Valuation Of Your Investment Property – How Does Your Asset Appreciate?

If you have invested in real estate, congratulations – you’ve made one of the best possible investments to secure your future. One of the natural questions for any investor would be about the value of the property they own and also about how that valuation has risen over time. The whole idea behind real estate investments is that the value appreciates over time and helps you create wealth. This not only secures your financial future but even that of your kids. There are several ways to find out about the value of your property…

What is your property worth?

The first inkling about the value of your property may come in the form of feelers that you may receive from local brokers and realtors. You may receive emails or messages asking whether you want to sell, possibly with offers from potential buyers. This tells you that your property is valuable and desirable. You may not want to sell just yet, but it is certainly useful to know the demand-supply situation in the market.

If you want an exact value of your property, you can always hire an assessor for the job. These are people trained in making valuations based on square footage, the number of bedrooms and bathrooms, the amenities of the home, and the area/location.  For those looking to refinance, this is a necessary requirement in any case. Banks and financial institutions will ask for a proper assessment of a property to secure their lending.

What is Zillow and how can they help?

Going online for valuation can also be a good idea. There are many very competent services out there, and while you may not get an exact valuation, you can get a good, reasonably accurate ballpark figure. One of the services I have found to be useful for this is Zillow. According to the Washington Post, this real estate marketplace company has a database of over 110 million American homes. The service has a very low error rate when it comes to valuations. They include off-market homes, which makes this an even more interesting proposition. The company offers to value a home and also offers aerial views, comparable prices in the area, etc.

Valuation services offered by companies such as Zillow is one of the topics that we are going to be discussing in our upcoming online real estate seminar. We will also be looking at other useful topics for investors such as property insurance, asset protection, and so on. Additionally, we’re going to be talking about filling out college applications such that you can secure more aid than you thought possible. You can register for our event for free. Check out the Events page to make sure you don’t miss out. 

Rental Property Inspection – To Do Or Not To Do, And Why?

Rental property inspections are something that a lot of our investors wonder about. Do you need them? Don’t you? When do you need them and who should perform these inspections? I get this question a lot – should I have my investment property inspected before I rent it out to a tenant? So I tell these people that this is not quite the question they should be asking, as I explain in this video.

When to get a rental property inspection.

There is no particular value in getting a property inspection of a home you’ve just bought. I'm going to go out on a limb and assume that you’ve done the smart thing and bought a brand new single family home. Since this is a new home, it comes complete with a new everything and there is nothing that really needs your attention.

However, if you asked me whether you should get a home inspection before buying a property, I would say that this idea has some merit. Getting a professional to inspect property before buying it could help identify any issues with it. If so, you could approach the builder/ seller with those issues to help rectify them. In this case, that property inspection would be a good idea.

To get a property inspection done after buying your investment home and before renting it out is a little superfluous in my opinion. It is also usually unnecessary to get your property inspected after one tenant leaves and before the next one takes over.

What kind of rental property inspection do you need?

As I said above, probably the most sensible time to get a property inspection is before buying your investment property. A professional will inspect the property for $300-$400, and that money could well be worth it, especially if it helps you detect issues and rectify them before you buy the house.

In a lot of cases, even this may not be necessary because the local broker will usually inspect the property on a walkthrough. With their trained eye they would be able to inspect the property more thoroughly and identify issues/ potential issues better than most buyers would. And later, when you're ready to hand over your property to the next tenant when your existing tenant vacates, your property manager will be able to assess the property for you. Again, here, their insight and experience will count for a lot. They will be able to tell you whether you need to make changes or repairs, or whether the place needs some paint or sprucing up before the next tenant moves in.

To conclude, there is no one size fits all solution when it comes to getting a rental property inspection for your investment home. There aren't too many scenarios that actually justify the spending of several hundred dollars for an inspection. However, if this is something that buys you peace of mind, go for it by all means!

Check out my video on this topic for more details. In fact if there are other questions you have about investing in real estate, our property expo may be just the thing for you – register for free and know more about our Remote Control Retirement Riches formula. 

Best Places For Real Estate Investment Could Be Across The Country

Are you nervous about taking the plunge into real estate investing? Well, you aren't alone. It can be intimidating to find the best places for real estate investment, make the decision to invest in something worth several hundred thousand of dollars, all the paperwork, and other variables. Further, the idea of investing in a home that is far from where you live – possibly thousands of miles away – can be even more nerve-racking. Again, feeling this way is normal, but largely unnecessary. In this short video, I explain why you don’t need to be nervous about buying a home far from where you live.

Considerations to keep in mind when investing.

It doesn’t matter where you live. What matters is where you invest. What matters is identifying the best places for real estate investment. What matters is the ratio of the value of the house to the rent it’s going to fetch. What matters is how well your rental income will help you repay the loan you’ve taken.

So, for instance, if I buy a property in the San Francisco Bay Area for about two and a half million dollars, I have to think of the rent this will fetch. If it is going to get only about $5700 or thereabouts, then it doesn’t make a lot of economic sense. Buying such an expensive property will also mean a huge loan and bigger down payment.

On the other hand, if you're paying about $280,000 for a house elsewhere and then you're being offered rent in the region of $1900 a month then this makes sound economic sense. This means that your loan isn't going to be as big, and your loan-to-rent income ratio is much more feasible. So, as I always advise investors, there should be considerations other than where you live that should decide where you should invest.

You can buy anywhere you choose among the best places for real estate investment.

You could live in one corner of the country and buy a home in a whole other corner of the country, and you would have nothing to be nervous about. While it is natural to be nervous about the whole process, this is only because you're doing it for the first time. I can tell you, I was nervous about my first home too! However, by the time a person buys their second, third, or seventh home, they will be almost bored with the whole process. Because now they know there was nothing to be nervous about in the first place. And not much to do either once it’s been rented out.

Now, the investor knows that the property manager will take care of the day-to-day overseeing of the property. The investor can choose to visit their property but they don’t have to. They can keep in touch with the property manager and get monthly updates – there is really very little for them to worry about. With the kind of communication technology we have at our disposal today, it really doesn’t matter how far away your investment property is from where you live.

If you have any other reservations about investing in real estate, you could reach out to us at ICGRE at any time. To know more about our Remote Control Retirement Riches formula that has guided thousands of investors, sign up for our quarterly real estate event.

Does Your Investment Need An Upgrade? Your Property Manager Has the Answers

It is always my advice to investors to choose to buy brand new single-family homes to secure their financial future. This makes the most sense within the context of our tremendously successful Remote Control Retirement Riches formula for a number of reasons. For one, a nice looking new home with brand new everything will fetch you good rent. Secondly, single-family homes are what people are looking to rent these days, with a yard, maybe a home office, in a nice neighborhood and a place to raise a family. And then there are other benefits…

No need for home improvements.

Another great benefit of investing in a brand new home – it is a new house so by extension everything in it is new and shipshape. Amenities and appliances are not out of date. Nothing is broken and things don’t need repair or maintenance. So in my experience, 95% of the time, there is no need for an investor to spend time and effort in home improvements before renting it out.
That said, it is important to note that there are times when the builder may not include certain items in the total sale price that has been negotiated. This can differ from place to place and even builder to builder. For instance, in Tulsa, it is common for the builder not to include fencing of the home that they sell. In other places, blinds may not be included. In such cases, it then becomes necessary to make some minor additions or alterations to a new home prior to renting it out.

Rule of thumb – ask the property manager.

In the event that you are re-renting your property after a tenant vacates it, some improvements could be needed. If, for instance, you’ve had a good, steady tenant for several years, there is bound to be some wear and tear, and a few repairs needed here and there. In this case, it may be necessary to maybe repaint the home or have it deep cleaned or make a few repairs.
The thing to remember is that there is always help at hand. Your property manager is the person with market insight and local knowledge. They are the ones to help you when you're in doubt. They will tell you what expectation a tenant may have and whether it is a reasonable one to fulfill. They may advise you that by making a few modifications you could expect a higher rent. Or they may suggest, say, steam cleaning the carpets after one tenant leaves and before the next person takes over the house.
These are some of the things that we will discuss in our upcoming property expo. At this event, we will also be having some experts over to explain aspects of asset protection or insurance, what is advisable, and why. We plan to cover several such aspects of real estate investing, which current investors as well as would-be investors would find educational. Visit ICGRE Events to know more and register for free. 

Find Out How to Earn More From Your Investment Property

 

So you’ve bought a house as an investment to secure your financial future and now you lease it out. Now you have to safeguard your investment and do a whole lot of things to ensure that you maximize your investment property benefits. There is now so much to do: make sure the rent is paid on time, deal with the headaches of repairs and complaints, make sure your investment is in good shape, calculate inflation impact… right? Wrong! As an investor, you do precisely nothing! That is precisely what our Remote Control Retirement Riches formula does for you: it takes care of it all for you so you have complete peace of mind.

The Remote Control Retirement Riches formula.

The kind of investment that offers the best returns and the most peace of mind is the single-family home. This is what young professionals and families are looking for right now. So firstly, choose brand new, good quality, single-family homes. Opt for the large metropolitan areas in the Sunbelt states – this is where the economic activity is; where people are looking for homes to rent and live in.  

The other vitally important aspect of investing in real estate is to opt for the 30-year fixed-rate loan – this is the one instrument that will actually make you happy about inflation. No matter what the rate of inflation, your repayment amount is going to remain the same. It is quite amazing, and if an investor did not take advantage of this financial gift, I would question their judgment!

My team is at hand to show you the ropes, to advise you about the best markets in the US to invest in currently, to guide you through the loan and purchase processes. Now you simply lease out the brand new home to create a passive income source for you, and your property manager takes care of the rest.

It’s a difficult job, but someone's gotta do it!

And what is it that you have to do as the investor? Precisely nothing! Once these essential elements of your investment are in place, you sit back and do nothing. Yes, it is difficult to do nothing, but someone’s gotta do it! You don’t have to worry about the day-to-day management of the property. You don’t have to deal with the rent collection. You don’t have to deal with the cantankerous (hopefully not) tenant. You certainly don’t have to worry about inflation.

As you can see from the foregoing, maximizing the profit on your investment property is really a lot easier than you may have thought. With everything put in place and managed for you remotely, there is really nothing you need to bother your head about. You can be on the West Coast and have your investment property several states away with not a thing to worry about.

If you still have questions about how to maximize your investment property profits, you can reach out to us at ICGRE. Better still you can sign up for our free quarterly event, our Real Estate Expo where we will be discussing ways to maximize profits, and other aspects of real estate investing. You have nothing to lose and everything to gain!

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