What You Need To Know Before You Invest In the Real Estate Market in Houston

The Houston real estate market is growing rapidly, just like the rest of the country and there are numerous opportunities for both residential and commercial real estate investments. If you thought that Houston is a good place to buy your private home only, then you are very wrong because the area has grown tremendously in the recent past and investing in real estate is a booming business. Other than buildings, Houston is an ideal place to invest in land and target people moving to the area to buy land to build private homes and rental properties. Here are some of the things you need to know before you invest in the real estate market in Houston.

  1. You need to hire a competent property management company to help you

The secret behind any successful real estate investment is hiring a reliable and honest property manager to look after your investment. Remember that you cannot be an effective property owner and property manager at the same time. The situation is not different for those planning to invest in the real estate market in Houston. You need to hire a local Houston property management company to help you with the management of your investments if you want to maximize your returns. Local property managers understand how the local market works and can help you to get the best deals.

  1. Investing in Houston real estate is a process

For those who have made their minds to invest in Houston real estate market, it is worth noting that this is a process and not a one-time transaction. Some of the steps involved include finding a good property, investigating the property, evaluate its profitability, negotiating for a better price and financing your investment property.

  1. Know that Houston offers profitable investments as long as they are managed well

Demand for homes and rental properties is on the rise in Houston and its environs and those buying properties now are likely to make huge returns in the years to come. The city is also a suitable place for those who want to venture into the business of flipping homes because properties are expected to continue gaining value. However, it is important to work closely with a local property manager if you want to get a good deal and make good returns from your investments.

  1. You need to get the right information before you buy properties in Houston

It is worth noting that not all parts of Houston are good for real estate investment. We have some parts where properties are gaining value and areas where properties are losing value. It is therefore important to make sure you have conducted a thorough market research in the area where you want to acquire your property and see whether you are going to make gains or losses. Remember that realtors will only tell you what you want to hear because their main goal is to convince you to buy what they are selling so that they can get their commission.

  1. Downtown is likely to be a real estate hot spot

Initially, Houston was known for the suburban growth, but the market is gradually changing and the downtown area is likely to be a hot spot by 2017. More businesses are opening in the urban parts of Houston and demand for commercial properties in on the rise. Those planning to invest in commercial properties should do it now before properties become too expensive to afford.

 

 

7 Fundamental Reasons To Why We All Love Real Estate Investing

Many people love real estate investing because it is one of the most enduring investments that you can always rely on. However, some people still wonder why many people love investing in properties even after the 2008-2009 crisis that rocked the real estate market in the country. The good thing about real estate is that once you buy your property and get tenants, you will enjoy steady income for the rest of your lifetime. Alternatively, if you buy property today and keep it for some years, selling it will be more profitable than investing in stocks or keeping that money in a bank so that it can generate some interest. If you are looking for a long-term wealth, then investing in real estate is what you need. The following are basic reasons why many people love real estate investing and why it is beneficial to long-term wealth.

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  1. Real estate keeps on appreciating

Real estate keeps on appreciating but your income will stop growing after some time and eventually stop if you rely on salary. Therefore, it will be difficult for you to pay $3000 rent in the years to come for an apartment that you are paying $1000 today. However, when you buy your house today, its value will have appreciated in future and renting it will bring you more income. Selling your property in future will also get you good profit.

  1. You enjoy tax benefits

According to the U.S. government, real estate is deemed part of the American dream. Consequently, property investors enjoy numerous tax benefits, unlike investors of other assets. Some of these benefits include mortgage interest deduction, an exchange program to defer taxes, $250000 tax-free gain for single investors and $500000 tax-free gain for married couples when they invest in real estate among others.

  1. Real estate is much easier to understand and manage

If you are looking for a long-term source of wealth that is easy to understand and manage, then real estate tops that list. Once you have acquired your property in a good location, you have good tenants and hired a reliable property manager, then real estate becomes the best business to operate. If you own several properties in good locations, you are assured of a steady source of income for the rest of your life.

real estate investment homes

  1. Less temptation to sell out too soon

Selling a property is not as easy as selling a stock when a market is crashing. The good thing with investing in real estate is that you do not feel like losing your property once you buy. Real estate investors are more patient to wait for the market to stabilize, unlike investors of other assets such as stock. As a result, property owners end up keeping their investments for a longer time and enjoy more returns in future.

  1. Enjoy fixed rate mortgages

The good thing about investing in real estate is that you can get a fixed rate mortgage to finance your property. In this case, your mortgage will never change even 10 years from today and your property keeps on appreciating. As a result, your mortgage liability becomes a smaller part of your overall net worth. That way, you end up being wealthier in future after completing paying your mortgage.

  1. Real estate is a passive income machine

Although many people may argue that managing real estate is hectic when it comes to running after tenants, there is no doubt that rental income is among the best sources of passive income. If you do not want to manage the property yourself, you can hire a property manager to take care of the property on your behalf. That way, you save yourself from property management stresses and wait for your returns to be deposited in your account.

  1. Real estate is the best asset to pass to your heirs

Everybody would like their children and grandchildren to have a better life without having to struggle to make ends meet. No one would like to live like a king today and have his or her children as beggars in future. Real estate investment is a steady source of wealth that you can pass to your heirs. We have heard of some family properties that were bought for less than $20000 several decades back and today they are worth hundreds of thousands or even million dollars. Therefore, investing in real estate not only assures you long-term wealth but also serves as a source of income to your heirs.

 

5 Tips on How to Get the Best Offer in Denver Real Estate Market

In Denver, there are limited properties on offer and it is quite difficult to make a real estate deal or even identify one. Houses are highly priced and it is costly to get a good home near a place of work or popular social amenities. Most of the Centennial property management companies in the region are aware that demand for housing is quite high and they keep on revising their prices from time to time. This is very frustrating to homebuyers in Denver because competition in the region has made many people unable to buy homes. Although real estate in Denver seems to be in favor of sellers, buyers can still get a good offer for their money. The following are some basic tips on how to get the best offer in Denver real estate market.

  1. Consider homes in developing neighborhoods

Home prices are very high in the developed areas of Denver versus those in the developing neighborhoods. Wealthy individuals do not usually look for homes to buy in less established neighborhoods because they believe these areas lack basic amenities. They compete for homes in popular Denver neighborhoods such as Capitol Hill and Cherry Creek where prices are very high. People looking for homes to buy can take advantage of the situation by buying homes in developing areas of Denver such as Skyland and Athmar Park. What first-time homebuyers need to know is that developing areas are rapidly catching up with the rest of Denver. More so, housing is relatively affordable in the developing areas of Denver and soon these areas will become real estate hot spots.

  1. Always have your financing ready

Homes in Denver are like hot cakes, you may get an offer today and tomorrow it is gone. Many homebuyers start looking for property to buy even before they have their financing approved. This strategy may be applicable in other places but not in Denver. Here, you need to have your finances ready if you do not want to find your ideal home and lose it to the next buyer. It is also worth noting that home sellers are more confident with buyers who are financially ready and have some evidence to prove it.

  1. Consider summer for home hunt

Majority of the people in Denver, including homebuyers, are less active during the summer season and many people take a break from routine activities to relax. This is the most suitable time to look for a home to buy in Denver because competition is low and buyers have more bargaining power. For instance, the month of July is the most suitable time to search for a home to buy because many people are on vacation. Moreover, many homebuyers are already tired and take a break to resume searching in August. If you look for a home to buy in Denver in July, you are likely to find better opportunities due to less competition.

denver real estate

  1. Always submit a personal letter to backup your negotiations

Real estate in Denver is wild and homebuyers need to use every possible strategy to have their offers accepted. It is therefore a wise idea to provide a personal letter to help you convince home sellers to accept your offer. Sometimes your offer may not be the highest but you may win the heart of the seller depending on how you explain yourself in the personal letter. Include some personal information in your letter to help the seller understand you better. They may realize why you need that home over another bidder. Some home sellers in Denver are interested to know who is buying their home and for what reasons. In some cases, homebuyers and sellers end up as family friends afterwards.

  1. Do not ignore properties that have overstayed in the market

Many homes buyers are less interested with properties that have been on offer for a long time. However, what many buyers do not know is that the fault may not be with the house itself but the previous buyers. It is therefore good to check homes that come back in the market because they are less competitive. Additionally, owners of properties that have overstayed in the market are more willing to negotiate even below the asking price. It is therefore wise to look for such houses and check why they have been on offer for a long time. Who knows, you may be lucky and get your ideal home at affordable rates.

 

Property Management Fair Oaks CA: Why Rental Prices Are Higher In California than the Rest of the USA

Rental prices in California

Having a shelter is not enough to the majority of the Californians. It is actually the desire of every Californian to have a decent and reasonably located home. In California, people compete for houses close to places of work, shopping malls, schools and recreation centers. Obviously, this is a common phenomenon in the rest of the USA. However, the most unfortunate thing is that rental prices in California are far higher than in the rest of the USA. In fact, the cost of housing in California is very expensive to an extent that many people struggle to find houses that meet their needs at affordable rates.

Nevertheless, many people prefer to live in California instead of moving to the surrounding areas. It is worth noting that the high cost of housing in California has been there for some time, and is actually a major concern for the local policy makers and the state. Property management firms in California know that the demand for housing is very high and keep on revising rental rates from time to time. A good example is property management Fair Oaks CA where rental prices for both multi-family apartments and single-family homes persistently increase.

Generally, rental prices in California are much higher than in other states on average, excluding Hawaii. For instance, in 2013 the median rental price in California was about $1240, which was over 50 percent above the national average rental price. Additionally, the cost of a typical home in California was about $437000 in 2015. This was more than twice the national average cost of a typical home.

What makes housing expensive in California?

Numerous factors have contributed to high rental prices in California. Here are the main reasons why the cost of housing in California is much higher than the rest of the USA:

  1. Less housing in California coastal areas

Majority of the Californians prefer to live within the coastal regions (https://en.wikipedia.org/wiki/Coastal_California). However, most of the houses in the coastal areas of California are private homes, hence there is less housing to accommodate the population of tenants in the region. The fact that there are very few multi-family apartments within the California’s coastal areas has made tenants to compete for available houses, thereby pushing rental prices higher. Tenants who do not get housing in the coastal areas move to the neighboring inland California. This also causes rental prices there to increase.

  1. Land is quite expensive in California’s coastal areas

The cost of land in the coastal region of California is quite high when compared to the rest of the USA. Therefore, real estate investors charge high rental prices for their property to recover money spent to acquire land. Remember that majority of the homeowners in the region use mortgages, which have to be paid. Other than paying mortgages, property owners also need to pay property managers, pay maintenance costs and make a profit on their investment.

Property Management Fair Oaks CA

  1. High cost of building in California

High cost of building is another reason for high rental prices in California. Constructing a house in California is quite expensive when compared to other states in the USA. It is worth noting that the high cost of building materials and labor is actually the main reason for high rental prices. This is not only seen in the coastal region, but all of California. Moreover, government fees paid by property developers in California are much higher than in other states.

  1. California finance structure does not favor residential development

It is worth noting that the manner in which local government’ finance is structured in California does not favor residential development. On the contrary, it encourages construction of commercial properties. Consequently, lack of incentives from the local government discourages developers to invest in residential housing. Many developers in California prefer building non-residential property in order to enjoy the available incentives from the local government.

Generally, the above are the basic reasons why rental prices are higher in California than in the rest of the USA. However, this does not mean that property management is not a lucrative business in California. A property manager in California needs to know that competition is very stiff in the region because tenants go for the best housing and property owners expect higher returns. Therefore, property managers planning to operate in California need to up their game in order to satisfy both tenants and property owners. They will be paid more than fairly if we consider the high prices of rent in the region. One company I’ve had the pleasure of dealing with in the Sacramento area is 2 Rivers Properties. If you’re looking for a property manager in this area of California I recommend contacting them and inquiring about their services.

 

 

Las Vegas Property Management: What to Include In a Rental Agreement

Good property management is very important because it determines whether an investment is going to be profitable or not. Property owners and property managers should ensure that rules and regulations governing the property are not in violation of tenants’ rights or exalts too much pressure on tenants. It is therefore important to draft a detailed rental agreement that covers all rules and regulations of your property, what you expect from tenants and what they should expect from you. The following are the basic items to include in a rental agreement for Las Vegas property management.

1. Tenant details

Rental agreement should have tenant details such as names, place of work, number of adults living in the rental unit and who is responsible for paying rent and taking care of the property. Tenant details are very essential in every rental agreement not only in Las Vegas property management but worldwide. Tenant details form the foundation of any rental agreement.

2. Property maintenance terms

Rental agreement should include property owner and tenant responsibilities in as far as property maintenance and repair is concerned. Rental agreement should state clearly, who will be responsible for damages, repairs, garbage collection and consequences for neglecting property maintenance conditions listed in the agreement. Rental agreement should also state whether tenants are allowed to keep pets or make any modification to the property without involving the property owner.

3. Eviction and lease buyout

It is worth noting that not all tenants are cooperative and some can be unruly or damaging. Therefore, property owners and property managers should be ready to conduct evictions whereby they are required to remove tenants from the rental property. Sometimes this can be a tough moment for property owners and property managers, especially when no eviction terms were included in the rental agreement. It is therefore important to include eviction terms in a rental agreement to help you win an eviction lawsuit if a tenant decided to sue you.

On the other hand, a lease buyout may arise when a tenant decides to pay the property owner certain amount of money to end the tenancy before the end of the agreed. This could be due to various reasons such as when the tenant is unable to pay monthly rent or when he/she has to relocate to other places. It is therefore important to include terms of lease buyout in a rental agreement to avoid complications when a tenant leaves the property before the end of the agreed duration.

las vegas property management

4. Security deposits and other fees

A rental agreement should include all financial information associated with tenancy. This may include rent amount, security deposits, and other tenancy fees to be paid. It is important to state how security deposits will be paid back to the tenant when they leave the house, whether it will generate some interests and what happens if property is damaged by the time a tenant leaves the house. Tenants need to know how they will get their deposits back and other related conditions that may hinder them from having their deposits refunded.

5. Tenant rights

Tenants have their rights too, which vary from one state to another. It important to include tenant rights in a rental agreement so that tenants can decide whether they are comfortable with them or not before moving in. Otherwise, absence of tenant rights in a rental agreement may find property owners in a difficult situation if tenants files lawsuit for violation of their rights.

lease agreement

6. Occupancy limits

It is important to include occupancy limit in a rental agreement. The rental agreement should state clearly how many occupants are allowed to live in each rental unit. This should include both adults and children. Presence of occupancy limits in a rental agreement gives the property owner or property manager legal power to evict tenants who bring in their friends or relatives without your permission. Otherwise, tenants may decide to bring in their friends and relatives so that they share costs against the wish of the property owner.

7. Breaking the lease

It is important to include the guiding terms and conditions to be applied if tenants decide to end the tenancy before the agreed time. Similarly, property owners may decide to break the lease before the agreed time. Rental agreement should therefore state clearly all the penalties to parties that decide to break the lease earlier than the agreed time.

Generally, the above are the basic items to include in a rental agreement in order to have good relationship between tenants and property owners. However, there are more items that are included in a rental agreement, which vary from one property owner to another. If you need professional help, one firm I’ve had experience working with on my property in Summerlin Nevada is Costello Realty & Management. They’ll be able to provide you with further guidance on rental agreements in Las Vegas.