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What is meant by Real estate closing?

Real estate closing is the handover of the estate title from the seller to the buyer per the sales contract. When the transfer is finalized, the buyer obtains the title as owner of the involved real estate, while the seller takes the money. Once the property is in your name, you can include the fixed assets in your bookkeeping records. The process of bookkeeping is a recognized and well-defined process in the field of business and accounting. Every transaction, whatever the nature (purchase or sale) may be, has to be recorded. The process of bookkeeping helps ensure accurate and timely records.

There are costs and requirements connected with the closing that results in a complex situation. The majority of the real estate closings use the facilities of an escrow agent. This agent works as a third-party for both the seller and the buyer. Both parties know they can trust the agent. The agent coordinates the negotiations between seller and buyer as per the sale and purchase contract. Check out America's Best Bookkeepers

What can you expect during the closing process?

  1. Open Escrow

Escrow is an account retained by the third party in the best interests of the two major parties of the transaction while waiting for closing. For this reason that several things need to happen to complete and finalize the home sale, the most significant way is to have an unbiased third party that has all of the documents and money till the deed gets settled. This way, with a third-party present, the buyer or the seller will be prevented from being ripped off.

  1. Title Exploration and Title Insurance

A title insurance and title search provide peace of mind, as well as a legal safeguard. This way, if you buy a particular property, later on, nobody can attempt to claim its entitlement as theirs, be it a tax collector who thinks he was not paid, or a despised relative who was not included in the family will. A title officer will execute a title search just to be sure that there are no impairments on the title.   Check out America's Best Bookkeepers

  1. Find Yourself an Attorney

This is an optional step if you wish to get a legal opinion from a professional on your closing documents. Don’t think any less of yourself if you need to take the advice of an attorney. Even some of the most well-educated individuals cannot entirely comprehend their closing documents. Your knowledgeable and skilled real estate attorney will not just understand the documents, but also identify where to search for potential problems, if any, in your paperwork.

  1. Get Yourself Pre-Approved for a Mortgage

Even though it is not obligatory to close a deal, if you get pre-approved for a mortgage, you can close the deal a lot more quickly. This is because being pre-approved, the seller will receive signals that you happen to have some solid financial backing. Consecutively, being pre-approved will give you extra bargaining power when you are negotiating.

An additional crucial benefit of being pre-approved can be that certain creditors will propose you a rate lock.

This means you can easily protect yourself for an interest rate on the loan. You will not be affected by the markets if in case, the interest rates increase right before the purchase is finalized.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

In the past, mobile home parks were not the ideal investment in real estate. That is now a thing of the past. The opinion about investing in mobile home parks has changed significantly. After the decade-old real estate market crash, investing in lucrative properties was much more comfortable than before. In those days, investing in property was simple, with an excellent return on investments in a short time.

However, the real estate market today is significantly different than it was 20 years ago. The current market is much tougher than it used to be. Due to higher interest rates, homeowners looking for a new home before the next interest rate hike take up small residential properties quickly.

New investors are starting to get familiar with the do and don’ts of real estate investment. They are rapidly investing and buying the best commercial properties, including the minor multi-family deals on property. On the other hand, large companies with significant capital to invest are scooping up the massive apartment complexes at a price that seems unreasonable to the savvier real estate investors.

Considering the changing market trends, the investors willing to invest in real estate have two choices: they can sit the market out and wait for the market to crash yet again. The second option is that they take a chance with the market and be creative about the different investment opportunities.

One such opportunity is to invest in a mobile home park. Here is why investing in mobile home parks is a feasible decision for keeping the capital safe.

Low Per Unit Cost

The cost per unit of investing in homes and other properties is very high. On the other hand, mobile home parks have a low per-unit cost that makes the investment more profitable than other property investments.

A real estate investment in a mobile home park offers more value per unit with adjusted higher risk returns. The owner of the mobile park owns the land, not the housing units itself. It indicates that the cost of investment is relatively low compared to the number of housing units owned.

Low Maintenance Cost

The most exciting new investment opportunity in a mobile home park is its low cost of repairs and maintenance. It does not require the owner to deal with different contractors for maintenance and repair.

Less Upkeep as Compared to Homes

The mobile home owner is solely responsible for the upkeep of the property once they decide to buy a mobile park as a real estate investment. The expenses for the maintenance of the mobile home park are considerably lower than other properties. 

Lower Risk of Loss

Real estate investors are willing to invest in a mobile park because it allows them to purchase more units for every dollar invested. The risk for loss is reduced considerably, as the mobile park can hold more tenants. Having more tenants minimizes the risk of loss as it spreads out more than owning a home or similar property. For example, owning a property like a single-family home will be more expensive and risky if the tenants enforce an eviction. The damage left by the removal will be an expense incurred by the homeowner. This situation is less likely to arise in a mobile park.

High Demand

Different factors are bound to contribute to the increasing demand for well-maintained mobile home parks. The zoning changes, gentrification, and government-based zoning discourage further investment in mobile home parks. However, the thing is that residential property prices are rising to new highs. However, the average income of the household in the US is not increasing at the same pace. This gap between income and expenditure has forced many families to own a mobile home instead. The high demand for affordable housing has led to an increased demand for mobile home parks.

Reduced Tenant Turnover Rate

Investing in mobile home parks is a better investment decision, as the tenant turnover rate is much less than single or multi-family properties. Tenant turnover is the biggest fear of every property owner; thankfully, the turnover rate for mobile home owners is much less. 

Mobile home park owners are not required to track down new tenants as aggressively as a homeowner. It’s easier to find new tenants for a mobile park owner as more and more people are considering moving into a mobile park for an affordable living opportunity. 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Real estate marketing is one of the disciplines that has always generated the greatest interest in professionals who are dedicated to buying and selling real estate. Being the first to apply the new real estate marketing techniques can make us become a reference agency, due to our operations and customer service. And it is an opportunity that we cannot miss.

There are as many marketing tactics as we can imagine but it is always worth reviewing the bases of customer attraction to implement them with our team.

Real estate marketing is often confused with real estate sales, so agents tend to mix sales and marketing activities with the purpose of attracting clients and properties, resulting in a lack of success in a specific strategy. Now the expert agents are very clear about what real estate marketing is and what they apply first to be able to sell the property easily and quickly later.

 

 

Tips on real estate marketing techniques

Always plan long, medium and short term. Do not get carried away just by the urgent and study with your team what tactics will be decisive to achieve the objectives.

Content real estate marketing. Generate texts, images, videos, that help your client to find you and get from you the confidence you need to rent or buy a home. This is to provide customers with all the valuable information that helps them make a decision about the purchase, sale or rental of any property or property.

The content helps you position yourself in search engines. This translates into the possibility of appearing in the first search results on Google. In the same way, include in your budget to invest in the best spaces of the real estate portals, a key tool to output your portfolio of properties.

The video real estate marketing. The video format is already a must in online environments. The average user is increasingly inclined to access the contents via mobile and videos are a fast and adapted to these screens to assimilate the message. Take advantage of it to get more reach and reach your target audience also through other channels such as social networks. Publish informative, corporate and real estate videos.

In this sense, you can go up one more level and stand out both above your competitors, and in terms of improving management processes and customer service if you incorporate the new sales techniques offered by virtual tour software: instead of videos that show the property, the user can decide for himself how to go through the house and in what corners and aspects to recreate.

Email real estate marketing. There are different tools specifically created to make our lives easier when communicating via email with our database. If you have it well segmented, it will be very easy for your clients to receive automatic notifications and keep up to date with the promotions of your agency. But all that glitters is not gold. Do not use this marketing channel in a distracted way at the risk of it becoming spam. Only by pampering your client through all the ways with which you communicate with them, will you succeed in bringing the operation to fruition.

Include email marketing tools within a global real estate marketing strategy, in which you can have your users located based on their greater or lesser interest on portfolio properties. There are managers who automate this task and discriminate when deciding the interests of each recipient. In this way you will not “bore” your customer base with content that does not interest them or is not useful, making sure that what they receive will get their attention.

If you do not have a team with communication skills, it is always worthwhile to outsource these tasks and make use of specific tools for real estate : 360 videos, image editor, virtual reality, distance tours and much more, suitable for all members of your team generate content that helps sell, totally autonomously.


Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

When it comes to building equity and generating income, investments soon come to mind, right? But how do you know if investing in real estate really is worth it? Is it really that ideal? Especially if you are a novice investor, it is more than common to have doubts whether this type of investment is, in fact, the best alternative. Ready to draw your own conclusions if real estate is (or is not) good investments? Then follow:

 

Why invest in real estate?

Before marking visits, probing consortium or doing financing simulations, anyone who still has doubts about investing in real estate should start to better understand why these are good investments, do not you agree? Among these reasons are questions such as:

 

They are very versatile goods

By purchasing a property as an investment, you become the owner of a fixed asset of high value. This means that it is possible to generate income through the rent, as well as reform it to resell at a more appropriate time, when there is an increase in demand, and so on. More than that, you obviously can enjoy the property, since it’s yours! All this makes it a very flexible investment and adaptable to your needs, as well as the state of the market as a whole.

 

They have good profitability

Taking into account several variables, ranging from location to footage, one can observe a very attractive advantage: profitability. Ever thought renting a seasonal property in a prime area of ​​the city or even leasing a commercial room in a prime location can deliver much higher profits than most other investments? This not only causes you to recover the money invested faster but also ensures a monthly income over the time the property remains under your property.

 

They are safe options

In the investment market in general, it is often necessary to take risks that are not always desirable to obtain profitability. As a consequence, investors are often forced to choose between profitability and security. Already with the investment in real estate, this dilemma simply does not exist. The logic could not be more simple and direct: having acquired the property, the property is yours. And while it is necessary to take certain precautions regarding depreciation, the investment is not lost. This allows you to get the best of both worlds in order to ensure a good structure for your budget.

 

They have good valuation power

Most traditional investments depend on economic indicators (such as interest rates and inflation) to undergo valuation or devaluation. And while the value of real estate is also affected by the state of the economy, they generally hold great valuation power – better than other investments. Imagine, for example, a neutral economic situation with moderate growth and an expected credit supply.

In this scenario, the majority of the investments have appreciation of average to low due to the stagnation of the main economic indicators. The property, on the other hand, can be valued! For this, it is enough to have an improvement of infrastructure in the place or a heating in the offer of credit, for example.

Also worth it in times of instability?

It is very common to hear that investing in real estate during periods of uncertainty is not a good idea, right? And of course, just like virtually every other sector of the economy, the real estate market also tends to suffer from economic stagnation. This does not mean, however, that investment in real estate is no longer a good opportunity. In fact, what happens is just the opposite! Investing in real estate even during these contexts can be beneficial because:

 

The properties are standing in the market

As the supply of credit falls and the financial situation of families becomes more complicated, it is more than natural that the demand for real estate also suffer a decrease. Because it is a more value-added asset, it is no longer a priority (or even a possibility) for buyers in times of instability. As a result, the properties that are on the market are stuck: launches run aground and used properties tend to take longer to find buyers.

But how does this favor your investment? Simple: when you want to buy a property, you become a great business opportunity for those who sell, and hold the power in a possible negotiation. As a result, it is easier to buy the property with facilitated conditions, which would probably not be found out of this situation.

 

Prices are lower than normal

The deterioration of the economy and the delay in real estate have a direct impact on prices, which tend to fall. In this scenario, the price of a property put up for sale may suffer a significant reduction. And even if it is valued, it is necessary to keep up with the demand – which, at the moment, is much lower. When leaving to invest in real estate in that period, therefore, you can acquire a unit with extremely advantageous discounts, making the return on investment soaring.

 

Rental search increases

It’s okay that people buy less real estate in difficult times, but that’s not why they neglect the need for housing. It is natural, therefore, that there is an increase in the demand for real estate leasing. When acquiring a unit at such a delicate time, resale is actually more difficult. On the other hand, you can rent the property, especially if it offers a more inviting price. As a result, the asset can start generating income almost immediately, allowing you to recover the investment early.

 

Other investments become more risky

It is common that general instability is accompanied by economic stumbling. And that is not good for investments. As a result, making other investments becomes considerably more risky than buying a property, which will continue to be your property.

An investment that depends on inflation, for example, can quickly lose profitability when the economic situation returns to healthy levels. The property, on the other hand, only tends to become an increasingly profitable investment for your pocket.


Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Drawing and planned Modern open kitchen in renovated house, before and after
Fix and flip in real estate is the process in which investors buy an abandoned or existing residential property and sell it after renovating it, either for residential or other purposes, like a construction site or a retail shop.

Investors usually have the financial funding to purchase and renovate properties. Even if you do not, you can easily become a fix and flip investor by opting for a loan. Other areas that need to be thoroughly researched for maximum success in this business are:

1. The location of the place that you want to buy

2. The tax rates that are implemented in the state that you reside in

3. The laws of the state regarding the buying and selling of properties.

Here are some things that you also need to consider when fixing and flipping a property i.e. buying, renovating, and selling a residential plot or a barren land for business purposes:

1. Make sure that the property you buy or look forward to buying is legal

2. Always keep a keen check on all of your finances and bookkeeping records

3. Check the market for residential projects that are somewhat like the property you look forward to investing in

4. When renovating, look at the things that a customer is interested in when flipping a property

Types of fix and Flip Loans

 

Fix and Flip Loans related to Hard Money

Hard money loans are short-term loans that are secured by real estate agents and used by fix and flip investors who purchase the property and renovate it. Hard money loans are ideal for investors as they finance properties that are in a poor condition.

The qualifications for getting a hard money loan are lower. The investors receive the funds and the permission to start their work within a period of 15 days. It is famous among both the beginner and experienced flippers because hard money lenders care about the potential value of the household or property rather than the background of the borrower.

Summary

1. Available Financing: 90% of the value of the loan

  80% of the value after repair

2. Loan Term: 1 to 3 years

3. Approval time and funding: 24 hours for approving and around 10-15 days for receiving the funds

4. Interest Rates: Vary starting from 7% to 12%

5. Fees: Lender fees vary from 1.5% to 10 % whereas the closing costs are 2% to 5%  

 

Fix and Flip Refinance related to Cash Out

This is a strategy where an investor finances a property that already exists in order to finance a purchase of new property. This method helps in extracting equity from the already existing property by the issuance of a loan and paying the existing mortgage.

Before attracting any equity, the existing liens (for example, the original amount of mortgage) have to be paid.  Fix and flip investors can finance other investments from the difference between the amounts of the previous mortgage between the values of the new loan.  

There is no limit on how an investor will spend the cash that is received by the cash out finance. Fix and flip investors can utilize their cash out refinances even on the households that are occupied by an owner. 

Summary

1. Available financing: Up to 75% of the value of the property

2. Loan Term: From 15 to 30 Years

3. Time required for approval and funding: From 30 to 45 days

4. Interest rates: Vary from 2.99% to 5%

5. Fees: Lenders fee vary from 0 to 3% and closing costs vary from 2% to 5%

 

Home Equity in the Line of Credit

This loan works like a credit card. Investors issue an extended use of credit that is based on the value of their existing home and use that same credit for the home line of equity. Interest rates charge an amount that is borrowed until the amount is repaid.

A home equity line of credit can be taken alongside an existing mortgage but only on properties occupied by the owner. Although the investor has no restrictions on how they spend the loans, it cannot be taken for an investment residence but for primary residential sites.

Summary

1. Available financing: Up to 85% with the combination of Loan to Value (CLTV)

2. Loan Term: From 25 to 30 years

3. Time for approval and funding: Usually takes 30 to 45 minutes

4. Interest Rates: They vary from 4% to 5%

5. Fees Required: From 0% to only 2% of the lender’s fee

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About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

House Keychain On Old Table
Real estate is one of those businesses that can help you build wealth fast. It can make you a millionaire in no time and can also account for big losses. The constant rise in prices and market values of properties is the real beauty of this industry. However, learning the art of the game is important to have a successful career because making projections through evaluation of bookkeeping and financial records is no easy feat. Investors who have the potential to read the market well can expect to have a long and healthy career in the real estate industry.

Real estate has a lot to offer to stakeholders. From investors (individuals or banks) to the middlemen (real estate agents) to clients—everyone claims their share. However, most investors are the ones who earn the most because of their capital investment and financial risks.

A Brief Account of a HUD Statement

In a real estate business, investors need to abide by rules and regulations set up by the government. Proper paperwork is of extreme importance when applying for loans to purchase and refinance in real estate. Obviously, not every real estate investor is able to finance everything with their own money. Most investors need help from banks for capital financing. The Department of Housing and Urban Development (HUD) is a US government-owned agency that primarily supports community development and home ownership.

What is a HUD Statement?

According to studies, investors who are good at managing and maintaining their business books and statements earn more from high markups on real estate investments. Most investors involve banks for the acquisition of loans for purchasing or refinancing. The HUD is one such statement that gives a complete synopsis of the settlement of funds at the end of a transaction. The services and fees are charged by the lender or broker to the borrower when applying for a loan in real estate. It includes the type of loan, a summary of the borrower’s and seller’s transactions, settlement charges, loan terms and conditions as well as other similar sub-requirements.

Recording a HUD Statement

When it comes to recording a HUD statement in a real estate business, you need to be very careful filing the detailed form. Any discrepancies found in the form will lead to a rejection of loans or credits. Since the statement shows a detailed itemization of all costs pertaining or referring to the real estate sale and mortgage loan transaction, it is recommended to hire the expertise of professionals for ideal recording of the statement. The closing agent has the option to close the statement altogether or treat both borrower and lender’s transactions individually.

Breakdown of a HUD Statement

Closing agents have prior experience in dealing with HUD statements as well as sale and mortgage loan statement. Therefore, they know what each section means and how it must be filled out appropriately. However, if you are doing it yourself, know that buyers are referred to as borrowers and lenders as sellers. It consists of 3 pages and a signature page consisting of figures, lots of figures! It may also include an addendum.

Page 1: Shows the summary of the borrower and seller’s transaction.

Page 2:  Shows details of the associated fees and charges involved with the settlement such as broker fees, loan fees, title charges, additional settlement charges, government recording and transfer charges, deposits reserved with the lender and more.

Page 3: Features figures related to the Good Faith Estimate (GFE) and breakdown of terms of loans.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Real estate agent showing home interior for sale to young couple
Renting a home or apartment can prove tricky and, sometimes, quite complicated. In order to avoid any unwanted circumstances, consider speaking with your real estate agent about these five things before signing a contract:

1. Houses that are Without Furniture look Larger

When a house does not have furniture, it appears bigger than it really is. Therefore, always take the measurements of the house in order to make sure that you get what you are looking for. Buyers often fail to achieve a sense of how much furniture they will be able to fit into a house. Beware of being cheated by spending too much money on something that will not fulfill your requirements.

 2. Ask for any Technical Problems 

Technical problems are often costly and may damage your electrical appliances. Before deciding to rent, make sure that you ask about any technical problems in the house and get them fixed before moving in. Technical issues may increase your utility bill as they increase the voltage used by electrical appliances.

3. Maintenance Policy  

Gated communities often have a policy that the residents are required to pay a maintenance fee to either the property owner or the management bodies of the household. To avoid conflicts later, make sure that you contact the affiliated personnel who manage your maintenance fee.

Decide what to do in the case when major repairs are required in the household. You do not want to end up getting involved in unnecessary issues that are time-consuming and draining your pocket book.

4. Leasing Verbal Tenancy

Different types of tenancies exist which determine the obligations and rights of the tenant and property owner. They differ from one to another depending on the agreement that is made between the tenant and the landlord.

Rentals that are without a lease are known as monthly-based tenancies or the tenancies that are taken at will.  They last only until the rent is paid. Every month these verbal tenancies change.

5. Terminating Tenancy

As many state laws treat verbal rental agreements as short-term leases that are renewable, each lease is terminated immediately at the end of the lease period. If the rent is paid on a monthly basis, both parties, the tenant and the property owner, have the right to terminate the lease with only a month notice. Taking a step like this is beneficial for the landlords as it saves them money and time.

Often, tenants are able to terminate their leases for which they have to inform the landlord 30-31 days before they plan to leave, i.e. a notice period of one month.

If the owner of the property wants to terminate the lease in less time than the notice that was required, they are supposed to follow the eviction procedures that may vary from state to state.

After making sure that you have considered all of these points with your real estate agent, always take into consideration the laws of the state you are residing in. 

Examples of Laws in Different States

1. Alabama
  • Maximum Security Deposit: The amount equal to a month’s rent
  • The deadline for returning the security deposit: 35 days

2. Kentucky

  • Maximum Security deposit: No statute
  • The deadline for returning the security deposit: 30 Days

3.  Ohio

  • Maximum security deposits: No specification
  • The deadline for returning the security deposit: 30 days after moving out

4. Oklahoma

  • Maximum Security Deposit: No specification
  • Deadline for returning the security deposit: 30 days

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

 

Planned renovation of a Open modern kitchen from loft with view on a lush garden
Buying and rehabbing an old home to generate profits is certainly an intimidating task. Perhaps, it is easy for those who possess the relevant skill set, knowledge, and years of experience in the real estate industry. However, those who are new in this field need to learn the art of the game first or it can lead to big losses. There is no denying the fact that the fix and flip approach can generate quick profits but there are also potential threats and risks involved. Real estate developers and sellers usually love to adopt the fix and flip approach as it’s less risky, simpler and can pay you back with more returns than anticipated.

There are four common types of approaches used by real estate developers: fix and flip, buy-and-hold, wholesale and lastly buy, renovate, rent, refinance and repeat. Going straight to the point, real estate gurus love to adopt a fix and flip approach as it allows investors to drain profits from their investment in a very short period of time. They usually have the intention to sell the property as soon as the house renovation is complete to the buyer who will give them the maximum offer.

The more you save on a house renovation, the higher the profits and ROI will be. It depends on your ability to sell the house after renovations at a maximum rate. Fix and flippers usually intend to buy, upgrade and sell properties on a regular basis for seeking quick profits. This indicates that a higher level of involvement in buying, fixing and rehabbing a home can lead to unexpected monetary gains and profits. But that doesn’t mean that the investors who adopt a fix and flip approach can never fail. And, when they fail, they may never reinvest in a real estate development business ever again.

Fix And Flip—A Brief Explanation

What is the best investment strategy across the board? This is one of the most debatable topics among real estate investors. Investors have the sole motivation to maximize their profitability seemingly overnight and one way to do that is to buy properties below market value and, with quick repairs, sell the property immediately to the suitable party with significant markups. Fix and flip is, without a doubt, the best way to generate huge returns. In other approaches, take buy-and-hold for instance, the profits are made over the long haul through cash flow, which means your property appreciates slowly and gradually in addition to giving you rental income.

Which Is The Best Investment Strategy?

All four strategies have their own pros and cons but real estate investors are more into fix and flip, as it provides them with quick returns. This approach is becoming extremely common amid real estate investors due to a large amount of popularity glamorized through celebrity endorsement and TV shows.

How Does It Work?

Investors need to look for undervalued properties in neighborhoods that are stable and have the potential to give you significant returns with minimum investment in repairs and rehab. Most real estate investors who are more into fix and flip investment opportunities have a team of construction workers and contractors who know how to get things fixed in quick successions.

Financing

With some bookkeeping and recording of the condition of a home, you can estimate repair and rehab costs. Involving banks for the acquisition of traditional loans is not a feasible option as investors would have to pay interests on loans which will eventually minimize their profit margins.

Renovation

See where you can cut your renovation costs where possible without compromising the quality of the renovation work. Improving key areas of the house like the living room, master bedroom, bathrooms and kitchen can significantly increase the overall worth or value of the house. Investors and renovation experts need to work on improving the aesthetics of the house and create a desirable look. With fix and flip, investors can almost double the amount of their initial investment, or more, if they transform the house and give it a contemporary look and appeal.

Profits

Once the renovation work is completed, now it’s time to sell the property to the highest bidder. Investors also involve and partner with real estate agents for a fast sell of the property. In return, a small fee is paid as commission to these agents. Investors need to play sensibly and avoid losing money on a fix and flip, so they need to be very careful at auctions. Moreover, by estimating more for repairs, the investors can cover their renovations within the budget. Also, investors need to keep a record of financing and selling costs and be realistic about pricing the home right.

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Mobile home park
A few years ago, if you were looking to invest in mobile home parks, you might have been labeled as crazy. However, times have changed now and so has the opinion of many people. After the last real estate crash, investments in this sector had been lucrative and there was good money to be made. Though, with time, the sector has reemerged and now there is tough competition among single-family homeowners who want to purchase a house before interest rates jump up. The market has, in fact, seen a boom and prices for large apartment complexes do not make sense to small time real estate investors. Only large investors and businesses are venturing into them, it seems.

Mobile Home Parks

In such a scenario, investors can either sit in and wait for a crash or be creative and invest in mobile home parks, which have become quite popular recently. The distinguishing feature of these parks is that the residents own or rent the home while you acquire and lease the land to them. Though it might be hard to acquire the land in the first place, once you are in the game, there is a handsome amount of money that can be made. Here are some of the benefits associated with investing in real estate mobile home parks.

Low Cost per Unit

When you invest in a single family home or large multifamily complex, the cost per unit is on the higher side. However, mobile home parks allow you to spend less and acquire more units. In fact, it has been reported that mobile homes have the highest rate of return and risk ratio compared to any other class of real estate investment. Because you only have to acquire the land and not the unit itself, the cost is significantly lower which enables you to own a lot more units than you would have otherwise.

Low Maintenance Costs

Working with contractors is one of the most grueling aspects of owning a property. With mobile home parks, you don’t have to worry about repairs and maintenance as it is the job of tenants to do it themselves. There will be some expenses related to the upkeep of the park as a whole but they are significantly less than what you would have paid otherwise.

Spreading the Real Estate Risk

Since mobile home parks allow you to own more units, the risk is spread out and you acquire more units for your investment dollars. You don’t have to worry about someone evicting the property suddenly and leaving you with heavy losses because you have other similar investments that continue paying you dividends. Investing in mobile home parks is a great way to secure your overall investment as the risk is spread out across your portfolio.

High Demand

While prices of real estate are rising a great deal, income levels are not rising to the same extent. Therefore, the demand for well-maintained mobile home parks is ever so increasing. Baby boomers who have been living on a fixed income are retiring which is leading to the high demand for affordable housing. Because owning a mobile home costs less than owning any other form of property, many low-income people are inclined to invest in it. That is great news for you as a mobile home parks investor.

Low Turnover Rate

Out of all of the expenses in a real estate investment, the tenant turnover rate is one of the most costly. Repairing and cleaning costs can be significantly higher and you are also stuck looking for new tenants which requires marketing costs and use of other resources. Moreover, you are also losing money because the property is empty and you are not receiving payments.

When tenants own their mobile homes and they are only leasing land, the turnover rate drops significantly. Moving their home out of a mobile home park will cost them quite a bit, so most of them choose to stay for long periods of time. The risk of losing tenants regularly is also minimized which is another powerful benefit of such an investment.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

 

Red For Rent sign closeup against brick building
Rental properties and real estate investments are all about making smart decisions and thinking out of the box with the available resources at hand. It is a great outlay as no beginning is too trivial and no venture is too large. No matter what the scale of your resources is, the opportunities are limitless. There are many benefits associated with owning a rental property, therefore, don’t let the fear of failure stop you from laying the perfect platform for your future investments. You will make mistakes of course, but that is how you learn and grow as an investor.

Rental properties and real estate – start with single family homes

There are many forms of rental estates which include industrial buildings, multi-purpose homes, office buildings, residential housing and many others. All of these have different sizes and prices. However, for starting investment options, it is better to consider single-family homes, as they offer the most rent with the least distress. Also, there are few basic things that you must consider before buying any property if you want it to be a worthy investment.

Property Type

Before you start buying rental properties, specifically single family homes, you must consider living in it for a while. This means that it is a rental property from the very first day and most of the documentation for the property will already be taken care off.

Moreover, many crowdfunding forums have emerged which allow you to invest in any type of property you desire, with as little as $1000. Whether you want to invest in commercial real estate or a residential property, the crowd sourcing forums are a great way to start with minimum risk.

Pick a great location

A great location is key to the growth of any rental property. Any property that is close to major roads, universities, or public transport tend to have higher rental rates than others do. Do your research about other rental properties in the area you are interested in and you will know if the investment is worth it or not. Many people make the mistake of overestimating the worth of their properties, leading to vacancies. No one would rent a property that is higher than the market value unless you offer some extra perks.

Run the numbers

One of the most significant contemplations for real estate investors is to precisely estimate the rental income and the expenses associated with leasing or buying the property. If you are investing in more than one property, it’s important to treat each one as a separate business. Run the numbers individually for each property and estimate their rate of return.

1% rule

Remember that rental properties should pay you at least 1% of the total investment for it to bring positive cash flow into the business. However, this is not a hard and fast rule and many commercial properties pay you a higher rate of return than that.

Correctly estimate your expenses as well while running the numbers. Insurance and maintenance are two of the potential expenses. Real estate often goes through ups and downs and vacancies come with the deal. Therefore, you must always allow for losing at least one month of rental income to such unforeseen scenarios.

Don’t spend too much on renovations

Don’t spend too much on renovations as it will need maintenance anyway. Frankly, renter will not treat the house as their own so there is a large likelihood of damages and repairs that you will need to make. Set out some minimum standards and always meet them but don’t go over them. You can also hire maintenance services for rental properties at an annual cost. They offer a warranty and the costs are spread out over the year, saving you the trouble of dealing with high maintenance costs.

General maintenance should be included in the rental agreement, however, major renovations of condos or townhouses should be done for a certain fee.

Appreciation market or high rentals

This is a critical decision you have to make while choosing a real estate demographically. Some locations have a very good appreciation rate for properties but the rentals are average. Other properties pay you high rentals but do not appreciate in land value over time. The right decision depends on many factors and your preference and long-term plans for the property.

Choose renters wisely

A final decision is to decide about managing the property. If you decide to manage it yourself, ask yourself whether you are prepared to stay on top of the tenants. With all of the benefits of owning rental properties, a troublesome occupant can make it really hard for you to manage it. Also, you should be prepared to deal with a variety of customers. Some will pay late and others will make unnecessary noise. If you are prepared to deal with these situations, get into real estate renting.  If not, it may not be for you.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.