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Real Estate Tips for Increasing the Sale Price of a Property (2019 Update)

Are you a real estate investor looking for a way to amp up the sale price of a property you have rehabbed? Maybe you have even been living in a property but are now ready to sell and enjoy the profits? Whether it is in North Dallas, Plano, Southlake, Keller or anywhere else in the area, there are some “tried and true” methods for easily boosting the sale price of a property.

Stage

This is an obvious tip, but one that many sellers skip. Staging is not an expensive or difficult tactic, and it begins with removing the non-essentials and de-cluttering. It is a solid way to depersonalize any space, and this is a great way of pricing a home at the best possible level. Why? It prevents potential buyers from seeing issues that don’t exist. They don’t like a wall color, the space feels small or dark, the house feels a bit grimy…these are all issues addressed with proper staging. Blinds are raised, lights turned on and windows opened for fresh air are just a few steps a good stager takes.

Think of this as a neutralizer that lets the potential buyers instantly visualize themselves in the various rooms and spaces, it is liberating and can boost their willingness to pay your asking price.

Curb It

Many new real estate investors looking to sell one of their first properties overlook the importance of the exterior spaces. While you may not have the budget to do a full landscaping job or new paint job, you can enhance curb appeal by creating the most favorable impression possible. Trim those bushes and shrubs, get the yard tidy and trimmed, add some potted plants and a door mat…such small details pay off. A special area of interest should be the walk from the driveway to the main entrance.

Give Attention to the Bathrooms and Kitchen

If you are going to sink any funds into a property, the kitchen and bathrooms are the places to do it. Most experts say that renovations to these spaces will instantly boost your sale price by at least 7% or more. That is even with just some minor cosmetic work and not major renovations. Go with neutral hues to appeal to the widest range of buyers, update light fixtures and recondition or replace cabinetry for the most cost effective changes. If you have more in the budget for new fixtures such as sinks, toilets and cabinets, you’ll get good returns.

Clean and Detail

Another way to enhance the perceived value of your property is to have it thoroughly and professionally cleaned. Be sure you choose a firm that has great attention to detail. A home or property perceived as dirty or grubby is unlikely to sell at your price, or at all. Not only does a professionally cleaned property have a great look and scent, but it will often boost your sale price by anywhere from three to five percent. Just by cleaning windows, shutting toilet lids, scrubbing tile and countertops and all of those other tasks, you can easily increase the sale price.

Consider Small Maintenance

Just like dentistry, if you ignore little issues, they get worse and end up costing you. As you are prepping any property for a quick and profitable sale, keep in mind that the small maintenance issues should be addressed too. For example, a potential buyer is always going to look for things like roof leaks or old stains on ceilings, gutters that need to be replaced or those front steps out of alignment. Just remediate them long before you begin showing and they become small expenses that don’t end up costing you the best sale.

There are so many things you might think necessary for getting the highest price possible, but these simple tips should help you enjoy the greatest prices on your real estate investments in the North Dallas area.

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How Your Investment Portfolio Could Benefit from Commercial Real Estate (2019 Update)

There is savvy in diversity. This is true in almost any setting imaginable. Diversify in your crops and your yields are greater. Use diversity in your diet and enjoy greater health. Diversify in your investments and you have a more solid strategy. In fact, almost any investment portfolio is going to benefit from diversity, and this should include incorporating commercial real estate into the mix.

While the typical strategy will find investments like bonds, stocks and savings among the most common blend of assets, many also now contain real estate of one kind or another. In fact, as savings rates have fallen to 1% or less in many instances, and stocks or bonds delivering 3% and higher, real estate can deliver an annual return of 9% or more.

Understand the Benefits of Commercial Real Estate Investments

Firstly, it helps to understand just what commercial real estate means. It can be retail property like a single building with a store or shop, but also an entire strip mall or shopping center. It can be an industrial property like a warehouse or factory, an office building of various kinds (including a corporate park), it can be a self-storage facility of any kind, a hotel or motel, and it can also be a multi-family property with apartments or multiple housing units in one building.

Within this broad array of potential assets, investors will enjoy a tremendous amount of stability and security. However, like any investment, you have to perform due diligence and evaluate any investment based on your needs. For example, how much risk can you take? What sort of returns do you need? What are the specific tax issues with one type of investment over another?

Once you understand your goals, you can then better understand how diversifying the portfolio with commercial real estate investments is such a wise choice. The primary benefits that apply to all, include:

High returns – Historically, real estate investments, especially commercial properties can supply a 9.5% return over a twenty year period

Cash flow – Unlike many real estate investments, commercial properties are noted for the dependability of their cash flow. This is a level of security that few investments of any kind provide.

Hard assets – When you own stocks or bonds, you have no hard assets. Real estate is a hard asset at its finest and has specific appeal over paper or electronic holdings.

Taxes – The benefits of properly structured real estate investments are quite substantial. There are benefits on loans and interest paid, there are tax benefits linked to the depreciation of the asset, and much more.

Hedging – It can be tough to hedge your portfolio against loss, but real property is a fantastic hedge against issues like inflation. Commercial real estate is long known for gaining during inflation, helping to maintain the value of the portfolio over the long term.

Diversity – As noted, smart investors diversify. Commercial real estate is not linked in any direct way to the stock markets, making it a great hedge. They also provide a wide range of types and options, with a wide array of prices and investment sizes available, making them suitable to almost any portfolio.

Influential – Unlike any other sort of investment, the owner of commercial real estate investments can actually influence their performance in the portfolio. This can be done by taking any steps you have available to increase the value of the property or otherwise influence its performance. You might “re-tenant” a building with higher quality clientele. You might make improvements that instantly increase the value and equity of a property. In no other way do investors ever have such control over their investment vehicles.

So, if you are looking for a good way to improve your portfolio in the North Dallas, University Park, Preston Hollow, Frisco or Plano areas, consider the many options for commercial real estate investments.

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Eight Tips for Launching Your Real Estate Investing Career (2019 Update)

Investing is a good way to build wealth and create a more financially promising future. Naturally, not all forms of investing are alike. There are stocks, bonds, hard assets like gold or silver, trusts, and real estate, among others. In this article, we are going to look at real estate investing and eight good tips for successfully getting started in this lucrative area.

Whether you have already spent a lot of time reading about and learning the key data, or you are just beginning to understand the many benefits of real estate investing, you need to start with one major tip:

  1. No time like the present – If you read headlines about real estate investing you realize that it is an area with the same fluctuations and changes as any other investment or asset class. This means that there is no ideal or right time to begin investing. Rather, it is a matter of understanding which kinds of real estate investments are appropriate in the moment. For example, in early 2017, investors heard from Warren Buffett that real estate investments of any kind were suggested, and other investing experts pointed towards commercial properties, including medical.
  2. Have goals – Your budget and your goals may not yet be in perfect alignment, but getting involved in real estate investing without solid short and long term goals is hazardous. In fact, this tip has to spill over into our next because without your first short term goals, you don’t reach the long term goals. And one of your main long term goals should be to invest “bigger” than you have already done. To do that means building the portfolio and having on paper and in capital what you need for a large investment.
  3. Plan for a big investment – Small steps are usually needed to take bigger ones, and the sooner you begin investing and setting goals, the sooner you get to do a big investment in a more lucrative asset class.
  4. Do some research – Not all real estate is a good investment vehicle. Start looking into the markets in the areas with the most promise. For instance, use search engines to find top cities or regions for investing in housing or commercial properties.
  5. Hold steady – This takes discipline and some nerve, but it is far too easy to bail out of a good investment because of unusual circumstances or troubling times. For example, a major REIT recently dealt with a massive sell off because a single area of its holdings showed signs of trouble. Rather than selling, investors should have held firm.
  6. Accept risk – There are no investments that are without risk, and this is true of real estate investments. You need to be willing to accept some risk, but if you are doing your research, holding steady, sticking to goals and choosing the most lucrative markets and regions, your risk should be kept to minimal levels.
  7. Diversify – As soon as you are able, make plans to diversify holdings. While you might enjoy heaps of success as an investor in apartment buildings or retail and combination use buildings, keep in mind that the old “eggs in one basket” system is not always the wisest. Be sure your portfolio has a good balance of single family, medical, commercial and other real estate.
  8. Seek help – All of these things are quite challenging to do on your own, though many before you have done so. However, why struggle and delay your success as a real estate investor when there are turnkey options available. There are real estate investment clubs that steer investors towards those “perfect fit” assets, and which can provide almost immediate success.

Hopefully, these eight simple tips can help you get started on a successful career in real estate investing today. Now is the moment to look to real estate as a strong asset class, and today’s the ideal day to begin.

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Six Clever Negotiation Tactics to Lock Down Your Next Real Estate Deals (2019 Update)

As a real estate investor, you will spend at least some of your time actually buying properties. The rest of the time, you might be rehabbing a property, or marketing a home, or inspecting potential purchases. However, there will be at least some buying involved. This means that you will be dealing with sellers (or their representatives, at least). The seller is going to try to get the best price possible for the property and it is your job to negotiate it to the lowest price agreeable to both parties.

This is where many investors run into trouble. Chances are good that even if you have many successful sales under your belt, you could have gotten those properties for less, and maximized your return even more. Of course, negotiating is as much an art as it is a strategy, and it can be difficult to gauge which sellers will respond better to which methods. We’ll cover some of the most effective negotiation tactics below.

Take Small Bites

It’s tempting to ask for everything you want all at once. It’s definitely faster, but you will find that it isn’t particularly effective. The problem is that you come across as demanding, and the seller just doesn’t want to deal with that. You’ll get better results if you ask for things here and there, slowly, over the course of the negotiations. This can do two things. First, and hopefully what you’ll find in your own experience, is that it actually works to condition the seller to say “yes”, rather than “no”. Second, it can wear them down. You do run the risk of annoying the seller, but it can be effective.

Offer Something in Exchange

Sometimes, getting concessions from a seller is as simple as offering something they want in exchange. This is pretty much the basis of all human interactions in one way or another. It’s even the basis for employment today – you give an employer your time in exchange for something you value, money. What does the seller want, and is there a way to give it to them without coming out the loser in the negotiations? Is there a way that both sides can win? Believe it or not, there is such a thing as a win-win in real estate investing. You just have to find out what is of value to the seller and whether or not it’s something you can part with.

Dig Deep for Intelligence

Being a successful real estate investor means that you need to be very good at ferreting out information that the seller might not really want you to know. For instance, just how motivated are they to sell? If they’re very motivated, what’s the reason? Are they on a firm timetable to be moved to the other side of the country and have to sell before the move? Is there something else at work? Find out what the seller’s motivation is and then play to that. This is particularly true when you’re competing against other investors for the same property.

Be Silent

Silence can be comfortable, or it can be uncomfortable. If you’re comfortable with it, use it as a tool to move your negotiations in your favor. Suppose the seller makes you an offer. Instead of replying either in the positive or the negative, you don’t respond at all. You remain silent, and say nothing. That silence stretches out, and the seller becomes uncomfortable. Perhaps they think they’ve offended you, or that you’re angry about the price they quoted. There is a chance that they’ll budge based on being uncomfortable. Of course, there’s also the chance that they won’t budget, but remember – nothing ventured, nothing gained.

Disarm the Seller

Most sellers are as on edge as you, the buyer, are. This can lead to stalled negotiations. You can turn the tables by disarming the seller. Be humble and agreeable. Point out the things you like about the property (but don’t give ground on your demands). You might be surprised at how much you can gain simply by being nice, rather than being combative.

Walk Away

The final tip is to just walk away. Chances are good that there are similar properties elsewhere in the same area. The seller probably knows this too, and if they see you walking away, they’ll be motivated to at least meet you in the middle.

With these tips, you should find your negotiations are simpler, easier and come out in your favor more often.