Rental Property Owners – Get Over Perfect

When you live in a home, your own home, you can have it as Rental Property Owners - Get Over Perfectperfect as you want it. From the décor to furnishings to landscaping to cleanliness, your home is yours. When your home becomes an income property and you have tenants, you need to get over perfect.

Do you have control?

When you have a rental property there are some things you can control. You can screen your prospective tenants. You can set certain types of rules. You can’t control the day to day lives and choices of your tenants. Here’s what we mean by that.

Parameters tenants must follow

Your tenants will have certain parameters they must follow. You can decide that you won’t allow pets in your property. Tenants must follow that rule. If you live in a community with a homeowner’s association your tenants must follow their rules about use of the property, what they can and can’t keep on it and so forth. You can limit the number of people who live there. These are big issues that you do have some control over.

What you can’t dictate to your tenants is what they do in your home

What is meant by this is you can’t dictate the amount or type of furniture used. You can’t dictate how they decorate. You can’t even dictate whether they paint, only that they have to repaint it back to how you left it. You can’t tell them how and when they can entertain. You can’t tell them how often they must clean and what shape they have to keep the property.

In short, unless they are destroying your property, hoarding or doing something illegal, how they decide to live is up to them. Your idea of perfect and their idea of perfect may be totally different and you cannot dictate these kinds of things as long as they are paying rent.

So get over perfect and allow your tenants quiet use and enjoyment of what is now their home.

5 Ways To Get Financing For Your Investment Property

5 Ways To Get Financing For Your Investment Property

You’ve decided to get into the investment property business and need to get financing to help you buy your first property. Here are some tips to help you get in the right shape to make your investment the best it can be.

Down payment

First, you will need to have a sizable down payment. When buying a home you can get around the down payment issue by agreeing to pay mortgage insurance for a specific period of time. For investment properties there is no option for mortgage insurance. That means that you will need at least 20% down for a traditional mortgage. Higher amounts for down payments can actually help in the long run since you may qualify for better, lower interest rates.

Credit score

You will also need to be what lenders call a strong borrower. That means a good credit score. Your credit score has the biggest impact not just on getting a loan, but also better loan terms. If your credit score is below a 740 you will be less likely to get better terms, such as interest rates.

Have money in the bank

To keep that better interest rate, you’ll probably need to pay a fee that will probably range from a quarter of a point to two points. That can be a substantial fee. A “strong borrower” also will have money in the bank besides the down payment. Money for things like personal and investment related expenses for at least six months is recommended and will be something banks will look at in their decision making process.

Use a smaller bank

Look at smaller banks as opposed to big ones, especially if your down payment isn’t quite where it should be. Smaller banks will have a bit more flexibility in lending terms and will most likely know the local markets better. They may also be happier to invest locally.

Private loan financing

Financing can also be found through private loans. Some private sources are peer-to-peer lending sites like Prosper.com and LendingClub.com, which connects investors with individual lenders. If you don’t have a long track record with investment properties prepare for some push back from these sources. Individuals may just be a bit more conservative in lending their own money and have more requirements to do so.

Investing in real estate can be a solid way to make money. Just get yourself in the best financial place in order to do so.

The Colorado Investment Property Outlook

If you’re looking for Colorado investment property, hop to it. The rental market is hot and if you snooze, you’ll definitely lose!

The Colorado Investment Property OutlookThough many find it hard to believe, the real estate market in many areas in the US, including Colorado, have become seller’s markets. A seller’s market is when properties have multiple bidders and the advantage is with the seller, not the buyer. This advantage in Colorado isn’t just for people selling homes to live in, but also for those looking to sell rental properties. So if you’re looking for an investment property, now is the time to find one and buy. Housing prices aren’t a roller coaster by any means, they have remained steady. Steady isn’t slow and things are definitely not on the side of the “let’s wait and see” buyer or investor.

Not sure if you want to be a landlord? It is a big responsibility and depending on whether you do things yourself or hire a property management company or Realtor to help, it’s a lot of work, but this might change your mind. The rental market is hot. Homes for rent in Colorado are being rented out the first day they are listed. Not only that, but the norm is multiple people coming to see them. That means you, the landlord, if you have a quality property, will not have it empty for long, and you have your choice of tenant. You can find the perfect fit for your property and a great tenant to value and care for it.

Good investment properties for sale are hard to find, but not impossible. Contact a reputable Realtor to help you through the process and help you rent the property once it is ready to go.

Looking for great investment property in the Denver Colorado area call Tena Deutenhofer today! 303-452-5853

Real Estate Investing – How to Pick a Property

If you’ve been thinking about getting into real estate investing in the Denver or Fort Collins areas, a buyer’s market like now is always a good time to jump in. But do you know what to look for in a good investment property? Here are some ideas for your “shopping” trips.

Real Estate Investing - How to Pick a Property | Denver Fort CollinsWhen looking for an investment property, don’t look at just price keep its location in mind. If the investment property is cheap, but in a bad neighborhood, you won’t get adequate rents. Choose a location with a lot of potential for growth, and think as you are looking “would I want to live here?”

Pick an investment property in a location that will make it easier for you to rent it out or sell it for a profit in the future. Remember that price is important, but if it is too cheap, there is a reason. Make sure to do adequate research, beyond what a seller will tell you, to find out about any property that you are seriously interested in purchasing.

Also keep in mind what type of property you want. Do you want to start off with a single family home, maybe a townhouse grouping, or an apartment building? You have to know what level of land lording you want to take on. If you are new to real estate investing, you might want to start with one house or two at the most. Also, you will need to keep in mind whether you want to purchase a property that will need upgrading. If you do this, go into it knowing time frames to get it ready to rent, costs to do the upgrades and how that will impact what you can pay for it.

You will also want to go into it knowing what rents you can charge. That way you don’t pay more for a property, or pay too much in fixing it up, and end up not being able to make money because you can’t charge enough rent to cover the monthly cost of owning it. You should also know what mortgage interest rates are, what types of mortgages are available for investment properties.

Contact a mortgage professional to make sure you know what you are getting into. Insurance is also something to add to the monthly cost of owning an investment property, especially if you plan to rent it out. If you are new to real estate investing, finding a property that is in a good location, is in good shape, and available to be rented right away is very important.

Getting into real estate investing in the Denver or Fort Collins metro area and want to to find out more? Give us a call today, we are always happy to let new or seasoned investors know about the real estate investing market! 303-452-5853