8 Steps to Take Before Listing Your Investment Property for Sale

From assessing the state of the property and cleaning it up and getting it ready to list to speaking to your tenants so they aren’t blindsided by the sale and gathering up all the pertinent information about the property and any tenants, the work you do before the sale directly impacts how much money you make at closing. Know what’s going on in your property ahead of time so you can make the repairs you’ll be asked to make anyway. If your home inspection report turns up little or nothing, you can present it to potential buyers as a “pre-inspected home,” further providing proof that the property is a solid investment. Addressing the big issues before the buyers even see the home can help bring in a higher selling price because the property presents itself as solid, so buyers aren’t asking for larger-than-necessary repair concessions—or worse, canceling the contract because they have no confidence in the property! So does the inside of the property, but if you’ve got tenants, you’ll need to coordinate with—and probably incentivize—them to clean it and keep it clean. A clean property sells faster (and for more money) than one that is less-than-tidy. You can even contract with them to clean the home after it’s sold and the new owners have moved in. If you don’t already have a great investor-minded agent, start looking for one right now. Again, if you’re selling a rental, you’ll need to coordinate with your tenants to have pictures taken of the property. In her new book How to Sell Your Home, agent and investor Mindy Jensen takes you step by step through the process, from preparing your house to sell and choosing an agent that’s right for you, all the way through the closing procedures and beyond.

Experts: 2018 set to be best economic year since housing crisis

Although December’s job report numbers disappointed experts’ expectations, many explained that the end-of-year increase in construction jobs is just what the housing market needed. This is down from November’s upwardly revised increase of 252,000 jobs. “Wage growth remains low, but did tick up slightly to 2.5%,” Long said. “December’s increase in construction labor is a hopeful reminder that things will eventually get better for our severely depleted housing market,” realtor.com Senior Economist Joseph Kirchner said. “Jobs drive housing demand and with the unemployment rate remaining at its lowest level of the millennium, it's only going to pick up.” Another expert agreed, saying the increase in construction jobs was the one bright spot in Friday’s employment report. One expert explained this increase marked the highest point in construction jobs in seven years. “Construction employment increased by 210,000 in 2017, compared with a gain of 155,000 in 2016.” And while one expert said it’s important not to read too much into economic activity in December, the construction jobs increase, she said, is worth highlighting. “However, the late-year surge in construction jobs is worth highlighting.” “Construction jobs increased by 30,000 last month, ending 2017 with a total of 35% more jobs added than in the year before,” Richardson said. “As to the supply of homes, construction workers are needed,” said Lawrence Yun, National Association of Realtors chief economist. “In 2017, a net 190,000 new workers were employed in the construction industry, and that also marks a decelerating trend, as the prior three years averaged 284,000 annual additions.” “With the unemployment rate in the construction industry having fallen from over 20% in 2010 to 5.9% at the year-end of 2017, there could be a little growth to home construction despite the on-going housing shortage,” Yun said.

How To Make Money From Other People’s Mortgages

As interest rates likely rise over the next five years, lending rates are expected to increase as well. Unlike equity REITs, mortgage REITs generally don’t own properties. Instead, they invest in debt by originating or buying mortgage securities that they manage in a loan portfolio. Almost 90% of the 56 loans in the $3.6 billion loan portfolio are at floating rates, positioning the company for higher interest rates. Estimated earnings of $2.54 per share in 2017 give a 98% payout ratio. If we see a volatile equity market, their portfolio of mortgage-backed securities should provide steady income to support the $1.20 dividend that is covered by earnings. True, the company must continue to navigate a more volatile interest rate environment that could include an even flatter yield curve, but management generally has proven adept thus far, supporting the dividend, while buying back stock at favorable times — such as when it trades below book value. Mortgage guarantee losses typically peak 3-6 years into the mortgage and Essent’s rapid growth means its average mortgage has been in force for only 18 months. Essent has a broadly diversified, low-risk investment portfolio, which is 99.6% investment grade. Essent Group’s growth should be augmented by its rising market share.

What the Heck is Mortgage “Note” Investing? The Start of a Journey

Have you ever heard of people talking about note investing? Probably not! It is not a topic that you are discussing over coffee or at a social event.  Would you be...

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5 Digital Stats That Jumped Out at Us This Week

Between gearing up for Sunday’s Super Bowl and lots of news around different social ad products, it’s been a busy week in digital marketing. Is the Super Bowl worth it? Every year, marketers wonder if pricey $5 million Super Bowl ads actually drive sales—or at the very least, awareness. The resounding answer: Kind of. In interviews with Wix, Persil ProClean, GoDaddy and It’s a 10 Haircare, brands had a mixed reaction to whether their ads were effective. Snacking fans In other Super Bowl news, data company Factual tracked the foot traffic for New England Patriots and Philadelphia Eagles fans. Twitter’s curated Moments Twitter’s Moments feature has had a bumpy ride since launching in 2015, but the social platform is back to betting on brands to sponsor publishers’ curated tweets. Bank of America became the first brand to relaunch the ad unit with Bloomberg’s coverage of the World Economic Forum in Davos, Switzerland, but a told Adweek the ad units cost $50,000 to $100,000. Houseparty isn’t dead You would be forgiven if you forgot about Meerkat, the livestreaming app that made a big splash at South by Southwest Interactive in 2015. The app’s buzz didn’t last long after Twitter acquired competitor Periscope.