The Basics To Investing in Rental Property

http://www.REIClub.com - Rental Property Investments Are Great For Building Lasting Wealth. Here’s A Quick Video Explaining The Basics To Investing In Rental Properties... Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on the basics to investing in rental property, also known as ‘buy and hold’ real estate. I personally love buying and holding real estate. It’s been a family business for over 20 years, and let me tell you, when you own more than a hand full of free-and-clear property, THAT right there is your retirement. Acquisition Avoid settling for “lesser” deals because of the rehab possibilities. A bad deal will suck all the profits out of a rental property. Excessive maintenance, code violation, etc… A good deal is when you make money the moment you buy the house - the market has already proven it Still remember to negotiate as if it were a flip deal. Every dollar you save is a dollar you make. Funding Your Deal - FHA - when using your own money - Private lender - Creative financing - subject to, seller financing The Rehab - Always allow more time - Always get a second opinion, quote - First time, check contractor references - Find contractors at local rei clubs, or at big box stores (home depot) - Be very stern on your budgeting - Allow a 10-15% money buffer to account for misc. things - busted pipe, or cracked slab - It’s a rehab, keep it simple, keep it livable. Management - yes or no? - You can manage property on your own. - Very manageable 1-5 properties - 10-15+ Consider using a management company, unless you have the resources - Management Companies charge 7-9% of monthly rent. Maintenance - Manage yourself - Find your own handyman that’s accessible at odd hours - Management - Most maintenance and costs require your approval. Costs are covered by overcharges, Summary, CTA If you are getting involved with real estate for the cashflow, then rental properties is the way to go. Investing in rentals are like investing in mutual funds, without all the risk, and the returns can be exponential from the cashflow, and the equity you’re building in the home. Rental properties offer some of the best long term wealth in real estate. So if you haven’t considered this before, consider this now. Keep 1, Flip 3. Following this concept, once you have kept 10 cashflowing properties, worth $100K each, you’ll have a million dollars worth of property. I didn’t even calculate all the houses you flipped during this time. Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing. https://www.youtube.com/watch?v=ZTT77gF4HZM

Comments

1. I resisted using a management company for years. Now that my business is mostly commercial, I happily use a management company for the residential I have left. Once I found the right company, it has been great.
2. I love it more vids please!!!!
3. Why do you think they give free bets away Jake? Do you really believe it’s because they just want to see people having fun, that they want to give you something for nothing? Or do you maybe think some people will be unable to stop and the companies will ultimately be able to make more money back than they have given away?
4. You're not under control in a mutual fund. Also there are risks associated with buying mutual funds. Just like any other investments.
5. #swattkidd Cool vid just wondering the paperwork involved with finding and signing up a renter. @swattkidd
6. WOW! This was some pretty DAMN GOOD advice, thank you!
7. Whats a good deal? Can you talk about what numbers should we look for or recommend
8. Does the market affect rental properties ? Any tips when to buy as a first timer REI?
9. Bro I'm so glad I found your channel, awesome words!!
10. what do u mean by keep 1
11. www.mipropertyportal.com A new software in Canada to manage properties. Please have a look.
12. Cool vid just wondering the paperwork involved with finding and signing up a renter.
13. very helpful
14. Helpful!
15. Is it worth it to buy a property, rent it out, and live in an apartment?
16. Hey sir i have a question how do u least properties...
17. Hey great video . Maybe we can do some videos together ? I do "how to" DIY videos about properties ;) we have related audience. Let me know...
18. Respect. One of few that know what they're talking about.
19. 0.35 "business for 20+ years" !!!!! Man you look young! Another great video with straight to the point information.  -Cheers
20. thank you job well done.