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Should You Replace Vinyl Siding on an Investment Property?

First things first: If you replace the vinyl siding on your investment property, the national average of return on investment is about 80 percent (give or take a few points).

However, that investment may be a good one—especially if you consider the boost in curb appeal.
Should You Replace Vinyl Siding on an Investment Property?
The job averages less than $11,000 across the nation, which means it’s relatively cost-effective (but that’s also a pretty large chunk of change). New vinyl siding will make the house look brand-new on the outside, but if you’re not making significant improvements to the inside (or if the inside doesn’t already look next-to-new), that may be a wasted effort.
The Deal With Vinyl Siding
Vinyl siding typically lasts about 25 years. Contrast that with house paint; houses need their exteriors repainted every five to seven years, which means buyers are more likely to want a house with low-maintenance vinyl siding.

Long-lasting, low-maintenance convenience is what new buyers want, so new siding may be a worthwhile investment for you to make.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard money loan process.

How to Budget for Your Next Investment Property

 

As a professional real estate investor, you know how easy it is for your ambitions to exceed your budget. Here is a step-by-step strategy to ensure that your next project remains in the red.
Know Your Limits
Before you begin any real estate venture, you have to know how much money you have available to work with. You would be amazed at the number of people who begin searching for loans without figuring out how much they are worth in the first place. Contact a professional financial advisor if you aren’t sure of your overall worth; you’ll need an exact number before you can continue!
Is the Property Sustainable?
You are going to have to sit on the property until you find a buyer. Calculate how many months you can comfortably incur the extra costs before it starts to become a major burden on the rest of your projects, and don’t forget to factor in overlooked expenses such as inspections and even natural disasters (better safe than sorry). For a better idea of how long you can expect to be on the market, research how long it took similar properties in the neighborhood to sell – in general, quicker is better!
Self-Savings
Any contracting job that you can do yourself will obviously save money. However, the more specialized the job, the more likely you are to have trouble. In the long-run, hiring a professional may save you more money than attempting a project yourself, especially since a botched operation will require professional assistance anyway.
Plan the Right Type of Loan
Time is money! There’s nothing worse than having to halt a project because a much-needed bank loan is still pending approval. Hard money lenders can get you the financial assistance you need […]

5 Common Mistakes REIs Make With Signs

Signs are a terrific way to advertise a property you have for sale. At the same time, don’t fall victim to these common mistakes!

Breaking the Law – depending what county you live in, it may be illegal to post signs for your property. In some counties, you can only post them on specific days (for example, on weekends). The last thing you want is to spend all of your time placing your signs, only to be fined and have them removed.
Your sign is too small – simply put, a person cannot read what they cannot see. You should always opt in for the largest signs possible. This will especially make it easier for people to read as they drive by.
Neglecting the phone number – the phone number is the most important part of the sign. Without it, nobody would be able to get ahold of you! Don’t neglect it by placing it in the corner or in too small of a font (your phone number should be as large as the rest of your message, if not bigger).
Bad sign placement –be sure not to put your sign in areas of low traffic or visibility. Ideally, traffic lights and stop signs are a good idea. People will be stationary in these areas and probably looking around.
Too many signs – oversaturation is a problem. It can annoy the drivers for one, and can also make you seem less personable. You can learn a lot more by strategically placing your signs at least a half a mile apart, and pay close attention to where your calls are coming from so that you know where to concentrate your advertising efforts.

The Four Stages of Renovation

When it comes to renovating a property, every real estate investor has his or her own system. However, any house flipping veteran will tell you that some areas of the home require immediate attention while other projects can wait. Here’s a quick 4-stage breakdown that will keep your operations running smoothly at all times so that you can pass inspections.

Stage 1 – this phase is laying the groundwork for future construction.

Have all of your blueprints, permits, and land surveys ready.
Be sure to order a portable dumpster and portable toilet for the construction workers.
Repair the house’s foundation.
Check for mold and pests.
Inspect all of the trees, and remove any showing signs of advanced rot.
Address the septic system problems, if any

Stage 2 – at this stage, you need to get ready for your first wave of inspections.

Fix the windows and window panes.
Make any changes to the roofing, specifically to the gutters, shingles and the soffits.
Replace the siding of the house if needed.
Early stages of electrical work and plumbing.
Prepare the heating, venting, and air conditioning (HVAC).

Sage 3 – this is where you start to turn the house into a home.

Install any exterior additions such as decks, porches, or a garage.
Put in the insulation (and prepare to have it thoroughly inspected).
Install the wall trimming.
Set up a fireplace at this stage, if so desired.

Stage 4 – this is the home stretch. You are almost there!

Finishing touches such as the interior and exterior paint.
Don’t forget to implement your landscaping plans from stage 1.
Cabinets, flooring and countertops go in last so as to avoid unnecessary damage.
The appliances need to be hooked up.
Finish the […]

3 Ways to Sabotage Your Sale

 

Investing in real estate often means purchasing and renovating distressed houses. When it comes to selling the home, it may seem that the hard work is over. While that’s mostly true, making mistakes at this stage can mean not getting the most out of the effort you’ve put in thus far. It can be easy to make these mistakes; and they can cost you.
Overpricing for the Market
Investing in real estate can be a stressful ordeal. Obviously, you want work and money you’ve poured into a property to pay off, and pay off big. However, it can be easy to assign too high a price to a home you’ve spent so much effort to renovate. Be sure to have a current comparative market analysis for the home, and base your list price on the hard numbers within it.
Ignoring Curb Appeal
Rejuvenating a distressed home can take its toll on the property. You may need to address damage to fences, lawns and landscaping as the final step in your renovation before you list the property. Also, pay attention to outdoor features such as the mailbox, house numbers and porch light. They may need to be repaired, repainted or replaced to make the home look its best.
Not Clearing the Air
Be mindful of the smells your remodeling has created. While potential buyers love the look of fresh paint and new carpeting, no one wants a home that smells of chemicals. Air out the home thoroughly after you complete the work, and as often as possible while it’s on the market.
Do You Need a Hard Money Loan in Atlanta to Fund Your Next Investment?
If you’re a real estate investor who’s looking for a hard money loan in Atlanta, we may be […]

Your Credit and a Hard Money Loan

Sure, credit matters.

But there are many good people who have terrible credit scores (and vice-versa).

What that means is that those good people are often ignored by lenders, and in many cases, the reasons behind their poor credit are far beyond their control.

So what happens if someone with bad credit wants to get a rehab loan?
Bad Credit and Rehab Loans in Atlanta
When someone with bad credit attempts to get a rehab loan through a traditional lender, the lender may not even look at his or her circumstances. In those cases, turning to an Atlanta hard money lender is typically the best option.

Why?

Because a hard money lender, even if they check your credit, is really looking at the most important factor: the value of the house.

In many cases, a hard money lender is able to fund a loan when the applicant has poor or less-than-perfect credit because what really matters is how much the property is worth. Remember, in a hard money loan, the property serves as collateral.
Should You Apply for a Hard Money Loan With Bad Credit?
Don’t let your credit score stop you from applying for a hard money loan. In fact, we may be able to help you if traditional lenders have turned you down. While bad credit can be a challenge, you can overcome it.
Do You Meet Our Loan Criteria?
If you’re thinking about applying for a hard money loan through Paces Funding, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take […]

Should You Add a Sunroom to Your Investment Property?

Adding a sunroom to your investment property may be a bad idea—especially if you’re looking for a quick turnaround with a hefty profit.
Should You Add a Sunroom to Your Investment Property?
The numbers don’t lie: Adding a sunroom to your investment property will get you, on average, about 50 percent of the project’s cost back when you sell. The average cost of building a sunroom is about $73,000, which could be better-spent elsewhere.

Naturally, every house—and every buyer—is different; it could pay off differently for you.

But like home offices, a sunroom looks like an inefficient use of interior space to many buyers.
What’s a Better Investment?
A better investment might be a deck, a mother-in-law suite, or an extra bedroom on the first floor. Even without adding anything to the house, making big improvements in the kitchen—like improving an inefficient layout—or the bathroom could bring you far more bang for your buck.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard money loan process.

 

 

What’s a Short Sale?

If you’re like many people—particularly new real estate investors—you’ve heard the term “short sale” fairly frequently.

But what is it, and could it be something you should look into when you’re investing in property in Atlanta or the surrounding communities?
What is a Short Sale?
While “short sale” sounds like it refers to the amount of time you have to close on a deal, a short sale is something very different; it refers to a person selling a property for less than what they owe on it. In a nutshell, they’re shorting the lender some of the money they owe.
Why Do Banks Do Short Sales?
Many lenders would rather get something for a property than nothing at all, and if it makes financial sense, they’ll agree to a short sale. Typically, this is how it happens:

The homeowner (who actually doesn’t own the home; he or she is still paying the bank for it) realizes that the house is headed for foreclosure
The homeowner asks his or her lender to agree to a short sale, and the lender does
The homeowner puts the house on the market and does all the work of selling the home, saving the bank from the hassle of foreclosure (and, in many cases, saving his or her own credit in the meantime)

The average foreclosure costs a lender about 25 percent of the home’s loan amount, so if we’re talking about a $200,000 loan, it’s going to cost the lender around $50,000 to go through the foreclosure process. If they sell the home for $151,000, they’ve saved money. (That’s a little bit oversimplified, but it’s the idea behind a short sale.)
Should Real Estate Investors Buy Short Sales?
As with any other property, it pays to do your due […]

Do Decks Add Value to Investment Properties?

If you’re flipping a house, you want to get the best possible return on your investment—and one of the ways to do that is to add features buyers really want (like these great kitchen design features for 2017).

But what about a deck?
Do Decks Add Value to an Investment Property?
In many cases, adding a deck can tack value onto a house you’re selling. There’s a caveat to that, though: the deck can’t be too extravagant, and it depends on the house’s location.

According to U.S. News and World Report, if you add a wooden deck to your investment property, you’ll recoup about 81 percent of your investment when you sell. Bear in mind:

The deck can make the house more appealing to a wider range of buyers because it helps them feel as if the home is larger (it’s added living space!)
You may be able to sell the house faster
You probably won’t be able to add the cost of the project to the home’s price and get away with it, unless you’ve made other cost-effective improvements that even out your profits

Wood vs. Composite Materials
Typically, building a deck with composite materials rather than wood can cost up to 50 percent more.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan […]

Playground Equipment and Your Liability as a Landlord

If you have playground equipment on your rental property, you may be wondering whether the risk of a child (or adult) getting hurt outweighs the benefits. Whether you’re renting a single-family home with a backyard play structure or managing a multi-unit rental with a community park, you’ll want to know what your responsibilities are as a landlord. It is possible you could be held liable for any injuries that may occur.

Let’s face it: children are accident prone – especially on playgrounds. It should always be assumed that there’s a chance for injury. If a child is injured on your property, you may be held liable, but there are some things you can do to protect yourself.
Inspect & Repair Playground Equipment
Inspecting and repairing the play structures and equipment on a regular basis is necessary. You’ll want to check for things such as rusting metal, rotting wood, and the overall strength of the equipment. Repair any defects immediately and complete routine maintenance. If there is any evidence of neglect – you may liable for injuries if someone is injured.
Post Notice of Risk
Posting a sign that tenants play at their own risk is necessary. While this is more common in an apartment setting, you can still post in a single-family unit. Protect yourself even further by including it in your lease agreement. This does not relieve you from your duty of keeping the playground equipment in tip-top shape.
Check Your Insurance Policy
Verify that you’re covered for any injuries that may happen on your property. You’ll need this anyway, but make sure you cover your bases. Even if you take the best care of your play equipment – accidents can happen.
Do You Need a Hard Money Loan to Buy […]