Pros-and-Cons-in-owning-a-rental-property

Pros and Cons in owning a rental property – DC Fawcett

 There are certain advantages and disadvantages in owning a rental property.  Now let’s look at both of them.

The advantages in owning a rental property:

  • Compared to other forms of income the advantages of owning a rental property is less. However, everything goes on in the appropriate manner, you can earn a huge sum from this stream of income.

  • You will be having the benefit of a direct income flow through a rental property. The monthly paychecks will give you an income that you get when you don’t mostly carry out any work. In cases the mortgage is lower than your sum got for rent there will be the advantage of a surplus.

  • All the form of investments comes with a risk and so does owning a rental property. But once you go with this, you may get some reward out of it. The property will see appreciation in due course and your equity investment is balanced. There is also the chance of getting considerable tax break. At the case of selling off your property these two aspects will boost your income. This may also happen when you refinance the property.

  • You will upgrade and maintain your property. The value of the property will be enhanced during this course action and this is called sweat equity. You may involve in repainting the property etc. to improve the value of the property at a reasonable financial cost. This will be useful when you sell it at a later stage.

  • When you are owing and having control of your rental property there is the advantage of independence attached to it. But again you will not be able to earn your livelihood through the profit gained from just one rental property. Having said that, many prudent investors own and manage a huge number of properties which in turn requires lot of commitment and hard work. But the key is that they are in a situation to act out independently.

The disadvantages of owing a rental property

Sometimes the tenants will leave the place in such a mess that you need to repaint it. You may be also put in a situation wherein you have spend lots of money to make the property retain its original attraction.  Sometimes the tenants will even escape from paying the rents.

Not only do you need to have some cash for buying the property but should also have some money to manage it. If the tenant has put your property in a mess you may require lot of money.

The tenant is on the advantageous side when you don’t carry out the required repairs. This may be owing to your financial woes. But here then the law is favorable to the tenant only. It becomes essential to consult a lawyer who is expert in real estate to go through your lease.

There are risks for a rental property including the vagaries of the market. The property may see a depreciation, a succession of bad tenants etc.

Do clarify the questions regarding tax with your accountant.

The final note:

Managing and owning rental properties is one of the several alternatives and it may suit few people. You have to have cognizance of your financial position and your inclination to take up this alternative while moving on with this move.

Dc Fawcett, the founder of the Virtual Real Estate Investing Club, gives some sound advice regarding investing money in rental properties. One could get a fair idea regarding the real estate scenario by going through his blogs.

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Real Estate suggestions

DC Fawcett’ Real Estate suggestions for the year of 2017

Exceeding demands and lesser rates of interest have been promoting sales of houses in 2016. And 2017, is going to be one big year, although with a few limitations. Here are the few real estate suggestions from DC Fawcett.

Home prices have started to go for a steep hike. Particularly, in secondary markets, homes are found to be distributed in areas with exorbitant prices.

The vicinities of Seattle, Portland and Denver will perform well in the real estate market in the year of 2017.  The growth of price is expected to be around 10 percent or 11 percent.  If there is a hike in the rate of mortgage in the year of 2017, normalcy will be restored to the sales. There will be only a smaller price appreciation.

The market scenario is likely to be in favor of the seller in 2017. And, by the year of 2018, there will be exceptions with regard to cities as the Atlantic, New Jersey, and Detroit.

As we are going through the latter half of the decade, ownership of home is a viable long term hold and the choicest savings plan.

Real Estate Suggestions

Here are some Real Estate Suggestions from DC Fawcett to keep in touch with the latest market scenario:

    1. Those who buy for first time – Get the home now:

      Those who want to purchase home should do it right away.  Umpteen homes sales are inclined to be for the buyers who are purchasing home for the first time.  The bidding wars are likely to be vehement in the spring.  Also, there will be a very scant inventory this year.  There will also be less competition for a single unit. There will be a greater amount of aspiring sellers.

    2. Those who sell – Hire the appropriate agent:

      Sellers should spend time on skimming for the appropriate agent.  In case of a bad hire, it can cause loss to the seller, and arduous waiting for many months.

      One has to view the agent’s online marketing material and listings.  Does it furnish a good photo or a video? One has to see whether the descriptions are accurate and relevant, and whether they are without much exaggeration.

      One has to confine the search to just a couple of agents.  Keep it in mind to request for sales reports and listings.

    3. Those who are buying – There are plenty of loan options

      Those who are not able to acquire the mortgages can easily get financing of mortgages.  The alluring interest-alone loans have popped up on the menu once again.  Just steer clear of those loans.

    4. For Renters – This might be the best time to purchase

      In many scenarios, rents have a steep hike than the value of the homes. It has to be noted that the rate of mortgages are low.  There is an impending rise of renters who have turned into buyers.  This is the case if they are to be in the place for 10 years after purchasing.

    5. For Sellers – The Option is always open:

      No sooner than you plan to dispose a property, it could materialize. All that is needed is to raise greenery in front of the property.

    6. Sellers and buyers – Make out the market:

      When the inventory goes up, there is the potential buyer’s market.  Sellers must be more diligent about slashing of the prices and the credits that they can acquire.

    7. Buyers – Be careful when buying near a waterside

      While buying near a waterside, be careful about the harsh realities of weather and insurance.  Many people along the coast are forced to buy flood insurance. Some home sellers and agents very easily get away with not revealing the realities.  So, accurate questions have to be raised by the buyers, and they will have to continue researching on their own.

 

One can get more suggestions regarding the real estate through the blogs by Dc Fawcett. The Founder of the Virtual Real Estate Investing Club. That is the right place to see what is visible in the present real estate scenario – buying, selling, or renting.

Effective ways to get profit in real estate

DC Fawcett –Effective ways to get profit in real estate

Real estate business has always been a profitable business because of the simple reason. It always appreciates. If you purchase the land, it is more reliable as profit is guaranteed once you sell it. Even if you take a small house and sell it, your life changes drastically. However, it is not that you become a millionaire overnight. There are certain aspects that cannot be ignored to earn more profits. DC Fawcett suggests the most effective ways to get profit in real estate.

Effective ways to get profit in Real Estate

Flipping is described as a purchasing a revenue generating asset which is resold quickly for profit. Fixing or flipping is not as simple as it is said. When you buy a house that requires some work to fix it up before selling it. It takes time to get the right buyer, right deal, right financing and right contractor. The house needs maintenance from time to time and repairs if required. If there are any repairs and maintenance, do not forget to add that when you are selling the property. The effective ways to get profit in real estate are :

  • Always stick to your numbers

    You need to know what ARV is. The ARV abbreviation is the property’s after repair value which you are going to flip. It is the final amount that the house or they will be sold after it is repaired, rehabbed and has a white picket fence. It means the purchase and rehab cost is 70% of the final selling price. If you quote more than that, you will be inviting trouble for yourself which affects your investors.

  • Know the local market
    More than the real estate news on TV, you need to know what is happening in your town, city, area, etc. You have to be aware of certain factors in your area and locality such as :

    • Do you reside in the area with rising prices?
    • Do you want to buy this property in a transitional neighborhood or established one?
    • What about the schools and the demographics?
  • Know Your Buyers and Rehab

    After you know the numbers and market, you also need to know what types of buyers are residing in that area and rehab the house according to their needs. In the previous topics, it has been said that you need to do what is best for the customers and not what is best for you as it plays a very important role in the business. You need to apply this fundamental in this case too.

  • Avoid being greedy

    People have the tendency to overprice their property, thinking they can brag and exaggerate about their property when it comes to selling it. That’s the mistake they make. If they are offered the same house at a lesser price, you lose the deal. Even if you undervalue a bit, there is a scope to sell the property. However, this not advisable all the time.

Conclusion

DC Fawcett concludes that Apart from your efforts, you need to use your common sense and be honest with your guides as much as possible.

 

virtual real estate investing

DC Fawcett Virtual Real Estate investing club

If you are a smart investor, thinking about the innovative ways to invest your money, then what are you waiting for? All that you need to do is to take a right decision at the right time. If you are looking for the smart and quick investment, your search ends here. The answer for your query is virtual cash flow real estate. DC Fawcett has explained about the virtual real estate investing in real estate and how does it work.

What is virtual cash flow investing in real estate?

Cash flow analysis is very important for companies and the investors. It is a complicated process which can leave the investors with the feeling of delegating security analysis. If you wish to make money without involving too many risks, virtual cash flow investing is the solution.

Virtual cash flow investing in real estate is an art of making money by buying and selling virtual real estate using real money. In this, the investors start investing in the virtual real estate market. This is an online game in which you can start practicing with virtual cash without any investment.  The game’s version is purely for fun, practice and education. Once you become an expert in trading with virtual money, you can start investing real money in which you can buy and sell virtual estate earning real cash. It is similar to online stock trading. When you buy virtual real estate, the structure does not need re-shingling, re-sidling, new furnace, water heater or foundation. The appliances are unbreakable.

The advantages of Virtual cash flow real estate investment

  1. Risk- free- When you use virtual money, you get a good amount of practice while investing in real estate. Even if you lose the game, you don’t lose anything.

  2. Ownership – When you buy a virtual real estate, you become the owner without any legal formalities. You can sell the virtual property to other players and still earn real cash if you put real cash in it.

  3. No Money – The investor can manage the balances, deposit and withdraw the money at their convenience.

  4. Low cost – The virtual real estate cost is low. There is no need to surf for refinance rates and mortgage. At the same time it is not a deal either wherein it is too good to be true.

  5. Practice – Although the real estate technically does not exist, the entrepreneurs get the practice and education to deal with different situations.

Disadvantages

  1. If you are short of virtual cash, then you have to wait till you get it. As such, it can only be used for practice, but it won’t be accepted in real life.

  2. There is a possibility of winning with virtual cash, but you may lose after putting the real cash.

 Conclusion

There are pros and cons for everything.DC Fawcett  Virtual cash flow may not be suited all the investors as you would have to buy the virtual real estate by paying the real cash. However, you can accumulate real profits in your pocket.

 

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Loan Modification Scams

DC Fawcett’ Loan Modification Scams

Introduction

When a company or an individual asks for a fee to work with one’s lender to modify one’s loan and do nothing to save one’s home from foreclosure, it is called as a Loan Modification Scams.

DC Fawcett says that Loan modification is usually used to forestall foreclosure of homes. But scammers take advantage of loan modification.”There were about 35000 loan modification complaints  recorded by Neighbor Works America from the period of 2009 to 2013,” says DC Fawcett – a real estate investor and educator.

Many loan modification scams begin with a voluntary call to offer services for lowering mortgage payments or to completely escape from foreclosure. In case of mass re joinder law suites against unscrupulous money lenders, the caller usually asks for fees in advance. This fees is the indicator of a scam because while there are mass re joinder law suites, lawyers don’t take money until a legal decision is taken.

Some scammers offer to review your foreclosure documents to check if the moneylender is complying with local and state laws. They usually demand fees for that. In worst cases, the deed or title to your home is usually surrendered unknowingly or with the hope that you can rent out the home in future or purchase it back. These occur in scenarios known as bait and switch ploys.

Seven suspects were charged of loan modification scams in 2014. They fleeced desperate homeowners who were trying to keep their homes during times of crisis. They told them that they had contacts with money lenders who would lower the monthly payments. Homeowners  were told that they would obtain a refund if they were dissatisfied with the terms. These suspects charged upfront fees for that .

How to avoid loan modification scams

Any company that guarantees loan modification or foreclosure is a prospective scammer. Generally, attorneys and lawyers only promise to do their best to help. Modification of a loan depends on many factors such as financial position of both the borrower and the investor. Those who guarantee outcomes without considering the implication of these factors are cheats. So one should look out for them.

Any company or individual who asks one to sign blank documents is a scammer. Lawful companies and authentic lawyers will never ask one to sign something without reading and comprehending. This is done only by scammers who will add information later and DC Fawcett give many suggestions to maintain rental properties.

Some individuals may pose as a forensic loan auditor. They are also scammers.It will offer to review documents related to one’s loan. To tell one that this report can be used for loan modification purposes and the charge fees for that but will often not do anything in return.

Often phony seminars are scams. These seminars offer one free tickets initially. But when one goes there, one finds out that those free tickets were given to make one purchase tickets to additional seminars. The scammers make it sound as if these seminars are amazing but they usually have nothing great.

Conclusion

One must always be cautious of scams as they result in heavy losses. These tips above, by DC Fawcett will surely help in identifying and avoiding scams.

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