Investment Properties

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.

 

 

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 […]

More on Landlords and Accepting Section 8

If you read our last post about accepting Section 8 vouchers, here’s even more information that you’ll need to know before you buy a rental property. These are some common issues landlords run into.
What Happens When You Accept Section 8?
Here are a few more things you need to know about working with Section 8 properties.

Section 8 doesn’t cover security deposits. Security deposits are not paid by the Housing Choice Voucher Program. In addition, the laws are different for Section 8 tenants and how much you’re able to charge for a security deposit. You’ll want to check into your local housing authority for verification. Some landlords waive the deposit completely, but the result is usually not favorable.
You’ll be required to comply with frequent inspections. Annual health and safety inspections by the Public Housing Authority are required for you to maintain your Section 8 status. As needed inspections are also conducted when there is a complaint by a tenant. An extensive 13-point checklist must be passed for the government to continue your payments. If you’re not in compliance, your tenant can find other suitable housing.
You might be in for a lot of paperwork. The application and re-certification process for landlords can be tedious. You’ll also find that you must be highly detailed and accurate with all your accounting and documentation. One mistake could be costly.

Do You Need Hard Money 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 […]

If You’re a Landlord, Should You Accept Section 8?

As a landlord, you may be wondering if you are required to accept Section 8 vouchers. Housing laws vary from state to state, so if you’re not from Georgia, here’s where you need to go to check out our requirements: http://www.dca.state.ga.us/housing/RentalAssistance/programs/downloads/LandlordGuide.pdf.
What is Section 8?
Section 8, or the Housing Choice Voucher Program, is government assistance for qualifying low-income individuals or families. The voucher subsidizes a portion of the tenant’s monthly rent; allowing them affordable housing.

So what can you expect if you participate in the Section 8 program?

Timely payments. The government will pay their portion of the rent on time. You can count on a consistent monthly income coming in, and you won’t have to worry about the entire amount being late.
High demand. The likelihood that your property will sit vacant is decreased, as you are increasing your options for potential tenants. Housing voucher tenants are also more inclined to rent for longer terms, mostly due to their financial situations.
Marketing incentives. You’ll be able to target your marketing to local housing authorities by using old-school marketing methods such as flyers, as well as online at GoSection8.com. You won’t have to pay expensive advertising fees.
Prescreened tenants. Housing authorities prescreen applicants with a criminal background check, as well as verify their income levels. You’ll want to do your own screenings, too, but this pre-check gets you off to a good start.

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 […]

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    Should You Hire a Property Manager for Your Investment Property?

Should You Hire a Property Manager for Your Investment Property?

There’s no denying that real estate investing can be profitable (if you’re good at it), but there’s usually a lot of blood, sweat and tears involved. If renting homes is your thing, but you find that you’re just not into unclogging toilets, or don’t have the knack for finding the perfect tenants, should you throw in the towel? If so, you may want to consider hiring a property management company.

If you’ve invested in multiple properties or are just simply making enough money (that’s the goal, right?), hiring a company to take some tasks off your plate may give you some time to look into future investments. So, how do you find the perfect property manager? Here are some questions you can ask them:
Question 1: What are your fees? Do you charge a monthly rate and are there additional fees for things like finding tenants?
Some companies charge a flat monthly fee even if your property is left vacant. Others get paid a percentage of the rent collected.
Question 2: Are you licensed and insured?
You’ll want to make sure the company is licensed and insured in case of legal or liability issues.
Question 3: How do you vet prospective tenants?
Make sure their requirements include background and credit checks, as well as payment histories, so you don’t end up with tenants who don’t pay.
Question 4: What is the best way a tenant can reach you?
Having an accessible property management company is necessary for a healthy relationship with tenants. They’ll need to know they can reach out when issues arise.
Question 5: How can I end our contract?
If you find that your management company is not working out properly, you should be able to move on. Read the contract thoroughly before […]

5 Hot Home Design Trends for 2017

The hottest trends in home design just may be what makes your investment property sell faster—and for more money—this year.
5 Hot Home Design Trends for 2017
Design Trend  #1: Built-In Bars
Last year it was the bar cart; this year it’s actual, built-in bars. Shelving for cocktail accessories, glasses, and even bottles is becoming increasingly popular.
Design Trend #2: Colored Refrigerators
If you’re selling your investment property with a fridge included, spring for a 1950s-style refrigerator in a bright, bold color.
Design Trend #3: Creative Tile Backsplashes
While square backsplashes have been a “thing” for quite a while now, this year other geometric shapes are in. You can choose a few harmonious colors or—if you’re extra bold—colors that match the colored refrigerator you’re adding.
Design Trend #4: Wall Tile in the Kitchen
Think bigger than a backsplash and tile at least one wall of the kitchen. It’s easy on the eyes… and easy to clean, which makes it a big bonus for hip homebuyers this year.
Design Trend #5: Marble, but in White or Gray
Forget the dark marble countertops of yesteryear and modernize with white or gray marble. People are even choosing it for serving platters, tabletops, and other home accessories, which is a testament to its popularity.
Do You Need a Hard Money Loan in Atlanta?
If you need funds for an investment property, we may be able to help you. Call us at 404-814-1644 or send us a note. You can also apply for a hard money loan online.

In the meantime, read our FAQ, learn about the hard money loan process and see if you meet our criteria. We’ll be happy to help you if you qualify.

 

2017 Kitchen Trends for Flipping Houses

In the past, we’ve mentioned that cheap finishes can kill your sale — but how do you know what buyers really want?

The answer is simple: you stay on top of fixture trends and keep an eye on what’s selling in your area. As a hard money lender in Atlanta, our team has seen plenty of trends come and go (remember popcorn ceilings?).

With that said, we’re not going to leave you hanging. Check out the hottest kitchen fixture trends for 2017 before you dive into your next project.
Kitchen Fixture Trends 2017
Like in 2016, people want to keep things simple, with clean lines and an elegant look — even if the house has a long way to go before it hits the luxury market.

These are some of the hottest trends to watch for this year.

 
Do You Need a Hard Money Lender in Atlanta?
If you’re looking for a hard money lender 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 is Virtual Wholesaling?

Have you heard of virtual wholesaling? If you’re like most people, you probably haven’t. Virtual wholesaling is essentially buying and selling homes or commercial buildings without having to be there. Most of the time, this is done electronically, and the transactions take place without ever seeing the property in person. The home or building is then turned around and sold quickly to an end buyer.
Advantages to Wholesaling Property
Virtual wholesaling has some advantages such as expanding your reach. If the area surrounding your physical location is short on investment properties, you can branch out. You don’t even have to leave your home or office to make a purchase… although it is a good idea to make at least one trip to see it with your own eyes.

With the ability to buy and sell electronically, it may be worth it to have a few people on your team who are close to the property, and can assess the situation. Having connections with real estate agents or contractors can help you succeed in a new territory.
Disadvantages to Wholesaling Property
If you don’t have eyes in the field—it will be tough to estimate the cost of rehab. You’ll just be looking at photos and videos, and won’t have an actual feel for what needs to be done. This can affect your overall sale and it may cost you in the long run.

Because virtual wholesaling is basically selling your contract (the offer you made on the property), you may need to have some transactional funding to cover the time it takes for the end buyer to wrap things up. It is still your property until the deal closes.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard […]

REI Resources for Beginners

Not all real estate investors were born into the business. If you’re like most people, you’re probably wondering if you’ll continue this venture after flipping your first home or finding a tenant for your commercial building. Should you decide that real estate investing is your calling, where can you go to learn more?

Most real estate investors didn’t start at the top—they were rookies once, too. In a business where you’re often working alone, how do you find what it takes to be the best?
Network
You’ll learn a lot by networking locally with other real estate investors. It is not uncommon to find networking groups online, packed with people who are looking to meet up and discuss their adventures in real estate. Join a group and be sure to mingle with the seasoned professionals—they’ll be the ones to give you the best tips.
Training & Certificate Programs
There are numerous training and certificate programs online that are geared toward real estate investing. A lot of these programs are self-paced and allow you to learn on your own time. These types of programs and certifications are not a requirement for your profession, but you’ll learn a lot about the industry, as well as the lingo.
Webinars & Podcasts
If you’re not able to enroll in a certificate program, why not watch some webinars online? If you don’t already have a mentor, do a simple web search to learn who the top investors are for your niche. You’ll find that several them offer online webinars or podcasts packed with industry related information. Sign up to listen weekly and learn from the masters of real estate investing.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard money loan in […]