5 Benefits of Leaving Your Properties to A+ Property Management

Posted by Chris Clothier on Wed, Apr 27, 2016

New investors are usually concerned with keeping costs down. They want to see their profit margins go up and really...who can blame them? They got into real estate investment with hopes of making some money on the side, and the best strategy seems like it’s to spring for cheaper properties and keep costs low. Maybe they even decide they can landlord it themselves.

After all, do they even really need a property manager? What’s so hard about it?

And then, a few months in, they realize they’re losing their mind trying to do it all, nothing’s going like they wanted it to, and they aren’t even seeing the profits they want (or need), and it sure as heck isn’t passive income. What happened?

For starters, there’s an old adage that seems to always hold true for real estate, even if investors don’t always see it at first.

You have to spend money to make money.

It’s not called investing for no reason. You have to put something in before you can really get something out of it.

Ah, but wait; our new investor was putting something in, wasn’t he? A lot of time, sweat, and tears trying to landlord his property, and he wasn’t getting any return on his investment! What gives?

Here’s the thing: landlording and property management aren’t for everyone. They’re separate job descriptions that owning a property doesn’t qualify you for. Can you learn? Absolutely! But they’re not jobs that everyone needs or wants to do. It’s hard work that for you, as an owner and investor trying to build up your passive income portfolio, can distract you from the big picture.

Dear Real Estate Investors: Stop losing your mind trying to do it all!

You may think you’re saving money by not hiring a property management team. But trust us. A good team is worth the investment and more!

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Topics: property management

8 Excellent Real Estate Blogs You Should Be Reading

Posted by Chris Clothier on Fri, Apr 22, 2016

What makes a real estate blog worth reading?

That’s a pretty subjective question on the surface. It can be pretty subjective, true, but we’d like to believe there’s some sturdy criteria that you can follow when it comes to real estate blogs so you can know what’s worth reading.

How do you avoid getting suckered in by a bad blog? Whether it’s a dead blog, an empty sales pitch, or just plain bad advice, knowing where the good stuff is will save you some precious time and energy, and maybe some costly mistakes.

Here are a few things to keep in mind.

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Topics: real estate blog

The TRUE Value of Great Property Management

Posted by Chris Clothier on Wed, Apr 20, 2016

Let's talk about a topic that most real estate investors really hate to talk about, think about and sure don't want spend too much time reading about.  Rental property management!

This topic is about as polarizing as politics for real estate investors because so many have specific thoughts and beliefs.  And to be sure, property management is a tough business. Unfortunately, there is a ton of mis-information, innuendo and just plain false stories about the property management business.  

For investors who have taken on landlord responsibilities, you know just how demanding it can be. But most real estate investors never deal with the nitty gritty details of property management, even if they understand what goes into it. 

Unfortunately, that theoretical understanding of the gargantuan task of property management means that too many investors are willing to overlook quality to save on costs.

We understand—really. After all, you’re in this business to make money, and if you’re spending a ton on property management, it means fewer dollars in your retirement accounts when rent is due. Right?

Not so fast.

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Topics: property management

5 Ways Real Estate Investors Can Reduce Tax Liability & Increase Savings

Posted by Chris Clothier on Fri, Apr 15, 2016

Its never too early to start planning for taxes!  It Self_Directed_IRA.jpgmay be tax day 2016, but we have a fantastic webinar with Amanda Holbrook, formerly with Memphis Invest and currently a superstar at Specialized IRA services, to help you get planning for next year!

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Topics: real estate investing, Self Directed Retirement Accounts, self-improvement

4 Methods for Real Estate Investors to Utilize Big Data

Posted by Chris Clothier on Fri, Apr 15, 2016

If you invest in real estate, there is a trend that you need to know about.  For real estate investors, and real estate professionals in general, big data is slowly transforming how we do real estate, especially when it comes to the buying and selling process. But it goes deeper than that, too.

Big data, more than anything, is making things more accessible, more transparent, and less risky for real estate investors. But how, exactly? What does it mean for investors?

Defining Big Data

Forbes has one of the best definitions of big data we’ve seen:

"Big data is a collection of data from traditional and digital sources inside and outside your company that represents a source for ongoing discovery and analysis."

This data can be high-volume or high-velocity to be “big,” and it’s only worth anything to you if it’s accurate. After all, making decisions based on bad data will wind you up in a world of trouble.

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Topics: real estate investing, big data

How and Why To Diversify Your Real Estate Investing Portfolio

Posted by Chris Clothier on Tue, Apr 12, 2016

I don't know about you, but my email in-boxes get overwhelmed on a daily basis.

Every day I receive unsolicited “advice” emails wanting to inform me of the latest and greatest when it comes to real estate investing and wealth. It is truly overwhelming to read many of the emails and see how outdated much of the advice is.  

It is overwhelming and in some cases sad to see they are full of advice that I would never follow. That feeling of being overwhelmed is how I feel sometimes when I read and hear advice on real estate diversification.

How often are we as real estate investors given conflicting investment advice?

For some reading this article, that may be a daily occurrence. For others we can usually look back to a particular moment, maybe a REIA meeting or a particular question we asked on a forum and the responses that made us cringe.  It is not difficult to pinpoint conflicting investment advice that we would never follow.

So I decided to publish an article on the topic of diversification.  I wanted to personally tell each of our readers that for me, diversification is not just real estate related.  However, as it relates to real estate, I own property in multiple cities.  All are single-family properties and all are managed by Premier Property Management. 

I have invested in other cities.  I have used other companies.  Those experiences have helped us as a company shape how we operate and what programs and services we provide clients.  Those services include allowing investors to diversify their investments by lending to our company.

I also have investments in the stock and bond markets.  I have investments in lending and short-term investments in quick turn projects not just long-term buy & holds.  Diversifying does not simply mean spreading money around.  It is all about spreading your risk and eliminating as many hurdles as possible to a goal we all share...building multi-generational wealth.

As for real estate specifically and all of those emails...read on!

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Topics: rental properties, investment diversification

Stop Sabotaging Your Real Estate Investing Success!

Posted by Chris Clothier on Fri, Apr 8, 2016

As human beings, we’re all prone to making  excuses for ourselves. Everyone deals with insecurities and fears—it’s natural. For anyone looking to have a successful business of any kind, getting past the excuses born out of these fears and negative thoughts is a crucial first step.

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Topics: real estate investing

The 5 Stages of Finding Your Real Estate Niche

Posted by Chris Clothier on Thu, Apr 7, 2016

Getting into the business of real estate is an infinitely rewarding journey. Investing now means building up a solid financial future: something you, your family, and future generations can depend on and enjoy.

Investing in real estate, however, isn’t as simple as just starting. It’s a business that demands a lot of education and time to be done right and profitably, and, really: the stakes can get high. Should that deter you from starting? Absolutely not! The reward is worth the work it takes, and many times over.

Investing in real estate just isn’t a get-rich-quick scheme, and if that’s what people are expecting, they’re in the wrong place!

Beyond getting started, there are questions you as an investor have to answer for yourself: what kind of investor do you want to be? There are endless opportunities out there to fit the particular style that captivates and excites you.

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Topics: real estate investing

Single or MultiFamily: Which is the Better Real Estate Investment? An in-depth study

Posted by Chris Clothier on Tue, Apr 5, 2016

In residential real estate investment, there’s always contention between investors that prefer single-family investment properties and those that prefer multifamily investments.

We’ll go ahead ahead and say this: absolutely every investor will have their own preferences. Every type of investment will have its own pros and cons, and what attracts certain people may not sway others. What might be your deal-breaking flaw might not be someone else’s.

That said, there are some very clear advantages and disadvantages between single and multifamily properties that should be considered. As a real estate investor, you may want to experiment and try it out for yourself!

Many investors choose to start with single-family properties simply because the barrier to entry is lower. Some prefer to invest in both, while others prefer to deal exclusively in multifamily housing. Others specialize in something else altogether!

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Topics: single-family rentals, multifamily properties

The Real Estate Investor's Guide to Beating Procrastination

Posted by Chris Clothier on Sat, Apr 2, 2016

 

Ah, procrastination. It’s a big bugaboo for  at least 20% of people in the United States, according to psychologists. Most of us think of procrastination as just putting off work, but it can be more than that. Procrastination means coupons expire, gift cards go unused, and the laundry gets done only when the clean clothes run out.

Procrastination is missing out on opportunity. If you’ve ever struggled with procrastination personally or professionally, it can be stressful and frustrating—especially when you don’t know why you keep doing it.

For the real estate investor, seizing opportunity is at the forefront of your responsibilities. Overcoming your patterns of procrastination will take time and small, consistent efforts. When you examine why you procrastinate and discover what gets you motivated, you’ll finally be able to achieve your true potential as a real estate investor.

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Topics: procrastination