4 Things to Consider When Buying an Investment Property

Considering investing in property? Here are four things to keep in mind.

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How do we know when a property is a good investment deal? There are four major things we need to look at to before we decide to buy:

1. Pricing. Is the property price in line with the market, as well as features of the home? We need to pull values and look at criteria, such as curb appeal, bathrooms, and amenities. We want the price to make sense with what we’re getting.

2. Features and benefits. You need to decide if it’s worth paying potentially tens of thousands more for a good view or a pool. Is there an exit strategy for us if we need out? These are things to keep in mind.

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We want the price to make sense with what we’re getting.

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3. Location. Sometimes the best deals aren’t actually places we ourselves would want to live. We have to think of it from the perspective of, “Could I see myself living here? Would I want to stay here for years? Would I be happy here long term?”

4. Condition. You may love a property, but it could become a money pit if it’s in bad condition. We purchased an investment property and had to renovate it for $250,000. With properties such as this, it doesn’t matter what the details, location, and benefits are—a place in bad condition needs a long, hard look.

If you have any questions, need information, or have video topics you’d like covered in the future, we’d love to help you out. Please call, email, or message us; we look forward to hearing from you.

A Discussion for Sellers & Investors

Are you thinking of selling your home or investing in real estate? My recent Facebook Live interview discusses both of these topics in depth.

Selling your Salt Lake City home? Get a free home value report

Buying a Salt Lake City home? Search all homes for sale

I recently sat down for a Facebook Live interview where I discussed how to maximize your home’s value before putting it on the market and the key concepts you need to know if you’re thinking about investing in real estate.

For your convenience, I’ve attached the timestamps of this interview so you can jump ahead to the section(s) that interest you the most:

0:12 - The four areas you need to focus on to maximize your property’s value when listing it.
0:55 - How we can assist sellers in improving your property’s curb appeal.
2:04 - How to get over the fear of getting into investing.

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Don’t wait to buy real estate—buy real estate and wait.

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5:19 - The factors I take into consideration when I look at an investment property.
8:19 - One of the biggest problems people face with investment properties.
8:53 - How I can help you get started with buying an investment property.
9:52 - The advantages of buying an investment property right now.

If you have any questions about any of the topics I discussed in this interview, don’t hesitate to call or email me anytime. I’d be happy to help you.

How to Prepare for Your Next Real Estate Investment

If you’re thinking about investing in real estate in order to build wealth, you’re not alone. Here are some tips that will get you started off on the right foot.

Selling your Salt Lake City home? Get a free home value report

Buying a Salt Lake City home? Search all homes for sale

What does it take to buy a home? If you are someone who is looking to buy a new home or helping someone else through the process, there are some things that you should know. Today I have a quick list of things that you need to know: Before I was ever a real estate agent, I was buying and selling investment properties. This is something I’ve always enjoyed and something you should think about. Whether you’re thinking about buying your first property or your fifth, here are a few helpful tips for success with investment properties: 1. Always make sure your finances are in order. We are finding fantastic properties, but when one buyer’s finances fall through there are always three or four back-up offers from eager buyers waiting to pounce. The seller won’t hesitate to move to the next in line if you’re not prepared. 2. Be proactive about having everyone and everything ready to go. If we’re dealing with a development, that means we need engineers, geotech, soil testing, surveyors, and architects. We want to make sure that we have the proper forms, rent rates, and every other detail ready to go. We have all of these resources ready for you so that you can find success.

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Investing in real estate is a fantastic way to build wealth.

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3. Find the project. The market is great and I think it will go up for at least the next 18 months. There’s going to be an affordability issue at some point, and then you’ll see a leveling off. When it comes to what investors should be looking for in a property, there are three must-haves: 1. The property must have equity already.
2. There is an opportunity to maximize its best use.
3. There is a potential for cash flow. If you don’t have these three things, you’re facing an uphill battle. For example, if you don’t have a property that’s cash-flow positive, that’s when people go bankrupt and lose everything. Back during the mortgage crisis, my rentals went down significantly in value, but the rents remained the same. I was able to use that money to sustain my business during those tough times. There are so many opportunities involved with investing in real estate. If you have any questions or you want to learn more, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

What 5 Strategies Must You Follow to Get the Home You Want?

As a buyer, there are five things you need to do to get the house you want
in our current market.

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Buying a Salt Lake City home? Search all homes for sale

At the end of June, U.S. News & World Report named the greater Salt Lake area as one of the 10 best places in the nation to live in terms of home affordability, job opportunities, and the cost of living. Because we’re in a location where values continue to grow, there are five strategies you as a buyer need to follow to win in this market.

For most people, the biggest fear they have when moving on to their next home is being able to find that home in the first place. To be prepared and to combat any uncertainty, you must first get pre-approved. This will give you the ability to purchase the home you want after you sell your current home.

Second, you need to have your agent do a market analysis for you so you’re correctly evaluating the homes on the market and whether they fit your pre-approved budget.

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Be ready to move quickly if you
see a home you like.

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Next, you need to prep your current home for the market. The home preparation method we use for our buyers, for instance, includes our 75-point photography checklist, home staging, and our pre-inspection checklist. All this is done to make sure your home is ready to go, ready to show, and ready to sell.

After that, be knowledgeable about the market so you know how to deal with multiple offer situations. We educate all of our buyers about this subject so their offers are the ones getting accepted.

Lastly, be ready to move quickly. In our market, if you see a home you like, there are probably three or four others who like it as well. If you adhere to the four previous points mentioned above, you should be able to get the home you want.

If you have any other questions about what you need to do in order to move into your next home, don’t hesitate to reach out to us. We’d be happy to help you.

Break Even on Your Salt Lake City Property

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Today, I’ll discuss how to break even on your property in 1.8 years. Many people are moving in with their family, trying to save money, or renting a property.

If you’re in this situation, consider this: in our current market, it only takes 1.8 years to break even on a property. A recent study based on our current market average values, interest rates, and rental prices showed that if you plan on renting a property for more than 1.8 years, you are actually better off just purchasing a home.

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Buying a home is less expensive than renting.

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Rental rates continue to rise, but low interest rates make buying a home extremely affordable. Renting a home is expensive, and when it comes time to move, you have nothing to show for all of those monthly rental payments.

If you are in that state of flux (living with your parents, trying to save for a rental) make a game-changing decision today. Start putting a little money away each month. Take steps to improve your credit score. If you’re not sure how long you will be in the house, make sure you purchase a bulletproof property. That way, if you do have to move, you can turn it into a rental property and make some money.

Take advantage of these low interest rates. If you have any questions, just give me a call or send me an email. I would be happy to help you!

Avoid These 5 Mistakes When Buying in Salt Lake City

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Buying a Salt Lake City home? Search all homes for sale

Today, I want to go over 5 common mistakes that hurt homebuyers. 

1. Getting too emotionally attached. 
This is an emotional business. You’re buying your dream home! You’ve probably written down a checklist of what you want for your ideal property. However, once you find it, you may be willing to pay too much for it. You may even make a mountain out of a molehill and wind up not buying the property at all. You need a real estate agent with you to help you make logical decisions. 

2. Finding a home yourself. 
The other week, someone reached out to me because they had already found a property and they just wanted to consult with me about the home. It turned out that the property was overpriced by $40,000. At the end of the day, it just wasn’t a good deal, and the buyers were disappointed. Always work with an agent to make sure you’re looking at the right homes. 

3. Skipping evaluations or inspections.
You need to have an exit strategy. I was talking to another client about a property that needs a lot of fixing up. If they want to move in the next 5 years, they need to have a plan to make those repairs. Whenever you buy a home, you need to consider what will happen when it’s time to sell the property again.  

4. Not saving enough money. 
Renovations can be costly. My team and I evaluate each property to determine what it will cost you. We can even bring engineers and contractors in beforehand so you know exactly what you’re getting into. 

5. Not getting pre-approved. 
You need to get pre-approved in today’s market. You would not believe how many people have missed out on properties because they weren’t pre-approved. Save your money and make sure you have your pre-approval paperwork in hand. You will stand out from other buyers because you look legitimately ready to purchase a home. 

If you have any questions, give me a call or send me an email. I would be happy to help you!

Click here to learn about the pros and cons of short sales and bank owned properties.

What Lessons Did the Housing Crash Teach Us?

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Buying a Salt Lake City home? Search all homes for sale

We have seen a fantastic, growing market recently but I just wanted to take a moment and remind everyone of the lessons we learned in the housing crash. A lot of people who had parents affected by the housing crash are more prepared and want to put more money down. Today we just wanted to give you a few things to consider, whether you are buying your own home or an investment property.

• Your home is an investment for you. You want to buy the best home that’s going to work for you. If the market goes down, you still want to be able to love and see the value in your home.
• Rent rates are always rising. The median asking rent has increased steadily every year since 1988.
• Always be aware of risky mortgages. There are more and more opportunities available now for mortgages than there ever have been, so you have got to check the fine print and make sure you’re not being taken advantage of in an agreement.
• Make sure you have an emergency fund.
• Buy what’s comfortable. Don’t extend yourself. Buy the home that is the best fit at the best price for you.

At the end of the day, it’s all about making smart choices. If you have any questions for us, feel free to give us a call or send us an email. We look forward to hearing from you!