Real Estate Elevated Review: Why You Should Bundle Your Rental Properties

As a new real estate investor, you want to make sure you’re getting started on the right foot. One real estate blunder could cause you to lose a lot of money, so save yourself the pain and learn from the mistakes of other real estate investors who have gone before you. One of the biggest tips any experienced investor would tell you is to start out by bundling your rental properties in one or two states. This will save you a great deal of time, money, and effort as you learn the ropes and build your capital. Here are four important benefits to bundling your rental properties.

1. Simplify Taxes

Tax returns need to be filed by state, so if you have properties in five or more markets, you’ll also be doing taxes in five or more states. If you’re like the rest of the world, you probably want to make your tax filing process as simple as possible. Avoid the headache and stick to just 2-3 markets so you’re not wanting to pull your hair out during tax season.

2. Save Money on Travel

Good real estate investors take time to check in on their rental properties every now and then. Even if you have a property management company, you’ll need to visit in person occasionally to make sure things are going well. If you have rental properties in the same state, you’ll be able to more efficiently and affordably travel to check in. Bundling rental properties will also save you money on other expenses associated with registering an LLC.

3. Streamline Management

Rental property managers are an excellent way to delegate the day-to-day work of running a rental property. But many rental property management companies are locally owned and operated, meaning you’ll have to work with a handful of different companies if you have properties scattered across the country. Save time and simplify processes by having one or two management companies run properties in the same general area.

4. Learn the Ins and Outs of the Market

Markets are changing all the time, and it can be hard to keep a pulse on the trends if you’re trying to divide your attention between many different properties. Thoroughly learn the ins and outs of one specific market by bundling your properties in the same place. You’ll be a more successful investor once you’ve gotten to know the intimate details of real estate investment in one region.

Get More Tips from Real Estate Elevated

By bundling your rental properties, you’ll be following an important best practice and set yourself up for success in the real estate industry. If you’re looking for even more ways to take your real estate investment career to the next level, Real Estate Elevated can help. We offer free courses all over the country, where new, aspiring, and experienced investors alike come together to learn from the pros. Sign up for one of our courses today in a city near you.

Real Estate Elevated Review: The Importance of a Great Property Manager

If you’re a real estate investor with renters, you should highly consider hiring a property management company to run the day-to-day business of your property. Following contracts, collecting rent, and dealing with household repairs isn’t for everyone, and a property manager can help significantly reduce your workload.

You may think a property manager is not worth the investment, but you’ll be able to maximize your time and efforts by delegating daily tasks to someone who specializes in property management. With a shortened to-do list and less stress, you have more freedom to invest in other properties and earn more profits.

But how do you know what to look for in a property manager--one that will be a beneficial addition to your real estate investing strategies? Keep reading for 5 signs that ensure you’ll have your rental properties in the hands of a reliable person.

1. Fair Pricing

Some people may think that the most expensive property management company is the best, but cost doesn’t always correlate with quality. A fair property manager will charge about 10 percent of gross rents. Anyone charging more than this should have strong reason for doing so. If you don’t notice anything exceptional about the property manager, move on to another option.

2. Organized Processes

Property managers have a lot on their plate. They’re responsible for collecting rent on time, screening potential renters, handing maintenance requests, dealing with evictions, and much more. Inquire about the property manager’s processes and make sure they have it all together before you hire them to take care of your investments.

3. Attentive to Tenants

Tenants are sure to get frustrated if the property manager doesn’t respond to their requests and questions in a timely manner. If they get frustrated enough, they may just move out and find a new place to live, and a high turnover rate will only cost you more money in the long run. Make sure the property manager has a habit of quickly responding to tenants’ needs and visiting the property regularly to make sure everything is going smoothly.

4. Experienced

No matter how much you like a property manager, it’s best to choose someone with experience. All kinds of things can go wrong with managing a property, and the more experienced managers will know how to handle anything that comes their way.

5. Good Communication Skills

 If you’re living out of state or don’t have time to stop by the property management office, good communication skills will be crucial to ensuring things go well at your rental property. Look for someone who knows how to write clear emails, answers their phone, and responds promptly. You also want a property manager who will be an effective communicator with tenants. Those who are hard to talk to or unlikeable will drive tenants away.

Sign Up for Real Estate Elevated Free Courses

If you’re looking for even more ideas on how to be a successful real estate investor, check out Real Estate Elevated. Our free courses have helped people all over the country ramp up their real estate investment career and increase profits. Sign up for a free course today.

How To Become A Wholesalers Top Buyer

Wholesalers are a house flipper’s best friend. They are your key ally when it comes to generating leads and finding a great deal on an investment property. That’s because they snatch up houses that would make great flips and sell them to real estate investors like you. While you specialize in flipping and selling a house, their game is to find and turn around good investments. They are motivated to find a quick buyer, and notify flippers and investors in their network when they have a property to sell.

So how do you become one of these lead-generator’s top buyers? The Tarek & Christina Seminars by Real Estate Elevated reveal two steps for making the most of your relationship with wholesalers.

1. Tell Wholesalers What You’re Looking For

The most unhelpful thing you can say to a wholesaler is, “I’ll buy anything! Send any lead my way.” They hear that all the time. Many flippers assume that a request like this will benefit them by casting a wide net and letting wholesalers know you are interested in a variety of different properties.

But what this statement actually does is ensure you are forgotten. You want a wholesaler to look at an investment opportunity and think, “I know exactly who would be interested in this!” If you are vague about what you are looking for, the wholesaler won’t always think to take a property to you. Besides, the truth is that you don’t want just any property—some may need repairs too extensive for your budget, or may be in a style or neighborhood you simply aren’t interested in. If a wholesaler brings you a property you don’t like, chances are they won’t be back with another.

Instead, tell wholesalers exactly what you are looking for. Size, location, condition, and pricepoint preferences are all helpful details. That way, when the wholesaler finds something that meets your criteria, they will call you first.

2. Stay in Touch

Check in regularly with the wholesalers in your network. This includes both the ones you have bought properties from already and those you just exchanged contact information with at a networking event. The goal isn’t to be pushy or overly annoying, but to stay on their network. Give them a call every few months or so to touch base, remind them what you’re looking for, and ask if they’ve seen anything lately that fits your criteria.

If the wholesaler doesn’t have anything for you, ask what other properties they have. They may or may not have one you might be interested in considering after all. Even if they don’t have any leads, your phone call will reinforce your contact and relationship and remind them that you are still looking for houses to flip. Stay in touch with more than one wholesaler—they are your best bet for finding investment properties fast.

When you stay in touch with a wholesaler and are clear about what you are looking for, you’re more likely to find a great property. And the more you buy from a wholesaler, the more likely the wholesaler is to come back with another lead. Real Estate Elevated knows that it pays to cultivate these relationships. Get even more advice about real estate flipping from Tarek and Christina’s Seminars.

Wondering How to Flip a House with No Money Down? Get Answers From Real Estate Elevated

Many people wonder how Tarek and I were able to find the money to flip our very first house. They assume we were saving funds for a long time or had a unique way to go about it, but that is not true. Keep reading if you’re wondering how we were able to flip a house with no money down!

Before we get too into the details, know that you’re going to have to pay for a house upfront—and in cash. But you don’t have to use your own money to make it happen. In fact, we highly recommend not using your own money, but rather looking for funding with the right investors.

Private Lenders vs. Hard Money Lenders

There are many types of investors out there who can fund house flips. A private lender is a great source for flipping a house without putting any money down. A hard money lender is another option, but they may have less desirable terms since they can charge high interest payments as well as other fees.

Private lenders might include a friend or an acquaintance with liquid capital. They might be looking to invest their money, and you can help them make money by putting it toward a house flip. These people probably won’t announce their search for an investment or come to you. Instead, you’ll need to seek them out by asking around and utilizing your network.

A private lender might be a doctor, lawyer, business person, or even a co-worker. If you think someone you know might be looking for an investment opportunity, feel it out by easing it into the conversation and then discussing their current and future investments. Eventually, make your move by pitching an investment idea that can quickly and easily pay off.

Private Lender vs. Partner

Once you’ve secured funding, you may consider bringing your private lender on as a partner. If the lender goes into a partnership with you, they will get more of the profit from the house. But they’ll also be more likely to continue the relationship and offer funds for future house flips. You’ll do the work while they provide the cash.

The partnership route certainly isn’t cut out for everyone, but it’s a great option for those who work well with their private lender and want to have access to their funds long term. This is the best way to flip a house with no money down and zero interest, especially if it takes more time to sell the house than planned.

Learn More From Real Estate Elevated

If you’re interested in learning more tips of the house-flipping trade, check out Tarek & Christina Seminars. Real Estate Elevated is our premier seminar and teaches real estate investors of all levels how to easily maximize profits from house flipping. Register for one of our seminars today!

Your Closing Table Checklist For House Flipping

What to do When Getting Ready to Close On a House Flip

If there’s anything Tarek and Christina seminars have taught, it’s that flipping a home takes a lot of time, sweat equity, and real money. Chances are, you put off a lot of other life tasks to ensure you get the home ready to sell and make money. Now it’s time to close on the investment and get ready for the payout for all your hard work! This is an exciting time and is a huge accomplishment.

As you make the final preparations to close, there are a few items on your checklist you need to have to make sure things go as smoothly as possible. Real Estate Elevated has put together this list for you to refer to as you close on your property.

Set Dates

Make sure all of the players involved in your sale are free to meet on a specific day of your choosing. Your realtor, broker, attorney, and anyone else must be able to meet on this day. If somebody doesn’t show up, you can look bad and risk losing a sale.

Offer to Pay Closing Costs

This gives you more insurance for the sale to go through. When you offer to take care of the closing costs, it shows buyers they can trust you and that you’re more than willing to work with them. Try to cover closing costs for all your flips. It eats into your margins somewhat, but that’s ok. Making the sale will be worth it. Just make sure you have the money available to cover these costs.

Bring Safety Documentation

Every state is different, and depending on where you live, you’ll need safety verifications or certificates to give to the buyer. Look into the laws of your state regarding inspections and safety and get the proper documentation in order. Inspection reports include looking at items like smoke and carbon monoxide detectors and even checking the foundation or plumbing. Double check everything you need, put it in a nice folder, and bring it with you.

Other Essentials to Hand Over

You should already have the cashier’s check to cover the closing costs and the important documentation, but there are other items you need to get ready to hand over. The keys are probably the most important thing here, but also any alarm and garage door codes, the garage door opener, or any HOA guidelines and codes. Have everything written down, packed away, and ready to go.

Bring a Smile

At the end of the day, business is business, but nobody likes working with a robot. Have a good attitude when you come to the table. Closing real estate deals can be a bit stressful, so try to make things easier with a positive demeanor. Even though things can go wrong at this stage, it’s important to stay calm and deal with issues if and when they arise.

As you approach your closing sale with unwavering yet calm confidence, your buyers will see this and feel more relaxed. The sale will go more smoothly. Act too tense or distracted, and your buyers might think you are up to something and the sale could take a wrong turn. Smile, be happy, be honest, open, and greet them with a handshake they will see as confident. The more they feel at home, the better the close will end.

There are a few other things to remember as you approach the closing table, like any new manuals for appliances you installed. Your buyer has expectations, so make sure you meet them.

Overall, be transparent and make sure you answer all the buyers’ questions. Make sure you’re aware of all the real estate laws in your state so you’re prepared when you come to the table. And to learn more about flipping homes, check out one of our Real Estate Elevated seminars.

Can You Make Money in Real Estate Without a License?

Drive down the street in any city, and you’ll most likely see a handful of “for sale” signs on many blocks. If you’ve ever wanted to invest in real estate, these signs might poke at you, begging you to come inside and see how you can make an investment and start flipping homes.

But how do you make these purchases—or make money in real estate—if you don’t have a license? People like Tarek and Christina of Real Estate Elevated were real estate agents before they started flipping homes, so they had a head start when they flipped a house. Having a license does give you an edge in the industry, but the truth is, you can make money even if you don’t have a license.

Find a Trusted Real Estate Agent

Chances are, you might have a friend or two from high school, college, or life in general who are agents. This thought should be a no-brainer, but many people think asking help from an agent is taboo.

It isn’t!

Real estate agents have access to a plethora of tools to help flip homes, like multiple listing services, or MLS. If you don’t have the time or money to get a license, partnering with an agent can help you locate homes that fit your budget and goals. With the MLS, they can be looking for promising listed homes that you can flip. You will have a smaller return on your investment, but you’ll also have experts on your side who can get your property listed quicker.

Short-Term Rentals

If you’re in a part of the country that’s essentially a “seller’s market” you shouldn’t be looking to invest in long-term homes. This could lead to a flop of a flip and leave you with loads of debt. Instead, look at flipping rental properties in your area.

People are always looking to rent—not everybody can afford a home. This allows you to seize a great opportunity in rental properties. This also works with vacation homes. The rise of vacation rental sites gives you a chance to list your rentals throughout the year. As more and more vacationers look for alternatives to hotels, your home gives them that alternative.

Focus your search to flip homes in cities, college towns, or popular vacation areas. You could find a great opportunity for an investment.

Working with Wholesalers

Wholesaling houses is a remarkable way to invest in real estate if you don’t have a license, and you won’t need a lot of capital. Wholesaling means professionals locate homes in the area that are undervalued. They then put them under contract. Under these specific contingencies, the owners assign the contract to another buyer within a certain amount of time—a very short amount of time.

Wholesalers seek buyers who are willing to pay just a little bit more than the price under contract, keeping the difference as profit during the closing process.

Call wholesalers in your area and see if they have a deal on a home you can flip. This is a win-win for both parties and gives them confidence in you to send you another flip later on.

These are just three simple ways to make money in real estate if you don’t have a license. Attending Tarek and Christina seminars can help you understand more of how the market works, especially if you don’t hold a license and aren’t familiar with specific real estate practices. These seminars are the perfect source of knowledge to help you get in the game of real estate investment. 

The Best Way to Build a Real Estate Network

Like many businesses, the world of real estate investment is all about who you know. Having a strong network and making a name for yourself is essential to succeeding in the long run. To build up a real estate network, you’ll need to cultivate relationships with a variety of local contractors, wholesalers, real estate agents, and other professionals in the industry. Every time you meet a new person connected to the field, you’ll have another opportunity to get your name out there.

Those who have been in the business for years will have built a strong network over time, while beginners have their work cut out for them. It can be difficult and intimidating to build a network from scratch, but it is essential to get anywhere in the real estate business. Real Estate Elevated offers these tips to help beginning real estate investors start building their network.

Find a Mentor

If the idea of building a whole network from the ground up sounds intimidating, focus on finding just one person: a mentor. Having a real estate investing mentor will be a huge help for you throughout your career. Find someone who has been in the business for years, and go to them with questions and for advice. Your mentor can also help you make valuable connections.

Attend Networking Events

Your career will take off if you commit to attending several real estate networking events each year. Many of these events include speeches and panels by investors who are veterans in the field. Listen carefully: these professionals will share a career’s worth of advice and best practices, and you have a lot to learn from their experience. Chat with the presenters if you can to introduce yourself and expand your network.

Meet the Right People

If you don’t know any real estate agents or brokers yet, what’s the best way to meet some? Networking events for people in the real estate business. These are attended by attorneys, accountants, contractors, mortgage lenders, and others. The best way to meet new people in the field is to go to events they attend. Make sure to introduce yourself to get your name out there and find people you can work with in the future.

Get Inspired

Chatting with fellow investors at networking events is a great way to find inspiration to motivate your own business growth. When you chat with successful real estate investors, talk with them about their strategies, get advice on flips you’re working through at the moment, and discuss their portfolios. Sometimes when you’re feeling down about your prospects for success in the field, it helps to meet someone who’s made it and discuss their methods and experiences. Exchange numbers with people you meet, and occasionally take them out to lunch to ask for referrals to expand your network, or to pick their brains for investment advice.

Tarek & Christina Seminars

The best way to start building your network is to go where the people are—real estate networking conferences. Attending these events will allow you to make connections to new people you may work with in the future, and to get excited about building your own business. Tarek & Christina seminars are also great resources for meeting and connecting with new people interested in the real estate field, while also learning about how to get started flipping houses. To give your career the best possible start, join one of Tarek & Christina’s Real Estate Elevated Seminars.