The Security Deposit Takes Care of it in Selected Cases.
I have been saying for many years that property investments are your best bet for what I call“remote control riches.” You take a loan to buy a house, rent it out, and then sit back and earn rent that helps repay that loan – creating wealth for you in the long run. Whether you invest in one house or ten houses, you have the pride of ownership and you want your property to be well looked after and in good shape. However, a lot of investors wonder – what if the tenant damages the property?
Difference between damage and regular wear and tear.
Let me just clarify here, that the various states in the United States do have different laws and regulations pertaining to tenancy. However, some things are more or less uniform. Regular wear and tear is something that is recognized in most states and is permitted as being a part of day to day use of a property. So, if a tenant hammered a few nails to hang up some pictures, for instance, this is usually OK. Everyday use and such reasonable modifications are generally not considered‘damage’.
However, if there is damage that results out of unreasonable actions of a tenant, or some extreme modifications made to the property, the tenant is bound to pay for these. Typically, tenants will ensure that the house is in decent shape when they vacate it, because of something called the security deposit. When the landlord and tenant enter into the lease agreement, the tenant is required to put down a security deposit for exactly this reason – possible damage to the property. If there is substantial damage, this can be paid for from the security deposit amount. The tenant will receive their deposit amount minus the costs incurred towards repairing the damage.
Legal recourse available to landlords.
However, what if the damage is extensive and the costs incurred are higher than the security deposit? Well, in that case the property owner has recourse to the small claims court. Typically, the court will award damages in favor of the landlord. In cases, it can happen that the damage is significant – more than the security deposit amount will pay for and then the tenant goes missing. When the tenant absconds, the court can award suitable compensation to the landlord, in cases even ordering the garnishing of wages.
So, if you are a real estate investor and landlord(or are planning to assume this role), you don’t have to worry about tenants causing damage to your property. A vast majority of tenants would rather not endanger their security deposit or blot their copybook as a tenant, and will keep the premises in good condition. If they do not, there is always legal recourse available. In the end, these are just minor speed bumps on your road to retirement riches.
How A Few Months' Waiting Doesn’t Impact Your Property Investment Prospect
There are a lot of questions that come my way during or soon after our lively, excitingICGRE Events – our quarterly real estate expos. Where do I invest? What market is good for me to buy in right now? What markets should I avoid? And then I get this question from all the impatient people – what to do if I get on a waitlist for buying property? So here’s what I tell them about waiting lists...
Waiting lists are not a bad thing.
Yes I know waiting can be frustrating. First you go and make that all important decision to invest in real estate – congratulations! This is probably the smartest decision you’ve taken for your future financial security. Then you go ahead and do your due diligence and you research the property market to see where you should invest. The research seems to point in a particular direction. The trade pundits also seem to indicate that X or Y market is a great investment opportunity because it is poised to grow in times to come. So you make up your mind.
Then when you want to take the plunge, someone tells you to wait – they put you on a waiting list. Frustrating? Maybe. A problem? Not necessarily. So, first ask yourself: why are there waiting lists in the first place? This means that it is a good market to buy real estate and a lot of people are seeing the sense of investing in this particular market. This probably means that you're making a wise choice.
Look at the bigger picture.
What is the aim of your investment? It is that you should be able to secure your financial future, right? Maybe you're looking to finance the education of your grandkids or create the sort of retirement riches that help maintain a great lifestyle even in your later years? Whatever your aim is, the fact is that with real estate you're investing for the long term. You're looking at returns 10, 15, maybe 20 years down the line.
So when you take that long view, a few months here or there doesn’t really matter. My advice is that if you're really interested in a particular property market, you shouldn’t let yourself be dissuaded by some waitlist. Just wait for a while and do absolutely nothing. And remember, even after you’ve bought your property, you need to do absolutely nothing! At ICGRE we take care of all the nitty gritty for you.
Check out this episode to know why wait lists don’t really matter; and why you shouldn’t worry about waiting a few months to make the right real estate investment. If you like, you can also check out some of ourInvestor Stories to know how we literally work to put cash in your pocket.
I Practice What I Preach–– It Just Makes Great Investing Sense
For many years now, my firm ICG or the International Capital Group Real Estate Investments has been helping people invest in real estate to grow their wealth. ICG has helped them secure their retirement riches, fund big purchases, kids’ education or just a higher standard of living, they tell me. But they also ask me,“Adiel, do you follow your own advice? Do you invest in property as you advise others to?”
I am ICG’s biggest investor.
My answer to them is, I absolutely do follow my advice. It is my own experience that has taught me that brand new single family homes are the best option. It all started with me wanting to create wealth for myself. As a Silicon Valley engineer, I wasn’t content to just keep grinding away with nothing much to show after decades of hard work.
So, ICG is something that I started for myself and a small group of investor friends. It was born out of my desire to create an empire for myself. It grew from then on, but I still continued to be the biggest investor for the firm. I have invested in literally hundreds of properties. We have closed thousands of deals over the years, and those include my own investments as well. So yes, I certainly follow my own advice and I continue to invest in real estate – same as I tell my clients.
Getting the ICG advantage.
If you choose wisely, the property will start to yield a rental income right away and the prices will appreciate over time to give you great longer term benefits. This is what we help you do at ICG. People tell me how ICG has helped them connect with developers, financers, property managers and so on. We have our ear to the ground and have a network of connections that make it all very simple for investors – what we call remote control investing.
The bottom line is that I put my money where my mouth is. I own more properties than any other ICG investor. Over time, I gained valuable insight into the business of real estate investments and this is the insight that my team and I share with our clients.
I have bought hundreds of homes, and I would buy even more properties than I currently have – except for this small issue. Click to find out what it is.
So, here’s a question I get asked often by investors, after I've explained the advantages of working with ICG: what will it cost me? When I explain how, in most cases, it’s going to cost them nothing, the next question is something like – what’s the catch? Or, then how does ICG make its money? These are legitimate questions, because we all know, there’s no such thing as a free lunch. The answer is, yes, ICG does get paid. However, it isn't you, dear investor, that pays us.
The ICG Real Estate Advantage.
When you work with us at ICG, you are introduced to a whole network of builders, realtors, property managers and even financers. You are given a variety of options and there is always someone there to show you the ropes. I have worked long and hard to simplify the process of real estate investing for my clients, and it works – whether an investor wants to buy one or one hundred homes!
It’s a self-sustaining system, as I explain in this short video. There are a lot of people that are beholden to ICG for bringing buyers and customers their way. It is these people who share their commission with us: realtors, property management teams and so on. However, there are times when buyers have to pay a small amount – as in the case of the Raleigh-Durham area. Here, commissions are really low right now and buyers are having to make up the difference in terms of the brokerage.
Can you afford not to have the ICG advantage?
I think of my own property portfolio as the best advertisement for ICG Real Estate. People see how well I have secured my own financial future and they want ICG to do that for them! We deal in volumes – while the amounts that we make from our various business partners may not be large amounts, it all adds up to a lot.
So really the question you should be asking is not, can I afford to work with ICG, but can I afford to not work with ICG? Check out this episode to know what it’s all about, and check outICG Events to find out about exciting real estate investment opportunities that you cannot afford to miss.
Peter believes that when he started investing in real estate at age 65, ICG helped save him from a life of poverty. Derek is so satisfied with his financial future that he makes it a point to gift my book to people he meets. Niva Lev has the peace of mind that when she is no longer able to work as a physiotherapist, the properties ICG helped her invest in will take care of her. These are just a few of the stories of the ICG Advantage – which comes at no extra cost. I explain more here.
The history of ICG.
It all began when I was a young engineer in Silicon Valley back in the early 80s. I would look at my clever, hard working colleagues – with not a lot to show for their hard work and talent in terms of finances. I decided I wanted more! That was the time when I invested in homes in the Las Vegas area. To begin with, those colleagues laughed at me. But soon they joined me, and before long I was heading a consortium of investors buying homes in the region.
This is when I realized the power of the concept. It isn't just the fact that real estate is probably the one genuinely recession-proof investment there is. It is also the fact that there is power in numbers. And that is why ICG has the power to really help change lives.
Get the ICG Advantage for you.
You may buy just one home – or you may decide to buy dozens. However, you can still avail the ICG advantage. It is simple – you have access to the same developers, property managers and financial resources that I use when I invest in real estate. When you come through ICG, you have the clout that comes from belonging to a large group. We at ICG are people with industry experience so the developers and managers are happy to sweeten the deal for you. They are eager to please me, and by extension, they want to please you!
Know more about the ICG advantage and about securing your retirement riches today(no matter how young you think you are, it is never too early to start planning for your future). Find out how you can secure your future at zero extra cost to yourself. And since there are professionals in charge of everything, you don’t have to take time out of your busy life either. Check out this short video to start planning for your financial future and creating a passive income for you today!
ICG uses single-family home investments, bought in advantageous locations and the best U.S. markets. We enable you to enjoy the clout that comes from purchasing a multitude of houses, even if you only buy one.
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