ROI stands for Return on Investment. ROI is a common, popular and easy-to-calculate metric that many people use when they’re comparing one property to another or one investment to another. When you can increase your ROI, you’ll earn more money on your investment home. (more…)
What is the Rental Registration Process in Grand Rapids & Kalamazoo? Professional Property Management
When you have a rental property in Grand Rapids or Kalamazoo, you need to register that home and get it certified by the City. Today, we’re talking about the rental registration process in these cities, also known as Code Compliance. (more…)
Today, we’re talking about team building for real estate investing, business relationships or any successful and competitive endeavors you might be taking on. The team you have in place will make a difference in your level of success.
First, use professionals. Get professionals on your team who know what they are doing and how to get things done. Hire the best. Why would you want to build a team of unprofessional people? It doesn’t make any sense. Don’t trust your money to people who do not know what they are doing. Make it a priority to get the best information and talent you can afford. It will provide a great foundation for an excellent team.
Second, stay current. Make sure you read magazines, news articles and anything else you can find that pertains to your industry. In order to stay relevant, you have to know what is going on in your field of interest and expertise. Things change so quickly, and in order to be successful you have to make sure you and your team are on top of trends and changes.
Third, leverage other peoples’ skills. No one knows everything. When you have other people on your team who come with their own strengths, talents and skills, you can spend your time doing whatever it is you do best. Make sure all of your team’s needs are covered. That way, you can reach out to someone with the right proficiencies and skill set any time you need to.
To build the right team for real estate investing, follow these three tips. If you can hire the best and brightest professionals around, stay current on trends in your field and leverage the expertise of others around you so that you can focus on what you know you do well, you will have a competitive team that will bring you even more success than you expected.
If you have any questions on team building or anything pertaining to real estate investing or property management, please contact us at Access Property Management Group. We look forward to hearing from you.
If you are interested in real estate investing, you should consider smaller markets, such as Grand Rapids. These are also known as tertiary markets. Lots of big investment funds go into larger markets around the country. However, smaller markets also have a lot of opportunity because people are familiar with them. Now is a great time to get involved in such real estate markets.
Be aware of current trends. We have had a lot of foreclosures, short sales and other troubles in the greater real estate market. There has been a big change in the direction of real estate lately. We are seeing a lot of price increases across the board. Take note of these trends. It is hard to predict where the absolute bottom of the market might be, and sure it’s possible for the real estate market to swing the other way again, but right now things look good. You can buy properties below the replacement cost. Look into the numbers, and you will see it makes a lot of sense.
Consider long term predictions. I like to use an analogy of the Great Depression era. My parents were affected by their parents having survived the Great Depression. You have to wonder about the next 20 years, and how many people are going to be influenced by what just happened. A lot of us saw our family and friends lose their homes, and neighborhoods saw the contents of homes being put out on the lawn. This can be traumatic. I am bullish on renting because I think as demographics start to shift and populations begin to increase, renting might be more appealing than homeownership. There are a lot of people questioning the “American dream” of owning a home. It makes sense to invest with the idea that the rental market will continue to grow.
One of my favorite parts of real estate investing is the leverage. For example, if you have $20,000 to invest, you can put it into the stock market and get a 10 percent return on your money. That’s a profit of $2,000, which is a pretty good return. If you take your $20,000 and get a bank loan for 80 percent of a property’s value, you would be able to buy a $100,000 home. A 10 percent return would not be on just the $20,000 you invested. It would be on the valuation of your whole $100,000 property. That’s $10,000. This takes your investment from a 10 percent return to a 50 percent cash-on-cash return on your investment. That makes a lot of sense!
Finally, there are tax benefits to consider. There are deductions for depreciation, expenses and the amortization of your loan. Real estate investing is an attractive opportunity. Make sure you learn as much as you can about it. If you have any questions, contact us at Access Property Management Group.
Today, we are going to talk about the importance of educating yourself before you invest in Grand Rapids real estate. Often, people jump into the investment market quickly in order to make money in real estate. It’s great to be excited and fired up, but if you don’t do your due diligence first, if you don’t learn it and get some education first, you are going to make mistakes the expensive way.
We all make mistakes. Those of us in real estate and business know that mistakes are part of becoming successful. I read somewhere that failing faster is the real secret to success. Making mistakes and failing can hurt, it can be scary, but I feel that if we make mistakes, we can learn from them. If we learn from them quickly, we know how to make smarter decisions going forward. This will help you build a better business and investment portfolio. So, prepare yourself for those mistakes and remember that they are part of your education.
There are ways to educate yourself without making mistakes, too. Read as much as you can about real estate investing. Check out any podcasts you can find online, or look for free webinars. There are lots of online publications you can read and newsletters you can subscribe to. Go to conferences and listen to experts speak. Check them out any time you can, and see if you can get some good advice or access to great resources. Get to know people in your community. It will help your education if you get to know attorneys, accountants, investors, real estate developers, anyone who can help you learn the process of investing in real estate. Ask if you can take them out to lunch or buy them coffee. This will help you earn the opportunity to ask them questions and get to know a little bit about how they work. These types of things will improve your education.
If you focus on educating yourself, you will do better in the long run. If you don’t, you are going to have an expensive learning curve ahead of you. Remember that you are going to make mistakes anyway. The important thing is that you keep moving forward. If you focus on education and action, you will have a successful investing career.
Please contact us at Access Property Management Group if you’d like some more ideas on how to educate yourself before jumping into real estate investments.