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

How To Find The Best Property Management Company

You have investment properties and need a great property How To Find The Best Property Management Companymanagement company. You already know you can’t do it yourself and the services of a property manager or property management company will be a huge help. So what can you do to make sure you find the best one? Your homework!

Talk to other investors and start a list

One thing to do is to talk to other real estate investors to see who they use and how they feel about the service they receive. This may be the best way to start the list of companies to consider. Be prepared to ask questions. Ask about cost. Ask about what services are provided. Ask about response times. Ask about any issues they may have with their current company and others they’ve used.

Research

Now that you have a list, start your research. Internet searches can give you some good information. Read the good and the bad and see if the reviews match what other investors told you. Look at their website. See what is included and what isn’t. Does their website have full contact information, including full corporate name, physical address (as opposed to a P.O. Box) and phone/email addresses. Why is this important? Because if they are willing to hide the information you need to do a good background check on them, then you don’t want to do business with them.

Due diligence

Now take that information and do your due diligence. Check with the Better Business Bureau for consumer complaints. Remember that complaints may be from tenants as well. These are important because to tenants, the property manager is an extension of you, the landlord. Check with the state/county/city to find out if they are licensed if required by law. Check the state and local court systems for any suits filed against them or judgments against them. Check state and/or local criminal record databases for the company principals and those who will be actually working on your properties. Their names should be readily available on their websites.

Now weigh the results and choose your property management company!

If you are looking for a great Denver Investment Property Management company, give Denver Realty and Rentals a call today! (303) 452-5853

Real Estate Investors in Colorado | Should You Rent to Dispensary Owners

The new law in place in Colorado legalizing marijuana may have you, as a landlord, confused about renting your property to a marijuana dispensary owner. There are no laws in place prohibiting you from not renting to them, so you might want to consider a few things in making your decision. As a real estate investor it might or might not be a bad idea.

Real Estate Investors in Colorado | Should You Rent to Dispensary OwnersColorado has had legal medical marijuana dispensaries for a few years. Now retail dispensaries are legal. Opening a retail dispensary has a lot of rules and regulations, actually, 57 pages worth! Understanding some of them may make it easier to decide if a dispensary owner would be a good risk as a tenant.

First, an owner must have a Retail Marijuana Establishment License. This licensing procedure means extensive background checks and rules. Not just anyone can get a license. So the person applying to rent your property will have to pass some stringent requirements, probably many of the same that you would require of a tenant.

Second, they must have a separate storefront for their dispensary and growing facility. There is absolutely no selling out of a home where marijuana is concerned. So your concerns of people coming and going from your property to buy pot should be put to rest. Also, their pot must be strictly tracked and disposed of. Tracking records must be very detailed and any thrown away must be completely destroyed.

As a landlord, you can restrict people from smoking cigarettes in your property. Marijuana is no different. So any dispensary owner bringing home some for their own personal use can be prohibited from smoking it in your property.

Financially, dispensary owners may be a good risk. News reports say that they are making money hand over fist. Other issues about banks and cash only businesses are being worked out, so the risk of break-ins is lessened.

In the end it comes down to this: If you personally have issues with pot, you can’t be prohibited from not renting to dispensary owners. You can also rent to them and put rules in place for your property. In the end, it’s up to you.

Real Estate Investors – Should You Rent to People Who Lost Their House in the Mortgage Crisis

Real Estate Investors - Should You Rent to People Who Lost Their House in the Mortgage CrisisReal estate investors, you all know what happened to the housing industry. The question is, “should you rent to people who were foreclosed during the mortgage crisis?”

In 2008 the housing bubble burst. The economy took a nose dive that the country is still recovering from. Millions of people lost their homes when values drastically fell. Many people found that their dream home became an underwater nightmare as the mortgage crisis deepened. All of those people had to find another place to live as their dreams faced foreclosure.

Many real estate investors who had rental properties asked themselves “should I rent to a person who was foreclosed? Are they a good risk?” Knee jerk reaction would be no. Obviously: they didn’t pay their mortgage! There may be more to the story.

As a landlord, you take a risk every time you rent your property. Eviction takes time and money, and can result in damage to your property by a vindictive soon to be ex-tenant. So you do things to protect your investment. Credit and criminal background checks, and so forth.

In the case of a tenant who lost their home to foreclosure in the mortgage crisis, this is even more important. Why? Things like credit reports can show a lot about a person’s financial history in total. What kind of credit risk were they before the recession hit? Did they pay their other bills? Was there an extenuating circumstance like a medical emergency that pushed them over the edge? Or were they deadbeats who didn’t pay anyone? Talk to the prospective tenant and get their side, then verify with the background check.

As a real estate investor who wants to rent your properties; another way to protect yourself? Get more up front. A larger security deposit, plus first and last month’s rent in advance. With millions of people who need to live somewhere, not renting to someone who lost their home will limit your pool of prospective tenants. Don’t keep them out, protect yourself. Check them out, be smart and get larger deposits. Those “deadbeats” may turn out to be some of your best tenants.

Real Estate Investors Tips – Keeping Great Tenants!

For real estate investors, the best tip anyone can give you is how to keep great tenants. There is plenty of information out there on how to get rid of bad tenants, and how to screen for good ones, but why not just keep the good ones you have in the first place?

Real Estate Investors Tips - Keeping Great Tenants!As real estate investors, the first and best rule is the Golden Rule: treat tenants they way you would like to be treated. Remind yourself that you have a good tenant. When they call, answer the phone. If you can’t, return their call as soon as you can. Even if you can’t fix the problem immediately, call the tenant right away to let them clarify any questions you have about their issue and let them know you’re working on it. Don’t over promise and under deliver, under promise and over deliver.

Another good idea is to be proactive. Real estate investors should maintain the property and its systems so that service calls are unnecessary. When you want to set up a maintenance call, be willing to work around the tenant’s schedule. Let them know you want to keep the property in good shape for them.

Always remember when dealing with tenants that life happens. People can have unfortunate things happen to them. Jobs can be lost, people die, and medical bills get overwhelming. If your tenant has been reliable, be willing to work with them. If you help them, they will most likely be grateful and remain a good, loyal tenant.

A good tenant who is in a $400 a month apartment is worth more to you over the long run than a bad tenant in a $4000 a month property, so be kind. Don’t make assumptions about people based on the amount of rent they pay. Discrimination is wrong, and illegal, so treat everyone well, until they prove to you they don’t deserve it. Be fair but not a pushover.

As real estate investors the best solution is to hire a management company that treats your tenants as if they were their tenants; one who does business by the Golden Rule.

We follow ALL of these practices with our client’s tenants! If you are looking for a GREAT property management company in Denver or Fort Collins, give us a call today! 303-489-9737