real estate

5 Signs Of A Real Estate Market

January 22, 2020 by Team RE Mentor Leave a Comment

1. Local government funding

A hefty amount of dollars spent by the local government on local development is a sure sign of the revitalization and further development of an area which means that real estate is about to take off in terms of supply and demand.

2. A jump in commercial funding

The relocation of large businesses, the opening up of offices and an influx of new business in an area is also a clear indication that domestic real estate will take off as all those workers, office personnel and managers will need somewhere to live.

3. Expansion of local transportation

An upgrade of the local transport grid, local transport network and or building of new access routes is an indication of the revitalization of an area.

4. A rise in the local population

An influx of new visitors, a rise in the number of 'out of towners' and a jump in the people who normally live in an area is a sign that the particular market is about to become a real estate hot spot.

5. A rise in investment projects

Any jump in investment projects or any large-scale investment in an area, even if it has nothing to do with real estate is one of the signals that the area is about to become a hotbed of real estate activity and you had better get in there fast.

Want to learn more about real estate markets? Go here.

Top 10 Features Of A Profitable Rental Property

November 14, 2019 by Team RE Mentor 1 Comment

Neighborhood: The quality of the neighborhood in which you buy will influence the types of tenants you get & vacancy rates.
Property Taxes: Property taxes are not uniform across an area and, as an investor planning to make money from rent, you want to be aware of how much you will be losing to them.
Schools: If you're dealing with family-sized accommodations, you need a consider the quality of local schools.
Crime: No one wants to live next door to the real-life Breaking Bad.
Job Market: Locations with growing employment opportunities tend to attract more people – meaning more tenants.
Amenities: Check the potential neighborhood for perks that attract renters.
Future Development: Will you be competing with future apartments? Or will the neighborhood lose or gain amenities with future developments?
Number of Listings and Vacancies: Too many vacancies in one area? That’s like neighborhood wentthe bad.
Rents: Rental income will be the bread-and-butter of your rental property, so you need to know what the average rent in the area is.
Natural Disasters: Insurance is a necessary evil, so how much do you need? Is your property in the flood zone, snow zone, or Apocalypse cone? (jk on that last one, don’t ask.)

Learn more or start your real estate investing journey today

14 STEPS TO ACQUIRING A PROPERTY

October 23, 2019 by Team RE Mentor 1 Comment

These steps will help you save time and eliminate risk with your investments:

Decide what size buildings you want to start investing in.
Decide where you want to invest.
Determine what types of multi-family properties you’ll buy.
Put your team in place.
Market to get your deal.
Analyze the deals.
Create the offer or letter of intent.
Negotiate the deal.
Create and sign the purchase-and-sale agreement.
Do your due diligence.
Renegotiate the deal.
Start your financing.
Choose a management company.
Close the deal.

Let’s go through each step.

Allowing Your Real Estate Business to Run Your Life

October 9, 2019 by Team RE Mentor 1 Comment

We all get so wrapped up in the thrill of real estate investing (once you start buying, selling and cashing those big checks you will know what I’m talking about), that it begins to become all-encompassing. We have cell phones, so we don’t miss a call. When the phone rings at our home office we go running like a bat out of hell from the dinner table because this could be the Next Big Deal.

We take calls from contractors and suppliers at all hours and somehow especially on Sunday nights. We allow tenants to have us at their beck-and-call because we fear that if we don’t say “how high” when they say “jump”, they might move out.

Before we know it, our lives are consumed with nothing else. We left our jobs so that we could stop working for The Man, and be our own boss. Now we’ve come to realize that we are working for a much worse boss, a tyrant. That tyrant is ourselves.

How does this happen? It happens because we don’t effectively plan our businesses. I talked about planning earlier in this report. One of the benefits you will achieve from planning is you will be able to create systems and checklists to control your real estate investing business.

Once these systems and checklists are in place, you will know what needs to be done in any situation. You will look at the checklist daily, to review what has been accomplished and what still needs to be done.

You should have checklists for every aspect of your business. Here are some key checklists:

Property Evaluation: Buying right, market analysis, property analysis
Property Inspection: Estimating repairs, formula worksheets, room-by-room analysis
Contractor Management: Bid process, contracts, and agreements
Renovation Management: Cash flow, required activities, scheduling, and contractor management
Tenant Management: Application process, move-in process, leases, and contracts

These are just a few of the many checklists and systems that you’ll need to create and use on a day-to-day basis. Then you’ll be running your business and your business will not be running you.

One of the benefits of systems and checklists is that—as you grow your business and hire people to work for you—you’ll train them by teaching them how to use the checklists and systems. You will train them to complete the tasks associated with each system and checklist. You will supervise them by revising the systems and checklists that they are working on.

This is the fastest way to grow your business.

To get help on systematizing your business, read this book, The Multi-Family Manifesto. It’s a great book that will teach you how to look at your business in its proper perspective.

If you don’t want to create all of those systems and checklists yourself, find someone who already has a successful real estate investing business and find out what they are using. The sooner you systematize, the sooner you will be free to make choices based on what you want to do, instead of what your business needs you to do.

Convince the Broker You’re Serious

October 4, 2019 by Team RE Mentor 1 Comment

Are you a broker or an agent?

If they’re an agent, then ask them for a little information about their broker. An agent reports to a broker so you need to know about them.

What kind of education have you had?

College or professional in-service trainings are good.

What kind of experience have you had?

You want to see experience in the local area as well as in the property type you are seeking.

What professional associations do you belong to?

These could be national or local associations. Check out the various association websites to see if the members follow any stated Ethical Standards.

What local meetings do you attend on a regular basis?

This will give you an idea of where they network. Those networking opportunities might be good for you as well.

Where are the popular areas in the city and why?

You want to know if the city is investing in certain areas.

What type of properties are you seeing for sale?

You want them to match what you are looking for.

Anyone you know of that’s thinking of selling? Anything coming up on the market?

This will give you an idea of how extensive their network is.

What types of properties does their firm seek out?

Do they match your needs or present new opportunities that you have not considered?

Where are you seeing CAP rates and Cash on Cash Returns?

The higher the better.

Who needs 10X when you have Deal Lab? New new monthly membership with constantly updated investor resources, latest real estate trends, mind blowing case studies, and a portal to connect with real estate professionals.

3 Ways To Increase Income Without Raising The Rent

September 26, 2019 by Team RE Mentor 91 Comments

3 ways to increase income without raising rent

Charge "Cuddles" rent, By that I mean … PET RENT

Almost 70% of all households in the U.S. own pets. Charge Fido a small fee and you won't be isolating a large population that could become your tenants, and also the same tenants would love to pay for a convenience upgrade like a pet-sitting or dog walking feature.

Extra Space

Here's a win-win. Set up storage units on the property that a tenant can rent at-will. That way they are not violating their lease and any fire codes by over-stuffing their unit with their keepsakes, toy collections, or seven extra coaches they found on Amazon, or whatever they click-bought yesterday.

Offer Upgrades

Make life a little easier? Sold. Occupied. Laundry services, dry-cleaning, UPS Dropbox, Netflix subscriptions, free WiFi… Pick one or invent your own. Small conveniences go a long way to make a tenant's life even smoother.

Need more ways to increase income? Check this out.