Sometimes it can be a challenge to discern what is really going to bring your real estate investment career to the next level. What’s going to help you punch up and reach new heights for your passive income? Can you make it by way of renovations and ROI? Relying on tenant retention? Making things easier and more streamlined with the latest technology?
So you’re a buy and hold investor. You’re not looking for a complicated flipping disaster, and you certainly don’t want to spend a fortune getting it right before you can start making money on the property. There are plenty of outside factors that can help you know that a property is going to be good—you can look to:
- The neighborhood
- The local economy
- The competition
- The demographics
- The amenity proximity
Obviously, if a community and a city is doing well economically, it’s growing and thriving and seeing a rise in population, it’s likely you’re going to do well, too.
Those are the markets you’re going to want to be in. That’s the broad sense. But when you narrow it down and start looking at properties individually, what really makes that specific property good and another property not good for real estate investment?
What should you be looking for?
Topics: investment property
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.
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.
Winter is over, spring has sprung, and with it comes a new to-do list for taking care of your investment property’s roof. Real Estate Investors around the country are getting ready for warmer days and the opportunity to do some preventative maintenance to their properties. We hope you saw to it that the proverbial hatches were battened down for winter.
Now that the days are warmer, it’s time to venture outside for a fresh round of roof maintenance.
Plenty of investors have come to realize that managing property management responsibilities is not for them. Being a real estate investor and being a property manager are two entirely different jobs. Not everyone is cut out to deal with day-to-day tenant issues. Many investors are looking for a means of passive income and know that they don’t want to add to their workload.
There are real estate investors, however, who’ve convinced themselves that they have to do it all. They have to be the owner and the manager simultaneously. There are reasons behind this line of thinking, and we can understand where some investors are coming from.
An investment property can come in all shapes, sizes and values. As a real estate investor, it’s within your power to change the property value of your investments. There are many ways to measure value — and some that you think are helping may actually be hurting.
Real estate investing is all about knowing how to make the right improvements to raise the value of your investment property. Often times investors either make the wrong improvements or they hire the wrong team that spends too many dollars on the areas of a property that actually hurt the value.