If you say going green, you are referring to the state of being more environmentally inclined with all aspects of your life. In terms of your home, going green is a good move when it comes to both home construction and home decorations. If you own rental properties, there are certain factors to them that determine their prices.
For instance, the number of years from date of construction, square footage, height or elevation, and site all determine the price of your rental property. However, it does not just end there. Now, their green attributes will have some bearing on the price of your rental properties as well. The green attributes of your rental properties also determine how well your property sells. Thus, if you own rental properties, it is best that you capitalize on their green attributes for you to better stand out from your other competitors. Here are some ways for you to prove that you have a green rental property.
LEED certification: Assurance is crucial in dealing with rental properties. If you want to convince your prospects that your property is green, you have to be able to secure a LEED certification and be able to present your prospects this. In the present, having this certification mean that you are well known for ensuring sustainability development. It puts a stamp on your building with a certain rating that declares its being efficient, healthy, and cost-saving. Based on current statistics, green rental properties have 9.1% more rental premium in comparison to other rental properties that do not possess LEED certification.
Energy star compliance: Another way to tell your prospects that you have a green rental property is to present to them energy star compliance. Being energy star compliant means that your property is an energy efficient one as issued by the EPA or Environmental Protection Agency. While getting the energy compliance is more common among appliances with energy-saving features, green buildings are also being issued with this symbol to give some recognition to the efforts of the owners and developers in ensuring that the property is a contributor to increasing energy efficiency and lessening carbon footprints.
Who should you market?
For green rental properties, the millennials are your target market. According to recent articles, millennials are the ones dominating the single-family rental market. They have this semi-nomadic kind of lifestyle that makes them very flexible and mobile to face new challenges to their independence, careers, and freedom. With green rental properties, millennials are given the edge of sustainability while taking advantage of their benefits without having to give up the freedom that they have always wanted.
Where should you market?
The millennials are very much attached to their technology. You can see this in almost every aspect of their lives. Clearly, you cannot see any millennial roaming around your vicinity without having some gadgets with them. It does not matter if they are at home, at the office, at food hubs, at malls, and even in the caves, mountains, forests, and beaches, millennials will always carry their smartphones, laptops, tablets, or wearable technology pieces with them.
So, if you want to entice this particular market with your green rental properties, get in touch with them using social media platforms such as Facebook, Twitter, Instagram, and many more. And surely, they will hear you out.
Finally, you are ready to buy a home or find another home that might be more suitable for your particular needs. In order for you not to experience a lot of hassle and stress in buying a home, you have to make sure to do the necessary preparations.
This sort of preparation is also not the only thing that you can do before you buy a home, you also do certain preparations before you go on a house hunt. A house hunt is actually a must if you have plans of buying a new home or a home that you can relocate so that you can further compare certain features from one house to another.
Now before you go on a house hunt, here are some important financial aspects that you must make sure to check.
Credit report: When planning to buy a house, the first step that you must take in association with your finances always involves you reviewing your credit report. Examine it thoroughly and assess if omissions have been made as well as errors. If there are errors, make sure to take a step-by-step approach in fixing them. You should expect to use a whole lot of your time while doing this. Make sure to secure a free copy of your credit report from major credit reporting agencies. If you cannot do this task yourself, you can always hire a company that will help you out in checking if your credit report is kept up to date and contains the right information.
Stay away from additional credit: If you are serious in buying a house, before you go house hunting, be sure that 6 months prior to availing a house, you must stay away from applying for additional credit. Do not get easily tempted by stores that tell you they offer you discounts when you use your credit card to purchase from them. If you miss out paying for another of your credit, this might have some negative impact on your current credit report.
Disciplined savings: As a potential home buyer, you will have to save a huge amount of your money because by the time you will buy a house, you will have to pay for down payment as well as other additional fees and charges. Even if you will not have to pay for the upfront cost, lending institutions will still consider looking into your account to assess if you are worth lending some money to and if you can pay them off.
Prepare yourself for three essential reserves: It is never enough to buy a house with its only current value. You also have to consider three essential reserves that you must be paying for once you own a house. These three include your deposit (usually 20%), your monthly reserves (upkeep, repairs, utilities, etc.), and your contingencies (alteration, renovation, and unanticipated expenses).
Recognize your limitations: Do not turn yourself into a person who is only rich in terms of your house and poor in terms of your cash flow. Be honest in recognizing your personal limitations as well as your comfort zone. Always remember that buying a house is not all about your ego. It is best that you buy a home that you do not just enjoy but truly afford as well.
There are a number of ways for a person to invest in the real estate market. However, if you prefer to invest in this market with no credit, no money, or no financial risk, then you must go with wholesaling of real estate properties. A lot of real estate investors have found success in this particular venture. However, if you are still starting in real estate investing, you might find wholesaling challenging.
Nonetheless, the idea of investing in real estate with no barriers makes real estate wholesaling a very enticing investment option. As long as you can take advantage of the good side of wholesaling, there is no doubt that you can attain some success. This can be said since wholesaling is really all about being wise in finding deals. If you can hone your skills in finding good deals, your profit potential will surely be unlimited.
After finding a good deal, you proceed in selling the real estate property to make some profit. Here are some ideas on how you can structure your wholesale properties like the pros.
Contract assignment: Though this is the easiest among the other options, you need to understand that this also carries some risk if the method is not done right. This method is also restrictive since bank owned properties are off limits for this particular wholesaling method. Even so, this is a good method of wholesaling when you are the one that directly deals the seller.
Basically, you start by getting a house that is under contract and then have your rights assigned in the contract to another buyer for a particular fee. This new buyer will be getting the responsibilities and rights stipulated in the contract and will be closing the deal in your place. It is always the better option to be getting your fee upfront; however, the most common practice for this method is only getting your fee after the buyer has bought the house. When assigning contracts, make sure to take into account the certain things.
To being, you must always disclose to your seller that you are assigning the agreement to another buyer for a particular fee. It will be better to put this into writing in the form of a contract. Sellers will not have any problems with this set-up as long as you are being transparent that you are the type of investor who buys houses for money before you go about doing some negotiations.
Double close: For this particular wholesaling method, you will be buying the house and then be reselling it. There are a number of ways that this can be done but the most common way is to buy and sell a house on the same day. Generally, you have to get some financing help so that you can better close deals with any seller.
This method is unfortunately the most expensive since you will be paying for two sets of closing costs. Nonetheless, a lot of real estate investors prefer this method since they are not required to disclose to the seller their intentions of reselling the house. The investor has every right to keep the deals with the seller and those with the buyer private. This is a wholesaling method that allows better protection of profit. Of course, the information will then become public knowledge; however, this can only be done after the contract or deal is closed.
If you are a home builder, for sure, you have considered hiring the services of a general contractor or not when it comes to your projects. The most obvious reason to not hiring one is saving more of your money. But to save this amount of money, what does it entail on your part?
Before you go about figuring out if you should be hiring the services of a general contractor or not, you must first know what they do. A general contractor is basically a person who will be overseeing your construction project. They are tasked to also manage your subcontractors and help you finish your project in no time. Usually, they do not have the skills and expertise to carry out particular tasks such as electrical and plumbing. However, they are well aware of the basics of any construction project and are very well organized.
The pros of being your own general contractor
In most places, you can act as your own general contractor if the project is just small or if you are just managing and getting the services of licensed subcontractors. The value of a general contractor to your project must be paid by you. By not hiring one, you are able to save some of your money. Paying less for the remodeling or construction of a house can be more profitable to you.
Aside from saving most of your money, when you act as your own general contractor, you will gain more experience in the field. If you are a real estate investor, you should know that having some basic understanding of how you can remodel a house is a great advantage to you. In the near future, if you will do bigger projects, this experience can help you and also, you can better pinpoint bad contractors and steer clear from them.
And last, if you do not hire a general contractor, you can have more control over your home construction project. Also, this lets you avoid hiring a bad general contractor. Terminating a general contractor, no matter how bad they might be, can be very challenging. They can still have their crews working while still owing their subcontractors some money. When you are the one directly dealing with your subcontractors, the job will be more smooth sailing and less of a hassle.
The pros of hiring a general contractor
There is nothing wrong with being your own general contractor; however, if you are going to become a real estate investor, it would be best if you hire one. It can be difficult juggling investing in real estate and working in it. So, to better concentrate on your real estate investment business, it would be best to hire someone to carry out the responsibilities of being a general contractor instead. Aside from delegating your workload, here are other benefits of hiring a general contractor.
- They have a better understanding of building code and will make sure to do their work according to such code.
- Hiring a good one enables you to save some money on your holding costs because they can get the job done fast and efficiently.
- Liability can be shifted through them. When something is not done right, the responsibility can go to the general contractor or their insurance company. They should also provide you warranty.
- They can save you a whole lot of your money in the sense that they can get a better pricing from subcontractors if they have built good relationships with them. Most general contractors have also established positive relationships with material suppliers.
Until this day, there are still a number of people who are confused as to what is the best living arrangement for them. They choose to either rent a home or buy a home that they can call their own. It requires a number of things to own a home. You have to not only be prepared financially but also emotionally.
You need to have some understanding what owning a home means. Even so, there is no denying that owning a home is one of the best investments that you will ever make in your entire life. Owning a home is a major decision that you must make and one that should be taken seriously. This short article will give you 4 reasons why it is always for the best to own a home.
- You do not just pay your bills but accumulate your assets. If you rent a home, you pay a certain amount to the owner of the house or building every month. No matter how much you do this, you will still not be able to accumulate ownership to the said home or building. Though renting a home entails less responsibilities, it is only by having your own home that you do not just pay for your bills but also accumulate a certain degree of equity.
- You enjoy the benefit of tax-deductible mortgage interest. Taxes may be a headache to most people even those that are required for their home. However, there is this so-called mortgage interest deductions that benefit a lot of home owners when they reach a certain size of mortgage. Basically, after the taxes, you will pay lesser net amounts if you own a home than rent it.
- You get ownership pride. If you rent a home, you become a tenant of the property rather than the owner. Though this implies that you have fewer responsibilities, you will have no right to customize the home that you are renting to be in keeping with your particular requirements and the changing conditions in and out of your home or even your changing family. When you own your home, you will have gained something that is intangible. You have this so-called pride of ownership that gives you some sense of being proud of yourself for owning your own home.
- You have all the freedom to update, upgrade, renovate, change, and customize your home. Home renters or tenants cannot really do a lot about certain rooms of their home such as their bathrooms and kitchens if they landlord does not allow them to make some changes to these areas of the home. In the same way, the landlord is the same person you must approach when you have plans of doing a painting job with the home that you are renting from them.
- Moreover, if you rent a home, it is just impractical to install or buy very pricey items that you cannot then take with you once you move. By owning a home, you have all the freedom in the world to change, customize, update, upgrade, or renovate your home according to your preferences. You can do anything with your home for as long as you secure a permit from your town or city as well as have the personal finances to back your budget up.