creative_financing

Small investments can make for big changes in your life when it comes to finances. There are a number of ways that you can still offset the risks of getting into the rental business, while still grabbing ahold of the chances it provides for success.

Those who watch the market are predicting that consumer confidence in the economic recovery combined with actions of the Federal Reserve are pushing interest rates back up. How is this? To put it simply, the Federal Reserve buys mortgage related bonds, as well as other long-dated government bonds. That forces down long term interest rates. However, even just expecting the Federal Reserve to start the taper of the bond buying has shown some yields to rise and as a result, bond prices to decline. This is only part of why interest rates may yet again go up, and why if you’re considering financing a rental property, now may be a good time to do it.

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In the wake of the 2008 Financial/Housing Crisis, the real estate industry was dealt a series of direct blows (as could be expected), and indirect effects continue to exacerbate the pummeling; at ground zero the dust has not settled, but what can be deciphered is a re-assignment of equity and the subsequent paradigm shift within […]

When recession seems imminent and your livelihood as a landlord is in an apparent state of limbo, it is unwise to lethargically stand by and wait for for disaster to strike, armed only with crossed fingers of hope – be proactive! Do not let your fear of worsening the situation prevent you from improving it; prepare for action, and turn the change in economic climate into opportunity. It’s simple, yet overlooked – your tools for tackling the recession are of preparation and treatment.

What are the problems?

1. Old tenants leave
2. It becomes difficult to find new tenants
3. It becomes difficult to collect rent

Solving any of the three starts with the fundamentals, and intimately knowing your operating expenses provides you with many avenues of attack. Meticulously breaking down your expected costs into category, organized by appropriate time segments (monthly) gives you an accurate idea of what expenses you can expect to incur in a given month.

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