03
Apr
By First Rate Financial Group
Real Estate

Real Estate Investing 101: Identify Your Investing Style

Real Estate Investing 101 Identify Your Investing StyleAre you just starting on your real estate investing journey? Many newcomers are surprised to learn that there’s more to making money on the real estate market than buying and selling. These are some of the most popular strategies real estate investors use to create profits. Which one is right for you?

Buy And Hold

Buy and hold investors play the market like stocks. They buy properties when prices are low, then hold them until values are high. During the holding period, some investors choose to offer their properties as rentals. Apartment buildings are also a popular option for buy and hold investors, as these properties are always in demand.

Buy and hold investors might run into problems with out-of-control cash flows. Make sure you have plenty of backup cash to keep you afloat until the next sale.

Short Term Rentals

Sharing apps like Airbnb are changing the way short term rentals are done. Instead of pumping money into sterile timeshare properties, travelers are choosing a more home-like environment during their vacations. Many real estates investors concentrate on maintaining homes in various locations and offering them as an alternative to more traditional temporary accommodations.

Vacation renters can be particularly hard on properties. Check your insurance coverage to make sure you have access to enough cash to repair or replace any damages your visitors leave behind.

Fix And Flip

Made popular by a plethora of cable television reality shows, fix and flippers purchase distressed properties at low costs. They then spend some time correcting cosmetic defects, sprucing up any signs of disrepair, and making the property ready for new residents.

A quick sale ensures maximum profit. However, those can be hard to find. If the market suddenly changes, you could find yourself stuck with mortgage payments you weren’t prepared to meet. Always have a backup plan to protect your personal assets.

Commercial Leasing

From the corner drug store to a multi-unit strip mall, commercial property presents a unique opportunity for more advanced real estate investors. It takes a lot of buying power to acquire commercial property. However, commercial leasers usually last much longer than their residential counterparts, which means a more secure and longer-lasting income stream.

Keep in mind that empty commercial buildings take longer to fill. Check your resources to ensure you can survive a long period at less-than-optimal occupancy.

Real estate investing is a diverse discipline. Choose the strategy that works best for you to enjoy a long and happy career.

If you are in the market for a new investment property, sure to contact your trusted mortgage professional to discuss financing options.

02
Apr
By First Rate Financial Group
Real Estate

3 Pros And Cons Of Renting Or Owning A Home

3 Pros And Cons Of Renting Or Owning A HomeHome ownership is highly valued in our culture. However, buying a home isn’t the best decision for everyone. Examine the differences between owning and renting your home to help you decide if now is the time to buy.

Effect On Flexibility

Renters enjoy more freedom than homeowners. After the leasing period ends, renters are free to walk away and find a new place to live. Homeowners, on the other hand, are at the mercy of the market. Depending on the conditions, owners might have a hard time selling their property quickly. It also takes a lot more paperwork to sell a home than it does to end a lease.

Those who don’t have plans to stay settled for at least a few years might be better off renting their homes. If circumstances suddenly change, they have more options than heavily-invested homeowners.

Financial Concerns

Home equity is a huge perk of ownership. A home equity line of credit gives homeowners a source of quick cash for emergencies or to take advantage of investment opportunities. These loans come with friendly options that make them ideal funding for a variety of situations. 

It’s a myth that renting is more expensive than owning without taking home value appreciation into account. When monthly expenses are compared side-by-side, owners invest more of their income into their living space than renters.

Beyond monthly mortgage payments, homeowners are responsible for insurance, property taxes, and utilities like garbage and water that are generally included in rental prices. In addition, homeowners bear the full cost of maintenance and repairs.

Owning a home can be a safeguard against harsh financial circumstances and give the opportunity for the appreciation of home value. However, for those who are currently cash-strapped, renting may be the more wallet-friendly choice.

Your Lifestyle

When things go wrong, renters can rely on their landlord or management company to coordinate and facilitate repairs. Homeowners, however, are solely responsible for handling the condition of their property. Besides the financial costs, it can take hours of research and dirty work to preserve your residential property.

If you enjoy handiwork, the chores associated with home ownership aren’t such a big deal. For the more technically challenged, however, taking care of a home could become a hassle.

Be honest about your abilities, interests, and resources before you commit to a home purchase.

If you are considering a new home purchase, be sure to contact your trusted home mortgage professional to find out about your financing options and to get pre-approved.

29
Mar
By First Rate Financial Group
Real Estate

3 Ways to Reduce the Environmental Impact of Your Home Renovation Project

3 Ways to Reduce the Environmental Impact of Your Home Renovation ProjectThe right home renovation strategy can increase property values and improve the comfort and utility of your space. However, your actions could have a harsh impact on our natural resources.

Here are several ways you can reduce your renovation’s effect on the environment.

Use Sustainable Products

Choose Earth-friendly materials for a greener build.

  • Try reclaimed flooring. Ask permission at construction sites or search internet exchange boards to find unwanted extras. With a little artistic imagination, you can turn those cast-offs into a unique visual display.
  • Re-purpose existing material. Turn old doors into unique furniture pieces like tables and privacy shades to spruce up your new space.
  • Pick low-VOC paints to eliminate harsh chemicals in your immediate environment.

The best way to lower your impact on the Earth is to carefully choose which products you use in your project.

Evaluate Your Trash

Think about what you’re putting in the dumpster. Instead of taking up space in a landfill, many items can be redistributed and put to better use.

  • Donate household items that are no longer needed in your new space to your favorite charity.
  • Contact your local Habitat for Humanity office to help your community by donating your unused construction materials.
  • Contact your local school district. Some teachers take community donations to use in their classrooms.

Your trash could be someone else’s treasure. Don’t toss out something that others might need.

Take Care Of Your Immediate Area

Your environment includes the area in which you live. Use these tips to keep your property pristine during and after construction.

  • Rent a dumpster to make clean up easier. Pick up tools, trash, and other items at the end of each work session.
  • Use plastic tarps to protect landscaping and plant life from flying debris or chemical sprays.
  • Dispose of chemicals properly. Never pour paints, solvents, or other chemicals into your plumbing system or down a municipal drain.

Protect your neighborhood by taking careful actions during your build.

A home renovation is a fresh start for your property. Make it even more enjoyable by adding these Earth-friendly strategies to your construction plan.

If you’re planning on completing a home renovation, it might be the right time to access some of your home equity. Contact your trusted mortgage professional to learn about the best financing options available.