7 Principles that Help Protect Your Credit Score

Posted by Chris Clothier on Thu, Feb 11, 2016

No matter what method of financing you as a real estate investor pursue, your credit score is always paramount to both opportunity and success in the business. Your credit score goes hand-in-hand with your reputation: except this time, it’s all money. So much can hinge on just that number.

Real estate investors, who often deal with financing with banks, private lenders, and partnerships, need to do everything they can to keep their credit score well above average. You want a glowing record so that you never have to worry about not being approved on financing for your next investment property.

So real estate investors—here are a few tips to put in your tool kit.

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Topics: real estate financing, credit score

The Oil Crisis: A Blessing in Disguise for Houston Real Estate?

Posted by Chris Clothier on Sat, Feb 6, 2016

No one can deny that Houston’s been hit hard by the oil crisis. Harder, in fact, than the disastrous crash of the late 80’s. That crash saw oil prices drop from $35 per barrel ($101 in today’s terms, adjusted for inflation) to under $10 ($22 in today’s dollar).

According to NASDAQ, oil sat at around $30 a barrel as of February 2016. In June 2014, a barrel cost nearly $114—a significantly greater drop than the crisis that brought Houston to a standstill 30 years ago.

Naturally, people are worried. The energy sector has been hit hard, and we don’t want to downplay the crisis, particularly for those experiencing layoffs or having to close their doors. But for our purposes, we look at how the oil industry is hitting the Houston real estate market.

While it can be really easy to listen to doomsaying, there are a few things we have to remember to keep things in perspective.

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Topics: houston real estate

3 Tips For Maximizing Investment Property Revenue

Posted by Chris Clothier on Wed, Feb 3, 2016

In real estate investing, it’s tempting to think that more investment properties added to your portfolio will automatically mean more profits. The fact of the matter is, it’s likely that you’re overlooking opportunities to increase your profits in the investment properties you already have. A two angled approach makes the most sense.  Real estate investors should absolute look to maximize revenue on the properties that they have AND add to their portfolios at the same time!

Real estate investment isn’t about how much money investors have to throw around and how many properties they’re renting out. Smart investing comes not just in volume, but in diligent care and attention.  It is true that there is safety in numbers, but there is also additional revenue by working with your portfolio and partners to create a smarter return.

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Topics: investment property, real estate investment

Thinking Like a Tenant to Score Properties That Pay!

Posted by Chris Clothier on Mon, Feb 1, 2016

You can pick a new investment property that seems absolutely perfect in your mind. But is it really? Are you keeping your tenants top-of-mind when you purchase and when you decide to renovate?  It is easy to lose site of THE single most important factor when real estate investing in long-term buy and hold properties.  Tenant satisfaction leads to longer occupancy.

For real estate investors, tenant retention is one of the key elements to investment success. The longer you can keep good tenants around and fill any vacancies, the better your passive income will be.  At Premier Property Management Group, the property management firm owned by the Clothier family and providing management service to Memphis Invest, the average length of occupancy per property across the $350 Million portfolio under management is just over four years.

While historically renting has been seen as a less-desirable alternative to home ownership, that perception has been gradually shifting, both in the U.S. and abroad. A 2012 study by Property Intelligence in the UK found that 60% of renters said that they were not reluctant renters. And the 40% that are reluctant are mostly frustrated would-be buyers than anything.

Even across pond, many of the same sentiments translate over here in the United States.

So when you’re thinking about your next purchase or considering renovations, keep in mind what tenants really want out of their rental homes.

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Topics: investment property, attracting tenants

How Crowdfunding May Change Real Estate Investment as We Know It

Posted by Chris Clothier on Fri, Jan 29, 2016

2015 was the year that crowdfunding in real estate investment really took off. Instead of looking to REITs, investors have been increasing banding together in new ways to crack bigger deals and achieve their dreams.

Even though the notion of crowdfunding in real estate is a very new concept, it’s already raised hundreds of millions of dollars. In 2012, according to Sourceable, only about $2 million were involved in real estate crowdfunding. In 2015, it was well over $2 billion. It’s poised to change the industry as we know it.

But how? What has crowdfunding already done for real estate investment? Would does the future look like? What limitations are there?

First, let’s look at crowdfunding so far.

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Topics: real estate financing, crowdfunding

Are We Headed Toward a Millennial Homebuying Rebound?

Posted by Chris Clothier on Tue, Jan 26, 2016

Since the last recession and the crash of the housing market, many have taken to blaming millennials for its sluggish recovery. The up-and-coming generation of new homebuyers, after all, has been historically key in the reinvigorating of real estate markets across the country. First-time homebuyers have always been a crucial piece of the puzzle.

Millennials, however, were breaking the pattern—and, in the eyes of many, causing the market to drag. Whether millennials were saddled with too much student debt to save up for a down payment on a home or simply found themselves preferring to rent, the slow buying pace certainly didn’t help market recovery.

Real estate professionals seem to enjoy speculating when millennials will start buying: and as much as we take these predictions with a grain of salt, 2016 just might be the year. The Seattle Times predicts that a third of this years’ homebuyers will be millennials, a modest estimate compared to some, but a definite improvement. The Tennessean reports some realtors have clients that are mostly millennials—upwards of 60%. So given not just these predictions, but mounting evidence to support them, why now? And why not more?

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Topics: millenials

We Love The Houston Real Estate Market Even With $28 Oil!

Posted by Chris Clothier on Fri, Jan 22, 2016

In 2015, Houston was at the center of many spotlights. The one thing that just about every noticed, however, was how much of a roller coaster the oil industry was. Even for the folks who don’t pay attention to oil saw plummeting prices at the gas pumps. The crash of the oil industry prompted a lot of worry and debate throughout the year—the economic future for Houston was on the line.

But how did things really pan out? And more important for real estate investors, how will the oil slump affect Houston real estate going into 2016?

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Topics: houston real estate, Houston Invest

How To Feel Like Superman On Your Next Real Estate Deal!

Posted by Chris Clothier on Wed, Jan 20, 2016


Real estate investing is always exciting. There’s the thrill of achievement, knowing you’re going to take this investment property and do something amazing with it. You’re all set to accelerate your cash flow, expand your portfolio, and get one step closer to realizing your financial dreams.

But as we all know, making a deal doesn’t always come with good excitement. We all have our doubts from time-to-time: is this property going to give me the returns I need? What if there’s a problem no one caught? What if my number or wrong? What if someone outbids me?  

When it comes to sketching out our real estate plan, there can be a lot what ifs and room for worry when it comes to making a real estate investment deal. Even seasoned vets may find themselves getting butterflies from time-to-time.

But you know what? There’s good news. There are things you can trust, no matter what your next deal looks like.

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Topics: buying a property, real estate plan

The Definitive Guide: Self-Directed IRAs & Real Estate Investing

Posted by Chris Clothier on Mon, Jan 18, 2016

 As real estate investors, we’re always looking for opportunities to secure our financial future. Many of us are using the passive income we gain through our real estate investing to save up for retirement: but have you thought about using your retirement savings to boost your investments and save more in the long run? With a self-directed IRA, you just may be able to do it!

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Topics: Self Directed IRA

How to Tap into Your Investment Potential Right Now!

Posted by Chris Clothier on Fri, Jan 15, 2016

Success in real estate investment doesn’t come overnight. Now matter how passive your income is, it never means you will reach your full potential as an investor if you let go of the reigns. It would be great if that was true, but even the most passive investments demand your attention in some way, even if it’s not direct.

To fully reach your potential, it demands input on your part. While you don’t have to put your hands directly into your real estate investments, you can start setting yourself up for greater success right now. No waiting.

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Topics: business strategies