Category: Finance Page 3 of 5

Tips for Entering Real Estate Development

On August 15, 2022

There are many barriers to entry when it comes to real estate development. Most of the time, people are not ready to commit to a project due to a lack of knowledge about the various factors that affect real estate development.

Construction of real estate projects can take years, and they usually take a lot of planning and preparation. Even though it can be lucrative, the industry can be very challenging. Due to the fast-paced nature of the business, developers often face unique challenges that keep their operations fresh. Before jumping into the field of real estate development, there are several factors to keep in mind.

Partner with a Mentor

No matter how good you are at technical knowledge, you will need help to operate in the field successfully. Many of the skills that developers use in their projects are learned through failures. Having a mentor can help speed up the learning curve and help you avoid getting stuck with a massive loss on your first few projects. Each deal is different, and each decision point has to be considered carefully. One of the most critical factors a mentor can help you with is navigating through the various decision points involved in real estate development.

Connect with Professionals

Getting a network is also essential to become a successful real estate developer. As a developer, you will rely on the guidance and expertise of third-party consultants during the entire process. A strong network will help you connect with the right people and deliver the best possible service. Usually, you’ll want to work with multiple professionals, such as a general contractor, a civil engineer, a land-use attorney, a lender, and a surveyor.

Make a Plan

Many aspiring real estate developers ask where to start when entering the industry. One of the first steps in becoming a successful real estate developer is establishing a geographic focus. This will allow you to avoid getting stuck in the middle of a multitude of regulations when it comes to developing projects. Before starting a project, you must identify the type of building you want to make. A clear understanding of the type of building you want to make will allow you to focus on the most critical areas.

Set Goals

Getting overwhelmed by the endless tasks that come with real estate development can be a common problem. In addition to finding suitable land at a reasonable price, you’ll also need to secure the necessary financing and develop the property through the eventual disposition. Having a set of goals will help you keep track of your progress and ensure that you’re on your way.

Research the Market

Before you start working on a project, you must identify the building that you want to make. Having a clear understanding of the local property market will allow you to start developing successful projects. Before you start planning a project, it’s vital that you thoroughly research the area to determine the factors that will affect the development of the property.

This step will allow you to collect valuable data to help you develop a successful development plan. Having the necessary data will allow you to make informed decisions and maximize the potential of your project.

Great Real Estate Podcasts To Listen To In 2022

By W Darrow Fiedler

On June 7, 2022

In Finance, Investing, Real Estate

Want to improve your knowledge about real estate? The following podcasts are great for you to keep up with all the latest news and analysis about the industry. They’ll also provide you with entertaining and informative shows about home renovations and investing. Here are a few great podcasts to listen to in 2022.=

Best Real Estate Investing Podcast Advice Ever With Joe Fairless

Joe Fairless is a well-known real estate investor and host of this weekly podcast, which covers various topics related to the industry. He has a wide variety of blog posts and videos, and he frequently interviews other industry professionals. Each episode of the show provides valuable advice and insight from various guests, such as house flippers, renters, and passive income investors.

House Party

If you’re a fan of celebrity property purchases and the buying and selling of real estate, House Party is a must-listen. This weekly podcast from realtor.com talks about the latest trends in the industry, as well as the stories of real estate professionals who have experienced various home disasters. Co-hosts Rachel Stults and Natalie Way also share their personal stories of moving across the country and dealing with various real estate-related issues.

Cashflow Diary

Author and entrepreneur J. Massey is the creator of Cashflow Diary, and he also provides free training courses to aspiring and experienced real estate investors. He has a wide variety of blog posts and videos that he frequently interviews other industry professionals. He can help you find the best deals and strategies for buying and selling real estate.

Bigger Pockets

BiggerPockets is a weekly podcast that features off-the-cuff conversations with real estate investors and entrepreneurs. Co-hosts Brandon Turner and Josh Dorkin talk about their backgrounds, experiences, and failures. Each episode of the show features a different real estate investor talking about their successes and failures. The goal of the program is to provide a community of like-minded individuals who are committed to building their financial education.

The Remote Real Estate Investor

There are a variety of real estate investing podcasts available, but one that stands out is The Remote Real Estate Investor, which is hosted by Tom Schneider, Michael Albaum, and Emil Shour. The hosts of this show talk about the various advantages of remote investing. Topics covered in this podcast include investing in markets that are far from home, managing a property manager, and identifying markets to buy-in.

Tips for Investing in Residential Real Estate

By W Darrow Fiedler

On March 16, 2022

In Finance, Investing, Real Estate

When investing in residential real estate, there is a multitude of factors to take into consideration. Instead of being overwhelmed, focus on three top factors, and your residential real estate investment will be off to the right start! Avvo.com defines the types of residential real estate as condominiums (privately owned units within larger buildings), townhomes (usually larger than condos but still share walls with one or two other buildings), cooperatives (units within one building where everyone living in the building owns the building together) and single-family houses (usually built on a single lot without having to share space with other dwellings.)

Location Matters – The Huffington Post suggests that when investing in residential real estate, you look for the worst house on the best street. That’s a principle you’ll come across quite a bit as you research residential real estate. “Look for proximity to major roads, public transportation, and most importantly, schools,” says Abhi Golhar, host of Real Estate Deal Talk in Atlanta.

Follow the 1% rule – The 1% rule means looking for a return greater than 1 percent per month of the sales price. An old maxim of real estate says that a rental property yielding 1 percent of the sales price per month is a good deal. In other words, if the home costs $100,000, you should get $1,000 per month in rent, or about a 12 percent annual yield.

Choose tenants wisely – Being a landlord is stressful. Landlordology.com urges that a landlord’s number one priority is to make rent the priority. This is your source of revenue. The site also suggests collecting your rent online or through a mobile source. “There is no reason for you to be collecting rent by a check in the mail. Not only is it time-consuming to go to your P.O. Box or mailbox, keep up with all the checks, and then deposit the checks, but it’s riskier. The check can bounce, and then you’ll need to pay a non-sufficient funds fee and then contact your tenant for the rent and the NSF fee. When you collect rent online, this whole process is negated, and the process is dead simple.” When choosing a tenant, choose wisely by checking their credit score, rental history, and references. Although time-consuming, it will be well worth it.

Choosing to invest in residential real estate is no small decision. However, if you follow the above tips, you will set yourself up for success and before you know it, your rental properties will become passive income.

Direct Real Estate Investing vs. REITS

By W Darrow Fiedler

On February 11, 2022

In Finance, Investing, Real Estate

Many people are confused about how to invest in real estate, as there are many different types of REITs. Real estate investment trusts are corporations that manage properties for investors.

Direct Real Estate

Direct real estate investing is a way to get into the real estate market without having to spend a huge sum of money. It allows you to generate steady and attractive returns by investing in properties that are worth their rental income.

Direct Real Estate Pros

One of the many advantages of investing in real estate is that it can generate substantial cash flow. This can be done through various tax breaks. One of these is depreciation, which allows you to reduce the cost of buying and improving a property.

Even though the stock market fluctuates, the real estate market generally rises over time. This means that investors may be able to sell their properties at a higher price later.

With direct real estate, you have more control over your money and the properties you buy. For example, you can set rental prices, determine how many properties to buy and refinance your mortgage when the market drops.

Direct Real Estate Cons

One of the biggest disadvantages of direct real estate investing is that it requires a large amount of time and energy to be successful. Another disadvantage of direct real estate is that many investors require financing to pay for their investments.

If the market tanks, they may default on their loan. Real estate is not a liquid asset. This means you will not have the chance to sell a property quickly if you find yourself in need of emergency cash.

REITs

A REIT is a corporation that invests in income-producing real estate. It is typically modeled after mutual funds. In the US, there are more than 225 REITs that are listed on major stock exchanges. With a combined market value of over $1 trillion, these companies are the world’s largest REITs.

Pros and Cons of REITs

One of the main advantages of REITs is that they allow investors to access the profits of the real estate market without being bound by traditional real estate investing rules.

With a 5% dividend yield, REITs are likely to have the highest total return potential. They also have the potential to increase their capital appreciation. Like stocks, REITs trade under heavy volume. This means investors can buy and sell their shares without being forced to do so.

Some of the drawbacks of REITs are that they are not considered “qualified dividends” by the IRS. This means they are taxed at a higher rate than ordinary dividends.

Another downside of REITs is that they are sensitive to changes in interest rates.

Rising rates can make their prices go down while increasing interest rates can stimulate demand. One other thing that’s negative about REITs is that they tend to focus on a specific type of real estate, such as hotels. If this type of property is your main concern, then you’re prone to experiencing property-specific risks.

If you’re looking for a more conservative approach to real estate investing, direct real estate may be a better choice. It’s also likely to provide you with tax breaks. The appeal of REITs is that it allows people who don’t want to manage real estate to get into it. They also provide a good way for people who have limited time and energy to learn about the industry.

Winter Home Maintenance Tips

By W Darrow Fiedler

On January 18, 2022

In Finance, Investing, Real Estate

It is essential to make sure that you maintain your home well throughout the winter. No matter what time of the winter it is, checking the various areas of your home on a regular basis can help you avoid an emergency when temperatures drop.

Repair or Replace Gutters

It is vital to keep the gutters on your home clean and repaired when needed. Clearing out your gutters to make sure they drain properly is a great way to ensure that your roof, foundation, and landscaping are all well cared for during the winter.

Make Sure Window Wells are Clean

If you have window wells for the basement of your home, it is essential to make sure that they are easily accessed from the inside and outside. Cleaning them out periodically and making sure the windows are easy to open are good safety measures.

Clean Your Dryer Vents

It is essential to maintain dryer vents to start fires if they get clogged. Adding this cleaning to your monthly home maintenance calendar will ensure that the vent is always clean and less of a fire hazard.

Make Sure Your Heating System Runs Efficiently

Having an issue with your heating system during the winter is never fun. Consider having your heating system inspected to ensure that it runs efficiently and doesn’t need minor repairs. If you know there is a problem, it will probably worsen during the winter because your system is under more stress. It can also save you money in the future if you get the more minor issues taken care of right away.

Get a Plumber to do an Annual Check

Having your sewer lines checked and your water pipes insulated is vital during the winter because having a plumbing problem in the winter is much more of a hassle. You can get a plumber to inspect the pipes in your home to make sure everything is working correctly, and there are no clogs that will worsen when it is cold.

Have Your Roof Checked

During the winter months, it is easy for a home to have excess ice or ice dams that form on the home, which can cause damage to the home. To avoid this, it is crucial to ensure that your attic is well insulated and you don’t already have damage to your roof.