Are All Real Estate Investors Millionaires?

When you think of a real estate investor what do you picture? A millionaire tycoon with huge buildings?

Probably, but the truth of the matter is that most real estate investors are not millionaires, but people like you and me who either are just thinking about getting into it or who have a property or a few. Certainly not millionaires, but people who want to make a good living.

Real estate investing

Are All Real Estate Investors Millionaires?Real estate investing seems like something that is hard to get into, but will make you rich. Depending on your financial situation, credit score, etc., it may be challenging, but it is definitely a good way to make a decent income once you are up and running. So here’s how you get there.

You start with one property

It could be one that you actually go out to find for that purpose, or maybe it’s the home you started out with and kept when you moved up. Either way, with one property you are officially a real estate investor.

How you make an income depends on finding and keeping a good tenant, collecting a fair rent and keeping the property in good condition so it continues to gain value. Oh, and good records for taxes! Part of the way that real estate investors make money is with the tax savings.

Next, do it again

Once you have money banked, buy property number 2. It will take time and effort, but you can make a good life for you.

Hiring a great property manager

On of the things that scares people the most about real estate investing is the thought of having to fix toilets in the middle of the night or getting in a huge shouting match with a tenant who will just not leave.

But never fear! You can hire a great property management company like Denver Realty and Rentals to take care of all that for you. Most investors are surprised by how affordable this kind of service is and love the fact that all the pesky details become someone else’s problem!

Give us a call today if you would like to find out more about hiring a local property management company! 303-452-5853

Is It Worth Making Your Home A Smart Home Before You Sell

Smart homes seem to be all the rage. Thermostats and lights controlled by your smart phone. Refrigerators that send you a grocery list to your phone.

There is so much more that you can have to make your home automated and running from an app or apps on your phone. So is it worth it to make your home a smart home before you sell? Probably not.

Unexpected

With the exception of “techy towns” like Niwot and Boulder, or some types of executive homes, most buyers, even high end buyers, won’t expect to find smart homes. They may not even have a need or desire for a smart homes or they may not want the level of it you have installed.

As with other improvements to your home, you need to weigh the cost against the expected return

Having your home wired to be a smart home, buying the equipment, updating to smart appliances and all that entails, including fixing walls that will need to be cut into for wiring and new plugs and such, will run you thousands of dollars. The return on that isn’t going to be thousands of dollars.

Ask your Realtor

If you aren’t sure whether to do it or how far to go, ask your Realtor. They know the market, who will be looking at your home and how much they will be willing to pay to have those kinds of updates. Remember, a million dollar home may benefit from it, but a hundred thousand dollar home probably won’t.

A trap

Don’t fall into a trap of spending money for a return you won’t see. Talk to your Realtor and see what will help sell your home and spend it there.

What Do You “Have” To Leave When You Sell Your Home

You are selling your home and are wondering what you can and can’t take with you. Should you be able to take all the things you added to your home? The answer is no. There are certain things that you need to leave behind, or replace, when selling your home and they are referred to as fixtures.

Fixtures

What Do You "Have" To Leave When You Sell Your HomeIn real estate law fixtures are pieces of personal property that have been attached to the property so that they become thought of as part of the property.

Typical examples of this are heating and air conditioning systems, built-ins, flooring, tubs, sinks, etc. The basic rule of thumb is will taking this out of the home damage it.

Sounds straightforward, right?

What about wall hung tvs?

Well, not so fast. Some buyers expect that short of furniture, everything is a fixture and conveys with the property. That means all appliances, curtains, lighting, ceiling fans, and even televisions that are attached to the wall. Now you know that some of these things aren’t for sale with the home, but does the rule of “removal causes damage” mean you have to leave your 55-inch flat screen behind? Or that family heirloom bookcase that you have screwed to the wall in the study?

The answer is yes and no

You should plan to leave curtains, ceiling fans and light fixtures behind. As for that heirloom bookcase, remove it and replace it with something you can leave behind before you put the home on the market.

Specify in your listing what appliances are staying or not, and if possible replace them with others that you will leave behind. Typically, kitchen appliances are expected to stay, others can be negotiated.

Fix any damage

As for your flat screen, be unequivocal that it is going, remove it and fix any wall damage prior to the final walk through. Be completely up front with the buyer about items that are staying or not, be willing to fix any damage and you will be set to settle without any drama!

5 Smelly House Problems and How To Fix Them

Have you ever seen the TV commercial about an air freshener that goes like this “you think your car [room, etc.] smells like this, but your friends smell this” and change it to a smelly mess?

5 Smelly House Problems and How To Fix ThemWell, you may be inured to the smells in your home, but people coming to look at it to possibly buy it aren’t. Smoke, cooking smells, pet smells and others are all very obvious to others. You’ll need to fix them if you expect to sell your home. Here are some ideas for the smelliest of the bunch.

Smoke

If you smoke, or have a smoker in your home, you know how it gets on everything. Even if you or they don’t smoke in the house, just the transfer from their hair and clothing sticks. Air fresheners aren’t going to get rid of it. Depending on how heavy the smoke smell is in the home, you will at the very least need to wash all fabrics, steam clean carpets and furniture and repaint. If you or someone else is a heavy smoker, you may need professional help in getting the smell out.

Pets

If you have pets, they too can be smelly. Small pets like mice, rats, gerbils, hamsters or guinea pigs can be smelly if their cages aren’t kept clean. Best bet is to find someone who can take them for you while the house is on the market (same with lizards, snakes, etc.) If you have dogs, make sure your carpets don’t have old accident stains which can also be smelly. They also shed, so bathe the dog, vacuum, mop and dust often. Find someone to take them when showings are scheduled or at the very least crate them. If you have cats, keep the litter box clean and scooped and remove it during showings. If your cat is shy and will hide when people come over, you can leave them in the home, if not, take them with you.

Food and cooking smells can be bad too

Try to avoid cooking. Keep kitchen linens clean and fresh. Don’t cook fish until the house is sold! Also nothing too onion or garlicky.

If your bath has a moldy or mildewy smell clean and get rid of the mold and mildew.

Not sure if your home smells? Ask a friend to come over and give you an honest assessment.

What Does A “Good” Property Management Company Do?

You are a landlord in need of a property manager, but there are so many out there. So how do you decide? What does a good property management company do so you know who to choose?

What Does A Good Property Manager Do?

A property manager’s main job is to manage, repair and

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maintain an owner’s property all while keeping the hassle to the tenant and landlord and expense to the landlord to a minimum.

Property owners are renting a property in order to fulfill a goal: pay the mortgage on it and make a profit, keep it from being empty which costs money in ongoing expenses and lost revenue and keep the property in good shape so when it’s time to sell it’s ready.

A well maintained property keeps its value, and also keeps the tenant happy and paying rent.

The property manager is who your tenants can call in an emergency. A proactive property manager has the skills to keep the emergencies from happening, or have the skills to fix most things keeping those exorbitant repair bills from happening.

The property manager also deals face to face with the tenants on rent issues, and, if necessary, has a “back up” list of tenants to fill in an unexpected vacancy. For the non-paying tenant, the property manager deals with the eviction process for you.

What Do Property Managers Charge?

The management company will charge a fee to do these things, so you will need to be sure you find one that is reliable for the money you pay them. But the fee is worth the peace of mind you will have knowing that your property or properties are well cared for and you won’t be having those nightmare situations quite as often!

Property management fees can range from 10%-15% of the rental price and may have a “signup cost” when you sign on.

Bottom line, the maintained value of the property and continued rental due to the efforts of the management company to collect the rent, and to keep the property from being vacant, is worth the cost of the of the service.

If you would like to work with a good property management company in the Denver area, give Denver Realty and Rentals a call today! 303-452-5853