’t pencil out on its own over the 10-year hold period required to meet the OZ, an investor could end up losing money even though they are able to offset some significant capital gains on the front end. Instead, groups are targeting designated areas that tend to be adjacent to stable submarkets or those that have already experienced significant development growth in recent years where they can benefit from an existing tailwind of economic activity. The result of this flight to safety is that many of the areas that need the development activity the least are the ones getting the most attention. In my observation, many of the lower-income areas that the program originally targeted are not getting the same level of attention because most groups are afraid to be the “first one in” to a market that may or may not actually become revitalized. This reality has led to what I see as a scarcity in quality OZone investment deals with solid underlying fundamentals, while creating a level of restricted access to any kind of meaningful deal flow. It could be a while before this starts to happen, however, as I predict a continued flight to safety as investors flock to lower risk, infill markets. The key here is to not become blinded by the potential tax-deferred benefits of Opportunity Zone investing and really look for deals that you would want to invest in regardless of their designation. Over time, however, the hope is that the more attractive deals will become available to the average investor and they, too, will get to realize the benefits of this new and exciting program.

How Listening To Your Community Will Help You Grow Your Business

It’s our duty as leaders to dig in, identify hidden needs and discover new ways to better serve our local communities. From countless conversations with homeowners to meetings with city council members and local business leaders and research into community-specific issues, we found the hidden need: Short-term-rental homeowners wanted the ability to provide a consistent experience for guests, manage properties ethically, be good neighbors and benefit the local economy. We built our solution for a vacation rental property management company that invests in local communities from there. This is par for the course. Ensuring your mission is focused on the needs of your community will ultimately lead to more positive conversations and proactive solutions. At TurnKey, we rely heavily on feedback from our homeowners and guests, who are the reasons the company exists. Finally, stay involved in your community. It keeps you in tune with your community and helps you focus on the mission of giving your customers and community members what they want. We think daily about the impact we’re able to make on homeowners, travelers and communities across the U.S. As community leaders, you must make choices for your businesses that benefit the communities you're serving. If a business is engaging in activities that detract from the people they’re asking to do business with, it’s time to step back and evaluate what can be done to make the company an enabler of sustained economic growth, rather than instability.

4 More Questions To Ask Before Refinancing Your Home

What are the benefits of refinancing? Most people would agree that it only makes sense to refinance your mortgage if there is some tangible benefit to doing so. If you took out your mortgage prior to the financial crisis of 2008, you'll likely still be able to refinance at a much lower interest rate, which will lower your monthly payment. Cashing out your home equity: With a cash-out refinance, you refinance your home for more money than you currently owe on the property. Just like when you first took out your mortgage, you have to pay closing costs in order to receive your new loan. With that in mind, it's important to look at how long it will take you to break even on your refinance, or how long it will take you to recover the cost of those fees and truly start to see savings from your new loan. How much equity do I have in my home? (Though, it is possible to find lower options.) Finding how much equity you have in the property is easy. Then, if so, to factor those fees into your cost calculations for your break-even point.

Maximizing Investment Property Returns In Hot Job Markets

For investors looking to make a solid financial return in 2019, the property market continues to offer opportunities due to the stabilizing U.S. jobs market. Houston remains a strong investment option due to the improved job market that has seen an 8.7% job increase since December 2017, according to the January 2019 report. Phoenix saw a 6.7% increase in jobs for 2018, and San Francisco saw a 5% increase overall. Investing in cities with high demand for rental properties, such as New York, Los Angeles and Houston, can create additional opportunities for investors. Demand for workforce housing in addition to housing for those displaced by Hurricane Harvey has resulted in a gradual stabilizing of the rental market. Property managers should also consider earmarking some marketing dollars to promote investment properties during times of increased demand. Property managers based in major cities can anticipate increased demand, considering the influx of job seekers moving to job hot spots. Investors and property managers should consider the following best practices for taking advantage of a hot jobs market: Analyze consumer data: An investor's best gauge for cost of living and inflation for consumers is the Consumer Price Index (CPI). These numbers are updated and analyzed regularly by the U.S. Bureau of Labor Statistics. This information can be used to help keep on top of potential investments.

Got Sticker Shock? These 5 Factors Are Influencing a Home’s Asking Price

Here are five factors that experienced real estate agents consider before slapping that "For Sale" sign on a home. What's happening in your local housing market at any particular moment Current real estate market conditions—including how many houses are up for sale, and how fast they’re being snapped up—determine how a property should be priced. A surplus of homes for sale results in overall lower asking prices. That's why he recommends working with an experienced real estate agent who's familiar with the neighborhood you're shopping in and can assess whether a home is priced fairly—or not. And how old are the buildings to your right and left?” asks Sheldon Salnick, a Realtor® with Dreamtown Real Estate, in Chicago. The comps Often, Vitali says, sellers have a figure in mind based on nothing more than a wish. But real estate pros will do a comparable market analysis—what similar homes have recently sold for—before determining how to price a property. “Historical data plays a huge role in setting a listing price; it's not a number just pulled out of the air. So find an agent who can interpret that data,” Vitali says. It all depends on the home's location (see No.

More Homeowners Paying Their Mortgages on Time

Borrowers who have conventional mortgages are the most likely to pay on time, while borrowers with loans backed by the Federal Housing Administration tend to pay late nearly three times more often. (Still, 91 percent of FHA borrowers pay on time.) FHA borrowers tend to have lower credit scores, higher debt-to-income ratios, and lower down payments. But the FHA delinquency rate of 8.65 percent is still a big improvement over a decade ago, when it was about 14 percent. Why are more Americans paying their mortgages on time? For one, more homeowners now have greater equity in their homes. Also, stricter federal underwriting rules since 2010 have limited who can get a mortgage. Fannie Mae and Freddie Mac require borrowers to have an average FICO credit score near 750, which is much higher than they required before the financial crisis. However, “if the lending industry begins to relax underwriting standards in any significant way to dig deeper into the pool of riskier credit applicants to plump up their volume of home-purchase mortgages, it’s inevitable that delinquencies will rise,” writes Ken Harney, a syndicated real estate columnist for The Washington Post. The FHA also has posted a decrease in average credit scores and is now approving debt-to-income ratios well above 50 percent.

Real Estate Technology Has A New Home In New York City

Located at 214 W. 39th Street in Manhattan, the spot boasts co-working spaces, curated “PropTech” exhibits and a full calendar of educational events and programming. Last month, Savills named the Big Apple the No. 1 tech city in the nation. And though Amazon might have called it quits on its NYC headquarters, other tech giants have stepped in to fill the void. At any rate, PropTech Place is set to help NYC—and the real estate tech sector in general—continue its record-breaking expansion. “New York City is the undisputed real estate capital of the world,” Patchett said. New York’s PropTech Place will be the first stop for industry leaders looking for a window into the best real estate technology innovations.” Aaron Block, a cofounder at MetaProp, said his company is already working to add an additional 10,000 square feet to the PropTech Place facility. The center is currently home to three educational exhibits: “History of PropTech,” “Tomorrow’s PropTech” and “Today’s PropTech,” which features live piloting of up to 12 current real estate technologies. According to real estate analytics firm CREtech, venture capital funds invested more than $9.6 billion into real estate technology last year. MetaProp’s 2018 Year-End Confidence Index shows that 60% of those investors plan to make even more investments in 2019.

Is Owning Property Really the Best Way to Make Money Investing in Real Estate?

Or are there better ways to invest that are just as effective and efficient—with less risk? Is ownership really the dream we’re after—or is it more about control? Here are some of ways you can mix up “pure” ownership with other ways of controlling deals. Trusts Of course, some things make more sense to own outright, like shares of the business you run, but there are many things we can control without owning and still enjoy a lot of the benefits of without all the risks that could come along with ownership. As I’ve always said, “The best form of asset protection is not to own anything.” Fractional Ownership Another great way to invest in real estate without taking on too much risk is to only own part of the deal. Another way that comes to mind is if you passively, usually for a preferred return with or without upside, invest in a company or fund that invests in real estate. Related: 10 Real Estate Markets Where The “Buy and Hold” Strategy Actually Made Sense Control Without Ownership Other than managing a trust, the next big way to have control of real estate without ownership is through options. For example, doing a sandwich lease option is the epitome of being able to capitalize on a deal you don’t even own. Control With Ownership That said, it is also possible to have control with ownership in a way where there is very little risk, and a perfect example of this is buying a property “subject to” the mortgage. So what are some of your favorite strategies for mitigating or limiting risk while investing in real estate?


7 Benefits of a Federal Reserve Interest Rate Hike

(TNS)—Interest rates are going up. Higher Returns for Savers If you’re a saver, low interest rates have brought about the financial equivalent of a long drought. “Interest rates have been so low for so long that many people have fallen out of the habit of rate shopping,” says Robert Frick, corporate economist for Navy Federal Credit Union. This is especially important for people on fixed incomes.” Tamed Inflation Most broad-based measures of prices indicate inflation has continued to remain under control in the U.S. in recent years. A positive inflation scenario after a rate increase might include “lower prices of imported consumer goods, due to a likely higher exchange value of the dollar if our domestic rate increases are not matched by policy tightening in other major economies,” says Daniil Manaenkov, U.S. forecasting specialist at the Research Seminar in Quantitative Economics at the University of Michigan. More Lending A credit bubble rightfully received some of the blame for the financial crisis in 2007. More Interest Income for Retirees As a rate boost brings better returns to savings vehicles, senior citizens should enjoy better paydays by putting their money in CDs and savings accounts. As the population ages in coming years, many more Americans will come to appreciate even modest increases in interest income during retirement when they buy certificates of deposit. Stronger Dollar to Boost Purchasing Power As the Fed continues to boost rates (and with the outlook for more rate hikes to come), the U.S. dollar gets more support. If the prospect of higher mortgage rates compels you to a home sooner than later, you won’t be alone.