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Good News for Investors: Dallas Needs Medical Real Estate Solutions (2019 Update)

Real estate has always been a recommended choice when investors look for assets to diversify and stabilize their portfolios. Over the past eight years, however, we’ve seen a lot of upheaval in the real estate sector that has left investors baffled and uncertain. Fortunately, with the US economy on the mend and housing markets around the country recovering, that instability seems to be waning significantly. However, some markets are still more lucrative than others, and investors are still wary of making the wrong choice.

So what can you do? And where should you invest your capital? Healthcare real estate in Dallas is a market that many have not previously considered but which may prove to be incredibly profitable.

Rising Demand for Medical Care

First of all, thanks to the Affordable Care Act, more and more Americans are signing up for health insurance. Many do it to avoid paying a fine on their taxes in April, but once they have coverage, they want to take advantage of the services they’re paying for. Thus, we’ve seen a massive increase in the demand for all kinds of medical care in Dallas.

With doctors and other medical professionals booked solid for regular visits and emergency care, Dallas is in need of medical real estate solutions. With more office and clinic space, more medical practices can open, fulfilling more of this high demand.

And medical offices and clinics aren’t the only in-demand healthcare real estate in Dallas. While there has recently been a major influx of younger professionals moving to Dallas, the senior population of the city and surrounding areas has not dwindled at all. In fact, thanks to superior medical care, people are living longer than ever before, which means that they need geriatric care services. Investors would be wise to consider backing senior care facilities, as well as other medical real estate solutions.

A Stable and Lucrative Investment That Could Help Your Community

Basically, there’s a huge demand for more healthcare real estate in Dallas because people need medical attention when they’re sick and preventive care when they are well. From flu shots to elder care, there’s no shortage of need for medical real estate solutions here, and real estate investors can provide that solution by providing the funds necessary to build these facilities, offices, and clinics.

Essentially, when you invest in medical real estate, you’ll be almost guaranteed to see positive returns on your investment in short order. Not only that, but you’ll also be contributing to an improvement in your community, which will help to increase property values and potentially have a positive effect on your other investments in the area, as well. Consider investing in medical real estate and see how much you can help yourself and your community at the same time.

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What’s Your Strategy for Your Real Estate Investment? (2019 Update)

You no doubt already know that there are numerous ways to invest in real estate, but have you chosen the strategy that will work best for you, your portfolio, and your investing style? Different strategies have different levels of involvement, with some being more active and others being almost entirely passive. You should consider this when you decide which type(s) of properties to invest in, and you should consider which strategies are best suited for your budget now and in the future.

Cash Flow Rental Properties

The first type of real estate investment that most people consider is a single-family rental property that will bring in monthly cash flow to increase your wealth. You can purchase this type of property in a couple of different ways, depending on how much time you can afford to invest and how much capital you have for your initial investment.

Foreclosure Properties

Some investors with more time and less capital will opt for purchasing distressed properties in short sales or at foreclosure auctions. They’ll then renovate the properties, rent them out, and act as their own property managers. On paper, this will almost always result in a higher profit margin, but it also involves higher risk (properties that need more work than you bargained for). It also requires much more time and energy.

Turnkey Rental Properties

Other savvy real estate investors will put a little bit more capital into their initial investment for turnkey properties that are move-in ready with no need for renovations. These properties often come with property management services, and some even come with tenants already in place. While you will spend more on the front end for one of these properties, you are almost guaranteed to begin collecting positive cash flow immediately and consistently.

REITs (Real Estate Investment Trusts)

If you’re looking for a real estate investment strategy that’s completely hands-free and passive, you may want to consider investing with an REIT. When you do this, you will not actually purchase a property or a piece of a property, but rather you’ll purchase stock in the trust itself. The trust will then invest your funds – combined with other investors’ funds – to purchase larger investment properties, such as condominium complexes or retail spaces. As long as you own shares in the REIT, you will collect returns, usually on a quarterly basis.

These are only a few of the most common and popular real estate investment strategies. Before you invest, find out more about each of these, as well as other real estate investing strategies and get expert advice on the best types of investments to improve your ROI and grow your investment portfolio.

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How to Avoid This Big Turnkey Pitfall? (2019 Update)

Real estate investment has become a Millennials game. Members of the younger generation are themselves putting off home ownership, while looking for high performance investments that won’t take up much of their time and don’t require hands-on DIY work to become tenant-ready. This search for low-maintenance investment opportunities can lead investors on a wild goose chase as they attempt to find relatively safe transactions that offer long-term yield and a self-sustaining property model.

The truth is that turnkey is not a get-rich-quick scheme, and it involves making solid choices and not just buying whatever comes along because the marketing is slick and implies huge returns on a small investment. So how do you avoid falling into the trap of big hype and overstated promises? It can be confusing sorting out all of the investment property advice in Dallas.

Be Discerning

The best thing you can do as an investor is seek out not only properties that have a promising future as far as ROI, but those that are suitable candidates for smooth management and upkeep. By its very definition, turnkey means that the property is already renovated (or that step is being taken care of by the management company), and either has tenants, or tenants will be installed by the management company.

What can get in the way of these foundation steps? When you only go for properties because the initial outlay is cheap and promises of lavish returns are being bandied about, there can be serious underlying issues that turn the entire thing into a nightmare you can’t get out of soon enough.

The problem is that when the price is rock bottom – under $50k is considered a “cheap rental” in most average markets – there’s not enough padding built into the transaction to allow for proper reno. When renovation prices have to be kept on the cheap, you end up with deferred maintenance costs, which then eat into your rent ratio over the long term. Not only that, but deferred maintenance can mean malcontent tenants, and unhappy tenants translate into high turnover, which parlays into more expenses for the owner – you.

Put Quality First

Protect yourself from money pits by going for quality, customer service, and long-term hands-free sustainability over shiny promises on low-end properties. While a higher quality property managed by a company that provides a high level of service and comprehensive communications with clients and tenants will cost you more on the front-end, these are the properties that are going to demonstrate the best results. This will materialize in the form of happier tenants, fewer deferred maintenance issues, less oversight required on your part, and a smoother overall transaction for everyone involved.

Make sure you’re not only choosing high quality turnkey rentals in Dallas that have been renovated right the first time, but that your investment and management company have the staffing and experience to provide top notch services and prompt communication.

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What Makes a Rental Property Profitable? (2019 Update)

When you’re first getting into real estate investment, you may be under the impression that you can simply pick a house for sale, negotiate a good price on the deal, and then watch the profits roll in. While that’s the ideal outcome, there’s a little more to it than that. There is a variety of factors that contribute to how profitable – or not – your rental properties will be. By taking these things into account when deciding on rental houses to make offers on, you’ll maximize your chances of creating a lucrative long-term investment that is beneficial to all involved.

Some things to look for when evaluating rental properties:

The local job market – areas with robust employment growth attract people, that’s no secret. Take a look at existing job opportunities in the area, as well as any companies that may be planning to move into the neighborhood. Of course the type of business it is will dictate whether this is a good or bad thing.

The crime rate – it’s harder to get quality tenants into high crime areas. The Internet makes it easy to not only check for these statistics, but the location and quantity of sex offenders in the area as well.

The school system – for people with families, rental houses in good school districts are a hot commodity. The quality of the school system will not only affect your efforts to get tenants into your rental properties, but the resale value of the home down the road.

Neighborhood characteristics – is the house located near a college? This could mean student tenants, which translates into high tenant turnover and summer vacancies. Other things to look at – are the yards well kept? Are there blight laws that help keep visually unappealing debris under control?

Local amenities – close shopping, dining, theaters, mass transit access, parks, gyms, etc. all make rental properties more attractive to tenants, as well as to buyers when the time comes to sell your investment.

Average rent – this will be a crucial deciding factor in your ultimate choice of rental houses. The reason for this is because you can’t just set the rent at whatever you need to make to cover your expenses and make a profit each month. Whether you pay $80,000 in a cheap market or $150,000 in an upturn, if the house next door rents for $1200, that’s about what you’ll be able to charge (given equivalent square footage, features, etc.).

Property taxes – this is another vital piece of information that will have a significant bearing on your bottom line. Property tax information is typically available through the assessment office.

No matter where you are shopping for rental houses, these guidelines should give you a good start on evaluating properties to figure out whether they will ultimately translate to a profitable piece of your investment portfolio puzzle.

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What It Means to Invest in Luxury Real Estate? (2019 Update)

There’s no doubt about it – luxury is in. In the past five years alone, flipping of luxury homes – those valued at a million dollars or more – has increased nearly 40% nationwide. You may not have considered this avenue for drastically increasing the value of your investment portfolio, but it’s a valid option for investors with the financial backbone to support the purchase.

While the largest markets for this type of venture are obviously locations like Beverly Hills, the Hamptons, San Francisco, and Manhattan, luxury homes in Dallas are also a lucrative opportunity to increase your cash flow and net worth. In fact, Dallas ranks among the top 10 cities in the United States when it comes to the number of wealthy residences.

What Sets Luxury Apart?

Luxury homes in Dallas aren’t much different from other investment houses, except that all of the amenities that residents normally want and expect are ramped up to new heights. These homes are defined not only by their interiors – lavish fixtures and finishes, custom architectural details, features like swimming pools and generous outdoor living spaces – but also by their surroundings. In addition to top notch security and privacy, there should also be high-end dining, shopping, and cultural experiences available nearby. And, these luxury homes in Dallas are large – typically several thousand square feet.

Now is the ideal time to take the plunge into high-end investment houses. While the market has recovered significantly from the crash in the late 2000s, prices are still reasonable. At the same time, consumers are getting more comfortable with spending on housing, encouraged by the decreasing unemployment rate.

One challenge that you may encounter is finding out which luxury homes in Dallas are for sale. Affluent owners typically try to keep a low profile when it comes to their real estate activity, so it can be difficult to pin down whether a property is even on the market. In addition, financing for luxury homes in Dallas usually takes longer than for a typical mortgage, so sellers may not even show the house to buyers unless they are already qualified.

Connecting with professionals in the area who know the market can open up opportunities you might not be able to access on your own. These resources could come in the form of real estate agents who specialize in the luxury market, or real estate investment groups with industry connections.

If you’re interested in investment houses or luxury homes in Dallas, it’s a good idea to have your financials in order, contact those in the business who may be able to assist you in your search, and be prepared to have patience as you wait for the right luxury investment property to come along.

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5 Tips to Improve Your First Real Estate Investment (2019 Update)

A lot of new real estate investors lack confidence in their decision-making skills, especially when it comes to their first investment properties. They are afraid to spend too much on renovations, and they shy away from making some of the most effective improvements to get more out of their properties. If you’ve acquired an income property, and you want to increase your rental rates, decrease tenant turnover, and generally improve the value of your property or properties, follow these five tips.

A Fresh Coat of Paint

You might be surprised at just how effective a fresh coat of paint can be for improving the value of your investment. You can buy a bucket of paint for between $20 and $30, and you won’t spend much more on brushes, rollers, tape, plastic sheets, and any other materials you need. Then, if you do the work yourself, you’ll have made a major improvement to your property’s value without taking up a lot of your liquid capital.

New Carpeting

When you walk into a house, you immediately notice if it has new, plush carpeting or if the carpets are starting to look and feel a little threadbare. Carpeting doesn’t cost a lot of money, and it can make your property look a lot better to your prospective tenants.

Bathroom and Kitchen Renovations

If you’re investing in a turnkey property, you won’t have to worry about this for at least the first few years. If, however, you’ve invested in an older or distressed property, you should have already allocated some funds for renovations. The kitchen and bathrooms (especially the master bath) are some of the best places in the house to spend your renovation budget. People spend time a lot of time in their kitchens, and they want to relax and recharge when they’re taking a shower or getting ready to go out on the town. That’s why kitchens and baths sell houses, and it is why quality tenants always opt for houses with updated kitchens and bathrooms.

Landscaping

If you’re looking for DIY improvements that won’t cost much, landscaping is a great place to start, as well. You don’t have to be a master gardener to add some attractive flowers and shrubberies around the front porch, along the front walk, and/or around the mailbox. And, if your lawn is looking patchy, you can spread some grass seed to fill it in and make it more attractive, too.

New Windows

A lot of new investment property owners leave the windows alone because replacing them can be somewhat expensive. However, with the improved energy efficiency and aesthetics of new windows, you can add upwards of $10,000 to the value of the house. Plus, they’re a huge selling point with tenants and future buyers because they improve the energy efficiency of the house and can result in much lower utility bills every month.

These improvements won’t be free, but you can make them more cost efficient by doing most of the work yourself. Window replacements and kitchen renovations may be jobs for the professionals, but even with these you can save some money by taking care of smaller jobs yourself, such as demolition and/or small fixture installations.

With these five tips, you can create a budget solution that will improve the value of your real estate investment so that you can get higher rental rates while reducing tenant turnover. Thus, you’ll have shorter vacancies and much more stable income form the property. A little bit of expense now could pay you back in a big way down the road.

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5 Lessons You Can Learn From Failed Real Estate Investments (2019 Update)

Whether you are new to the real estate investing world or you have been investing for some time, you should understand that failure can hold a number of valuable lessons. That doesn’t mean that you have to go through the trials of a failed investment to learn those lessons, though. Fortunately for you, many investors have come before you and learned those lessons the hard way so that you can learn from their mistakes and avoid them.

Stick to What You Know

If you are new to real estate investing, it pays to do some research and to familiarize yourself with the markets you’ll be investing in before you dive in. As you do this, you’ll start to find that you’re more interested in and more comfortable with certain types of investments over others. This doesn’t mean that – if your first investment was in medical real estate – that every investment you make in the future has to be in the medical field. However, it does mean that you should understand your strong points and find financial and real estate experts who can help you make informed decisions about your investments in the future.

If It Sounds Too Good to Be True, It Probably Is

You’ll see infomercials, paid seminars, books, and TV shows all promising that they have the key to help you make millions of dollars in no time at all with real estate investing. If their promises were true, you would see a lot more millionaire real estate investors walking around, wouldn’t you?

The fact is there is no single secret to getting rich with real estate investing. However, with the right financial advice and real estate investing opportunities, you can grow your wealth while diversifying and stabilizing your investment portfolio.

Following a Formula Doesn’t Guarantee Success

Some of the books, websites, and television shows you see out there will have some good advice. If you follow this advice and you find a great deal in the right market, you’ll likely see a positive ROI. However, simply following one of these formulas will not guarantee that you get positive returns on an investment. That’s why it’s much more important to have experts in your corner than it is to understand any particular real estate investing “guru’s” formula.

Overpaying for Properties Is Always a Bad Idea

Whether you find yourself in a bidding war at an auction or someone tries to convince you that you should pay an inflated price on shares in an REIT that are “sure to appreciate”, you’re looking at a bad deal. Overpaying for a single-family property will result in losing your profit margin when you sell or rent. And overpaying for equity is just as disastrous, if not more so.

Never Bank on Appreciation – Cash Flow Is Essential

Finally, if you are looking at an investment property based on its potential appreciation rather than its current value in monthly or quarterly cash flow, you should probably walk away. Unless a property can bring you regular cash flow starting immediately or in the very near future, you are looking at an investment that will only tie your funds up and will not show you any significant returns until you can sell it. Even then, market values are never guaranteed, and you may end up taking a loss on the property in the long run.

Take these lessons and learn from real estate investors who’ve come before you. Many people have lost significant amounts of money by making very simple, understandable mistakes like these. Learn from those mistakes and enjoy more returns on your investments now and in the future.

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5 Tips for Investing in Commercial Real Estate (2019 Update)

If you’ve been researching different types of real estate investments, you likely already know that commercial real estate tends to yield larger returns in less time than single-family residential real estate. Whether you’re interested in investing in multi-unit residences, medical real estate, or retail real estate, you should know a few things before you commit.

Today’s Hottest Location Could Be Tomorrow’s Dud

We’ve all seen it happen. A new development goes in, and suddenly all of the most popular retailers and other businesses flock to open locations in it or near it. That’s great for a year or two, but then another new development begins just a few miles away. Suddenly, consumers are all intrigued by the latest shopping and dining area, and businesses in the first development start closing their doors. Before you know it, that area is completely unpopular and its investors find themselves looking for the fastest way to sell.

How can you avoid falling into this kind of trap? Look for areas that have catalysts for sustainable growth. Look for new schools, parks, rec centers, and shopping districts with longer leases on their units. All of these signs are indicators that an area will continue to be a good location for years to come, and that it’ll bring you good cash flow for as long as you choose to own a property (or equity in a property) there.

Beware – Properties Don’t Always Sell Quickly

Likewise, it’s a good idea to keep in mind that real estate is an illiquid asset. If you need liquidity in your portfolio, you should ensure that you have it with other investments (like stocks, bonds, precious metals, etc.) before you invest in real estate. If you think that you’ll need access to your investment capital quickly within the next few months or years, commercial real estate may not be the right investment for you at this time.

Cash Flow Is Not Guaranteed

You may be thinking, “But what about cash flow from the property’s rental fees?” If you have tenants who pay their rent on time every month, then you will have consistent, regular cash flow from your rental property or properties. If your property remains vacant for any length of time, however, you will need the liquid funds to pay the mortgage, property taxes, and any other fees or fines associated with it.

For most investors, this is worth the risk, as purchasing a good property in the right location will almost guarantee that you’ll have tenants willing to sign long-term leases. However, you do need to be aware that there may be some expenses associated with the property that you’ll need to take care of before you acquire tenants or between tenants when you have turnover.

Never Underestimate the Value of Good Accountants and Attorneys

Next, you may be tempted to try to do your own accounting, and you may not think that you need an attorney to be a real estate investor. However, these experts can save you a lot of money and legal trouble in the long run. Never underestimate their worth.

Turnkey Properties Are Great Investments

Finally, don’t turn your nose up at the slight premiums you see on turnkey investment properties. These properties are ready to rent as soon as you buy them, and many of them come with paying tenants from the beginning, as well as property management. When you consider the convenience and the lowered risk level of this kind of property, the slight premium on its initial market price becomes negligible.

Keep these tips in mind as you start to explore the world of commercial real estate investing.

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5 Common Mistakes Retirees Make With Real Estate (2019 Update)

Have you recently retired or are you planning to retire soon? Everyone wants to live a comfortable lifestyle after they quit working, but all too often people make a few simple mistakes that can create huge headaches and financial struggles for their retirement years. If you can avoid these real estate mistakes, you’ll have a much better chance of enjoying the kind of retirement you’ve always dreamed of.

Neglecting to Downsize

When your kids were young and lived with you, you needed a lot more space. Now they’ve all grown up and moved out, and you’re still living in that large house with all of those extra bedrooms. That house may have room for everyone to stay with you for the holidays, but it also comes with big utility bills and maintenance costs, too. Downsizing to a smaller home can greatly reduce your cost of living, which can make your retirement funds go a lot farther.

Keeping Two Homes

Worse yet, a lot of retirees maintain summer and winter homes, sometimes in different states. Keeping two properties means paying two mortgages, paying at least double the property taxes, and paying to maintain both houses and properties. That’s a huge drain on your finances, and it can lead to a lot of problems for you financially.

If you really want to live part-time in one area and part-time in another, make sure that both properties are small and have low maintenance costs. You may even want to invest in a timeshare so that someone else pays for the property you’re not living in when you’re not there. In most cases, it makes more sense to save money by selling one of your properties or at using it as a rental investment property instead of keeping up two homes.

Failing to Invest Profits From Downsizing

When you sell a bigger home and buy a smaller one, you’re more than likely going to have some profits. That’s great, but you shouldn’t spend them on vacations or sundry items. Instead, invest them in real estate and/or other investments that will give you a positive return to continue funding your retirement.

Failing to Research Before You Relocate

If you’re like a lot of retirees, you probably dream of relocating to a beautiful, sunny area where you can enjoy all of your favorite leisure activities whenever you please. You may have been dreaming of living in California or southern Florida for years, but what do you really know about living in these places? Will you have access to doctors and caregivers in your insurance provider’s network? What about the cost of living in your chosen area? You should thoroughly research any new location before you commit to buying a house there and moving.

Continuing to Pay a Mortgage in Retirement

Finally, we’re not saying that you should just stop paying your mortgage. However, if you sell your larger home and buy a smaller one, you will likely be able to pay in cash. Even if you can’t, with the returns from your investments, you should be able to pay down your mortgage fairly quickly so that you can be free of it and enjoy your retirement income without worrying about how you’ll pay your bills.

These real estate mistakes can make life really hard on retirees, and they can result in major financial problems. If you want to enjoy your retirement instead of pinching pennies and worrying if you’ll make it until your next Social Security check comes, avoid these mistakes and diversify your investment portfolio with income properties that will continue to supplement your wealth throughout your retirement.

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4 Principles to Help Your Online Real Estate Investments (2019 Update)

Investing in real estate online may seem like a very simple venture at first, and it’s certainly a better means of increasing your passive income and diversifying your portfolio than other investment options. However, if you want to make successful investments and ensure that your investment capital is working for you, you should keep these four principles in mind.

Work With People Who Have an Intimate Understanding of the Market

Whether you’re investing through an REIT (real estate investment trust), a real estate crowdfunding platform, or any other online investment service, you need to know that you’re investing with a company that employs real estate and investing experts who know the market like the backs of their hands.

Essentially, you need to remember that you’re not just investing in a website. You’re investing in one or more income properties through a website that is backed by real estate agents and brokers, financial experts, and others who have an intimate knowledge of the market. These people will either use your capital to invest in a profitable development, as is the case with an REIT, or they will work with you to match you with the best investments to improve your portfolio’s performance.

Before deciding on a platform to invest in, look into their investment history and/or work with an investment firm that has a reputation for making great choices for their investors.

Diversify Your Investments for a More Stable Portfolio

This is one of the most exciting aspects of investing in real estate through REITs and/or real estate crowdfunding platforms. Instead of purchasing an entire property on your own, you have the opportunity to purchase a percentage of the equity in multiple properties. This gives you the ability to diversify your portfolio with a number of different investments, making it more stable should one of your investments fall short of your expectations.

Not only is real estate a great hedge against inflation for your investment capital, but spreading that capital across multiple properties also reduces your risk level while potentially increasing your rewards.

Communication Is Always Key

As we mentioned earlier, when you choose to invest in real estate online, you’ll be working with one or more investment firms. Years ago, this would have meant having regular in-person meetings and/or phone calls with your investment advisors. Today, it may mean regular emails, SMS messages, and live chats, as well as the occasional phone call when necessary or when you prefer. The modes by which you communicate with your investment firm may change, but the need to communicate openly with them remains the same. A quality investing firm will keep lines of communication open and will work with you so that you are always aware of what’s going on, where your capital is being invested, and how it benefits you.

Your Investments Make a Difference

You may never step foot in your investment properties. Many of them may be local, but they may also be out of town or out of state. The successful developments you fund with your investment capital will help to improve the property values and vibrancy of the areas and neighborhoods where they’re located. In addition to making your local communities and communities around the country better places to work and live, this also yields more and better investment opportunities for the future.

Keep these four principles in mind, and you’ll have the basic tools you need to begin investing in real estate online. The platforms and forms of communication with your financial advisors may be evolving, but the basic elements of investing in commercial real estate remain constant.