Should You Self Manage Your Investment Property?
Whether you purchase investment property on your own or happen to inherit it the question of whether one should self-manage the property does come up. By self-managing a property the owner can save money that they would otherwise pay in monthly management fees, save on tenant placement fees and be allowed to shop around for the best prices from contractors. On the other hand a property manager may be able to make you more money out of your investment by treating it exactly as it is which is a business. This article looks at whether real estate investment owners should self-manage their property or turn it over to a property manager.
What Does A Property Manager Do?
A skilled property manager (PM) more than just collects rents and places tenants. Property managers need to be doing just that, managing the property. That not only includes collection of rents and placement of tenants but also includes managing the tenants and managing the tenants and their interaction with your asset. PMs should be inspecting the property on a regular basis to make sure tenants are not abusing the place they live in. While some minor wear and tear to a living space is to be expected, things like broken windows, broken doors, damaged walls, trash disposed of in the wrong place will quickly lead to degradation in the value of your investment asset which means the amount of rent you can take in could also decrease. When PMs notice tenants being too hard on their living space they should be requesting the tenant to live in their rented space according to the lease and other rules set out for them. ...
Mortgage Scams To Watch Out For
Whether you are looking to buy a home or refinance an existing mortgage it is helpful to be aware of potential scams and pitfalls to avoid. As with anything involving money too many con artists are willing to put in effort to separate you from your hard earned money. This article looks at some common mortgage pitfalls and/or scams that could end up costing you more money than it would normally.
Fake Mortgage Lenders
Most mortgage lenders are required to be registered with Nationwide Multistate Licensing System & Registry (NMLS) which keeps a record of all licensed mortgage providers. The NMLS does not issue or revoke anyone’s mortgage license but keeps track of individuals with mortgage licenses so as they work with different organizations in the industry they are tracked. In fact lenders can be looked up by their names on the NMLS Consumer site. With the NMLS Consumer site any information related to the person being looked up is self-reported. Lenders who have had their licenses revoked by their state for whatever reason will be reported as having a suspended license. If you have any doubt about a particular lender ask for their NMLS number and look up their information. With as many legitimate lenders that are out there, if one makes you feel uncomfortable then look for another lender. No one particular lender is going to have the magic formula to suddenly cut your interest rate in half or prevent you from being foreclosed on. Most...
6 Great Tips For Selling A Home With A Tenant
Whether you purchased a home for investment purposes or inherited a home with a tenant and now no longer want to deal with the property it still can be sold even with a tenant in place. Sometimes you are unable to have the tenant move out since there may be a lease in place and the cost to buy out the lease may not make financial sense. With high interest in individuals wanting to buy investment real estate it can make sense just to sell the home with a tenant in place since a future potential buyer may like that the home is already cash flowing. Whatever the reason may be, selling a home with a tenant in place is something can be done as this article will explore.
If a tenant is on a month to month lease then now is not the time to have them sign a long term lease as the next buyer may be looking to buy the house for themselves rather than own as a rental property. With a month to month lease the tenant can generally be given thirty day notice to move out and be moved out before closing if that is what the buyer wants. In fact some buyers may include as part of their offer the requirement that the owner have the house vacated prior to closing so the buyer can move in after closing. If the tenant is on a long term lease then the owner does not need to make changes to the lease but should have a conversation with the tenant if they would be open to a lease buyout. With a lease buyout the owner is offering some money to the tenant to cancel the lease early and move out. The owner needs to know ahead of time if the tenant...
What To Know About The Home Appraisal Process
Whether you are selling your home to someone buying with a mortgage it or working on refinancing your existing mortgage you will have to get an appraisal on your home. An appraisal is prepared by a licensed Appraiser who looks at the condition and features of your home and compares them to other similar homes in order to come up with an opinion of value. As long as your appraisal meets at least the sales price during a sale or meets the value the mortgage loan refinance is being based on you should be fine. If your home ends up getting appraised for less than the agreed to sales price or less than the value of the refinance is based upon the purchase contract or refinance could fall through. This article looks at how best a homeowner can prepare for an appraisal so they put their best foot forward to ensure the best chances of success.
When Does An Appraisal Happen?
Once an offer on a home has been made and accepted, and usually after a home inspection has been done (the buyers are comfortable with the home inspection results), the buyer’s lender will put in a request for an appraisal. Generally the homebuyer is required to pay for the appraisal and may be asked to pay for it at the time it is scheduled or they may pay for it at closing depending on lender requirements. Once requested it may take up to seven to ten days for the appraiser to actually come out to the home depending on how busy the home selling season is. After the appraiser has visited a home the actual appraisal report should be issued within a few days. When a lender is involved the appraisal report will be given directly to the lender from the...