Category Archives for "Investment"

What Is Investment-Grade? What Is The Feature Of Investment-Grade Property?

In property investment field, you might heard about investment-grade property. What does it means? Let us short explain to you.

Investment-Grade

Investment-grade is a credit rating that show that a company/ corporate’s ability to repay its obligations. It use the different designations composed of upper and lower case letters, for example, “A” and “B” to identify a corporate’s credit quality rating. Normally, investment-grade of “AAA” and “AA” are stand at a high credit quality rating while “A” and “BBB” are stand at a medium credit quality rating. Typically, only the larger and national companies could be able to maintain these stronger credit quality ratings.

Ok now, we come back to the property investment topic. How does investment-grade can affect a property? Well, a good investment-grade property can gives us higher rental income as well as gives us high potential capital gains. Let us continue to discuss about what are the features of the property that can be considered as an investment-grade property;

Ready-built Property

➊ Ready-built Property

It is a completed property from the second-hand or sub-sale market. Purchase a ready-build property can reduce the risks of developer such as abandoned projects. You may hire an inspector to check on the ready-build property conditions and estimate its repairing cost.

In addition, you will need to check what type of businesses of your neighbor shops do. Do avoid the neighbor shop that selling coffins or any funeral services as it is really “Pantang”, unless your business is related to these. Besides that, try to avoid the shops that will produce lot of noise and pollution such as car or motorbike repair shops. It is advisable to search for the neighbor shops are supermarkets, franchise retail outlets and restaurants. For your information, there are no any holding costs and interest cost for a ready-build property which mean you can use it or rent it out straightaway.

Ready Tenant

➋ Property with Ready Tenant

Purchase a property with ready tenant because they often come with a rental income. Tenants are able to help you to pay part/ full of your monthly loan repayments. Every property investor always take good care of their tenants and treat them as their customers because without tenants, they’re unable to earn profits from rental business.

Property with High Occupancy Rate

➌ Property with High Occupancy Rate

Purchase a property that located in an area with high occupancy which mean 9 out of 10 properties are have been occupied. This is because the demand for property in this area is very high and you can rent/ sold out easily with no any worries even during economy fall. (Commercial property is quite sensitive to economic market compare to residential property)

Purchase The Property at Below Market Price

➍ Purchase The Property at Below Market Price

Purchase the property at below market price can help yourself to save or earn lot of money.

Here we show you an example;

Current market price: RM 800K

Final purchase price: RM 600K (after bargain with the seller)

Save/ Earn: RM 200K

Or:/

Re-sell the property: RM 800K (current market price)

Final selling price: RM 780K (included all the transaction costs)

Save/ Earn: RM 150K

Be a wise property investor, do always negotiate the property price with the seller or buyer and only buy in the property at below market price at below market price and sell it off at higher price.

Maximum Loan Amount

➎ Apply For A Maximum Loan Amount or Longest Loan Tenure

Do remember, investment is a business that use as little of your own money as possible. Borrow the maximum loan amount from bank and stretching the loan tenure as long as possible. The longer the loan tenure is, the lower monthly repayment you need to pay to the bank and increase the cash flow from your property.

Besides, the younger you are, the longer that you can extend your loan tenure. By doing so, make sure you’re taking the loan with fixed interest rate so that you are able to predict the monthly loan repayment and easier for you to do the financial planning.

Cash Flow

➏ Positive Cash Flow From The Property

The main key of survival in property investment field is monthly positive cash flow from the property. You may putting up a higher down payment for a property or extend the loan tenure, you can then reduce the monthly repayment to generate positive cash flow from rental yield.

A positive cash flow property is one with remainder income after deducting all the related costs. Let’s take a 2-storey office as an example;

Rental Income: RM 3,000/ month

Loan Repayment: RM 2,300/ month

Maintenance & Miscellaneous Costs: RM 200/ month

Total Cash Flow: RM 500/ month (RM 3,000 – RM 2,300 – RM 200)

Return on Investment

➐ High Return on Investment (ROI)

In order to get the good return from property investment, it should be at least a double from the borrowing amount. For example, if the borrowing amount is 6%, the return on investment should be at least 12%.

Let’s take a 3-storey office as an example;

Purchase Price: RM 900,000

Total Borrowing Amount: RM 700,000

Down Payment: RM 200,000

Positive Cash Flow: RM 2,000 /month

Return of Investment (ROI): 12% (RM 2,000 x 12 (one year) / RM 200,000 x 100%

A Property with High Potential Capital Gains

➑ A Property with High Potential Capital Gains

A property nearby or in the big city has higher potential capital gains. Especially landed property such as terrace house, semi-detached bungalow and shop office can appreciate faster than high-rise property such as apartments and condos. While, high-rise property can generate higher rental income than landed property.

Increase the Value of Property

➒ Increase the Value of Property

Purchase a property and do a proper renovation/ repairing work can increase the value of property itself. For example, simple landscaping, painting and repairs costing @ RM 5,000 may increase the property value by more than RM 50,000.

Property with Good Neighborhood

➓ Property with Good Neighborhood

Purchase a property with good neighborhood can often appreciates faster. Good neighborhood could be defined as clean, peaceful, safe and secure environment. Good environment included greenery places, water features and beautiful views such as city, sea or mountain view.

The above 10 features of property are considered as good investment-grade property as these features can increase a property valuation so it can appreciates faster and get higher return.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

4 Useful Ways To Make Money From Commercial Property

Although investing in commercial property is risky compare to residential property, but commercial property do generate a significant profits from capital gains and rental income.

In today, we will share you the 4 useful ways of make money from commercial properties.

capital gain

① Initial capital gain

You have to make initial capital gain when you buy a commercial property at below market price.

Equity gain

② Equity gain

Since the tenants help you to pay part (full) of your monthly loan instalment, the equity of commercial property itself will increase. The equity gain will becomes obvious over the time.

Capital gain

③ Capital gain

As you known the commercial property is for business uses, the rental and property price will increase in tandem with the profitability of business activities.

Cosmetic repair

④ Cosmetic repair

In order to making money from commercial property, the maintenance work is absolutely essential. Be sure the electrical wires and plumbing are proper flow of electricity and water. Besides, doing cosmetic repairs such as painting and landscaping can also help to increase the value of your commercial property.

Many of property investors choose to invest in commercial property field is the rental yield is higher compare to residential property as well as longer leases. It is because a residential tenancy could turn over every 6 -12 months while a commercial tenancy could be between 3 and 10 years. In addition, the tenants also tend to stay longer when they have invested some capital customizing the premises.

Besides, nothing is perfect and commercial property cannot be an exception. The negativity of commercial property is quite sensitive to economy conditions which means when the economy is strong, the businesses flourish and the demand of commercial property will definitely go up. However, demand for commercial premises will falls when the economy is weak.

Hence, always up-to-date the economy conditions while investing in commercial property. Besides, there is a most steady way to make money from commercial property, is lease it out to long-term tenants as it can help to generate positive cash flow from rental yield.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

How To Find The Right Commercial Property

You are not only get rental income from commercial property, but you also get potential capital gains. The entry level for commercial property is quite high compare to residential property. This is because the bank normally offer the loan that less than 80% while up to 90% for residential property. A wise property investor is always purchase the commercial property at below market prices to enjoy the significant benefits from rental income and potential capital gains.

Here we show you an example;

Current market price: RM 800K

Final purchase price: RM 600K (after bargain with the seller)

Save/ Earn: RM 200K

Or:/

Re-sell the property: RM 800K (current market price)

Final selling price: RM 780K (included all the transaction costs)

Save/ Earn: RM 150K

Right Commercial Property

The real value of a commercial property is based on rental income and useful value of itself. The yield of commercial property is preferably at least twice the fixed deposit rate. Which means the yield is (monthly rental x 12 (one year)) / (purchase price) x 100%.

Here we show you an example;

Purchase price: RM 80K

Rental: RM 5K/ month

Hence, the rental yield would be,

(RM 5,000 x 12/ RM 800,000) x 100%

= 7.5%

A commercial property would be considered as a good value for money if its fixed deposit rate is 3%. Cash flow is originate from rental income while the rental income is depends on the occupancy rate of the commercial property itself. Hence, do remember to only buy the property with occupancy rate at least 90% which mean there is at least 9 out of 10 units of similar property in the same area is occupied. Furthermore, a property will generate a positive cash flow if the monthly rental income is more than the monthly loan instalment.

Here a simple tips for you if you want to rent out your commercial property fast. First, you may need to consider giving a lower rental for the first year and increase gradually in the following year (be sure the rental is follow the market rate).

The main key of survival in commercial property investment is monthly positive cash flow from the property. You may putting up a higher down payment for a commercial property or extend the loan tenure, you can then reduce the monthly repayment to generate positive cash flow from rental yield.

Here we show you an example;

Let say Jinny has bought 2 commercial property and its portfolio as follows;

Interest Rate: 4.5%

Loan tenure: 25 years

In today, shop office X and Y has each positive monthly cash flow as below;

Shop office X: RM 2,454 (positive monthly cash flow)

Shop office Y: RM 2,447 (positive monthly cash flow)

Total monthly cash flow: RM 4,901 (RM 2,447 + RM 2,454)

After 12.5 years, both shop offices has potential capital gains as below;

Shop office X: RM 250K (capital gain)

Shop office Y: RM 350K (capital gain)

Total capital appreciation: RM 600k (RM 250K + RM 350K)

After 25 years, the property net worth will increase to RM 3,300,000 and monthly cash flow will increase to RM 16,000.

If the property loans have been fully paid after 25 years, the properties will generate the capital gains and perpetual cash flow to you.

So, isn’t that sounds good? If you invest in commercial property in the right way, right time and right place, the property itself will then generate a significant profits to you and you are able to retired early with massive wealth after that.

As a smart property investor (since you have read this article), you will always practice to buy in any properties at below market price and sell it off at higher price. Some properties may need some times for appreciation perhaps 5 years or 10 years, in the meantime, you can rent it out to the prospect tenants. And not to forget to do the maintenance work to your property every once year.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

5 Simple Guidelines For Property Investment

Before purchase any property, whether you’re purchase for your own stay or investment purpose, you must put these following into your concerns;

Ready-built Property

➊ Buy Ready-Built Property

As a wise property investor, always buy the ready-build property from secondary or sub-sale market instead of from developer. This is because you can reduce the risks and you can get immediate returns by rent it out to the tenant.

Purchase The Property at Below Market Price

➋ Right Location For Investment

Location is the main factor to affect the property appreciation. There is a high demand for the property nearby transportation services, shopping mall and other convenience amenities which mean you can rent out or sell out easily. Here is a tip for you, if you’re target tenant market is expatriates , then you should invest in the property that nearby international schools, have a good infrastructural links, near the place of their work or have the presence of other expatriates from their own country.

Property with High Occupancy Rate

➌ Buy The Property With Ready-Tenant

Purchase a property with ready tenant because they often come with a rental income. Tenants are able to help you to pay part/ full of your monthly loan instalments. Every property investor always take good care of their tenants and treat them as their customers because without tenants, they’re unable to earn profits from rental business.

➍ Buy And Keep Forever

Buy the property with the purpose of keep it and never ever sell it out. And you only sell it out if the property goes from good to bad (there is new highway being constructed in front of your property), or there is a better investment deal comes to you and you have no any extra money to accept it.

Residential property

➎ Never Regret What You’ve Bought

If you’re plan to move into somewhere unfamiliar areas for some reasons, it is advisable to rent the property for a several months and only make the decision of buy or not to buy after 2 years. This is in case you don’t like its area after several months, due to bad neighborhood or you’re not prefer the amenities.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Large Property Management Company vs Individual Property Manager

I believe that every landlord out there are struggling with one question “should I go with the large property management company or an individual property manager?”

Here we briefly explain what property management is. A property management company is deal directly with tenants which is collecting rents, responding to a tenant complaints and even pursuing evictions. Other than that, they also handling the maintenance and repair issues of a property. A landlord will hired a property manager to handle all the above matters.(of course a landlord can handle that matters by themselves but they are simply have no time).

Now, we come back to the question, large property management company or and individual property manager? Which is better? Well, we have summarized the article from Biggerpockets about this topic. So let’s see what they come up with.

Large Property Management Companies

Large Property Management Companies

The absolute most critical detail about a large property management company is simply how they are set up.

If a large company has been built correctly and is maintained correctly, then there shouldn’t be any major problems.

 What constitutes “large”? The “large” ones have had between 1,000-1,400 properties managed at one time.

➮ Use your judgment to decide what is large based on your individual managers and smaller companies having, say, 100 or less properties to manage at once. An individual may only have 10 properties to manage!

Pros of Large Property Management Companies

👍 Built-in Structure & Systems

large property management companies do have some level of structure and systems. How else would they manage 1,000 properties?

👍 Scale

➮ In the case of a property management company, having 1,000 or more properties likely means they either give particular contractors a ton of consistent work or they can afford to have in-house contractors. Most times a company is given consistent work of decent scale, they lower their fees.

➮ So if one plumbing company gets the calls for all plumbing issues of the 1,000 properties, they are probably going to not charge an arm and a leg.

➮ They might be able to charge a lower monthly fee to the owners of the properties because they have so many properties they manage that they can entice owners with lower fees and ultimately draw more in.

👍 Growth

➮ A large company have their structure and systems in place. Sure, they may add improvements along the way, but the bulk of the growing is done already. You don’t have to worry about your arrangement or setup with them changing drastically.

👍 Flexibility/Customization

➮ There are probably bosses and managers, systems in place, and rules for employees to follow.

➮ But for the most part, that structure of the company keeps things flowing so there’s not a lot of wiggle room for how your property is managed.

Cons of Large Property Management Companies

👎 Communication

➮ not being able to get information about one of your properties

➮ In my experience with large property management companies, I’ve not been able to either get the same person on the phone twice or get information from the one person I do talk to. Getting a different person on the phone every time makes for extremely inefficient question-answering. Or you get the same secretary on the phone, but she hasn’t a clue and swears she’s trying to get the info, but you continue to not hear back from her.

➮ You can probably see how much potential for information getting lost in translation there is. Nobody knows what is happening with your particular property off the top of their heads, so they are reliant on either finding the information in their “system” or finding someone who does know the answer.

➮ It’s just not feasible for a company this size to be so closely tied into your properties that they know everything immediately or can even answer your calls directly.

👎 Efficiency

➮ Speaking of not being able to get VIP service on your single little property, your property is basically going to enter the “system” when it needs anything. Maintenance, tenant calls, problems, etc.

➮ Efficiency will be dependent on the company’s systems and processes and the availability of the employees or contractors necessary to fix the problem. And tying efficiency back to communication, how efficiently are you able to get answers or responses to your questions or inquiries? So efficiency covers a lot of ground.

👎 Flexibility/Customization

➮ if you have particular preferences for how you would like the management of your property to go, you may not have a lot of negotiating room with the bigger companies.

➮ They have necessary processes in place to be able to manage so many properties, and even if they want to, they may not be able to accommodate special requests that fall outside their established processes.

➮ Can you imagine 1,000 special requests? It’s not feasible. There may be some budge room, and some companies may offer different package options, but there’s a good chance a large company can only deviate so far.

Now you’re get to know what large property management company is as well as it’s pros and cons. Next, we continue to discuss about an individual property manager.

Individual Property Managers

Individual Property Managers

An individual property manager could mean two things:

1.An actual individual who is maybe a real estate agent or does something else in real estate to have the knowledge (and licensing, if applicable) to do property management.

➮ Maybe he takes on properties just through referrals or some other small network. He may only manage a handful of properties — probably not more than 20 or 30.

2. A small property management company, likely having only one actual property manager and maybe one or two secretaries and a go-to handyman.

➮ He can probably handle more than 20 or 30 properties — maybe closer to 100. Maybe he has systems in place, maybe not, or maybe they are just extremely basic and simple.

Pros of Individual Property Managers

👍 Communication

➮ He/She is very likely to know the answer to any question you have about one of your properties right off the top of his head.

➮ There is the same person will answer your call every single time and be able to tell you the answer to your question.

👍 Flexibility/Customization

 Individual managers don’t necessarily have or need set, strict systems in place because they can manage all of the properties by hand without them. Therefore, they can usually be pretty flexible to tailor things for what you need.

👍 Efficiency

➮ The property manager can get necessary things done for it very quickly. In some cases, though, efficiency could be a con with the individual property manager because it’s possible he doesn’t have the man-power for it.

👍 Cost-savings

➮ I’ve had the experience where the individual has killer contacts in the industry that he knows personally who can come out and do work for you cheaply. On the flip side, because the individual property manager can’t give a handyman or contractor work on as big of a scale as the bigger companies can, they may not be able to get the same lower rates.

Cons of Individual Property Managers

👎 Accountability

➮ An individual can change business or do what they want with no major threat of repercussion. As in, they don’t have a boss to fire them or manager to tell at them what to do.

➮ Obviously, they can’t do totally crazy things outside of contracts or whatever, but things don’t always have to fit a certain standard. If things are great in the beginning but start going downhill, there’s not much you can do about that.

👎 Growth

➮ This one bit me hard last year. I had an individual property manager on my properties who I loved for years. His communication was great, everything was smooth and efficient, he saved me lots of money, and I could always get him on his cell phone — until I couldn’t. With no warning, things seemed to change. I had some problems, and when I talked to him on the phone, he explained that he had grown so much that he was experiencing some growing pains and not to worry — all would get fixed.

➮ This manager placed such a bad tenant in my nicest rental property that the entire property had major damage to it — and the manager had no clue! I would say this is an example of what can really go wrong with growing pains.

➮ The manager didn’t know how to grow a business, so things started getting sloppy. That would be OK if he didn’t convert in the process. Somewhere down the line, he had gone from this amazing, nice and friendly manager who I had met on several occasions to this monster who wouldn’t answer my calls, tell me anything about my properties, and had no idea one of my properties had basically been set on fire.

After finished reading this article, we’re get to know that the author has no perfection equation between them both but the author has share his/her experience to us. And now you can understand the pros and cons about large property management company and individual property manager. Which one better? You should decide your own.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Getting Started In Property Investment While You’re Young

In this topic, we will discuss about why you should getting started in property investment while you’re still young. You must wondering that what determines whether you are still “young”? Well, we are aiming at those fresh graduates and the age below 30.

Nowadays, most of the young people out there are looking for the job that can satisfied their fancy demands such as brand new car, branded handbag, branded costume and other things that can make themselves stand out from others people. However, that fancy demands often make you even poorer as you don’t have any money left for savings.

If you want to become a rich man in future, property investment is definitely the best choice for you. Why? Here, are some reasons why you should get started in property investment while you’re still young;

1. A smarter way to spend your money.

➻ Rent payments go straight into the pockets of the landlord, and at the end of the day, you’ll have nothing to show for it, as the property doesn’t belong to you.

➻ Mortgage payments are an investment in the future. As the remaining balance on a mortgage is reduced, home equity increases, padding your own retirement account – and not your landlord’s. Better to spend your money on your own home than on unnecessary, short-term expenses that won’t provide value later.

2. Resale Value

➻ The larger your investment capital is, so are your risks and return of investments. However, risk in real estate is given a sense of reassurance due to the ever appreciating value of property that Malaysia has seen thus far. Simply buying a home in the right district can mean earning a profit of even double the purchase price in 5-10 years (or less, if the area is highly profitable).

3. Low Interest Rates

➻ Borrowing to buy a place to live is seen by banks as a much safer investment than credit cards, and interest rates are still at rock bottom. It is hard to qualify mortgage debt as a bad financial decision these days.

4. Supplement your Retirement Income

➻ As millennials contemplate buying homes, they should think about the future. They’ll benefit from having a home as a storehouse for retirement funds, and their homes will likely be paid off by retirement, allowing them to tap into home equity to fund retirement benefits.

5. Emotional Value

➻ Although it is not a primary benefit for millennial homebuyers, there is also a sense of pride that homeownership invokes. You’ll never forget that sense of achievement… and the look of awe on your peers’ face.

In property investment field, time is so much important for every property investors. And as a young adult, you’re already took advantage of this. If you are property investor in your 20s, you’ll have at least 30 years to planning your retirement funds.

In conclusion, property investment is something that you should start as early as possible.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

What Is A Landlord’s Responsibilities To Their Tenants

Be a successful landlord is never easy. It is not just collecting rent every month with the tenants and you still have a responsibility to them. If you want your tenant pay rent on time, they have some expectation of you as well.

Before you want to be a landlord or you are new landlord, you must read on the responsibilities a landlord has to their tenants.

Responsibility to Maintain a Safe Environment

A tenant expects their home to be safe. As a landlord, you are responsible for providing your tenants with a secure place to reside. Your tenants should feel safe inside of their apartment. This means you should ensure all doors and windows are properly secured and have appropriate working locks. You should always change the locks once a prior tenant moves out and before a new one moves in. If you are going to give keys to Realtors to show your vacancies, make sure to use a generic lock and then replace the lock prior to your tenant moving in.

No one want to live in the place that lack of security. Make sure you have checked all the door and window locks before pass the key to the tenants. Besides, you will need to check on every potential tenant criminal history as well. It is to protect your own property your own asset.

Maintain a Quiet Environment

A tenant expects their home to be quiet. Again, when screening tenants, you should look for those you believe will be respectful of others. You should also have a strict quiet hours policy in your property that all tenants must consent to.

You may set a rules into the agreement which no loud noises, music after 11pm.

Responsibility to Maintain a Clean Environment

A tenant expects their home to be clean. While you are not responsible for washing a tenant’s dishes or picking their clothes up off the floor, as a landlord, you do have certain responsibilities to maintain the property as a whole. You need to make sure trash is taken out, either by yourself or through an agreement with a tenant or superintendent.You need to make sure common areas are well cared for; that they are free from garbage, mopped or vacuumed on a set schedule and have working light bulbs.

Yes, you will be like your tenant’s mother. Remind them to throw the rubbish to keep the property clean.

Respond to Repair Requests Promptly

A tenant pays you rent to reside in your property. It is your duty to them to respond to requests for repairs in a reasonable amount of time. The severity of the repair should warrant how quickly you should respond. Lack of heat in the winter is a repair that requires immediate attention, both for the safety of the tenant and for the benefit of your property. The lack of heat may cause your water pipes to freeze, and that could lead to thousands of dollars in repair costs.

If you receive complaints from your tenants, you should settle it immediately as well as repair the faulty.

Landlords Should Advise All Tenants to Purchase Renters Insurance

Many tenants do not know they are not covered under your insurance policy. You should advise all tenants to purchase renters insurance so their possessions are protected in the event of a fire, flood or other disaster. Renters insurance can also help protect their liability for an accident a guest may have inside of their apartment. Renters insurance can be purchased for as little as $10 a month.

Believe that you have purchase the property insurance to protect your asset. You may set the rules in the agreement that every tenants should pay the renters insurance to protect in the event of any accident.

So, being a landlord, you will need to communicate well with your tenant to avoid any unhappy problem happened.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

7 Tips To Find A Right Property Investment Strategy

Every successful property investor have their own property investment strategy for themselves. A right property investment strategy can lead you to success while if you apply the multiple strategies on property investment field, you are doomed to be failure. Sometimes, “many” doesn’t mean good.

Moreover, you have to manage to master one strategy as its often work better than a thousand different one. And, here are the tips for you to find a right property investment strategy if you want to success on property investment field;

1.Don’t get caught up in the “shiny stuff.”

For the old-time investor, books were a valuable asset. They told you where to invest and what not to do. However, information in books gets redundant quickly. Today, the internet gives much more recent and relevant information.

There’s just so much information online that it becomes close to impossible to sift out the good stuff from the bad. Secondly, there are way too many courses and boot camps that promise to transform your career overnight. Let me just tell you this straight up — the so-called boot camps, training manuals, and training materials simply don’t work.

Just like that, the real estate market throws up many strategies that promise you the earth and sky, from time to time. While they may appear more profitable and lucrative, don’t get caught up in their fancy words.Sticking to your plan may seem tough, but that is always the smarter thing to do. So, instead of going around falling for what pops up from time to time, stick to one strategy, and master its ins and outs until you’ve perfected it. Focus on what works and get rid of what doesn’t.

Our though ⇨ I’m agreed some point while for the property investment courses, I suggest you to attend at least 1 or 2. Reading book isn’t enough, but attend some property investment seminars can help yourself to increase your knowledge on property investment. Sometimes, you could establish your friend zone by become acquainted with some property investment experts on the seminars and they always love to share their experiences and story. Other than that, if you have any doubts on the topic, you are feel free to ask the speaker or the speaker could be your mentor. So, why not?

However, do note that, not all the strategies that you learnt from the seminars are suit to you. You’ll still need to find one and try out whether this strategy is work. If it doesn’t, figure out why and change the strategy if necessary.

2. Decide on an existing strategy

While there are many business strategies out there in the market, there will only be a few that work for you. The one that works should match the requirements in the markets you operate in, it should match your timing commitments, and most importantly, it should be in harmony with your financials. Based on these parameters, as well as your expertise, experience and comfort levels, decide on an existing market strategy. And once you’ve done the research on what will work best for you, move to the next step.

A mistake that many investors tend to make is to get stuck on the research. Because all strategies seem attractive, many try to do a little of everything and end up not gaining expertise in any area at all. So choose a strategy that exists based on your markets. In order to do so, look at what your competitors are doing or take the help of a mentor you trust.

Our though ⇨ Correct. Before you getting in any investment, you should identify a strategy that based on your market. You may need to take some times to searching which strategy is best to you,. Don’t rush and take you time, once you find one that work best for you, learn it, master it and stick on it and maybe someday, you will be the expert on this kind of strategy in property investment.

3. Know that it will work.

First, a proven market strategy exists because it is a workable and profitable one. Secondly, each strategy makes a profit over a period of time.Over time, as you master each of these strategies, you could also get better at it. Also, because you know how the market behaves, you can properly plan the kind of deals to take, how much to save, and how to get through low-cash times.

However, what wouldn’t work is a combination of strategies, which can instead make you cash-strapped and leave you confused on how to get through the lean periods. It is important here to understand that the real estate market is driven by values of fear and greed. Many investors make the mistake of making emotional decisions based on those values. These are what propel them to take up many strategies, and you can avoid it by sticking to one and rising above those sentiments.

Our though ⇨ So, “many” doesn’t mean good sometimes. Train yourself to focus on one strategy and don’t let yourself attracted by other strategies.

4. Stick to it.

Once you have identified a market and a strategy, adopt it, use it, and work on it. Stick to the strategy and master its ins and outs. Keep improving upon it at every opportunity that presents itself.

While mixing and matching might seem lucrative in the beginning, it could be detrimental to the proven aspect of your existing business. In fact, it wouldn’t establish your expertise in any area at all and make you just another real estate investor in the market. I have also witnessed too many investors who’ve fallen hard because of stepping into the unknown realms of real estate strategizing.

Our though ⇨  For example, if you’re master in renting then you should stick with it and never think about switch to flipping property. Instead of focus on many different strategies, why not identify one that you feel comfortable with and then stick with it forever.

5. Get the right people.

Getting together the right kind of team can make all the difference in the world. When you are building a superstar team, ensure that all members share the same vision regarding your real estate strategy. Build a team that promotes camaraderie amongst team mates, rather than competition. This will help you be at numerous places with diverse deals at the same time. An efficient and well-organized team is definitely a great asset to have, so make sure that you can build such a team. Decide upon a good structure for your team and empower them through developed leadership skills.

Our though ⇨ Other than find a right property investment strategy, find the right people to work with you is important also. For example, if you decide to be a property manager, you should build a team that can work best for you. A well-organized team always lead to success path.

6. Work on people skills.

People skills are of extreme importance and are a key factor of what customers look for in you. So build your interpersonal skills as you activate your real estate investment strategy. Your drive and determination should appear as a strong motivational factor for your customer. Your verbal and written communication skills should be strong as well.These will help formulate a clear understanding not just between you and your customer, but also between the people you work with.

Good negotiation skills are a must for any business and thus an important skill set here as well. Finally, arrive on time, respect schedules, and listen to your customers more than you speak. These skills can make you a better real estate agent, so couple them with a strong conviction that your choice of strategy is the right one.

Our though ⇨ Finally come to human relationships, this is quite a difficult skill to learn. The most important thing is your EQ as EQ is stand an important role when you are negotiating with you customer.

7. Give it time.

Countries aren’t built in a day, and the same is true about careers. If you’re planning to get rich quickly with real estate, then let me tell you that the markets just don’t work that way. You need to have plenty of patience to learn, experiment, and learn some more. Only then can you intend to make a career out of real estate. So give it time, learn as you go and take projects that fit your line of strategy. This will enable a growing number of customers to come to you too, as you’ll be considered an expert! Only when you have mastered a strategy completely should you move on to the next one.

Our though ⇨ Some seminars out there may tell you the strategy of how to get rich quick in property investment. Don’t believe it, there is no such thing. This topic needs a lot of time to study. Do remember, don’t rush yourself to getting in property investment, you will lose everything especially your hard earned money. Take your time, educate yourself enough before started your property investment life.

In conclusion, in property investment field, all you need to do is find a property investment strategy that suit to you and stick on it and never compromise the existing strategy.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

13 Problems Faced By Every Landlord

Find a good tenant is never a easy job for a landlord. If there is any serious problem happened, evictions the tenants may cost a landlord time, money and resources of find the new tenant. Besides, if tenant request to lower the rents because of their financial status, a landlord can show his/ her kindness to follow the tenant wish yet it can affect his/ her profitability.

Apart from that, there is still have other problems that the the tenants always bring trouble to the landlord. Being a landlord, you must put your shield up to defend yourself from these common problems;

1. Tenants Refuse to Pay Rent

⇝ Structure Payment Options (try implementing a policy of accepting a partial payment from a resident once per year or weekly partial payments)

⇝ Change the Living Arrangement (set them up with roommates or move them to smaller, lower-cost units.)

2. Bad Tenants Slide Through Your Screening Process

⇝ Conduct a Thorough Background Screening (to verify employment and rental histories, credit checks, and interviews for all prospective tenants)

⇝ Interview Applicants at Showing (why they’re leaving their current residence & determine what they expect from their new property)

⇝ Request a Completed Application Upon Showing ( give them the chance to create histories and recruit family members or friends to portray previous and current employers and landlords)

⇝ Speak With Previous Landlords (speak with his or her previous, not current landlord)

⇝ Contact Applicant’s Direct Supervisor (A cooperative, honest, reliable employee is likely to exhibit the same personality traits as a tenant)

3. A Building Has a Bad Reputation

⇝ Speak to Law Enforcement (with active cooperation from the police, you should have no difficulty removing bad tenants from the property)

⇝ Develop a System (can help repopulate your property with good and decent residents)

4. A Tenant Regularly Disrupts the Neighbors

⇝ Allow Tenants to Resolve Problems (Make a clause in the lease that specifically states that all tenants are to make every able attempt to settle arguments without your intervention)

⇝ Step In When Necessary (should a tenant attempt to blame the management – be sure that any lease or rental agreement contains property regulations and rules)

5. A Building Has a High Tenant Turnover Rate

⇝ Repair and Upgrade Units (Make sure that all broken or damaged fixtures are addressed before tenants complain)

⇝ Frequently Monitor Competing Properties’ Amenities and Rents (Watch the market and know how you fit into it and if you see rent decreases looming on the horizon, lower your rent now)

⇝ Negotiate Renewals in Advance (practice among good landlords to negotiate renewals with respectful tenants approximately three to four months before their lease is finished.)

6. Pest Problems

⇝ contact an exterminator to handle the issue as soon as you hear or receive a complaint

7. Roofing Issues

tenants can place their rent money in an escrow account and withhold it from you until the roof is properly fixed to address these issues before you schedule a showing

8. Broken Appliances

 you can include a clause that affirms the property does come with a used washer and dryer, but replacement is the responsibility of the tenant

9. Security Deposit Issues

 you can also collect first’s month’s rent, last month’s rent, and a third payment to be used as a security deposit

10. Violation of Rules

  it’s important to notify the tenant in writing of the violation and request that he or she corrects the problem or otherwise face an eviction

11. Past-Due Utilities

  whether the utilities are in your name or the tenant’s name determines who is responsible for past-due bills. Make sure that your rental agreement is clear and specific

12. Purposeful Damage

   Take pictures of the property before it is rented, and take pictures after the tenant moves out. Make sure that the photos have the time and date stamp on them, as this can help to prove your case in court.

13. Illegal Use of the Home

   If you are informed of any changes to your unit, it is critical to take action to protect yourself by seeking legal counsel from an experienced attorney and by reporting the incident to the appropriate authorities or draft a letter to formally request that the tenant immediately cease the action or face eviction.

Have the above problems shock you out? Don’t think landlord is a easy job which just collect the rent with the tenants, yet, you’ll need to settle all these problems in order not to get yourself involved in the legal issues (if the problem related to legal action). Anyhow, make sure you have set the clear cut  lease agreement as it is very important for you to against with the tenants should there is any problems happened.

Source: WMAPROPERTY

It’s not about property ownership it’s about control! To get more details, visit 👉 Property Millionaire Intensive

Real Estate Beginners Can Profit From Lease Options Strategies

For beginners with little or no cash, this could be a very good strategy indeed. The Lease Option Strategy has two components. Under the law, an option is a way for a real estate investor or buyer to enjoy the right — but not necessarily the obligation — to buy a specific parcel of real estate in a given market. The option component allows you as an investor to control investment real estate and to position yourself for later profit without necessarily having an obligation to buy. You might then lease the property (retaining the option to buy it later for yourself if you choose to do so), and turn the property into a cash-flow cow. In negotiating the original transaction with the owner, you would agree to a specific purchase price. That way, your price is locked in even if the market value goes up significantly.

CREATE A PROFIT GOING IN

With the property now under your control, if you ‘do the math’ and the numbers make sense, you can go ahead with the purchase from the previous owner if there’s an opportunity to make a profit when you later sell. Let’s say you acquire a certain property on a Lease Option basis. Assume for discussion you agreed on a RM500 per month rent and a RM100,000 purchase price with the owner. You might then sub-lease the property out to a tenant for RM650 per month and by monitoring the local market you might decide to buy the property at $100,000 as agreed. You then offer your tenant a Lease Option at an even higher purchase price of RM125,000, perhaps with lease payments (or a portion of them) being applied to the down payment. Under that arrangement, your tenant will be better motivated to take care of the property (since they might one day be the owner). At the same time, you would be in a better negotiating position on the selling price. Your tenant could have the lease payments (or a portion of them) applied to the down payment. Under such an arrangement, you might negotiate a better selling price than otherwise, and enjoy a win-win transaction.

FISHING THE WATERS

The Lease Option Strategy is one of many real estate investment techniques. It works well in soft markets, where there are more properties for sale than there are buyers. Where you find a property owner with a low equity-to-debt ratio, and they need to rid themselves of the property, you might find the owner willing to do a Lease Option. It also works well where the local market is experiencing a high number of foreclosures. The ‘teaser rates’ that many lenders offered a few years ago are creating thousands of foreclosures around the country as the adjustable rates get increased. You might profit by using the Lease Options strategy in your favor in those real estate markets. Look for Lease Option opportunities in single-family homes as well as duplex and apartment buildings. With a property tied up in a Lease Option, this gives you time to arrange suitable financing or to find your own arrangement in which you buy the property whenever your tenant is ready to buy.

Source: Ezinearticles

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