How to Add “Business Junks” to Your Foreclosure Cleanup Business

According to an article in DS News, an informative real estate publication that focuses on foreclosure trends and other aspects of the delinquent mortgage servicing industry, $23 billion in commercial mortgages will mature this year. This translates to the fact that just over two thousand commercial mortgage loans are due over the next year.

Of those, more than 30 percent will likely NOT pass their refinancing tests, according to Fitch Ratings, a global ratings agency that focuses on data, research and credit opinions for the world’s credit market and investors.

Commercial Business for the Garbage Industry

What does this mean for the foreclosure cleanup industry? In a word, PROFIT!

A foreclosure cleanup business provides services ranging from interior and exterior repairs to maintenance, debris removal, property protection through window and door boarding and lock changing, to occupancy and vacancy inspections, painting and more. Much of the joke surrounding the foreclosure cleanup industry centers on residential trash and maintenance; however, with the unfortunate dose of commercial mortgages slated to hit trouble this year, foreclosure cleanup on the commercial front can be a solid outlet for business contracts for new and existing foreclosure cleanup companies.

Commercial trash and cleaning accounts can come from office buildings, day care centers, gas stations, retail stores, restaurants, multi-unit apartment buildings, and similar real estate.

Less competition in commercial foreclosure cleanup

Commercial foreclosure cleanup accounts will have less competition because most companies in the industry focus on residential trash.

Easy to add service to existing businesses

A foreclosure cleaning business owner can add commercial foreclosure cleaning to their list of services easily by simply upgrading equipment and supplies and turning to professionals who handle commercial foreclosures.

For example, as the owner of a junk business, start by compiling a list of commercial real estate brokers in your geographic area and contacting them. Also, do some research and create a list of commercial lenders in your city and contact them about their foreclosure cleanup business. Use the term “Commercial Foreclosure Cleanup” in your literature and conversations with professionals you contact.

Also, by browsing the business sections of newspapers to see what’s going on in the industry in your own city and by keeping an eye on online real estate multiple listing services, you can quickly become familiar with commercial foreclosures coming up. are coming.

Win Mind Share and Ask for “the Sale”

Stay in touch with the brokers and listing agents for these properties. Earn “mind share” by consistently reaching out to them with professional material and following up with a phone call to see if they have any questions about your services, and to see if they need a quote from you on a commercial property. Always ask if they have a property that needs a quote. Ask for “the sale” every time, at the end of every conversation.

Network for consistent businesses with larger payouts

Also, consider networking at House meetings, business breakfasts, realtor meetings, etc., and advertise this new business division of your foreclosure cleanup company.

Business transactions typically have a higher payout, are more formalized, and can lead to steady work once you’re in the right place with a broker or lender.

How the commercial differs

Keep in mind that commercial cleanings will differ from residential cleanings in that you will likely have to deal with larger spaces, shorter deadlines, and likely addendums to any contracts you may present for your signature. In addition, you may need to get around security systems (ie, a foreclosed business may be housed in a large commercial building, and your entry and exit may need to be coordinated with security in the main lobby).

Additionally, you may need to clean industrial-sized equipment. For example, when cleaning a residential home, you will be accused of cleaning full-size stoves, dishwashers, and refrigerators. However, in handling cleaning and garbage collection tasks for, say, a restaurant, you’ll be working with restaurant-sized freezers, refrigerators, stoves, range hoods, and the like. This means your cleaning solutions will need to be stronger and you will need more of them.

Be aware of environmental regulations

Also, in handling commercial cleanups, you may need to dispose of materials that you won’t necessarily find in a single-family home. For example, in restaurants, you may need to dispose of tubs of cooking grease. Just check the environmental regulations to make sure you’re following proper procedures when disposing of materials that may be hazardous to the environment.

Roll container vs. Vehicle

Another factor when working with commercial landfills is the large amount of furniture and materials that may need to be removed from a unit. For example, if you’re cleaning a daycare, you might have desks, chairs, books, file cabinets full of papers, toys, rugs, etc. to dump Make sure your vehicle is big enough to handle the job, or consider renting a yard roll container.

Lucrative aspect of your business

There are several factors to consider if you decide to venture into commercial foreclosure cleanup. But with billions of dollars in commercial mortgages coming due this year alone, it can be a lucrative aspect of your foreclosure removal venture.

Much success on the business front of the mortgage servicing industry!

Green Roofing Materials

If you are someone who likes to contribute to environmental wellness and sustainability, then making eco-conscious roofing decisions is a great way to continue this positivity-charged hobby. Fortunately, there are several options for green roofing systems. Your choice will depend on your personal preference, budget, and a few other factors.

By speaking with a professional roofing contractor, you can learn about all of the green roofing options that will best fit your home’s unique needs. You can also review many of the possibilities beforehand to prepare for your final decision.

Read on for some of the most common and celebrated green roofing materials, as well as tips for improving energy efficiency and more.

Ecological Roofs:

The most common green roofing systems include some of the most popular in the commercial and residential markets. Below is a list of these systems and the qualities that make them safe for the environment and surrounding ecosystems. This list includes asphalt shingles, metal shingles, clay shingles, concrete shingles, slate, wood shakes, fiber cement, and recycled roofing.

asphalt shingles – This is one of the most cost effective and common options for residential roofing. They are considered the least attractive and don’t last as long as other roofing materials, but they are made from natural materials, making them perfectly eco-friendly.

Metal – Metal is 100% recyclable and can be reprocessed over and over again. Recycling metal reduces the need to mine more, which lowers depletion rates of natural mineral deposits. An old metal roof is still useful and valuable, and can be reused endlessly. Steel and lightweight aluminum are the most common metals used for metal roofing.

Board – Slate is a natural element of the earth and highly durable. It lasts a long time, but it comes at a high price. It is one of the most attractive roofing options. The board is also 100% decomposable and recyclable.

Clay – Clay tile roofs are known as “terra cotta” in the industry. They are made from natural resources, mostly clay and water, which are 100% natural. However, you should be careful when choosing your coating, as some are slightly toxic if they run off into natural water sources.

Concrete – Concrete roof tiles are similar to clay roof tiles in terms of compatibility with the environment and natural composition. Concrete is made from natural aggregates, such as cement, stone, gravel, and sand.

wood shakes – Wood is a natural element that comes from trees, so it is 100% ecological and safe for the environment. Cedar is the most common material used for wood-slat roofing systems, but other types of wood are also frequently used. Just make sure you choose FSC certified wood.

asbestos cement – The fiber cement board is an excellent option for green roofs since it is mainly composed of cement and cellulose fiber, both biodegradable.

Recycled ceilings – Using recycled products is a great green practice and roof systems are no different. Plastic and rubber roofing are recyclable and can be made to resemble high-end materials such as wood battens and shingles.

Additional tips:

  • Choose materials that have a high recycled content.
  • Avoid copper and zinc coatings.
  • Avoid materials that require the use of chemical products for their maintenance.
  • Choose light-colored roofs in hot climates to increase reflectivity from the sun.

Water Conservation Basics

The average American household uses about 146,000 gallons of water each year, mostly inside the home. Scientists predict water shortages in thirty-six states by the year 2013. However, analysts say all is not bleak, and the nation can do much to save about 3 billion gallons of water each year.

Simple changes in water consumption within the home can make a big contribution to conserving water. The payoff for consumers is significant savings on energy costs. Saving water means saving money, in lower water bills plus the cost of heating the water.

10 ways for homeowners to save water and money

  1. stop leaks — Studies have shown that leaky home appliances and systems account for ten percent of the water usage in an average home. Check appliances, plumbing fixtures, and sprinkler systems for leaks. Test for leaks by turning off all fixtures and reading your water meter. Keep all the water out for an hour and check again. The reading should not have changed. If so, it means you have a leak. You can test your toilet by putting a few drops of food coloring in the tank and waiting ten minutes. Check the water in the bowl; If the dye has gotten into the bowl, your toilet has a leak and needs to be fixed. The typical home in the country costs about $250 a year for water leaks.
  2. Install low-flow shower heads — Pre-1992 showerheads deliver water at 8 gallons per minute (GPM). Newer models of low-flow showerheads use 1.6 to 1.85 GPM and save in two ways: 45,000 gallons of water less per family of four each year, plus the cost of energy to heat the water , is roughly estimated at an annual savings of $92.
  3. Replace old toilets — Toilets manufactured before 1994 use at least 3.5 gallons of water per flush (GPF). Newer ultra-low flush toilets use 1.6 GPF, which is the current federal standard for all new toilet installations. Prices start at $100, and these toilets typically pay for themselves in four years. Homeowners save approximately $28 a year with a low-flush toilet.
  4. Replace old clothes washer — New Watersense and Energy Star-qualified washers use an average of 40% less water than traditional washers. If you limit your laundry to two full loads a week, you’ll save more than 6,400 gallons of water a year.
  5. close the taps — When you brush your teeth for two minutes and let the water run, you’re using two gallons of water, morning and night, plus more during shaving. The average home wastes more than 16,000 gallons of water a year this way.
  6. Use a car wash — Every time you wash your car with a hose, up to ten gallons of water per minute are wasted. Washing your car at a commercial car wash saves nearly 10,000 gallons of water a year, plus the water at these stations is recycled.
  7. sprinkle less — Rain sensors and sprinkler clocks reduce water use by about 15 percent. Most of the water is wasted just before and after the rainy season, when intermittent rains occur and irrigation systems run constantly. Shutoff devices save thousands of gallons of water per month in every home. An irrigation controller also saves water by watering plants only when they need it. If you water manually, by placing sprinklers around your yard, set a timer to remind you to turn off the sprinklers and not waste while overwatering.
  8. Sweep more, hose less — Using a broom for ten minutes before relying on water pressure from a hose or pressure washer to clean driveways, sidewalks, patios and decks saves 1,000 gallons of water each week.
  9. Cold — Kitchen faucets flow at a rate of more than a gallon per minute as you wait for the water to cool enough to drink. Keeping a pitcher of water in the refrigerator eliminates this waste, saving at least a thousand gallons of water per year for each person in your household.
  10. GoNative — Plants native to your area use less water and are less prone to disease. Drought-resistant shrubs are beautiful replacements for flowering perennial shrubs that require large amounts of water. Familiarize yourself with the principles of “Xeriscape,” a government program that shows how to create a beautiful landscape with a low-maintenance, drought-resistant garden plan.

Water conservation is a state of mind, a way of thinking about our lives and our homes. It only takes a little effort to make a big difference, realize savings and gain the satisfaction that we’re making ‘every drop count’.

Proactive Recession Responses: 7 Creative Ways to Make Extra Money With Real Estate

Introduction

Money can get a little tighter during a recession. We know that the prices of almost all products are going up while our bets remain the same. Better tighten your belt. It can get much worse We are tempted to hide under the covers, put our thumb in our mouth and not come out.

Life is more than money, but hey, we can get by with money if we have to. One solution is to increase the number of income streams you have. The more current income we have, the better prepared we are to survive a recession. Follow my suggestions and you will have a real estate business running like clockwork.

1. Buy houses to fix

The time to buy real estate is when prices are low and soft, and when interest rates are low. If that sounds like the current situation we find ourselves in, you’re right. Buying superior homes to fix up gives you the added bonus of buying homes at even lower prices and using sweat equity to increase their value. When you’re done, you can either sell your house for a short-term profit (although it may not be as easy to sell it in a recession) or rent it for a long-term profit.

2. Take handyman jobs

Use your top repairman skills to take jobs as a useful man. Once people know that you repair houses to repair, their eyes light up. They think of various jobs around their house that they would like you to do. When it comes up that I repair furniture to fix in a conversation with someone, the conversation usually ends with the other person commenting “oh, by the way, I have this faucet (or toilet, or ceiling) that leaks. I wonder if you could look into that?” “.

3. Turn empty space into money: rent a room

I know, “who wants to have a stranger in their house”. But this can be a friend or a relative. Convert a section of the house into a room for rent. College students are good tenants.

4. Build a separate guest house

If you have room in your yard and city codes allow it. It could be cheaper than buying a new property.

5. Write a book about your experiences in real estate

Your experiences are unique and people buy books that show them how to make money. Write and publish the book yourself, and yes (gasp!), learn how to market it too. Sell ​​it on Amazon.com.

6. Write a Blog.

Tell people about your daily activities in real estate investing and connect your book at the same time. Don’t forget, you are an expert. An expert is just a normal person who has written a book.

7. Give seminars or classes.

Learn about teaching at an “open” community college or university. They are always looking for new teachers. Can’t you speak in front of people? Join Toastmasters and have fun while you learn.

What you should know about foreclosure and its stages

Mortgage’s trial:

A foreclosure occurs when a property owner is unable to make their loan payments. If a homeowner can’t keep up with the payments, he simply has to relinquish the property to the bank that holds the mortgage on the home. A bank can initiate a foreclosure action against the owner. They may sell or repossess (take possession of) a property to recover the amount owed on a defaulted loan secured by the property. The rights of the owner of a property are lost due to non-payment of the mortgage. If the owner is unable to pay the outstanding debt or sell it through a short sale, the property goes to a foreclosure auction. If the property is not sold at auction, it becomes the property of the lending institution. Foreclosures are pretty straightforward sales because banks generally don’t want to be “home owners,” they want to be “lenders.”

Here are the five stages to foreclosure:

• Late payments:

Foreclosure is a long process, which varies from state to state. A repossessed property is a property that has already been taken by the bank. This stage begins when the homeowner falls behind on mortgage loan payments (or sometimes other terms of the loan). This is usually due to difficulties such as unemployment, divorce, death or medical problems. Lenders can wait for a second, third, fourth, or even more late payment before sending a public notice to the homeowner.

• Public notice:

After three to six months of late payments, the lender files a public notice called a ‘Notice of Default’ (NOD) with the County Recorder’s Office, stating that the borrower has defaulted on their mortgage. The notice of default and intent to sell must be mailed to the owner within 30 days of recording. This notice is intended to inform the borrower that he is in danger of losing all rights to the property and may be evicted from the home.

This NOD includes the property information, your name, the amount you are behind, the number of days you are behind, and a statement that you are in default according to the terms of the note and mortgage you signed when you purchased your home. .

The owner has a set period of time to respond to the notice and/or submit outstanding payments and fees. If money owed or other default is not paid within a certain time, the lender may choose to foreclose on the borrower’s property.

The next step for the lender is to file a notice of sale on the property. However, if the borrower catches up on their payments, the foreclosure process can be stopped.

• Before foreclosure:

This stage begins when the lender files a property default notice, which informs the property owner that the lender will take legal action if the debt is not honored. After receiving the notice from the bank, the homeowner enters a grace period known as “pre-foreclosure.” During this time, the owner can work out an agreement with the bank or pay the amount due before the mortgage is foreclosed. Pre-foreclosure property owners may participate in a short sale to pay off outstanding debts. If the borrower pays the default during this phase, the foreclosure ends and the borrower avoids eviction and the sale of the home. If the default is not paid, the foreclosure continues.

• Auction:

If the default is not resolved by the prescribed deadline, the lender or their representative sets a date for the home to be sold at a foreclosure auction (sometimes called a Trustee Sale). The sale of the Notice of Trustee Sale (NTS) is recorded at the County Recorder’s Office. The notice is sent to the borrower, posted on the property, and printed in the newspaper. At auction, the house is sold to the highest cash bidder, who must pay the highest bid price in cash, usually with a deposit up front and the remainder within 24 hours. The winner of the auction will receive the trustee’s deed to the property. The executing lender sets an opening offer on the property, which is generally equal to the outstanding balance of the loan and any other fees. The money from the sale is used to pay foreclosure costs, interest, principal, and taxes, etc. Any remaining amount is paid to the owner. In many states, the borrower has a “right of redemption” (can recover outstanding cash and stop the foreclosure process) at the time the home is auctioned.

• Post foreclosure:

If a third party doesn’t buy the property at the foreclosure auction or there are no bids higher than the opening bid, the lender takes over. The property will be purchased by the attorney making the sale, for the lender. If this occurs and the opening offer is not met, the property is considered Bank Owned or Real Estate Property (REO). This occurs because many of the properties for sale at foreclosure auctions are worth less than the full amount owed to the bank or lender, or when no one bids on them. “Bank-owned” property is put back on the market for sale, usually listed through a real estate broker.

A NO DOWN PAYMENT REAL ESTATE LOAN USDA 502 Revision

As a new home buyer, it’s a confusing process to research what types of loans are available and will work for you. I am a veteran living in Carson City Nevada after being told that on my current income I would qualify for about $187,000 using my VA loan, which is $70,000 less than the amount needed to purchase a home. Fortunately, I stumbled across a government-funded loan that I qualified for $287,000. This loan does not include a down payment or mortgage insurance, and depending on income, may offer a monthly payment subsidy. The loan made it possible to buy a house in rural Nevada. In general, the income limit is $55,000 for a family of four.

The USDA RD 502 Direct Loan is a federally funded loan and the process is difficult at first. To help you understand, I recommend contacting your state office for help with the application process. When you call for help, ask for the Single Housing representative.

The loan promotes rural areas generally with a population of less than 35,000, to help determine property eligibility and determine eligibility loan amount.

According to USDA RD, in general, to qualify you will need to demonstrate your ability to repay the loan and have a qualifying income based on the area in which you would like to live and,

  • Not being able to obtain a loan from other sources on terms and conditions that can reasonably be expected to be met

  • Agree to occupy the property as your primary residence

  • Have the legal capacity to contract a loan obligation

  • Meet citizenship or eligible non-citizen requirements

  • Not be suspended or excluded from participation in federal programs.

(Taylors, 2019)

The main features of the Direct 502 loan are the absence of a down payment in most circumstances and the absence of mortgage insurance. Another great feature is that the federal government will help you make your monthly payment, allowing you to qualify for a higher loan amount. However, the subsidy does have a repayment feature, if you sell your home or no longer use it as your primary residence.

One last note: The loan process can take up to 120 days from start to finish, please contact the USDA RD office in your area for more up-to-date details.

Means

Taylor, J. (2019, December 15). Direct Loans for Single Family Homes. Retrieved from usda.gov/programs-services/single family housing direct home connections/nv.

Spring/Summer Home Maintenance

Before anyone decides to pursue the so-called American Dream of homeownership, they should look ahead, eyes wide open, and consider the responsibilities of homeownership. Since those who buy real estate, for investment purposes, effectively take into account as many foreseeable expenses and expenses as possible before deciding if it’s a smart investment, wouldn’t that make sense for those buying a home? , to get a better idea/concept, of some of the financial responsibilities involved? While almost everyone is aware of the monthly costs associated with mortgage payments, including principal, interest, property taxes, and many escrow items, they seem to pay little attention to many of the other costs associated with home ownership. While some try to procrastinate and therefore often overlook properly preparing for many eventualities, smart homeowners separate these possibilities to plan effectively to be better prepared. While there are many approaches and possibilities, this article will briefly attempt to consider, examine, review, and discuss a seasonal approach to planning. This article will examine preparations and smart plans for spring and summer planning and maintenance.

one. What/why, spring cleaning?: We’ve all heard of spring cleaning, but when was the last time you considered why we do this, at this specific time of year? In most areas of the country, we experience four seasons, the most severe being winter. Low temperatures, ice, snow, and other weather conditions often create a wide variety of stresses and strains, both on a home and on related exterior components and grounds. We bring in a wide variety of substances, on our shoes and coats, including snow, ice, salt and sand, etc., as well as leaves, which can also get into the home. When the temperature changes, and we wear different clothes, often accompanied by changing – about our cabinets, most people feel elated to get rid of cold and harsh weather, and our dispositions improve. When we clean houses, thoroughly, inside and out, we become able to assess the best way to properly maintain our property. Spring is often the best season to paint exteriors, address concrete, walkway and foundation issues, and prepare our gardens and grounds for beautification.

two. Specific details: The specific thing about maintenance and repair, for this season, is to create a schedule, for specific elements, and prepare a realistic reserve, for these purposes. Items, such as exterior painting, deck and patio maintenance, etc., should be scheduled on a realistic schedule. Additional reservations should be set aside for air conditioning care, window screens, etc., so there are fewer unexpected surprises!

3. Enjoy the house: Enjoy your home, to the best of your ability, while avoiding being a home – rich, but consumed, of course, waste of money. When you prepare and maintain your property, on a realistic and smart schedule, you significantly reduce many of the stresses and strains of home ownership.

Be a smart homeowner and plan accordingly. This can be unnecessarily stressful or a perfectly planned experience!

Lease Planning for First Time Apartment Rental Expenses

Either you’re downsizing, relocating to another city, or just ready to move out of your parents’ house and you’ve realized that saving just for the apartment deposit and credit check fee won’t allow you to rent that apartment again. fashion you’ve been in. looking online. This is usually because first-time renters have focused solely on apartment rental costs and don’t realize that there are many upfront costs that they haven’t factored into their apartment search budget. While some items may vary, depending on the city and regional area you’ve chosen, the following worksheet lists some of the more common start-up costs.

expenses in advance

    Apartment Application Credit Check Fee $_____ Apartment Deposit $_____ Pet Deposit (if applicable) $_____ Electric Service Deposit $_____ Gas Service Deposit $_____ Phone Service Deposit $_____ Cable TV Installation Fee cable or internet service $_____ First month’s rent on apartment $_____ Moving costs $_____ Total start-up expenses $_____

While these initial costs will cover the down payment to the apartment, you will also need to put up some money to equip your apartment with the furniture, household items, and basic groceries that will make living in your new place possible, especially if the apartment is unfurnished. Sleeping on the floor, eating fast food off of paper plates, and not having a place to sit will get old real fast!

To cut down on your expenses, you may want to consider buying used furniture from thrift stores or garage sales or perhaps getting some furniture donations from relatives. If you have the financial resources, estimate what you will spend on furniture for each room.

The following worksheet will help you calculate your furniture costs.

Moving expenses

    Furniture for 1 or 2 bedroom apartment $______ Small kitchen appliances (blender, microwave, etc.) $______ Dishes, pots and pans, silverware $______ Housewares (bedspread, towels, rugs) $______ Stationery and kitchen supplies $______ Cleaning supplies (mop, broom, household cleaning products) $______ Food (including staples and condiments for the first time) $______ Total moving expenses $______

You’ll need to add both totals together to get a clear idea of ​​what your expenses will be. Some of those expenses can be spread out over a few months; however, you should know what to expect. If you spend the time planning ahead, it will pay off with a much more realistic picture of what your budget can handle, no worries of “etiquette clash,” and enjoying your new place.

Your homeowners insurance may not cover damage from woodpeckers

He meets Amy, a city girl who became a resident of a small town after her marriage to George. The stark difference between living in the very center of urbanized civilization and living in a township was something of an adjustment for Amy. She sure loved the sights and sounds of nature on display: the lake, the trees, the grass, the flowers, and the vibrant color of the winged birds. Yet how she missed the hustle and bustle and, yes, even the noise of what she had always recognized as the center of commercial shopping, the traffic of cars and buses, including honking horns, and the life she had been for. been polite!

Although noise had always been at the core of his existence, the incessant pecking at the side of his roof in the small town in America, where he had currently taken up residence, did his nerves no good. You see, five in the morning was too early for a woman of the world like her to be jolted awake from her dozing state. And the fact that the pecking came from a finely feathered ‘friend’ known more commonly as the woodpecker did little to put away her uneasiness.

Then came the creak that really flummoxed Amy. It seemed that the pesky woodpecker had started causing damage to her beautiful home! But nothing could appease Amy when she discovered that her standard homeowners insurance policy didn’t even cover the damages and losses she now suffered!

“You see, ma’am,” the friendly insurance agent explained, “insurance companies just don’t cover general home liability that has occurred through negligence. In fact, they view woodpecker damage as something they could have been prevented by proper home maintenance.”

If only Amy had known! She surely would have met the small danger with a vengeance. Now it seemed that it was too late and that she and her husband would have to bear the losses through out-of-pocket expenses.

They say that life is a great teacher. Amy knows better than most.

“Learn from me,” says Amy, a former city dweller. “Don’t let the pests get the best of you or your home hazards will!”

How do you tackle a woodpecker problem? There are a number of practical methods:

• Go out and buy a tool that is on the market for woodpecker deterrents.

• Surround outside areas of the house that connect to the roof with chain-link fences.

• Tape colored tape under the roof and around the roof gutters.

• Seal holes in the attic and siding with caulking or other materials.

• Hire a pest removal company to take care of the problem.

• Explore your own creativity to tackle the nasty problem of pecking wood.

Ask Amy. She’ll tell you if you’re prepared you’ve been warned: talk to an independent insurance agent about your homeowners insurance policy to make sure it suits her needs.

Are you ready to own?

The concept of owning an investment property can sometimes be simple. For example, the investor buys the house, puts the house on the market for rent, tenants come in, pay every month, and thirty years later they own the house clean and clear and get even better cash flow.

If only it were that simple.

Some investors, especially those just starting out, don’t realize how much effort it takes to lease a property. In fact, many other investors often bought investment properties from new investors at a deep discount because the new investors found they couldn’t handle the work involved.

Property is like any other business. It is not something to take lightly. One of the most important keys to doing property right is putting the right people on the property.

Sure, when there’s an opening, the pressure to put someone on is extremely intense. After all, in most cases, the investor has to maintain mortgage payments while the house is empty. A month or two and all of a sudden the investor would start trying to put anyone on the property.

Screening a tenant is extremely important.

To make sure you find the right tenant, you need to screen them thoroughly to make sure you have the right person in their place. Many professional managers would run a background check, credit check, tenant history, income verification, and even inspections on your current residence to make sure the tenant is the right one and will pay on time.

Background checks are not always perfect. Circumstances change. What makes a good tenant one year doesn’t necessarily mean the tenant will be great the next. Knowing how to deal with a problem tenant is also an important learning process.

For example, you’d better understand the fair housing laws in each state to make sure what you’re doing is legal. You should also familiarize yourself with the eviction laws in your state. Equipping yourself with the proper knowledge will give you a much greater advantage when negotiating with tenants on any issue.

Don’t put off maintenance

Nobody likes when something breaks. But as the owner/property manager, your job is to make sure everything works. A leaky faucet could cause mold in your home over time. Either a leaky roof needs to be repaired or the tenant will get tired. It takes a bit of a toll on cash flow, but keeping a tenant happy will ultimately pay you more than you would get if you refused to take care of the property.

Hopefully these ideas will prepare you on how to own. While there is a lot of work, the rewards will also be great.