Viewing real estate for the first time can be overwhelming, especially when you are planning to buy it as an investment, a rental property or for owner occupancy. What do you look for? Where do you start? How do you know that this property is in good enough condition that it will cash-flow easily? Well, we intend to help you answer these questions and more.
Before you even begin to think about anything, it is good to vet real estate professionals and see which one best suits your goals. You will be looking for someone who may also be an investor themselves or maybe someone who specializes in working with investors. This person needs to be willing to work hard and have their ear to the ground to let you know when deals hit the market. Best of luck in finding the right agent; but don’t worry, it may take a few try’s before you find the right person. Don’t be afraid to fire an agent if they aren’t pulling their weight. Remember: They are working for YOU!
Today I would like to address a topic that I have spent a lot of time thinking about, reading about, and talking about with other investors: investing other people's money(specifically for buy and hold properties, a.k.a rental properties).
If you have money to invest, are an investor looking for more funds for your future purchase, or just curious about what we think the best way to do this is, keep reading.
We promised a more detailed post on screening tenants, so here you go!
Make sure you screen your tenants thoroughly and don’t just accept the first person who shows interest in your unit (unless you’re lucky enough to have hit the jackpot early on your tenant search). Remember that you are going to be dealing with these tenants for a long amount of time and you don’t want to deal with them pestering you or not paying on time. Tracking tenants down to pay their rent is a full time job, avoid having to do this at all costs. I hesitate to even mention the E word (eviction), nobody wants to deal with that, so take the appropriate steps right off the bat to avoid this type of future!
After creating the most professional and detailed post you can (which we describe in more detail here), the emails and calls (depending on how you set it up because you can choose one, the other or both) will begin pouring in. A lot of people will ask to see the apartment, so make appointments in 15 minute intervals (I made the mistake of making them in one-hour intervals before; big mistake and waste of your time), but have low expectations on people actually showing up to see the unit (this varies based on price, location, and other factors). The more appointments you make, the higher chance you have of finding the right individual/family/group to rent your unit. It’s a numbers game, right?
Did you know that 37% of the United States rents their home or the equivalent of nearly 44 million households and over 111 million tenants? You can have your share of that demand if you so choose. But real estate agents usually want their cut too. Realtors will take a full month’s rent in commission between the renting agent and the owner’s agent (The property owner pays this, nothing comes out of the tenant’s pocket, depending on the state you own your rentals). In our case, one of our units had been vacant for 3 months before we got it rented again. To lose another month of income on top of that would have been devastating! I am here to tell you that you can avoid losing valuable rent, but you do have to put in the time to make it happen. There are a few tricks to getting this all done if take the correct steps. This post should guide you in the right direction.
The multi-family market has been a surprising subset of the general real estate market in Lower Fairfield County. At Blast REI, we have been seeking homeowners who don't have the patience to continue up-keep of the property and landlord duties for these properties. The reasons are simple: we (this market) need inventory, and would pay cash for these types of properties. On a more broad scale, we have a set of buyers seeking this type of inventory as quickly as possible. Let's delve into the major multi-family markets in this area, specifically Norwalk, Fairfield, and Stamford:
Chris and Joe have years of knowledge, stories, and experience to share with you. This is where you can access their minds, to learn about what they do and how homeowners can be more effective when in tough situations.