Are You a Real Estate Investor with Staying Power?

Posted by Chris Clothier on Fri, Feb 26, 2016

Investing in real estate is a long-term commitment—at least, to achieve the kind of success we read about so often on books and blogs. Sure, some investors hit it big or have a lot of resources to leverage from the very beginning. But for most of us, it’s years of hard work on a solid buy-and-hold strategy that guides our investments.

Over time, our passive income adds up to something big—something that fuels retirements, futures, and lifelong passions.

The dream is great. The reality is hard.

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Topics: real estate investing

With Foreclosures Down, Will Homebuyer Confidence Follow?

Posted by Chris Clothier on Sun, Feb 21, 2016

The real estate market landscape has been changing dramatically in the near-decade since the biggest recession in recent history. You’d be hard-pressed to find someone who wasn’t affected by the crash of the housing market in those years.

Even if they weren’t directly affected, they knew someone who was. They had foreclosure signs in their neighborhoods, they knew who was underwater on their mortgages. They had neighbors and friends and family who were affected.

While the nation licked their collection wounds, homebuying confidence was obviously not stellar. People were afraid, and understandably so.

For years after the peak of the recession, foreclosures were still far too common, continuing to discourage homebuyers from taking the leap, thus further slowing recovery.

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Topics: foreclosures

5 Tax Advantages & Tips for Real Estate Investors

Posted by Chris Clothier on Thu, Feb 18, 2016

Investing in real estate is a straightforward venture...in theory. Buy a property, rent out the property, make money off of the rent. Simple, right? Unfortunately, theory isn’t reality. We have to deal with things like market climates, taxes, insurance, property management, tenant screenings, turnover, and all sorts of unforeseen complications.

One of the most daunting things for anyone of any age, real estate investor or not? Taxes.

For us, there are some unique tax advantages that we can use to leverage real value. We aren’t talking about creative tweaking that bends the rules to create write-offs. We’re talking basic principles in real estate investment that can minimize how much you pay in taxes each year, thus maximizing your passive income.

Some of these are relevant for your annual taxes, while other will be relevant year-round and for your investment strategies and decisions!

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Topics: Tax tips

Dallas Rises Into Top 5 Real Estate Markets for 2016

Posted by Chris Clothier on Sat, Feb 13, 2016

Big news for Dallas. While Houston has been in the spotlight for the past few years, it’s Dallas-Ft. Worth that’s on everyone’s radar for 2016!

DFW landed on Zillow’s Top Ten Hottest Housing Markets for 2016 list, and came in third: only behind Denver and Seattle. Dallas isn’t just highly regarded by Zillow: Dallas ranked fourth hottest market by Realtor.com in December, up from it’s fifth place spot the previous month. 

What’s made Dallas so hot? What are experts saying about 2016? Let’s take a look!

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Topics: Dallas real estate

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