Let’s say a great investment opportunity pops up that you can turn around in just a few months, but you need to move fast to secure it. You don’t have the funds in your bank or your partnership, and, in any case, creditworthiness is a bit short for a traditional bank loan. Where can you get quick financing to seize this project?   Private investment groups known as “hard money lenders” make high-interest, short-term loans based on the asset, not the borrower, so creditworthiness is a minimal factor.These hard money lendersfill the gap created by the cumbersome lending processes of Read more…

Doing due diligence on prospective tenants helps you make sure that you are not moving a landlord’s nightmare into one of your most important assets. Tenant screening can be time-consuming and sometimes troublesome, but you can save thousands of dollars over using professional leasing agents or property management companies.   Here are four essential must-do’s to help you find pleasant, responsible tenants:   Do not be in a hurry to sign a leasewith the first applicant that comes alongsimply to fill a vacancy, unless they fully check out as an excellent prospective tenant. Waiting for the best tenant will be Read more…

So, you’ve decided that property management is the way to go for your investment property. Perhaps this is because you live far from the property, don’t have the time, or lack experience yourself and want a professional on the job. I’ll share my experiencewith a word to be sure every item on this checklist is covered before committing!   Communications   By some reports, the number one complaint that property owners have about property management companies is lack of communication. Make this a top priority, not an afterthought.   How quickly are phone calls returned by someone who can address Read more…

If you feel your real estate investing business is running you, instead of you running it – if you feel you’ll never have time to do even half of your best project ideas – if you feel the endless list of daily tasks is getting in the way of business growth – you need to stop everything you are doing, and read “The E Myth” by Michael E. Gerber. If it is possible for one simple, well-organized book to save your future as a real estate investor business leader, this is the book.   Real estate investors are entrepreneurs of Read more…

My experience with property managers shows that there aregenerally three types. Those types are the good, the bad, and the ugly! Some do an credible job of providing a valuable service for both the property owner and the tenants. But, I have found that some can do more harm than good for a property owner who is paying a considerable sum for their services. Here are six lies to be aware of when you are screening to hire a property manager: 1)    Claims that they can lease the property for more than anyone else.No, they haven’t cornered the market. Anyone Read more…

No one ever enters into a business partnership thinking “this isn’t going to work!” (OK, almost never.) Of course, all parties beginning a partnership believe in sunshine, daisies, and a beautiful waterfall of profits flowing in at just the best timing. What could possibly go wrong?   Savvy investors know only too well there is an endless list of grim possibilities that destroy harmonious relationships, problems no one believes will happen– but sometimes they do. Disagreements over the terms, or over project decisions, or even a clash of personalities may finally come to a head.   In addition, sometimes only Read more…

Hiring a property management company to do the work may sound like a relaxing way to maintain an investment rental property … but you need to be aware of these 6 pitfalls before you commit!   1)      Skipping calling other client property owners for references on this property manager. Don’t assume the manager won’t give you unsatisfied clients as references – the manager may not know what their property owners really think. Or, they may not have any better references to give and are betting you won’t call! Even better if you can find one or more clients on your Read more…