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Top 10 things you need to know before considering rental property:

  1. You must be a people person, have a very high tolerance and be patient
  2. Understand the dynamics of Rental Property from a legal and accounting perspective
  3. Your credit scores should be at least 680 and above as an investor
  4. You should have at least $6,000.00 in accessible money i.e. savings, money market, checking, credit card cash advance etc. as a maintenance reserve
  5. Obtain your own Real Estate license or establish a relationship with a Real Estate agent
  6. Understand how to do your own rental analysis of a property and do not rely on anyone else
  7. Have access to  a reasonable handyman and maintenance worker
  8. Understand the state law and city ordinances for tenants and landlords
  9. Know how to screen for good tenants and deal with bad tenants
  10. Learn the dynamics of Subsidized housing (Section 8) and to profit from it
Real Estate Investment Consulting » Purchasing Rental Property

Purchasing Rental Property

Rough times…

We are living in a recession and job stability is uncertain. Corporations have had to cut jobs by the millions bringing the unemployment rate to its highest since the great depression. Trying to make ends meet, people have been forced to live off of credit cards or drain their savings. Those who use the stock market to save for their retirement are seeing their nest egg dwindle with each passing day and are choosing to use that money now.

Could you use an extra $500.00 per month?

Investing in rental property is clearly the best kept secret in making money in this drained economy. Investors are purchasing properties as low as $5,000 and yielding monthly cash flow as high as $1,500.00 per month after all expenses. These funds could be used for daycare, college education, savings, a new vehicle or even a house payment. Eric Fullilove of KCI, LLC purchased his first rental property in 1996 and knows first-hand the wealth building potential of buying rental properties. Owning rental properties has afforded him the opportunity to walk away from a career in Electrical Engineering. The world’s wealthiest people have realized the value in purchasing rental property. Now for the first time in over 30 years, property values have fallen to a point where the average person can afford to purchase rental property.

The process

The process of buying rental property is similar to purchasing a private home, except there are some additional preparation and fundamental ground work that must be done. In order to be successful, the investor must complete a detailed property analysis to ensure that the property will produce positive cash flow. Many investors end up selling their rental property because they fail to do an assessment of the area, outline the cost of  repairs, and estimate the potential rental income and expenses in relation to the cost of the property. The goal here is to have a positive cash flow after all bills are paid.

“I don’t want to manage tenants”

Millions of people considered investing in rental properties but are reluctant because they don’t want to deal with tenant and maintenance issues. Everyone has heard the horror stories in dealing with tenants and getting calls in the middle of the night. Most of these stories come from irresponsible landlords (Slum Lords) and Landlords who have not treated the properties as a business. The reasons why businesses are successful are because they have efficient systems setup.

Time-tested systems

Most landlords don’t understand how to make rental properties self-sustaining, where the number of telephone calls and problems with the property are limited. We have over 15 years in experience with buying rental properties and own over 30 units, so there are not too many situations we haven’t encountered as landlords.  We have implemented a ‘tried and tested’ system that addresses most tenant and maintenance related issues.

We believe in addressing potential problems by documenting all the responsibilities and consequences of both the tenant and the landlord. Proper documentation also helps to keep landlords from becoming emotionally involved with their tenant’s issues and the property remains a vehicle for making money. When the property stops producing cash flow, it is no longer an investment, but a liability. An effective landlord addresses the maintenance issues and upkeep by making aesthetically pleasing and damage proof repairs to the unit before the tenant moves in. These are just a couple of examples of techniques used in our system to help make your rental property self-sustaining.

Benefits

If you are one of the millions of people who have thought about investing in rental property, NOW IS THE TIME TO DO IT! Even if you think your job is safe or you just want a little extra income to supplement your expenses rental property is the biggest “no- brainer” in the history of the world.

Let us take you step by step, holding your hand and guarantee that you will not fail. We will show you how to purchase rental properties, select good tenants, maintenance pitfalls, analyze properties, and set up a legitimate business.

Our proven system will equip you to:

  • Set up and implement a proven system to be an effective landlord
  • Use Property Management Software
  • Properly document legal and accounting information
  • Protect your assets
  • Understand the key rules and regulations for municipal ordinances and state law
  • Screen and select tenants
  • Understand the subsidized housing system (Section 8)
  • Write effective leases
  • Resolve conflicts with tenants
  • Understand the eviction system and how to avoid it
  • Make your unit easy to rent

We challenge you to pick up the phone right now and dare you to make some extra money or turn real estate investing into a business. You can call our office at (773) 353 8787 to schedule a FREE appointment.