Investment Properties

What is “Turn Key” Real Estate?

A turn key property is one that’s ready for move-in as-is, no improvements or repairs necessary.

How “Perfect” is a Turn Key Property?

The term turn key doesn’t mean a property is perfect – no house is. Instead, it means that buyers can move into it without making any repairs or improvements… which is basically what buyers expect in the first place.

And that’s where you come in.

As a real estate investor, it’s your job to make the home as marketable as possible so you can sell it quickly (and at the right price).

That includes ensuring all appliances are in working condition, and that there aren’t any obvious or in-depth issues with the house’s structure, electrical system, or plumbing system. That goes for the HVAC system and every other system in the house, too.

Your buyers will still most likely need an inspection, even if you and your agent are marketing the property as “turn key,” so it’s always best to make sure it really is move-in ready.
Are You Looking for a Hard Money Loan to Buy a Property?
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.

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    Should You Stage an Investment Property if You’re Going to Rent It Out?

Should You Stage an Investment Property if You’re Going to Rent It Out?

If you’re renting out an investment property after buying and improving it, you may want to stage it… because staging it could help you fetch a higher monthly rental price.
Staging a Rental Property
You’ll have to weigh the costs and benefits of staging a property that was empty. You certainly have to make sure it’s spotless (no scuffs on the floors, dings in the walls, or cobwebs in the corner) and clutter-free, but the logistics of staging a rental property may mean it’s not worth the effort.

Remember that you’ll have to find suitable furniture and then:

Move in furniture yourself (or pay someone to move it in)
Decorate the walls, which results in more work when you have to take down the decor and patch up nail holes (although Command Strips are definitely a worthy investment)
Move the furniture out before your tenants move in

If you were selling the property rather than renting it out, it might make a little more sense to stage it – you’d be asking people to make a bigger investment, so you’d have wiggle room to put in more money and effort.
Do You Need a Hard Money Loan to Buy an Investment Property?
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.

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    Should You Leave Playground Equipment at an Investment Property?

Should You Leave Playground Equipment at an Investment Property?

 

If you’re considering selling your home, you may be wondering if you should get rid of the swing set in the backyard. While a playset won’t necessarily hinder the sale of your home, you’ll want to make sure it’s in excellent condition.

The playground equipment may be an exciting amenity to a family with young children. If the neighborhood is bustling with kids, fix it up, make sure it’s structurally sound, and prepare to leave it.

At the same time, if everyone else on the block is at retirement age, a swing set may not be an excellent selling feature. Home buyers will have to think about removing the play set themselves, and it may sway their opinion of your home.

Believe it or not, play structures and basketball hoops have been a major reason for dispute between a home buyer and seller. In a home sale, there is often confusion about what stays and what goes.

A large play set can sometimes be considered a fixture or real property if it is attached to the ground. Some buyers plan for you to leave it; others hope it will be disassembled on closing day.

If you’re removing the structure, doing so before you even show the home is your best bet. If you’re not able to do so, make sure this condition is disclosed to all interested parties right away.
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 […]

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.

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 […]