Special Report From Mountain View Realty
1. Failure to Determine Your Time Need - Cash flow, capital appreciation, tax benefits, loss of management, equity paydown, and pride of ownership are just some of the things that need to be addressed before you make that investment. Service minded professionals at Mountain View Realty can be a tremendous asset by taking the time to evaluate your needs and making sure you've got all your bases covered.
2. Not Checking out the Seller or Sellers Agent's Numbers - Claims of extremely high rates of return run rampant in real estate investment. Don't get caught up in the excitement - check everything: rents, payment history, taxes, expenses, deposits, future modifications... everything. At Mountain View Realty we make sure you have the right numbers... it's like having a good insurance policy against overlooking all the seemingly insignificant but very important details.
3. Forgetting You're Buying a Business - Owning investment property carries with it great potential for creating wealth and... some potentially difficult decisions. Evictions, re-investment into the property, time management all need careful consideration. Remember this is not a "hands off" business.
4. Avoid Negative Cash Flow - Property that eats cash every month can drain your working capital. This creates stress, frustration, and can become quite painful. Predicting constant appreciation is extremely difficult if not impossible for the unseasoned investor. A strain on your cash flow may cause you to sell the investment before the benefits of ownership are ever realized.
5. Failure to do a Thorough Inspection - Look under every rock! Hire a professional inspector. Ask the tenants about pest problems, structural damage or recurring problems. Don't overlook anything! The value driven professionals at Mountain View Realty will help you find the right inspector and can help you avoid costly mistakes. When investing your hard earned money be sure and use sound business judgment!
6. Failing to Have Adequate Insurance - Investment property brings liability. Tenants, cars, parking lots, cleaning facilities, property liability - the list is quite extensive. Adequate insurance coverage is an absolute must! Be sure to consult with an insurance professional and protect your hard earned assets.
7. Inspect, Approve, and Confirm All Documents - The list of documents that need to be proofed can be overwhelming to the first time investor. Building permits, zoning laws, rental and lease applications, health licenses, laundry leases, underlying loan documents, by-laws, title policies, mineral leases, inspection reports, purchase contracts, insurance... don't attempt to do it alone. Let the professionals at Mountain View Realty help remove the stress and bring the transaction to a conclusion smoothly.
8. Get a Bill of Sale For All Property Involved - Many types of personal property (appliances, furniture, fixtures, etc.) can be involved in an investment sale. Be very detailed... know who owns what!
9. Charge Fair Rents - Vacancies, turnovers, and lease terminators are your biggest expense. Charge fair rents, treat your tenants with respect, and respond as quickly as possible to their needs. It's a lot less costly in the long run to take care of the little problems before they become big problems. Vacant property is your Achilles heel.
10. Select Qualified, Good Tenants From the Start - Take the time to check references. Previous landlords, employers, financial references, credit, judgments are all vitally important. If there are any questions do a thorough investigation. Drive by their previous residence. A little work up front can save tremendous problems later on down the line.
11. Make Sure You get Estoppel Letters - Get letters from tenants confirming the status of tenancy. Make sure their version of the rental or lease agreement corresponds with the seller's interpretation.
12. Don't Spend Positive Cash Flow - Most successful investors have free and clear properties. Be sure to re-invest your cash flow back into the property payment and speed up the amortization schedule. This decreases your debt load and increases your equity... which builds your net worth.
Investment property can be one of the most rewarding aspects of your financial portfolio. Be certain to have all your "ducks in a row" before you invest. Do your homework! Let the professionals at Mountain View Realty help relieve the hidden troubles that can plague first time investors.
We hope this brief report has been of value to you. It is our ultimate desire to help you achieve your real estate investment goals and provide you with the most professional, efficient, and effective service possible! If you have any questions or there is any way we can help, please give us a call.