Multifamily real estate is typically a diversification option for versed investors, and not a first-timer’s leap of faith. You need knowledge, expertise, and the negotiation skills to match the level of competitiveness in this industry, but it also makes for a wonderful choice in case you’re already familiar with real estate investing in general, and you’d like to enrich your portfolio further. This profitable choice can bring you a stable source of income, and it can serve as a stable, long-term investment that you can ultimately sell if such a need ever arises.
However, no matter how experienced you might be in other forms of real estate investing, jumping into this versatile field takes some research and adjustments. Let’s go over a few handy tips you can use on your own journey in order to make the most of this lovely opportunity!
Deciding on the location
Not all multifamily properties are created equal. In fact, among many factors that will affect their overall value and desirability in the eyes of your future tenants, one of the main deal-breakers can be the location. Since your target buyers and renters are families, you should consider features that will appeal to such an audience. Is there a reputable school in the vicinity? How about a playground? Are there safety measures in the neighborhood, such as regular patrol and security surveillance?
There are all kinds of conditions that might inspire a family to feel welcome in that particular location, so it’s vital to do your homework. That way, you can pick a location that will elicit offers before the ink dries on your investment contract.
Managing the management
Unlike one-person units and other real estate options that don’t focus on families, working with multifamily real estate properties requires quite a bit of legal knowledge and managerial skills. Whether you decide to be the key manager of the entire property you invest in, or you choose to hire a property manager, the decision is entirely yours. What matters most is that you have a solid base and that you fulfill all of your legal obligations.
One of those responsibilities includes obtaining the initial maintenance schedulefor your property so as to compile the most relevant data on how you take care of your property. That means you need to follow the prescribed legal rules and meet your local government’s expectations when it comes to property maintenance in order to avoid financial and other penalties. If you alone cannot handle the burden of multifamily real estate management, make sure to work with an expert who can take over a portion of those chores.
Land on the right financing solution
A common issue even among versed investors is obtaining the right sum of money to purchase the property you find the most lucrative. These massive investments require a stable financing solution so that you can have that much-needed initial capital for this venture. Direct lenders are considered a safe and reliable option while partnering up with other investors is another viable opportunity especially if you already have trusted partners in the business.
Increase the value of your investment
Who said that being an investor is a dull occupation? On the contrary, if you choose to invest in multifamily real estate, you’ll need your creativity and imagination so that you can amplify the value of the properties you purchase. From increasing functionality of the space, all the way to beautifying the exterior with finer design solutions, even the smallest of changes can lead to a major surge in value.
Sometimes, you’ll be able to find properties in a pristine location, but in desperate need of a thorough restoration or remodeling in order for them to be rentable. Make sure that this is an investment that is in line with your budget, and you’ll have a diamond in the rough in your hands, ready to become a prime spot for families after spruce.
Plan your tenant strategy
Finally, never invest in a property without preparing a strategy for your tenants. With the right policies in your hands and clearly defined procedures, you’ll be able to attract the right people to your property in no time.
Multifamily investing is a perfect opportunity to diversify your portfolio, and an exciting way to grow your community. Use these tips, and turn this endeavor into a streamlined journey towards purchasing your first multifamily property!
When you’re renting and you’re aware that you’re actually living in somebody else’s apartment, investing in décor is always something you have to think twice about. You might be forced to move sooner than you expect and you don’t want to waste your hard-earned money on something you’ll have to leave behind. However, you still want your living space to have that luxurious appearance. So, what you can invest in are materials and items that you can carry with you or repurpose in another home one day. After all, luxury doesn’t mean crystal chandeliers and another upscale expensive décor anymore, but rather quality materials, smart combinations of different styles and being able to follow the latest trends with the space and the budget at your disposal. Here are some luxurious décor-related investments which can make living in your rental much more comfortable without setting you back financially.
Get some new knobs
Your kitchen cabinets are boring you? Or the ones in your bathroom? Well, if you want to make a subtle change which will refresh the way they look and make you feel a bit happier, replace your old cabinet knobs with some new, elegant ones. You can save the old ones in a box or in one of your drawers and simply put them back onto your cabinet doors once you decide to move, while you take the new, better-looking ones with you to your new place. Similarly, if your doorknobs are old-fashioned nickel ones, already polished with years of use, you can invest in new ones, made from porcelain or brass. This is also something that’s easy to do, it’s affordable and can instantly add some glamour to an otherwise monotonous space.
Hide your worn-out floors
While getting new flooring in a rental apartment would be an utterly reckless investment, there are still ways to make your floors look beautiful without spending too much. With a few stunning area rugs in exactly the texture you prefer, you’ll add to the appeal of your entire apartment. If you can’t make up your mind about it, you should know that the latest trends are on your side, since you can now layer rugs in different textures, styles, colors and patterns to make your living space as sophisticated as you want. Don’t forget, bright colors and bold geometric prints are all the rage right now. You can even put some rugs where people least expect it, on your kitchen floors. Plus, nowadays you can choose jute rug made of natural materials and add tranquility to your home. And the best thing is that you can move them from one room to another, as well as from one apartment to another.
Add splashes of colors
If your whole living space is dull and depressing with plain white walls, adding some color here and there can make a huge difference and make the place more cheerful. Plus, it can reflect your own vibrant personality. Your landlord may agree to you painting an accent wall, but if they don’t, or if this is not something that you’re ready to do, you can always get some colorful artwork, as well as cushions, towels or even new curtains. As far as your bedroom is concerned, you can simply add color by investing in some new sheets and covers and enjoy the new life you’ve given to your apartment. Plush materials and trendy patterns will add some style to any of your rooms. And did you know you can get removable wallpaper now? Perhaps you should get some and have fun decorating.
Create additional storage space
If you feel that there’s a tad too much clutter in your rental and you want to have more storage space, but your mind is set on keeping it tasteful, pleasing to the eye and modern, there are several good solutions for you. First of all, floating shelves are something that’s ridiculously cheap, but can add some charm to any space if you’re careful with what you place on them. Similarly, if you lack closet space and you don’t know what to do with all those clothes, get a garment rack or two and put them in the corners of your bedroom. They are a fashionable way to store your garments, especially if you also invest in some lovely hangers. Finally, several stylish storage boxes or bins you can place underneath your beds can help you get rid of the mess and find the right place for all those little things which are currently annoying you all around your apartment.
With these guidelines, turning your rental apartment into a luxurious oasis you’ll love can be as simple and as affordable as you only hoped it could be.
Through a $1 million gift from the REALTORS® Relief Foundation, C.A.R. is offering disaster relief grants up to $2,000 per household to provide assistance with mortgage relief or temporary housing, such as payments on the mortgage of a primary residence that was burned in a fire, lease or rent payments on replacement housing, or payments to a temporary shelter.
Relief assistance is limited to a maximum of $2,000 per applicant household. Deadline for application submission is June 30, 2019, contingent on the availability of funds.
Assistance is for housing relief only; other expenses including mortgages on property other than primary residence, vehicle purchase, rental, repair and or mileage are ineligible for reimbursement under this program.
Documentation requirements: proof of residency, proof of lease/ownership, proof of damage/loss.
One application per household.
Grants are available only for applicant’s primary residence.
Recipients of other financial assistance (FEMA, charitable groups) are eligible.
Fire season is officially upon us here in Southern California. With thoughts of fire season, come thoughts of insurance and whether we have the appropriate coverage to cover our belongings. Most insurance policies require that you provide an inventory when you file a claim. Your inventory will need to include proofs of purchase such as receipts and often insurance companies will also ask for pictures of the items that have been lost.
Photographical inventories are regarded as the most exhaustive and reliable form to evidence the condition of the items before the loss. Insurance agents will often advise that a color photograph is take, in good lighting and labeled. A good way to ensure that you receive appropriate coverage is to include a purchase price and date with the photo and sometimes even a family member or other person to validate that it is an actual photo taken by you. Include items in and around your home and take care to include items in vaults, safes and safe deposit boxes.
It is not enough to make the inventory, but also to have several copies of it (both electronically and in paper), should you need to provide it to insurance agents.
Finally, make sure to keep this inventory list up to date and include new purchases or gifts as you get them.
While sentimental value can not be replaced by insurance, taking these steps should ensure that you receive meaningful compensation for the physical items you have lost.
Cleaning your home doesn’t have to be hard. There are some natural, effective ways to clean your home. If you want to drastically improve your health, your family’s health and your pets’ health, you need to implement some changes within your home, but they’re a lot easier than you think. With just three changes, you will be feeling much better.
Indoor Air Quality
The home’s air quality is often worse than the air quality outside the home. This is primarily caused by the lack of ventilation in the home. Allergens and other substances become trapped in the home, and they build up. The home needs proper air flow to evacuate allergens and other pollutants. That said, it’s good to open up the windows and doors every once in a while. Using a fan within the bathroom and other parts of the home helps to lift out air along with allergens from the home. If your home doesn’t have an attic fan, now would be a good time to invest in one. However, check with a contractor whether this is a smart solution for your particular roof style.
To avoid toxic fumes, it’s best to build a home with “green” materials. An open layout of the house helps to improve air flow. HVAC systems, ceiling fans and floor fans can also help to increase air flow within the home. Using these methods, along with opening windows, will help to expel poor air, allergens and mold. Mold growth significantly decreases using this method of air ventilation as well because it reduces humidity in the home, and it provides an exit point for mold spores.
Cleaning the home with natural products also reduces the amount of toxic fumes and chemicals within the home as well. Baking soda can be used to scrub the tub, remove burnt-on residue from pans, serve as a laundry booster and effectively deodorize many parts of the home. Distilled white vinegar helps to remove stains from laundry, kill germs, clean glass, and it helps to clean a variety of surfaces.
Keeping the home clean helps to prevent illnesses and help boost the immune system. There are many places for dirt and dust to hide. Within dust, dust mites gather, and they leave their fecal matter behind. People are allergic to this, and they are allergic to other substances if they’re immune systems are not strong. Pets and people track in dust and debris, which get trapped in the carpet. Another issue in the home is mold. Mold spores cause numerous problems for people, and it tends to hide in porous surfaces, like grout. When people suffer from weak immune systems, they’re more susceptible to illnesses. This means that an endless supply of people walk around tired, thinking they need coffee or sugar to keep them going, when they really just need their homes deep-cleaned. Hiring a professional company for carpet cleaning, tile cleaning and duct cleaning can make a drastic difference in the home.
Sunlight has an amazing ability to kill microorganisms that could otherwise cause problems for the family. Some of the sun’s ultraviolet rays help to kill certain types of bacteria. Sunlight also prevents mold growth, so where you’re able to allow for sunlight to permeate your home, take advantage of it. Sunlight is also helpful in killing viruses. While you’re opening up windows, keep curtains and blinds drawn. Take advantage of the sun throughout the day. You’ll say on lighting costs as well. Certain health industries have started taking advantage of using ultraviolet light to effectively kill a host of germs as an extra step in sanitizing everything.
You can’t eradicate everything harmful from your home, but you can give your immune system a fighting chance by naturally cleaning your home. Implement the steps above, and take time to boost your immune system internally as well. Eat well, drink water, exercise and get full sleep cycles in to help your body stay healthy.
There are many costs associated with owning a home, and first-time home buyers often do not fully understand or budget for these costs. A home is likely the most expensive thing you will ever own, and repairs can be astronomically expensive. Even small maintenance items add up over time and can strain your budget. This guide will focus on four hidden costs to homeownership that homeowners need to budget for.
When buying a home for the first time, many people forget about closing costs. Fortunately, as the buyer, you are not responsible for paying a commission to your real estate agent. However, there are fees associated with closing, and they can be substantial and varied. These fees include title fees, taxes, real estate attorney fees, inspections and survey fees, among others. There may also be additional documentation required, such as when your home is part of a homeowners association. This is all in addition to the purchase price of the home and any modifications or updates you want to have done. You can generally expect to pay two to five percent of the home’s purchase price in closing costs, and will need to budget for this expense.
Property taxes vary widely based on where you live. They are usually assessed by a local municipality, such as a county, and some areas have much higher property tax rates than others. It is also possible for a property to be taxed by multiple jurisdictions, such as when your property straddles the border between two counties. Before you buy a home anywhere, it is important to calculate what your property tax burden will be. Factor this number into the amount of home you can afford when looking to buy. Always stay updated on changes to legislation, which can strongly impact property taxes. Also remember that because the property tax amount is based on the value of your home, it can and does vary from year to year. In most cases, property taxes are due once a year, the date on which varies from state to state.
Homeowners insurance is much more expensive than renter’s insurance, and much more complicated. For example, buying an older home might actually increase your insurance costs because of older systems such as plumbing and heating which are more likely to catastrophically malfunction. You also need to consider special coverage if you live in an area that is prone to natural disasters not covered by normal homeowners insurance policies, such as a floor zone or an area prone to earthquakes. This isn’t insurance you can go without because the risks of getting caught without it are far too high.
Updates can increase the value of your home as well as add features you want and will use. Updates can be as simple as painting or as complex as major renovations. It is important to come up with a plan for how you want your house to look and what costs will be associated with these updates. Look at average prices, such as swimming pool prices, to determine how much you might need to budget for each update and the associated maintenance and installation costs. To save money, you can do multiple updates over a length of time rather than all at once. You can also wait for good deals to come around so the updates will cost less overall. For example, decks, sunrooms and patios are not as popular in the winter, so contractors often offer discounts to encourage people to buy. This benefits contractors because it means they don’t have to lay off workers in the off season.
Homeownership is often an expensive undertaking and a major financial investment. Homeowners and homebuyers need to ask questions and fully understand all fees, taxes and maintenance costs they might be responsible for once they purchase a property. If you properly budget for these costs, however, they will not catch you unaware.