Ask almost any successful person about the quickest, most efficient ways to build wealth and they’ll point you to real estate. Chances are, you know this and have thought about investing in real estate in the past – but something is holding you back.
Archives for August 2018
Novice landlords often absorb the myth that any income earned from your rental properties is profit. If you’re realistic, though, there’s a lot more to the picture. Budgeting is a big part of it.
The income you earn from each unit may partly qualify as profit, but a good percentage also goes back into the property; at least, it certainly should. For starters, you have predictable expenses such as taxes, mortgage payments, insurance, and utilities.
Unfortunately, the human mind is not a perfect instrument for making decisions. Our brains are hard-wired with cognitive biases that affect the rationality of our decisions, whether we like it or not. Learning to overcome these biases is not as simple as flipping a switch.
House flipping is something every real estate investor has thought about trying at one point or another. It offers a chance for huge returns over a short period of time, but it can also prove to be costly if you don’t know what you’re doing when doing a house flip.
In addition to picking the right property, one of the most important skills is to accurately estimate repair costs on the front end so you maximize profits on the back end. While this is an acquired skill that you’ll become better at over time, it’s imperative that you learn about how to estimate rehab costs before entering into your first deal. … [Read More]
As a seller, you’re obviously inclined to accept the highest-priced offer you can. In a competitive seller’s market, you might receive lots of offers at once, with some of them going well over your initial asking price. Even in a buyer’s market, with plenty of inventory to choose from, you may be forced to consider a lower-priced offer.
In general, the seller’s decision is fairly straightforward; optimize your timing and strategy to nab the offer with the highest price. However, there are some situations where you might accept the lower of two competitive bids, or a price much lower than your asking price.
If you’ve spent time watching HGTV or DIY Network, then you’re familiar with remodeling demolitions. In the Hollywood version, contractors grab sledgehammers and start ripping through drywall and cabinets. You’ll get an opportunity to put a sledgehammer through drywall in your own demolition, but the process isn’t quite as simple or careless as it looks.
When you live a quiet, comfortable life without much conflict or trouble, it’s easy to feel like the world is good and everything is fine. However, when you start to interact with people from all different walks of life, you’ll realize that not everyone has the same good intentions and peaceful mentality. Don’t let this make you pessimistic, but do be cautious and utilize smart safety and security.
As a landlord, you have to hope for the best while expecting the worst in every situation. From a safety and security perspective, this means being vigilant of who you’re interacting with and what risks you face in each situation.
A lot of people have an unrealistic view of what the home buying process looks like – particularly if it’s their first time buying a home, or they have a past experience in which everything went swimmingly.… [Read More]
Have you ever dreamt of designing and building your own home? Do you have Pinterest boards filled with ideas? Do you look at homes and think, I would have done that differently? Building a home certainly isn’t easy, but it’s also not as lofty of a goal as you might think. The most important step is hiring the right builder – of which there are many.
Building a house is a huge responsibility that comes with lots of pressure and decisions. While you have a team of people to handle the intricacies of the process – including an architect and builder – you have to think about the big picture and designing. The more strategically you think about your home’s design now, the more satisfied you’ll be with the finished product.