One of the most popular topics for our owners and investors is pets. Most of our clients ask about whether or not you should allow a pet in your property. We recommend that you do allow pets, and the main reason is that you reach more potential tenants that way. (more…)
Knowing how to screen a tenant properly is something you need to understand as a landlord, especially if you don’t have the benefit of working with a professional property management company. We have all heard tenant horror stories about those tenants who did not pay rent or completely destroyed the property. Those are the worst things that can happen to landlords, and you can avoid those big issues when you screen tenants well up front. Today, we’re sharing some of the things we do as a property management company.
Your initial step when a tenant stops paying rent is to contact that tenant. Get in touch by any means you have, whether it’s phone, email, or text message. Find out what’s going on with the tenant and why rent hasn’t come in yet. If they aren’t responding or you can’t get a hold of them, the best thing to do is to start the eviction process.* In Texas, it’s a simple procedure. (more…)
We can provide a list of excellent reasons for why you should hire us at AustinVestors as your property management company. We are professional landlords managing several hundred properties in the Austin area, including our own investments. Today, we will focus on the three main reasons to work with us. (more…)
Are you a bargain shopper? Saving money and finding the best deals on the things you buy is important, especially to those of us that are working toward building wealth and a financially stable lifestyle and retirement. From groceries and gas to clothing and entertainment, doing the research required to find the lowest prices available almost always pays off in the long run. This is particularly true when it comes to real estate investing and it’s exactly why finding opportunities at low and discounted prices is a priority for investors.
Each day, middle-class Americans are discovering the cash flow revenue benefits of real estate investing, and they’re finding the best deals are just down the street. In fact, the vast majority of investment properties aren’t seaside bungalows, lakefront cabins, or even high-rise condominiums – they’re single-family homes in average neighborhoods all across the country.
Most of the properties available at these bargain prices are among what is known as distressed inventory and are in danger of being foreclosed on by a bank or lender. For homes in this situation, investors will usually purchase them through a process called a short sale. In this type of transaction the bank or lender agrees to accept an offer that is less than what is owed on the mortgage. The result is that these properties can be purchased at a price significantly lower than the actual value of the home.
If a home has already been foreclosed on, it becomes a “Real Estate Owned” or REO property. In order to sell these homes quickly, they are priced at rates, on average, 30% lower than their market value, which also makes them very attractive to investors.
Today’s savvy investors are wisely taking advantage of lower cost assets that will generate fantastic cash flow opportunities through monthly rental income. At the same time, the recovering housing market continues to encourage overall value and price appreciation for a profitable sell-off in the future. These two factors combined make this truly one of the best times in history to get into real estate investing.
The Austin real estate market has been heating, and it’s only getting hotter. On CNBC.com’s Realty Check, real estate reporter Diana Olick writes, “It’s no secret that investors have been inhaling foreclosed properties at a breakneck pace, trying to cash in on an increasingly hot rental market.”
Recently Bloomberg reported that Blackstone Group, the biggest buyer of U.S. commercial real estate, “is turning to residential real estate after a 34 percent plunge in prices since the 2006 peak. The New York-based company is the biggest investor seeking to enter the single-family leasing market as rents climb and the U.S. homeownership rate sits at a 15-year low.”
So who are the buyers making up this heat wave of investing? Surprisingly, the typical real estate investor isn’t wealthy and middle-aged like you might imagine. The reality is that the median income of the real estate investor is $86,100. It’s not much higher than the median income of the primary residence buyer: $72,400. And nearly 40% of investors made less than $75,000 in 2011. Today’s real estate investor is really just the average American homebuyer.
When you consider today’s market conditions, it’s not surprising that investors are popping up everywhere. But not all discounted properties are good investments, no matter how low the price and interest rate may be. Several factors affect a property’s return on investment, and they all need to be carefully considered. For example, experienced investors know to invest for cash flow—a property’s return on investment in the form of monthly rent. It’s immediate, steady, and can build wealth over time. Many new investors tend to think in terms of appreciation, but intelligent investors know that investing for cash flow helps ensure a profitable investment regardless of appreciation.