investing Archives - A Million Lives

March 6, 2020 by Greg Underwood

How to Become a Master at Investing

To get ahead financially in today’s world, you need to take investing seriously. It is an excellent way to make your money work for you instead of it being the other way round. Everyone wants to be able to make money in their sleep. However, not many people succeed as investors. Most people will say they do not know anything about the stock market.

Here are a few tips that will help you become a master investor.

Have a Growth Mindset

Image via Flickr by OTA Photos

Philosophers have stated over and over again that people never stop learning. Just because you have spent most of your life uninterested in investing, it does not mean that you cannot learn. If you put in sufficient effort, you are likely to enjoy the fruits of your hard work in no time. If you want to succeed in investing, you will have to start by investing the time and effort required to acquire new information.

Do Some Deliberate Practice

Once you have done your due diligence in research and looking for information, you will have to start practicing. The truth is, at first, you will make some losses. But the only sure way to keep improving and to learn more skills is actually investing in something.

Keep in mind the areas you failed, figure out why, and avoid those mistakes. Also, study the areas where you succeeded, so you know what works for you. It is recommended that at first, you invest in stable companies that make fewer losses.

Be Self-aware

You must make sure that you are aware of your mistakes and shortcomings. A good master knows where they are working best and what their natural tendencies are. Keep improving on your weaknesses, so they do not destroy you and cost you money.

In addition to this, you should focus on developing your strengths. Your strengths are going to be your competitive advantage. They will give you an edge to succeed. You, therefore, need to identify them and keep working on strengthening them. You should also work to avoid making the wrong choices. This will help you avoid people who may want to manipulate you.

It Takes Time

The truth is, even with hours of studying, you are not going to be a master investor in a day. It will take time. Be disciplined, keep learning, and take your time to analyze situations. The experience will triumph any amount of theories you may study. So do not be afraid of taking risks. If they work, you get money. If they do not work, you gain experience.

While others may want to find excuses to avoid work, you do not have to wait until you have a lot of money in the bank. Investing allows you to keep earning more from the little you already have. Invest now for a better future and to earn more money. Be sure to learn more about divergence trading to understand how the variables are changing in relation to stock prices each day.

November 21, 2018 by Greg Underwood

Are Millennials Protecting Their Investments?

Say the word “Millennial” and many stereotypes arise: young, broke, living with parents and spending too much money on avocado toast and coffee. Many Millennials themselves believe they have few assets to protect. But while this generation faces more financial challenges than previous ones, Millennials with $15,000 or more in savings jumped to 47% this year, and one in six has at least $100,000 saved, according to a recent Bank of America survey. Even those with more modest savings should be prepared for the future with estate planning (check out upchurchlaw.com for more on that).

Common misperceptions regarding the age of Millennials may be having a negative impact on this generation’s saving patterns and long-term investment planning. Most researchers define. Millennials as those born between 1980 and 2000, making the oldest Millennials 38 years old. While the youngest Millennials may be just starting out in life, a significant percentage of this generation are starting families and have established careers. Because of lingering perceptions of all Millennials being “kids” and still living with their parents, financial planners may fail to target this generation with their marketing for estate planning.

The Great Recession and stock market collapse occurred as many Millennials were coming of age. This may explain why many in this generation are saving money but not investing in the stock market. Millennials distrust of the market may extend to financial planning services in general, including estate planning.

Millennials are much less likely to have 9-5 jobs with pensions or retirement plans than previous generations. They are more likely to be freelancing or cobbling together 2-3 jobs in a more gig focused economy, which leaves less time for budgeting, saving and planning for the future. Also, jobs and gigs tend to be clustered in a few large cities that have skyrocketing housing costs and high costs of living. Millennials are spending far more on housing as a percent of their income than any previous generation.

Many Millennials are either delaying marriage or not marrying at all. This fact can make saving money more difficult, as unmarried couples receive less tax benefits, and increases the importance of estate planning for Millennials. Unmarried couples must have wills and/or trusts to ensure that their partners inherit shared assets, investment accounts, etc. Also, unmarried partners do not automatically have rights to make medical and financial decisions in the event their partner becomes incapacitated, therefore requiring a Medical and Financial Power of Attorney to be designated.

Millennials face unique financial challenges as a generation that affect their saving and investment patterns. Still, this generation is not as behind as you may thing, and many have found ways to save significant amounts of money and certainly require estate planning to protect their families and loved ones.

October 23, 2018 by Greg Underwood

Why Investing In A Luxury Property Is A Good Idea For The Future?

Serial investors and advisors will readily agree to the fact that real estate is one of the most appealing, popular and secure investment vehicles all around the globe. An individual who is looking for an investment opportunity that will give high returns in the future, then as per statistical data, investing your hard earned cash on a luxury property is the best way forward!

It is often seen that in growing economies, the term ‘luxury’ is often used as a mere marketing gimmick where the product sold has only the essential amenities/features. In case of a luxury property, it should be located at a high-class locale, should have all advanced creature comforts that, at the end of the day, might seem a bit excess! Now that is what one can call a luxury property!

After giving the above-section a read, one might be asking themselves the question, ‘what drives people to invest in luxury properties!?’ Long story short, social status, a thirst for high-quality living and guaranteed returns in the future!

Let’s take a look at some more reasons that justify why investing in a luxury property is a good idea for the future:

A luxury property oozes status!

Investing in a luxury property guarantees its owner a life of prestige and high social status. People work hard to make ends meet and often they find asking themselves what it is really like to live a life of luxury. A person looking for an investment vehicle should go for real estate, specifically, luxury properties. A luxury property is generally located in posh locales making the environment ideal where the neighbourhood will be oozing class and great vibrations. After all, if you have the means, why not treat your family and yourself with a great environment to move in to!?

They have advanced security features

Luxury properties are equipped with the latest features, amenities, technologically advanced features and what not! Most, if not all, luxury properties come with a monthly or annual maintenance fee. It includes charges for the advanced security features and the recurring cost of security personnel, serving round-the-clock. The best part of owning a luxury property is the quick response of emergency services to posh locations. Most of the time, luxury properties are located in proximity to emergency services like a hospital. A luxury housing complex can even boast of its own medical facility, shopping complex, entertainment and education facilities, emergency fire response team and police station!

Assured high returns in future!

Since time immemorial, gold and real estate are considered the most stable investment vehicles all over the world. The population of developing nations is shifting their focus from gold to the luxury real estate sector. It is due to the guaranteed high returns one can get when a luxury property changes hands! Investing in a luxury real-estate property is perfect when one is aiming for a long-term investment opportunity. As per the tips provided by real estate gurus in SmartOwner’s website, the price of a property grows exponentially with time. If you are a patient property owner, you can hold on to your luxury property till its value reaches sky high and sell the same when the time is right! Isn’t that great!?

Investing in a luxury real estate is investing in a security that is an active performer – or ‘active performing asset’. An active performing asset is a security that gains value over time thereby serving as a practical asset, not a liability. Luxury properties are always in demand, especially in countries with developing economies. If you live in a developing nation, invest in a luxury property, hold on to it, wait for a buyer with deep, very deep pockets and let go of it when you get the right price!

July 7, 2018 by Greg Underwood

Simple Tips for Investing While You are Still in College

It’s never too early to start investing, even if you are still in college. Unlike a professional investor, you may not have near unlimited amounts of capital, however, you can start investing with just a dollar using a few different methods. To become more financially literate in the field of investing, take up an economics or finance class, where knowledge is always a key to becoming a successful investor.

Open a Savings Account

The easiest way to invest as an undergraduate is to head to the nearest bank and open a savings account. The risk you take on would be extremely minimal. Put any supplemental income you earn in your savings account and watch your money grow quite literally. The interest rate is not as high as in the stock market, but your money would be better off than spent on new clothes or stored away in a drawer.

Understand the Risk Associated with Cheap Stocks

Some college students are only too eager to “play the stock market.” Students with limited amounts of capital are highly likely to invest in penny stocks, which are securities with little to no oversight that cost less than $5. Though these stocks seem so cheap to buy, you are taking on more risk than you should. Before buying any stock, particularly penny-grade stocks, it’s advised that you understand the type of risk you are undertaking. This type of trading is highly vulnerable to scams, particularly pump-and-dump schemes. College undergrads should invest in blue-chip stocks that are financially transparent to actually expect returns. While there’s nothing inherently wrong with low-end stocks, buying these without realizing the risk is a surefire way to lose all your money.

Think about Repaying Your Student Loans

Paying down debt is also a form of investment. It is, perhaps, one of the most important forms of investment for regular income earners. Unless your parents are wealthy, you will probably end up tens of thousands of dollars in student debt when you leave campus as a graduate. The student debt trap affects millions of graduates. However, you don’t have to fall into the same debtor crisis like so many others. If you earn income right now by working on-campus or at an internship, save that money for repaying your student loans. The grace period will eventually end, at which point you will have to own the debt. Think about how it might affect your future ability to take on other essential forms of debt such as a mortgage, therefore, make repaying student loans a priority to protect your post-graduate financial status.

Open a Retirement Account

If you are a young college student looking forward to a satisfying career, you may wonder why you should start investing towards retirement right now. Would your future employer take care of all that with a 401(k)? Yes and no. You can formally start investing in your golden years by matching your employer’s contributions toward a 401(k), however, until you are employed full-time, invest on your own towards retirement. You could do so in a savings account that you can later combine with an IRA or a 401(k). The reason to start this early is simple: the compounding factor. If you invest towards your retirement now, your contributions would mature impressively in the next 40 to 60 years. The longer the investments have to compound, the more money you will have to spend in your senior years. That’s why you should open a retirement account right now, even if you are not formally employed.

May 30, 2018 by Greg Underwood

Houston Real Estate Attracts Many Buyers According to Al Hartman

Houston is one of the fastest growing cities in the country. Indeed, according to the US census Bureau, it ranks in the top 10, just behind some metro regions such as Atlanta, GA. According to Al Hartman, who has worked in Houston real estate most of his life, there are a number of particular things that make the city so appealing.Indeed, it is because of those things that professionals like him have faith in the idea that Houston will continue to grow even if there is an economic downturn.

Al Hartman on the Attraction of Houston

There are a number of things that make this city so attractive. Those include:

Its economy. Even during the last economic crisis, the metro region around Houston continued to thrive. The reason for this is because there are so many different industries that operate within the commerce of the city, including manufacturing, shipping, computers, energy, and aerospace. Additionally, the city is known to aggressively attract new employers and new industries. This is why the unemployment rate is almost always low here.
The cost of living. Texas does not have state income tax and Houston does not have local income tax. Additionally, prices are much lower than in various other national metro areas. The result is that a lot of people are interested in the proposition of living here. It is quite possible to enjoy a comfortable life even on a budget. Compared to other metro regions, housing costs are also surprisingly low, with some very nice properties costing less than $200,000, something that almost no other region can replicate.
The weather. Houston is pleasantly warm all year long. It does have its own seasons with slightly colder winters, but compared to areas further in the north, even the winters are mild.
The opportunities period last but not least, Houston and its metropolitan area is incredibly diverse, expensive, and vast. No matter what someone likes to do, they know they can find it here. People can enjoy the great outdoors, take part in notable educational experiences, watch professional sports, immerse themselves in the arts, and more.

It is clear to see why Houston is such a fast growing city. Anyone interested in relocating to Somewhere new and interesting should really take it into consideration. That said, it is important to do so sooner rather than later, as there are always opportunities to be missed as they are being taken up by others. Real estate prices are affordable, jobs are available, educational places are still free, but how long this will continue is anybody’s guess.

I’ll heartburn at faith in the fact that people will continue to come to his favourite City. Indeed, it has done very well throughout various Economic downturns and there is no reason to suspect the next one will be any different. Additionally, opportunities exist both for established professionals and for entrepreneurs who want to look at start-up businesses. The time to come to Houston is now!

May 30, 2018 by Greg Underwood

Yigang Tang Recommends European Countries for Real Estate Investments

The European continent is home to many different countries, all of which have a fascinating history and rich and beautiful natural environments. Since the fall of the Eastern Block, however, it is also home to numerous emerging economies that are of particular interest to foreign real estate investors. Yigang Tang recommends that those interested in making such an investment consider the following countries.

Yigang Tang’s European Recommendations

The first country that Tang recommends is Hungary. Between 2004 and 2005, property prices in Budapest, the capital of the country, grew by 15%. Growth has slowed down somewhat now, but prices are still far below those in this country and they continue to increase. Additionally comma there is quite a significant demand for rental properties in Hungary as a whole as it also has an emerging tourism industry. For the investor, this means there are opportunities in both commercial and residential properties, as the tourism industry growth is also giving rise to many new businesses.

The second country is Latvia. The Latvian economy is still being established but it is now the fastest growing in all of the European continent thanks to direct investment from foreign countries. Additionally, it is believed that workers in this country will receive one of the 5 highest salary increases globally. What this means is that people in Latvia are able to spend more comma including by paying more on there rent period they can also spend more time enjoying their country’s emerging tourist industry, for instance in coastal port towns or in Riga, the capital.

Then there is Poland. This country joined the EU in 2004 and has received significant investment and aid. This has been used to improve the infrastructure, leading to strong economic growth. Krakow and Warsaw are two very popular destinations for businesses and international companies, which means there is also a high demand for both residential and commercial properties. The Polish government is committed to maintaining economic growth, making it safe investment location.

The third option is Romania, which joined the EU in 2007. The prices for real estate are ridiculously low in this country and you can purchase anything from a factory to a castle. However, Romania is also home to tremendous bureaucracy, red tape, and paperwork. If you are happy to deal with that, then it is one of the best investment opportunities for real estate professionals around.

Last but not least, there is Turkey. Turkey is on on the fence market. They have long been trying to join the EU but have so far been unsuccessful. The recent Presidential elections have also once again caused a degree of turmoil in the country. However, the tourism industry is incredibly strong and this means that a foreign investors can really strike while the iron is hot. At present, property prices are low and they have not grown much over recent years, but it is likely that there will be achange and it can only be positive.

May 16, 2018 by Greg Underwood

How to Invest In Cryptocurrency

Interested in investing in cryptocurrency but you’re not sure where to begin? Then click here. This article will guide you on how to invest in cryptocurrency.

We’re sure you’ve heard the buzz about cryptocurrency. It’s taking the financial world by storm! After all, more than 3 million people are actively using it right now in one way or another.

Sounds interesting and all, but can I get a “huh?”

Knowing how to invest in cryptocurrency is key to avoiding the confusion that may come with using this intangible money. Since there are no less than 1,037 options available, with caps of up to $55 billion dollars, choosing your currency can be a tough decision to make.

Which is why we’re here.

We’ve compiled a few tips that’ll get you headed in the right direction, starting with what cryptocurrency actually is. A good place to start, right?

Let’s get investing.

How to Invest in Cryptocurrency Today

So, what is cryptocurrency? Let’s find out more about that before we invest.

In laymen’s terms, it’s digital assets that you don’t need to use a central bank to access. It is easily transferrable online, and accessible through your computer, phone, and certain crypto apps.

In the past, bitcoin ruled the crypto world. But now there are many any option for investors.

Which brings us to our first tip:

Choose Your Currency

And you don’t have to choose just one. Take the time to research the rises and falls of different currencies. Invest in a few that peak your interest.

A well-rounded “portfolio” of currencies gives you better odds of landing on one whose value will rise.

Buy Your Currency

The next step is biting the bullet. You can purchase your currency within the realm of that site – bitcoin buyers can buy right within the bitcoin site – or you can buy it through means of “betting” through exchange trades. This is good for those who don’t want to make the financial commitment quite yet.

Store Your Currency?

Accessing your currency is much like remembering a screen name and password. You don’t want to lose this information. There are ways to store your currency to ensure that it’s safeguarded.

We recommend keeping a personal attachment to them: after all, it’s your money to make!

Pay Your Currency Taxes

And, much like every other dollar you make in this life, crypto is no exception. Whatever you make in this investment, you’ll have to pay taxes on.

But that’s okay because we hope you’ll be rolling in the dough by then. The value of cryptocurrency has now exceeded $150 billion dollars – a number that used to be a measly $25 billion five months earlier.

Make the Investment

If the studies have shown us anything, it’s that cryptocurrency isn’t going anywhere. In fact, the amount of users right now is three times what was previously estimated (that’s a lot).

Much like the stock market, you can’t invest when it’s too late – as in when it’s doing really remarkable. Once everyone’s cents turn into big bucks, the value is much different for new buyers.

Knowing when and how to invest in cryptocurrency will help you make the most money, and we don’t just mean the virtual kind. So don’t hesitate.

If you have any more crypto hacks or ideas about this growing financial landscape, please reach out to us!

May 7, 2018 by Greg Underwood

DIY or Don’t: Buying a House Without a Realtor

If you’re considering buying a house without a realtor, then check out these pros and cons before you decide if it’s the right choice for you.

We’re now living in a time when there are more people who rent than own a home since 1967. Some people choose to rent because they don’t want to be tied down.

Others don’t want the hassles of maintaining their property. But many erroneously believe that they can’t afford it. Turns out, in the long run, they would save more money by buying a home.

If money is a concern, it’s worth considering working without a realtor. However, cost shouldn’t be your only concern when buying a home.

Here’s what you need to know to make a decision on whether you should consider buying a house without a realtor.

Buying A House Without a Realtor Facts & Fiction

There are a few myths flying around that make some people feel as though buying a home without a realtor isn’t a possibility. It is, but be prepared to do a lot of work.

Some people feel as though they won’t be taken seriously as a buyer if they are buying a home without a without an agent. That’s not entirely true.

While some sellers may prefer to work only with people who use a professional realtor, others might actually welcome the chance to cut out the middle person in the transaction.

Also, many buyers believe that if they make an offer without an agent that the seller’s agent will just keep the extra commission. Unfortunately, if you’re not careful, this can happen.

It’s common for listing agents to have contracts with their clients that contain variable commissions. Often that means that if the buyer isn’t using an agent, the listing agent automatically gets the leftover commission.

Apply For A Mortgage

Not everyone needs a mortgage to buy a home, but most will.

And whether you’re buying a home without an agent or with one, you’ll still need to apply for a mortgage. It’s an important step because it lets you know what your budget is for home buying. But there’s a lot of paperwork involved.

To make it easier on yourself, gather up all pertinent papers as your first step. Then do some research to find the best place to get a good deal on a mortgage.

Check Your Credit Score

Your credit score is definitely going to come into consideration when you’re applying for a mortgage.

Check your credit score. If there are any errors, take the appropriate steps to clear them up immediately. If there are some red flags but they aren’t from errors, do what you can to improve your score as soon as possible.

Putting yourself on a budget and taking steps to lower your current debt will go a long way towards helping you buy the home of your dreams.

Research Where Homes Are For Sale

Figuring out where the homes are for sale is the hardest part of buying a home without an agent.

Real estate agents have access to a great network that enables them to know where all the best houses are. They can use their system to narrow down your search and help you find a home quickly.

When you’re buying without a realtor, there’s a lot more work for you to do.

Where To Find Your Dream Home

To start your search, try looking at real estate magazines. However, if you’re not working with a realtor, you can only use the magazines to find homes for sale by owner listings (FSBO).

An easier search is to go online and search classified ad sites like Craigslist. You can also take a look at other online real estate websites to find out where homes for sale are listed.

Sites like Trulia.com and Zillow.com maintain a database of homes in the United States. You can even perform searches based on parameters such as location, price range, and even layout.

For homes in outside the US, try searching sites like Fab Property Spain.

Check local newspapers to find homes listed. Look in both the classifieds and real estate sections.

Take a drive through the neighborhoods you are interested in buying. Look to see if there are any FSBO signs which list the seller’s numbers on them.

You can also spread the word to friends and family both orally and on social media that you’re looking for a house.

Contact The Homeowners To See the House

Once you find a home you’d like to view, it’s time to contact the owners.

Before you go all the way over to their home to view it, take the time to ask the seller’s a few questions. It will save you some time.

If you have kids, some questions to ask are about the schools and whether or not there are other kids in the neighborhood.

Also, ask about the current condition of the home. Then ask about any repairs made on the home. Ask the seller’s what is included in the sale of their home.

You can also ask about noise levels, problem neighbors, and if they’re willing to let you make an offer on their house if you’re not using a realtor.

How Using A Realtor Saves Time

If you’re extremely busy, then consider hiring a real estate agent.

They can take the time to schedule when it’s good to see the home. They’ll also have the answers to many of the questions you have about the home.

Also, the realtor might have access to additional photos of the home so you can view it without actually stopping by the home until you find one you truly love.

Determine Whether The House Is Worth The Asking Price

Once you’ve selected a home that you love, it’s time to learn how to make an offer on a house without a realtor.

Here are a few ways to evaluate a home’s value without using a realtor.

Hire an appraiser to evaluate the property. While it will cost you some money, the appraiser will perform a thorough assessment of the home.

She or he will also provide you with the required documentation your mortgage lender needs before you can purchase the home.

You can also turn to the internet. Ther are home value tools which have you input the home’s specifics in order to obtain a likely estimate of the home’s worth.

You’ll find quite a few free home value calculators available online.

Try doing a CMA (comparative market analysis). The CMA takes the structure of the home, the property it’s on, and the neighborhood the home is located into account in order to provide an accurate figure of the home’s current value.

You can perform a CMA yourself for free on websites like RedFin.com.

Hire A Real Estate Attorney

Whether you are buying a home with or without an agent, you will still need to hire a real estate attorney.

A real estate attorney will handle all the necessary paperwork to ensure the final sale of the home. When you’re buying a home, the seller enters into a brokerage contract with a real estate attorney.

They handle the transferring home’s title and property from the seller to the buyer. While it may seem simple, trying to buy a home without using a real estate attorney using means.

In the typical home purchase, the seller enters into a brokerage contract with a real estate attorney.

Their job is the process the paperwork and then transfer the title and property from the seller to the buyer.

It is never a good idea to try to sell or buy a home without using a real estate attorney. There are too many possible problems that can arise due to sheer ignorance on the part of both the seller and the buyer.

Make An Offer

Once you’ve found the home of your dreams, it’s time to make an offer.

The amount you offer the sellers may be more or less than their asking price. Much of it is determined by the current condition of the home and how sought after the property is.

If the home was recently put on the market, there is usually more than one buyer interested in making a purchase. If you have competition, be prepared to up your offer.

But there are also times when the seller is asking for more than what you feel the home is worth. It’s not uncommon to put in a bid for less than the asking price based on the current condition of the home and also how long it’s been for sale for.

Your real estate attorney will draw up the terms and then present the offer to the sellers. Be prepared for the sellers to begin a negotiation rather than accepting your offer.

Draw Up A Sales Contract

Once your offer has been accepted, congratulations!

But it’s not over yet, your real estate attorney needs to draw up a sales contract which both you and the seller need to sign. Once everything has been signed and the money and title have been transferred, you are officially a homeowner.

Now it’s time to make your new house a home.

Choose DIY

If you’re too busy, have no interest, or feel you can’t handle doing everything on your own, hire a real estate agent. Just make sure you feel comfortable with them and trust them.

But choosing DIY means that if you’re capable of buying a house without a realtor, you can pretty much do anything you want.

We’re inspired by you. We believe you’re limitless in your possibilities. But of course, you need support and ideas. That’s where we come in.

Keep reading our articles to learn how to do anything DIY.

May 7, 2018 by Greg Underwood

Everything You Need to Know About Investing in Turnkey Properties

As with any investment venture, turnkey real estate can bring in lots of money, but only if you’re savvy about it. Read on to learn everything you need to know about investing in turnkey properties.

If you want to invest in real estate as a passive investor, you should learn about turnkey properties.

When you buy a turnkey property, you go into business immediately. You don’t hunt for foreclosures to buy. You don’t remodel a property to make it liveable. It’s ready to rent.

The term “turnkey” comes from the idea that the only thing necessary is to turn the key and unlock the door to start. That’s an appealing proposition for an investor.

Yet, not all people define turnkey in the same way. That’s why it’s important to understand turnkey investing before you spend your money.

Keep reading for information to help you make smart investment choices.

How Does Turnkey Real Estate Investing Work?

As the housing market continues to improve, firms specializing in the turnkey real estate are rehabbing properties to sell to investors. They renovate properties before they’re even listed for sale. Often, there’s someone renting the space when it’s sold.

This works because many investors want to buy properties that don’t need to time or effort to rent.

Sometimes, the same company that renovated the property also serves as property manager for the investor. The property management services include dealing with renters and repairs.

Turnkey investing appeals to investors who live in expensive housing markets. When they can’t find affordable properties in their own area, they buy units somewhere less expensive.

For example, an investor in New York City may buy rental buildings in small towns far from the city to generate cash flow.

So far turnkey investment sounds easy, doesn’t it? But it’s more complicated than buying units and collecting cash. Let’s dig deeper.

Evaluate the Property Before You Buy

Are you going to invest in commercial real estate or single family homes? There are pros and cons for both types of property. However, each type of property requires careful evaluation.

While it’s true a turnkey home takes less effort than other options, you should invest your time in research before you buy.

The first question should be whether the property is a good value. Don’t assume the seller defines turnkey the same way you do. Not all homes labeled turnkey are worth the asking price.

You should visit the house or apartment building before purchase. Don’t rely on photos or descriptions. Treat the transaction as the major investment it is. See the property in person, so you know exactly what you’re getting.

A personal visit to the property lets you assess the building and the neighborhood. The location is a significant part of the appeal. A beautiful property in a terrible location may not be rentable.

In addition to your survey, hire a professional home inspector to check the electrical, HVAC, and structure of the building. It’s easy to be impressed with renovated kitchen and baths. But you need to know things like the roof are in good condition

Get to Know Your Property Manager

When you hire a property management company, you trust them to do a good job. The property manager should listen to tenants and handle problems quickly and efficiently. A good property manager keeps your building filled with tenants.

A bad property manager doesn’t handle problems — from plumbing to tenants — before they get worse.

Research the property management firm. Ask for referrals from other investors. Visit other properties the firm manages. Get answers to the following questions before you hire anyone.

How Long has the Property Manager Been in Business?

You want an experienced operator with a solid track record. An inexperienced company is practicing with your money.

That’s not what to pay for their learning curve. Always check how long the company has been in business. Check on the company selling the property, and well as the property manager.

Does the Firm Have Experience Handling Similar Property?

Find an experienced property manager who has done what you want to do. Ideally, the company you hire has a portfolio of rental property. This shows they have firsthand experience and know how to succeed.

Property management is more than buying a building and renting it. You need to invest in the right neighborhoods, at a profitable price point. Renovations must match what renters in the area want.

Hire a property management firm with similar properties in the same area.

Will you Receive Monthly Statements to Track Expenses and Income?

Does the company have up-to-date software for the property manager and renovation team? Will you receive accurate and timely reports? If the management company doesn’t have the right software and systems, they won’t be able to serve you.

How Long Does it Typically Take to Find a New Tenant?

There are no guarantees in real estate investment, but there are parameters. An experienced property manager will know how long it takes to rent a unit.

Make sure your property manager follows best practices, like tenant screening. A tenant screening report can take a few minutes or a few days. It depends on the information requested, and the screening company. Some screening companies offer accelerated reports for an added fee.

All reports should include character references, rental background, and employment. Work with your property manager to pick your tenant criteria.

If you buy a property in a good market near jobs, people will rent your units.

What are the Property Management Fees?

The fees should be clear and provided up front. Period.

If fees are based on market rents, be aware there’s always a range. A property manager may say the unit will rent for $1,000 a month. However, you should always have a low and high estimate of rent. Local variables can affect the rental price you get.

Meet in person, tour other properties the firm manages, and get client referrals. Do this before you sign an agreement with the property management company.

Consider reading Investopedia’s Guide to Hiring A Property Manager for more information.

Determine the Ownership Agreement

Most turnkey real estate companies sell the home outright. But, some may want to create a limited liability company or corporation. Then, they ask to become a general partner, so the turnkey company is on the property title.

The reasoning is if they’re on the title they can make repairs without approval. It sounds good in theory, but it’s wiser to create a separate expense account.

The property manager can use it for minor repairs and preventative maintenance. Keep your name as the sole owner on the property title.

Be Aware of Drawbacks

Turnkey properties sound like an easy way to earn extra revenue. But, real estate investing isn’t for everyone. It’s important to realize there are pros and cons.

There’s always a chance for problems. Fire or natural disaster can damage property. The city may have a sudden property tax increase. Real estate investors need to deal with surprises. Sometimes that means having extra cash on hand for repairs.

It’s also important to look at turnkey properties as a long-term investment. If you aren’t ready to commit for years, you may want to invest elsewhere. Plus, real estate isn’t as liquid as other investments. It can take a long time to sell a property.

The Value of Turnkey Properties

Real estate can be a very profitable investment. In most cases, it involves a lot of work. Rental properties require money, time, and renovation skills.

Then, after the property is ready to rent, you have to find tenants and manage everything. You can definitely make money, but you have to work hard for it.

Turnkey properties are a good alternative for people who don’t have the time to renovate or maintain a property. The tenant-ready units appeal to people who want to invest without being the landlord.

High Return Real Estate makes the investment process simple, profitable, and convenient. Contact them to learn more about turnkey rental properties in Indianapolis.

When you invest in a turnkey property, you’ll pay a premium for homes in move-in condition. The potential profit won’t be as high as for people who flip older units themselves. You also pay someone to manage the property. Yet, successful turnkey buyers can generate substantial profits.

Invest in Rental Turnkey Properties Now

When you invest with an experienced turnkey company, you benefit from their knowledge. An established firm offers networking, experience, and valuable resources.

They’ll show you how to get the benefits of a profitable real estate investment without the expensive and time-consuming parts. They do all the work so investors can enjoy a lucrative passive income.

Are you looking for more ways to generate income? Visit our blog for more money and business hacks.

Leave us a comment if you have any ideas.

April 2, 2018 by Greg Underwood

How to make your money work harder for you

Tired of trying to get ahead financially, only to end up back at the bottom of the hill like Sisyphus? Know this: true wealth creation, like anything worth achieving in life, does not come easy.

Stop chasing ‘get rich quick’ schemes and embrace the harder road – it may take longer and you’ll expend virtual and real sweat along the way, but you’ll end up with real wealth at the end of your journey.

Let’s delve into a few of these ‘get rich smart’ strategies below…

Open a high-yield savings account

The historically low interest rates of the past decade have made saving money a challenge for those holding traditional savings and checking accounts. Fortunately, some financial institutions now offer accounts which offer a higher rate than the laughably bad 0.01% that many of us get presently.

With banks like UFB Direct and FNBO Direct offering rates of 1.6% on balances as of 2018, returns are still anemic compared to historical highs enjoyed during the 1980s. However, with the recent rise in direct rates by the Fed, you owe it to yourself to get a better deal for the money you choose to lock up in savings.

Invest in the stock market

Think the stock market is a scam? Tell that to investors who kept the faith during the lowest parts of the Great Recession – after hitting bottom in the 6,000s in the dark days of early 2009, the Dow Jones rebounded dramatically, rising to a peak of 26,000 earlier this year.

While there are jitters at the present moment, the forces of the economy always re-balance themselves in accordance with the challenges which confront them.

Still scared? Stick the investment portion of your paycheck in an index fund and carry on with your life. However, if you are willing to learn a bit about how markets work and are prepared to take on greater risk, you can achieve gains far above what the average investor earns.

Get familiar with a segment of the economy you know well, and then learn how to make money on eToro. Through trial and error and continuing study, you can achieve gains that will allow you earn lasting wealth.

Develop streams of passive income

Think ‘making money while you sleep’ is nothing but a scam pushed by multi level marketers? Despite its overuse by slimy businesspeople, it is possible to build passive income streams which pay you whether you are actively doing work or not.

The most tangible example of this arrangement can be found in investment real estate – an investor buys a house, cleans it up, renovates it, and rents out bedrooms and the basement at a monthly rate which exceeds the cost of the mortgage and property taxes.

Another old school method: stocks which pay dividends. This is a class of stock which pays out a set percentage of a corporation’s profits at set intervals – the more you own, the bigger the payout. By taking your dividend and re-investing it in more stock, you can build a nice passive income as your ownership percentage increases over time.

In the modern age, tech savvy entrepreneurs are earning a passive income online by doing things like setting up niche sites with Google AdSense ads, or by making compelling YouTube videos. As the number of sites and videos build up over time, the compounding income that results can reach a point where you can free yourself from the 9-5 grind.

Apply for a rewards credit card

If you are like most people these days, you probably run many expenses through a charge card. Ask yourself this, though – what perks do you get in return for your annual fee, or any interest you pay when you ending up running a balance?

The credit card industry is an insanely competitive one – get the most perks you possibly can. With benefits ranging from air miles you can redeem for flights to cash back incentives which can add up to a tidy sum, taking a couple hours to read over the latest offers could yield you thousands of dollars in free perks per year.