Benefits of Real Estate Investment Trusts (REITs)

Equity Real estate trust investors are able to own commercial real estate without any inconvenience of managing it. Real estate investment trusts can purchase and manage commercial real estate through their experienced management team. So, in management there is no as such hassle.When you buy shares in Real Estate Investment Trusts, you become a partial owner of the commercial properties. According to this, you are now partial owner of an operating business that manages the properties for the purpose of profit. Real estate investment trusts traded on major stock exchanges. They are modeled after mutual funds. Some of the real estate investment trusts are handled privately.


Real estate investment trusts(REITs) deals with wide range of properties which include shopping malls, hotels, schools or college campuses, factories, houses etc. they do not deal with limited properties. REITs hire the best management team to manage and handle everything. The team work on managing properties and the other core propose is to maximize rental income and profit. At the corporate level the Equity Real Estate Investment Trusts are not taxed at all.

Property Management Without Any Chaos.
In Real Estate Investment Trusts (REITs) you are allowed to own commercial real estate as an average investor. If you are having experienced property managers you are able to enjoy the benefits. They work for you to make your profit without any chaos or headache. For this purpose, you have to be careful while selecting your managing team and property managers. They have to deal with rent collection, tenant management, collecting dividend, facilities, maintenance and marketing.

Returns on Dividends
It is the decision of management what to do with the amount of dividend. With the equity stock the management takes decision about the dividend whether it should be paid to investors or reinvest the dividend amount. How much dividend profit should be paid to investors and how much the amount of the profit should be reinvested. In case of Real Estate Investor Trust 90% of the profit disburse to the investors. Here the investors themselves decides what to do with the amount of dividend. As in this case the decision is in totally their hand so, they decide whether the dividend amount should reinvest or not. Or how much of the amount should be reinvested. If you want to go on vacation with the dividend you can go. The all decisions are yours here in REITs.If they want to reinvest they purchase more shares. Dividends are usually stable. In case of real estate investment trusts dividend increases with the increase of rents. You are able to realize the appreciation here with the increased value of property in the trust.

Return Through Appreciation
Real estate investment trusts are stable for long term normally so they performed well. They enjoy appreciation of commercial real estate. The risks like short term fluctuation in inflation and interest rates do no impact on commercial real estate and Real Estate Investment Trusts.

Low Volatility.
Equity stocks shares enjoy higher volatility while in case of Real Estate Investment Trusts shares you enjoy low volatility in prices. The reason behind this is the two important factors are predictable, that are rental income and management expenses over the short term and long term. In equity stocks there in low prediction about profit. Whilst in the case of real estate investment trust the rental income is predictable. The experienced team and analyst can predict the performance easily. They can do accurate predictions for real estate investment trusts. This prediction reduces the siren of share price volatility.

Low Correlation.
Real estate investment trust (REITs) have also the factor of low correlation to the performance as compare to equity stocks shares performance. Their share prices performance is low in correlation so, they do not act like equity stocks, bonds and other asset classes.REITs are very useful for portfolio diversification. So, when stock prices are down REITs perform better.

 

 

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After Repair Value (ARV)

When we talk about real estate investing the purchased property requires rehabilitation in some way because of the flipping factor in buying and selling. You should know how to calculate (After Repair Value) if you are in business of real estate. The knowledge of calculating After Repair Value is essential because only that you will be able to take best decision regarding investing or flipping the property. After Repair Value is property’s value after repair. Your property’s actual worth after repairing is ARV. When you want to renovate your building and the expenses incurred on it that price is Repair Value. After fixing the building damages the rest value your building is giving you that is worthful. Experienced real estate investors know to bring back your homes in adequate condition and what should expense out according to area. What renovations bring into homes according to the price and area. Experienced real estate investors are fully confident about fixing amount and After Repair Value of the building.


How to calculate After Repair Value?

If you are new in real estate business even then you can calculate your property’s After Repair Value. It is not complex thing to do. An easy formula can be used by anyone.

Formula:
Current value of property + Renovation Value = After Repair Value
Figuring out the values of these two factors can be little tricky. For calculating the actual value, you must know the current value of property and renovation value. If we talk about the current value of the property, everyone always goes with the purchase price of the property. Buying the property at a deep discount is required on the front end.It is just as feeling confident that you will have a buyer at the price you need for profit is on the back end.

In between discount and profit, those two ends there is a fixing stage that is essential to calculate. This is the point where the profit gets at peak. Here the risks are also higher. Usually, fixing a property is just like repair and cosmetic but the amount may vary and it seems like remodeling and extensive rehab amount.

Maximizing the amount after Fix-Up

It is tricky to estimate the correct cost after renovation. You want most value out of your renovation. To find out profit or lost which one is made you have to follow these steps:

  • Buy the material at discount and estimate it rightly. You have to do some homework for buying right material at discount. Visit rehab stores and liquidators for material not only big box homes.
  • Try to know all the capabilities of your contractor. You need to supervise your contractor full time. You need to check the quality work and it will be done in appropriate time and budget. Do not exceed from your budget.
  • Budget is always based on your buyer. If you are going to be selling in the commercial market keep the materials in the acceptable range. If you are selling in the consumer retail market finishes it up with buyer demand and want.

Finding Competitions.

Always remember you are in competition with other local area’s property. Make your property competitive. This is the final touch of your property’s After Repair Value. The new look and renovation make your property worthful and competitive with other property. You can go with Comparative Market Analysis when all the work is completed at your home. This is the survey usually novices do to check the rise and shine of their property. It shows how competitive your property is with other buildings and how much you are better than others or what the loopholes you left.

The Fundamental Factor.

The winning points to fix & flip or fix-to-rent real estate investors must address carefully:

  • Are you capable of doing the repair work of the property?
  • Are you able to locate and properly supervise contractors in getting the work done?
  • Have you accurately estimated the cost of all repair work?
  • Can you get an accurate After Repair Value of the property?

If you did these things accurately then you can make yourself a profit.

 

 

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Flipping the House from Thanksgiving to Christmas

This is the week that husbands dred, wives look forward to, and kids love. All of the fall and Thanksgiving items need to be packed and put away, and the trek down to the basement begins. All of those boxes and strings of lights and maybe even a tree can get disheartening quickly. So this article will break down the best strategies for flipping the house from thanksgiving to Christmas a smooth and efficient process.

Step #1: Donate

Donating items to goodwill during thanksgiving can be a great thing to do, and enjoyable for the whole family! This is a great way to find new homes for old clothes, decorations, and other items that have been taking up space either in the basement or the house. It’s a truly rewarding feeling getting the chance to take things that have meant a lot to you, and give them to someone else to make memories and to enjoy being in a new home.

Step #2: Plan
Before just lugging every box up the stairs, make sure you have a plan in place for where you want everything to go. Also plan for what type of tree you want, live or fake, as this will make a difference as well. Figure out what items in the rooms need to be changed or moved before you move them. These simple steps will lead to a lot less frustration and produce more efficient results.

 Step #3: All Hands On Deck
This day can often be a time where you feel like the kids need to be dropped off at grandma and grandpas so you don’t have to deal with the craziness. However, this is a great time to establish family traditions! Try buying each child an ornament every year that symbolizes something special they did that year. Or build gingerbread homes together and have a decorating contest. You can even go as far as making this a “no phone” day, allowing you all to focus more on each other.

 

Step 4: Enjoy

People can get so caught up in these days that they often lose sight of having fun and being present in the moment. This is the holidays after all, it is supposed to be fun! Enjoy this day and enjoy the weeks ahead celebrating the holidays and getting your home ready for winter! Remember to decorate the outside and the inside with these tips!

 

 

 

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How to make Tenant management More Hands-Off

When you get into property management, chances are you think that you’re going to build passive income immediately.  Usually, they’re not totally passive, but you want to make it as passive as possible.

How do you make it more hands-off? Well, read on to find out.

First, you want to screen the tenants for longevity, respectfulness, and not just for the likelihood of getting payments.  Usually, you focus on payment, and while it usually is 90% of the work that the landlords focus on, you should also look to see how long they’re going to be here.  If you screen them and see that they have hopped around a bit, that may determine whether or not you want them.

If they stick around, they can be a better investment, so you may want to consider putting them in over the person that hops around a lot. You can also ask the landlord about their unit, and how high-maintenance they tend to be, and usually, if they aren’t too annoying, that could be considered a great investment.

You should also set up reminders for renewals of the lease, and raise the rent.  Usually, there are laws that the landlords must give the person before they raise the rent. If they’re low-maintenance, ideally, you can send a non-renewal notice. If they’ve worked it out, you can send them a lease renewal notice, and a slightly higher-rent. You should always set the rent slightly higher each year, about 1-4%, depending on the market.  This also sets up expectations to also keep you on the market, and you don’t want to slap the tenants with a giant rent hike or anything too, cause that drives them away.

You also want to have a handyman that can do almost anything. Most of the time, the maintenance calls are mundane, but you should have someone that knows what they are doing.  You should make sure that you get someone who is well-versed and knows what they’re doing, and you should definitely build a relationship with them.  You should make sure that you create a good repute so that they want to stay there. This will help because if a tenant calls you about a maintenance issue, you can get one phone call out to resolve it, and you will be able to build a good relationship with someone.  One call beats five calls, that’s for sure.

You should also make sure that you’re not hustling for the rent, and you can do that by automating the rent collection from a paycheck. Once again, you didn’t do this because you wanted a second job, but instead, you should make it so that it’s passive income.  You should make sure that you get a service that works for you, and as a company, it can save you a lot of time if you set this up.

You should then hire a leasing agent with point BrEEze real Estate, but also make sure that you do your own management.  There is a lot that goes into it, and typically, while the units are occupied, you have to do all of the other little things that involve that. Turnovers take a lot of work though, and you should consider getting a leasing agent to help with this they can advertise for you, get any questions answered, advise on repairs, show off the property, and even screen applicants.  You can then have that person, along with the handyman do that, and it can save you so much time.  You do want have to pay a leasing fee to the agent, and you don’t have to pay ongoing fees, which get expensive.  You essentially delegate the hard part but do the easy part yourself.

When making your life easier with managing a property, here are a few things that you can do. By doing this, you’ll make the job much more manageable, and in turn, it can make everything simpler for you. You don’t want this to be a second job, right? Well, you can prevent that from being the case, and make your life as an investor either, by considering these options that in turn will help you manage your life better.

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Bring Out Summer in Your Home

Often, we dream of the warm and calm weather that summer can bring to us, even if we’re out in an area where winter winds blow through town and temperatures drop to a low level.  However, did you know that your home can look like a getaway in Florida just with the use of some great interior decorating?  From color schemes to faux stone panels, often, many people don’t realize that the home you live in can be tweaked to match the decorating needs, and you can help maintain a warm atmosphere in the home, even when the temperatures outside are far from home.

Now, some people might do this by choosing a summer home that is bright and breezy, with all of the odds and ends people want such as various courts to play sports, and even areas to engage in water sports.  But, you might not have the ability to do that sort of thing.

Often, having a summer type of home requires a home to be both causal in a sense, but also elegant as well.  You should learn to equate your happiness with color.  Choose a color palette that is varied, but is warm at the base of it.  You can start by choosing a white base, whether it be warm white or a cool white, and then change the various whites in the different rooms.  Indigo and black in some houses creates a crisp color, but it also helps keep the place from being muddy.

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When you’re decorating your home, you might want to put in various summer themes to help accent it.  Installing ledges with faux Stone panels around the fireplace area, or even the entertainment center, helps create a natural and elegant view.  Faux stone panels can be directly installed and you can put different objects on top of them.  Often, decorating it with some art can help bring out not only the faux stone panels, but also the decorative items on top of it though.

Then there are the actual decorative furnishings.  Many times, people choose porcelain of various styles for this, such as Chinese porcelain around the area.  You can decorate end tables with this.  If you want to, various vases can also be added to by putting some flowers in them, for it will give the home a brighter feel to it.

When you are decorating the home with accessories and faux stone panels however, do so sparingly.  If you have a bunch of accessories that are scattered in an extravagant manner, not all bunched up in one area, it creates a much more dramatic impact, and you can showcase collections as well.

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For pictures to put up, choose something that fits both your interests, and the motif of the home.  You’re trying to do a summer motif, and one of the best options to go for is the ocean.  Pictures of animals, even birds that walk around the beach, can help bring in a warm, healthy vibe to the space and really make an impact.  Ideally, choose paintings that won’t jarringly contrast with the wall tone, nor art that will blend in with the walls.  For example, don’t choose white paintings on a white background.  It looks tacky and the picture will melt in and wont’ be discernible.

With your home, you can choose the furnishings that work for this.  Sure, you can do a beach array for furniture, but sometimes it doesn’t necessarily fit in a home in an adequate manner.  What does though?  Well, think about British colonial style, such as the kind you see in the Bahamas in the 19th century.  Antique colonial British furniture, such as dark wood drawers, can really add to the room.  Walnut is a great wood to use for this, because it has a color that works well for this.

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With these pieces of furniture, you can then take it to the next level by throwing some color in there, which will help spice things up.  Often, various peaches, corals, some papaya, and other bright colors can create a great impact in every room.  You can for example use a table skirt that is about an apricot, and then make the sofa pillows slightly darker, but not brown, which in turn will help with making the coffee table stand out.  You can even go into the bedroom and use warm orange colors to help create a cozy atmosphere.  You should ideally try to spice these things up, but do keep your base colors at the foundation for this, and then build on there.

Working with this, you can also add antiques abound if they fit the atmosphere.  If you have an antique walnut table that fits the scheme of the home, you can put it in.  Try to make the rooms flow and make it so that the space is open for many.  Often, sometimes having a curtain instead of the traditional door can make a room feel much bigger, and it can improve the slow of things.

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Finally, if you are working to redecorate a home for a summer tone, but you worry about those that come into here, there are solutions for this.  Just because you have a family space, doesn’t mean you can’t decorate the place with nice textiles and such.  What you do beforehand is spray everything with a spray that will resist stains, and then make sure you get sofa cushions that have zip covers on there.  Once everyone leaves, you can take these to clean.

Redecorating your home with a warmer tone can make it look a lot better.  Often, the dreary feeling of winter takes a toll on a lot of us and it can even impact us emotionally as well.  But have no fear, for you can use the information here to create your own summer paradise within the comfort of your own home in order to not only create a brighter atmosphere, but a more positive one as well.

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