Real Estate Investors
Grand Junction Co, Rental Market
Grand Junction Co, Rental Market
Why?
First and foremost, Real Estate
APPRECIATES! Lets assume you
purchase a single family home for
$200,000 and put a 20% down payment
on the loan. A conservative estimated
appreciation rate of 5 years would be
roughly 3% each year yielding you a
home worth approximately $235,000.
Leaving you with a gross return of
$35,000 on a $40,000 investment over 5
years.
APPRECIATES! Lets assume you
purchase a single family home for
$200,000 and put a 20% down payment
on the loan. A conservative estimated
appreciation rate of 5 years would be
roughly 3% each year yielding you a
home worth approximately $235,000.
Leaving you with a gross return of
$35,000 on a $40,000 investment over 5
years.
You earn a return on the entire value of the
home, not just your down payment.
"3% of $200,000 not your $40,000 investment."
home, not just your down payment.
"3% of $200,000 not your $40,000 investment."
| Grand Junction has a STRONG Rental Market. |
| The vacancy rate has bounced between 1.5 percent and 2.1 percent since the first quarter of 2007 in Grand Junction. --Source: Grand Junction Daily Sentinel 6/19/2008 Read Here --Source: Grand Junction Daily Sentinel8/21//2008 Read Here |
(Note: Not all real estate investments
have a fairy tale ending. It takes time,
experience and a good eye for location
and detail to achieve these kinds of
results. On the other hand they are
achievable results.)
have a fairy tale ending. It takes time,
experience and a good eye for location
and detail to achieve these kinds of
results. On the other hand they are
achievable results.)
| "When demand for rentals is up, inventory is down and rents are steadily increased". |
How?
We make investing in Real Estate easy, it's our career!
Help with obtaining the necessary financing
Previewing, photographing, analyzing homes
Obtaining qualified estimates on potential rental rates from local professional
Property Managers
Strong and thorough negotiation with an emphasis on completing a business
transaction, not just a "home purchase"
Our team possesses a strong understanding of the process on all aspects
involved. 4 Realtors consisting of 2 CPA's 1 previous Property Manager and 1
Real Estate Investor.
WE KNOW THE ROPES!
Help with obtaining the necessary financing
Previewing, photographing, analyzing homes
Obtaining qualified estimates on potential rental rates from local professional
Property Managers
Strong and thorough negotiation with an emphasis on completing a business
transaction, not just a "home purchase"
Our team possesses a strong understanding of the process on all aspects
involved. 4 Realtors consisting of 2 CPA's 1 previous Property Manager and 1
Real Estate Investor.
WE KNOW THE ROPES!
| Questions? Contact Loomis Real Estate below! |
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Real estate investment is perhaps one of the most lucrative forms of investment today. But it is also equally risk bound especially when one is not well
versed with the trends and nuances of the real estate market. So if you are contemplating on investing in real estate, it is best to avoid costly mistakes
in real estate investment especially when you invest your hard earned money into it. Knowing the most common mistakes made by real estate
investors helps one steer away from making such mistakes in the future and ensures good return on investment.
Here are the top ten mistakes made by real estate investors, according to bankrate.com. Bankrate has put together the top ten mistakes after
speaking to established, full-time real estate investors and other professionals involved in real estate investment such as bankers. Read on to know
them and avoid them.
1. Not planning up ahead. Lack of a proper plan is the biggest mistake made by novice investors. Finding a house after forming a proper investment
strategy is the right way instead of looking for a house to fit the plan. Many make the mistake of buying a house because it seems to be a good deal
and then trying to see how they can fit it into their plan. Instead of buying a house and thinking one can plan in due course, investors should rather
concentrate on the numbers and try to make offers on multiple properties. This will ensure a good property that not only matches their investment
model but also works out well with the numbers they had planned for.
2. To believe you can make money quickly. The second major mistake that real estate investors make is to think it is very easy to get rich in real estate.
This is only a myth and the reality is that investing in real estate is a long term project.
3. Doing it single-handedly. For becoming a successful real estate investor one needs to build a team of professionals who would assist the investor
in his deals. This would ideally include a real estate agent, an appraiser, a home inspector, a closing attorney and a lender.
4. Making excess payment. One another reason that investors in real estate goof up in their investment is by paying too much for the properties they
buy. Paying too much and locking up all the funds in the erred property deal will leave you with no money to redeem yourself.
5. Leaving out the groundwork. Not doing your homework could be a costly mistake if you were a real estate investor. Every field of business needs
sufficient amount of homework to be done, and real estate investment is no exception. Learn the fundamentals and then venture into investing in
properties.
6. Throwing caution to the winds. Investors have to exercise a certain degree of caution and take earnest efforts while making a deal. New investors
often fail in this regard and sign a deal without doing adequate research on the property.
7. Miscalculating money flow. Investors whose strategy is to buy, hold and rent out properties need to ensure sufficient cash flow for maintenance.
Property managers could be expensive and the owner has to incur more expenses such as mortgage, taxes, insurance, advertising costs etc.
Investors have to allocate their budget such that all these expenses are taken care of, or end up having their asset turn into a liability.
8. Lowering the volume. A larger volume of deals or transactions helps in increasing the profits by reducing the impacts of marginal deals.
9. Getting trapped in your own deal. Having more number of options at hand for the property you buy is a wise strategy. This helps one to be prepared
for fluctuations in the real estate market. Plans to rent out the house could go awry when the rental market slumps. Having alternative plans helps you
cut down losses and tackle unexpected situations.
10. Making incorrect estimates. People who plan to rehab their house need to check if they will still reap the benefits at double the time that they had
estimated. This ensures they do not miscalculate and lose money on the deal.
versed with the trends and nuances of the real estate market. So if you are contemplating on investing in real estate, it is best to avoid costly mistakes
in real estate investment especially when you invest your hard earned money into it. Knowing the most common mistakes made by real estate
investors helps one steer away from making such mistakes in the future and ensures good return on investment.
Here are the top ten mistakes made by real estate investors, according to bankrate.com. Bankrate has put together the top ten mistakes after
speaking to established, full-time real estate investors and other professionals involved in real estate investment such as bankers. Read on to know
them and avoid them.
1. Not planning up ahead. Lack of a proper plan is the biggest mistake made by novice investors. Finding a house after forming a proper investment
strategy is the right way instead of looking for a house to fit the plan. Many make the mistake of buying a house because it seems to be a good deal
and then trying to see how they can fit it into their plan. Instead of buying a house and thinking one can plan in due course, investors should rather
concentrate on the numbers and try to make offers on multiple properties. This will ensure a good property that not only matches their investment
model but also works out well with the numbers they had planned for.
2. To believe you can make money quickly. The second major mistake that real estate investors make is to think it is very easy to get rich in real estate.
This is only a myth and the reality is that investing in real estate is a long term project.
3. Doing it single-handedly. For becoming a successful real estate investor one needs to build a team of professionals who would assist the investor
in his deals. This would ideally include a real estate agent, an appraiser, a home inspector, a closing attorney and a lender.
4. Making excess payment. One another reason that investors in real estate goof up in their investment is by paying too much for the properties they
buy. Paying too much and locking up all the funds in the erred property deal will leave you with no money to redeem yourself.
5. Leaving out the groundwork. Not doing your homework could be a costly mistake if you were a real estate investor. Every field of business needs
sufficient amount of homework to be done, and real estate investment is no exception. Learn the fundamentals and then venture into investing in
properties.
6. Throwing caution to the winds. Investors have to exercise a certain degree of caution and take earnest efforts while making a deal. New investors
often fail in this regard and sign a deal without doing adequate research on the property.
7. Miscalculating money flow. Investors whose strategy is to buy, hold and rent out properties need to ensure sufficient cash flow for maintenance.
Property managers could be expensive and the owner has to incur more expenses such as mortgage, taxes, insurance, advertising costs etc.
Investors have to allocate their budget such that all these expenses are taken care of, or end up having their asset turn into a liability.
8. Lowering the volume. A larger volume of deals or transactions helps in increasing the profits by reducing the impacts of marginal deals.
9. Getting trapped in your own deal. Having more number of options at hand for the property you buy is a wise strategy. This helps one to be prepared
for fluctuations in the real estate market. Plans to rent out the house could go awry when the rental market slumps. Having alternative plans helps you
cut down losses and tackle unexpected situations.
10. Making incorrect estimates. People who plan to rehab their house need to check if they will still reap the benefits at double the time that they had
estimated. This ensures they do not miscalculate and lose money on the deal.
Avoid Top 10 Mistakes Made By Real Estate Investors
Author: Real Estate Advisor , Rancho Bernardo Real Estate | Posted: 22-05-2007
Author: Real Estate Advisor , Rancho Bernardo Real Estate | Posted: 22-05-2007
Find Good Investments in Rental Property Author: Karen B | Posted: 15-07-2008
With interest rates so low, people are looking for different ways to invest their money. Housing prices are at an all time low, consider investing in rental homes. Let the low
interest rates work to your advantage as you purchase homes to rent with only 20% down.
Some Factors to Consider
Location, location, location is key to finding good investment property. Become knowledge about the community. Do research, if necessary. People want to rent in areas that
are convenient to schools, shopping and an easy commute to work. You will find cheaper houses in outlying areas but with gas prices so expensive, these are becoming
unattractive to tenants. A recommended real estate professional can give great advice on where to invest.
You may want to look at foreclosures when looking for a good buy. You are not the only one looking for a bargain, many investors know to look at these properties. If a property
has been on the foreclosure list for very long time, be cautious, there may be some sort of problem with it.
The disadvantage of all the foreclosures is that now banks are not willing to approve mortgages with low down payments for new investors. Typically, you need 20-30 per cent
down payment for rental real estate. You want to be sure that your monthly payments leave room for profit for the amount of rent you'll be able to ask for the area.
Make sure you calculate all of your expenses when determining if a particular property will be profitable. Besides your mortgage, if you decide to use a property management
company expect fees of $75 to $100 per month. You also need to plan on other maintenance costs for up keep. There needs to be enough profit margin that you can handle
these expenses as well.
Rental Properties Offer Owners Tax Advantages
Basic tax advantages landlords receive from their investment in real estate properties are like to those of homeowners. You are able to deduct property tax expenses and
mortgage interest costs from your federal tax return.
In addition to these deductions, the landlord has other tax incentives. If you, the landlord, provide utility services such as water, heat and/or electricity at no cost to tenants,
tax laws allow you to deduct these costs from the income on the property. Furthermore, all operating expenses for your rental property are tax deductible. This includes
maintenance and repair costs, like repainting or replacing windows, gutters and floors. Fees for liability, property and rent loss insurance are also tax deductible.
Thanks to depreciation deductions, landlords are offered tax advantages by the IRSfor improving their rental properties. Improvements include installation of a security
system, a swimming pool, new furnace or air conditioner, any new appliances or upgrades to the kitchen. Or maybe you want to add on another room or a porch to the rental
home. These also would be considered an improvement, not an operating expense. These expenses may not be written off as operating expenses, they are written off as
depreciation of improvement deductions.
Depreciation Tax Advantages without Improvements
Depreciation costs are those accumulated by the normal use of any residential property including rented buildings. The IRS acknowledges the fact that a building wears out
over time and permits landlords to deduct some of the cost of depreciation every year for up to 27.5 years. These deductions do not require you to spend anything in order to
use the deduction on your tax return. Just calculate the value of the building and the allowable depreciation on that amount. The only time you will spend money for a
depreciation deduction is when you make improvements to the property. Realize that you will have to make some of these improvements to keep the home livable.
Other Tax Deductible Expenses
If you don't already have an accountant, you may want to use one now. An accountant specializing in rental properties will make sure that you get all the deductions offered
to landlords; their fees are a deductible expense. Other possible expenses are the wages of employees hired keep books, deal with tenants or make repairs. If you engage a
property management company to take care of those things; their charges would be a tax deductible expense. Items like office supplies, phone bills, and even stamps can be
deducted as costs of doing business.
Buying investment property now when prices are low is a wise move. Later as the housing market recovers, you can sell at a profit, if you wish. Enjoy all the tax advantages of
being a landlord and the extra income from a rental property. You may find a better return on your investment than other options open to you.
With interest rates so low, people are looking for different ways to invest their money. Housing prices are at an all time low, consider investing in rental homes. Let the low
interest rates work to your advantage as you purchase homes to rent with only 20% down.
Some Factors to Consider
Location, location, location is key to finding good investment property. Become knowledge about the community. Do research, if necessary. People want to rent in areas that
are convenient to schools, shopping and an easy commute to work. You will find cheaper houses in outlying areas but with gas prices so expensive, these are becoming
unattractive to tenants. A recommended real estate professional can give great advice on where to invest.
You may want to look at foreclosures when looking for a good buy. You are not the only one looking for a bargain, many investors know to look at these properties. If a property
has been on the foreclosure list for very long time, be cautious, there may be some sort of problem with it.
The disadvantage of all the foreclosures is that now banks are not willing to approve mortgages with low down payments for new investors. Typically, you need 20-30 per cent
down payment for rental real estate. You want to be sure that your monthly payments leave room for profit for the amount of rent you'll be able to ask for the area.
Make sure you calculate all of your expenses when determining if a particular property will be profitable. Besides your mortgage, if you decide to use a property management
company expect fees of $75 to $100 per month. You also need to plan on other maintenance costs for up keep. There needs to be enough profit margin that you can handle
these expenses as well.
Rental Properties Offer Owners Tax Advantages
Basic tax advantages landlords receive from their investment in real estate properties are like to those of homeowners. You are able to deduct property tax expenses and
mortgage interest costs from your federal tax return.
In addition to these deductions, the landlord has other tax incentives. If you, the landlord, provide utility services such as water, heat and/or electricity at no cost to tenants,
tax laws allow you to deduct these costs from the income on the property. Furthermore, all operating expenses for your rental property are tax deductible. This includes
maintenance and repair costs, like repainting or replacing windows, gutters and floors. Fees for liability, property and rent loss insurance are also tax deductible.
Thanks to depreciation deductions, landlords are offered tax advantages by the IRSfor improving their rental properties. Improvements include installation of a security
system, a swimming pool, new furnace or air conditioner, any new appliances or upgrades to the kitchen. Or maybe you want to add on another room or a porch to the rental
home. These also would be considered an improvement, not an operating expense. These expenses may not be written off as operating expenses, they are written off as
depreciation of improvement deductions.
Depreciation Tax Advantages without Improvements
Depreciation costs are those accumulated by the normal use of any residential property including rented buildings. The IRS acknowledges the fact that a building wears out
over time and permits landlords to deduct some of the cost of depreciation every year for up to 27.5 years. These deductions do not require you to spend anything in order to
use the deduction on your tax return. Just calculate the value of the building and the allowable depreciation on that amount. The only time you will spend money for a
depreciation deduction is when you make improvements to the property. Realize that you will have to make some of these improvements to keep the home livable.
Other Tax Deductible Expenses
If you don't already have an accountant, you may want to use one now. An accountant specializing in rental properties will make sure that you get all the deductions offered
to landlords; their fees are a deductible expense. Other possible expenses are the wages of employees hired keep books, deal with tenants or make repairs. If you engage a
property management company to take care of those things; their charges would be a tax deductible expense. Items like office supplies, phone bills, and even stamps can be
deducted as costs of doing business.
Buying investment property now when prices are low is a wise move. Later as the housing market recovers, you can sell at a profit, if you wish. Enjoy all the tax advantages of
being a landlord and the extra income from a rental property. You may find a better return on your investment than other options open to you.
