News and Information For Buyers And Sellers Rental Property - Refinance, Don't
You own a rental property for years, and
never see the "big pay-off." Is it time to cash in
on your investment, now that you've paid down the mortgage, and
values are up? Maybe not.
The Problem With Selling
Selling means you'll have to pay a large
capital gains tax. This can be avoided if you reinvest through
a 1031 exchange, but then the point is that you want your money,
right? Also, a good rental gets more income as rents go... (more) Buying Rental Property Safely
Be careful when buying rental property.
We stayed at a motel for a week one winter. The bill showed twice
what it should have, but since I already paid the correct amount
in cash, I thought nothing of it. When we noticed that the lobby
and swimming pool were unheated, we thought it was frugality.
Only a year later, when I read a news story about a new owner
struggling to make the motel work, did I realize what was going
The owner had been planning... (more) Buying Houses For Sale By Owner
Houses for sale by owner, also known as
"FSBOs," are a unique case in real estate investment.
Buying from an uninformed seller who thought he knew enough to
handle everything by himself can be frustrating. It can also
be very profitable if you are prepared.
Why do people try to sell a house on their
own? Only one primary reason comes to mind: To save the sales
commission. Of course they usually underestimate the cost and
complexity of going... (more) Categories of Real Estate Investment
Below are ten categories of real estate,
and different ways to invest in them. The best one for you is
something only you can decide, according to your particular needs.
To help you do that, I list a couple good points and bad points
for each type.
1. Renting single family homes. Good points:
An easier way to get started, and good long term return on investment.
Bad points: Being a landlord isn't much fun, and you typically
wait a long time for... (more) Offer To Purchase - Clauses You
An offer to purchase is a legally binding
document, not just a casual negotiating tool. The moment the
seller of the real estate signs your offer, you are obligated
to live up to its exact language. Since you can write the offer
how you want to, why not include the clauses that smart buyers
use to protect themselves? You can also use language that will
save you money.
The Offer To Purchase - Important Clauses
Inspection contingency clauses. You want
... (more) Do Your Own Home Inspection
Is there any good reason to do your own
home inspection? How about to get a better deal. Every flaw you
can find is a negotiating point. You don't have to learn building
codes, and you probably should use a professional inspector in
any case. The point of learning what to look for is to protect
yourself and get a better deal.
Home Inspection - Use A Checklist
A good home inspection checklist, keeps
you from forgetting things. I have more than a... (more) Ten Creative Financing Techniques
Do all the creative financing techniques
you hear about really work? Yes, actually. They probably have
all worked somewhere for someone at least once. The point isn't
if they will all work for you. The point is to know what is possible,
so you can find your own creative ways to invest in real estate.
Here are ten methods to get you thinking.
1. Hard money lenders. You can ask around
or find these online. They specialize in short-term loans at
... (more) Rental Properties - 10 Cash Flow
What if you want better cash flow from
your rental properties? You can't just raise the rents arbitrarily.
If tenants leave, income goes down, not up. There are other ways,
though, including the ones listed below.
1. Install coin-operated washing machines.
Even if you don't have the money to do this yourself, you can
find a company that will do it for you, and share the income
2. Rent extra parking space. When I got tired of a... (more)