5 Real Estate Investing Tips You Need To Know | Real Estate Investing 101

Here are 5 real estate investing tips that you won't read about in books. Enjoy :) Start or Grow Your Business (FREE Video Series): www.digitalrevolutionbook.com/freedigitalvideoseries SUBSCRIBE for the latest videos *NEW VIDEOS EVERY WEEK* SC @M2JaspreetSingh http://www.TheMinorityMindset.com 5 Real Estate Investing Tips You Need To Know | Real Estate Investing 101 What’s up everybody, my name is Jaspreet Singh & welcome to the Minority Mindset. Buying a real estate investment property can be intimidating, and if you mess up it can be very expensive. So after being involved in millions of dollars worth of Real Estate investments and transactions, here are my top 5 Real Estate tips that I learned, the hard way First, have investment real estate insurance. This is different than regular real estate insurance because many times regular real estate insurance won’t insure a property when it is vacant. And when you have a rental property, your property will be vacant when tenants move out Plus, this insurance is your first line of defense if you are sued. I once had a tenant sue my real estate company because they said the bathtub got slippery when they turned the water on. True story. Have insurance. Second, make sure you manage your management company. Having a management company is important because they will be the ones handling the day to day operations and they will be the ones handling tenant phone calls. Your job as an investor should be to cash rent checks and find more investments not coordinating toilet repairs at 2 in the morning. But just because you can be hands off with a management company doesn’t mean you shouldn’t be involved. Your management company should be giving you monthly or quarterly reports. Look at them. Make sure the numbers add up, and make sure your expenses make sense. The first management company I hired was cheap. It’s very expensive to be cheap. They didn’t do anything, the tenants were calling me instead of the management company and apparently The management company was supposedly harassing the tenants, and they never even signed a lease with the tenants, and they went out of business not long after I left them Third, make sure you get title insurance and if you are buying and improving distressed real estate you increase the title insurance policy. Title insurance protects you from title claims by making sure there are no clouds on your title. Here’s what that means, let’s say I buy a property for $100,000 and 6 months after buying it, John Doe sends me a letter claiming that he is the owner of the property because the seller who sold me the property didn’t own or have the right to sell the property. After buying my first commercial property, we got a letter in the mail saying that a bank has foreclosed on a portion of our property. And keep in mind that we didn’t have a loan on the property. Apparently the seller who sold us the property didn’t tell us that he had an unpaid loan. The title company was supposed to figure this out before we bought it but they missed it. So because no one knew about the loan and the seller wasn’t paying it, the bank foreclosed on our property. Luckily, we had title insurance This is why it is important to increase the amount insured on your title policy if you are working with distressed real estate. Your title policy only covers up to the purchase price of the property. So if I bought a property for $100,000 the title policy will only pay me up to $100,000 if a title claim is brought. But now what if I put in half a million dollars worth of work in addition to the $100,000 cost? If someone comes with a title claim for $300,000, the title company will only cover the first $100,000. So you would want to increase the title policy so you are protected. Fourth, you only want to work with licensed and bonded contractors. I do a lot of work with distressed real estate, so I work with a lot of contractors and one thing I can tell you is being cheap is very expensive. Pay a little more up front to have a licensed and bonded contractor because if they screw up they will have the money to fix it. Without going into all the details in this video, I have had to undue and redo the work of an unlicensed contractor on three different occasions. I will not do it again, it costs way too much to take apart what they have done and re do it. If you are trying to cut costs, this is not the place to do it. Fifth, hire a real estate attorney. Not just any attorney but a real estate attorney. They will help you set up a company for your properties so you aren’t personally liable if you are sued, they will help you review your contracts so you don’t get screwed over, and they will help you will tax structuring so you can pay the least amount in taxes as possible. http://www.TheMinorityMindset.com This Video: https://youtu.be/A5Xmhpe6MwE Channel: https://www.youtube.com/MinorityMindset Based in Detroit. #Punjab Jaspreet Singh

Comments

1. Thanks for watching! Want to see what you should NOT do? Here is my WORST real estate deal: https://www.youtube.com/watch?v=4-hnVtPCLms
2. if you have 100k is it best to get 4-5 homes mortgage or just buy one house fully paid.?
3. awesome video. keep it real
4. What's up jaspreet I would like to know what ways are great to get great leads for real estate deals... Any thoughts... Very informative video
5. can you do a video on real estate wholesaling?
6. Thanks Jaspreet very informative videos.To the point and knowledgeable, learned more from you than any other . thanks
7. how do u start real estate
   is it costly
8. how do people get multiple real investments around the nation? I think of it as, the bank will only give you an X amount for your mortgage. that'll only cover one or two properties. So where do people get money for the rest of the properties? people always talk "I got properties throughout the US and Canada"
9. Can you answer this question in a video for me: if I'm just starting out in real estate investing and currently searching for my first rental, should I form an LLC and put the properties under ownership of said LLC or is it not important at this stage? Thank you. Great videos keep them coming. -Lamar Buffalo, NY
10. How can I start
11. hey man great advice there is alot of really good points that i been overlooking for all this time. keep up the good work my man and our subscribed to your channel
12. 500k reno goddamn that's one hell of a reno
13. Great info as always! Question. How old are you now and how old were you when you started in entrepreneurship?
14. Amazing video brother
    I really like your channel and at the moment i'm in high school
    After high school i will go to business school and become entrepreneur
    I think that studieng business will help me a lot
    What do you think ?
15. brother , is this applicable in Canada ?
16. Good info!
17. hey Jaspreet, I remember you saying in a previous video about how you first got into real estate investing by not actually buying any real estate but selling contracts for a profit or something like that. Could you go over this in another video? Keep up the great work!
18. These were the most fantastic tips I've never heard!! High quality content and I am a proud subscriber. Real life lessons here... V/r Craig
19. You have inspired me so much!
20. Awesome advice, thanks! I've been watching real estate videos for a few months now in preparation for beginning investing. You hit on some things that others never really explained. I had heard of getting title insurance, but wasn't aware about the coverage limits! You may have saved me a bunch of money in this one video! Keep up the good work.