If you want to go from having a great life and saving money, to having a great life that works, you don’t want to be a slave to rental properties. Rental properties are great, but have the capital reserves so that you always feel that rental properties are great.
Huge Tax Benefits – Generally you get to write your properties off as being depreciated while they are actually appreciating. Deferment of capital gains tax is another savings. If you sell a property and make money on it, you owe a capital gains tax. However if you use a 1031 tax exchange to purchase another investment property you get to bypass taxation.
Speaking of which, it will cost more to handle a fencing project that involves more materials. This is due to the larger amount of effort and digging that may be required when getting a fence like this set up. The effort can be very tough to handle if the fence is very large.
Nothing could be more disruptive to your move into your new commercial property than to see it disrupted by a major road renovation or highway expansion in front of the building. So do some homework to make sure that access to your commercial property is in no danger of being slowed or stopped by building projects or other city improvements. Further, find out what is going on with the building. If the roof is in for repair or the plumbing is going to get overhauled, do you really want your new lease to lock you into that nuisance. So while talking to the landlord, also talk to some people behind the scenes who are “in the know” about your new commercial property location.
It can be a long time between signing your original Purchase and Sale Contract and closing on the Property. 90 days is typical and even longer is not uncommon in today’s market.
In addition, less obvious underwriting standards, such as increasing vacancy and management fees have a direct impact on net income. Many lenders are raising these underwriting guideline from 3% to 7%. In areas like Phoenix for example, some underwriters are using market vacancy vs. a the standard 5%, which can seriously effect a transaction if market vacancy are, for example 12%. Keep in mind that this vacancy will be factored on to the deal, even if the subject property is 100% occupied at the time of the refinance.
Like other home-based industries, home inspection has its share of frauds and phonies. It’s safe to assume they represent the minority, but it still pays to ask about certification. A professional home inspector will be happy to tell you about his certifications.
When you eventually reach the prospect or client, stay in contact with relevant information and market updates. Don’t delegate your contact processes to a support person or administrative assistant. It’s your business remember, and only you can make it happen. You as the agent must be responsible for your client relationships and database.