The most important decision any landlord makes is deciding who can live in their property. Who will you, as the owner, allow to live in your investment? This decision is so vital to the profitability of any property investment business and affects the business on so many levels that it’s amazing that some landlord don’t have a formalized procedure to protect themselves from making bad decision.

Let’s think about what we’re actually doing when we rent a property. Instead of thinking of the property as a monthly income generator think of it as a pile of cash. Cash you have tied up in the deposit and purchasing costs. Cash you hope to gain a regular income from through renting and more cash that you’ll receive if you sell the property and realize your capital gains. (Assuming house prices have risen since you purchased). If you include in this the value you place on your time spend finding the property, buying and arranging the rental then we have a very serious investment on our hands indeed.

Now, imagine all that money in real, tangible terms, stacked up in a room in the house and then consider we hand over the keys to someone and say, “See you next year”. Now we can begin to see how important it is to select the right tenant. Of course, I’m being dramatic and we do have legal safe guards but I hope that by considering your investment in terms of hard cash (like a professional investor) then you’ll treat the question of occupancy very seriously.There’s more to it than just financial. Not only are we trusting the tenant to look after our investment but we’re also investing our free time with them.

What do I mean? If we are managing the property ourselves and not using a letting agent then we have made a serious commitment in time to look after that tenant. If you have a tenant who does not appreciate your property or does not treat it with care and respect then you run the risk of losing your evening and weekends in maintenance and management tasks. What about rent collection? An unreliable tenant who does not pay on time creates stress and worry. Legal protection lets us all sleep better at night but the practicalities of recouping money and legal costs are a headache we do not need and one that’s very avoidable.Once we know how seriously we need to take the task of finding the correct tenant we can start looking for the very best people. In this case ‘best’ has two simple criteria.

1) They pay on time and in full
2) They look after the property as if it were their own.I’m going to discuss three tools we can use to help find good tenants. The first is a long and very comprehensive application form. I ask for as much detail as possible from the tenant. I need all their contact details, ID, proof of current address such as telephone or electric bills, previous addresses and, perhaps most importantly, references from their employer, previous landlord (if they’re moving out of home I’ll ask for their parents’ contact details) and a character reference from a recognized member of the community such as a Doctor or Teacher.

Importantly, I always act on these references. I will check with whomever they have given to make sure the details are correct and they can vouch for the applicant.Secondly, I ask for a larger deposit than the usual 4 weeks rent. Typically I ask for 6 weeks rent (UK law give the tenant an automatic option to sublet if the deposit is too excessive, say more than 8 weeks rent). Paying more upfront is usually a good sign that they are serious.

Finally, I have to feel comfortable about the people. If I can get along with them when the property is viewed and when we talk on the telephone and if I don’t have any intuitive alarm bells going off then I trust my own judgment. At this point you might be wondering about a credit check? Yes this is a great tool depending on the affluence of your potential tenants. Some of my properties are let to people on social security benefits, many of whom I’ve had to help set up a bank account even. In these cases a credit check would not be beneficial but for better off tenants it can be a worth while exercise.

Once we know how to approach the subject of finding great tenants we can consider why people make poor letting decisions. In my experience the worst decisions about tenants are made in pressure situations. An empty property is very damaging to the bottom line of a landlord. If a property is unoccupied it’s very tempting to let the first person who comes along have the tenancy. I know, I’ve made the mistake myself (several times I’m reluctant to admit). This situation is exacerbated if you find your property is not in demand. If you only get one phone call from your advert in the local paper then you’re putting pressure on yourself and your business.Therefore, the best way to make a good decision is to have a lot of people to choose from.

Creating a big list of possible tenants comes from good advertising with good descriptions of you property and its selling points, realistic pricing (even undercutting competition in a renter market) and building a solid reputation as a landlord.

1.) Newspapers – Newspapers are one of the most common methods. A nice ad that is properly worded can bring in great results. One must be careful though, because any newspaper ads over a week or so tend to get pricey. When using newspaper ads use the commonly accepted abbreviations for words like “bath,” “bed” and others. This will save lots of money.

2.) Flyers -This method isn’t often used and takes a person with a salesman’s mentality to carry it out, but if all other forms of advertisement haven’t got the property rented yet, one better roll their sleeves up and hit the streets.

3.) Property Signs – These are also one of the most common methods and often bare nice results. The twist that can turn this tip into a great method is by getting those new signs that many people use to sell their own homes (the ones with the little plastic tube that contains information about the property inside it). This saves the landlord lots of time because the potential tenant can get the property’s information instantly and often won’t call the landlord for a home viewing unless they are really interested.

4.) Word-of-Mouth (referral) – Word-of-mouth is an indirect, but good method of getting the word out that the property is for rent. Referral programs can be a great way to add to the benefit of this tip. If one has a tenant that is leaving, offer them a small amount of money if they can refer someone to rent the property once their gone. This trick works great in college and university towns where there is large turnover and most of the tenants either work or go to school together.

5.) Internet/Publications – The internet is quickly emerging as the best way to get a property rented. Internet “For Rent” web sites are everywhere, and often the first place a potential tenant will look is the internet. The best sites are those that are for the local area only. This ensures that every viewer of the web site is there to find a rental property in one’s local area, not for a property across the country.

6.) Television/Radio – Not necessarily practical for the small-time investor or owner of single family homes, but can be of benefit for larger operations or those that own one, large apartment building with many units. This method is also by far the most expensive and often reaches and audience that isn’t necessarily looking for a property to rent.To conclude, all of the above tips are legitimate methods for getting a rental property rented. One must determine what their budget is and what has worked for them in the past. If this is their first rental vacancy, stick to the newspaper, local online “For Rent” sites, and the sign in the front yard. Unless it is a depressed market, those three will almost always bring results within a couple of months.

Firstly, unless you find a property that is really run down and you want to tear it down to its foundations, you want to look out for properties that might have potential electrical and water piping problems. The reason why this is critical is that, wiring and water piping is usually hidden behind walls and other furniture fixtures and repairing them can be a very costly affair since you have to hack into the walls and run the piping and wiring if the problem is very serious. If you are new to property investing try to bring a electrical engineer along with you when you are doing some property inspection.

Secondly, foundation problems are usually harder to spot. When walking around the property, look for cracks appearing at the side of the house and the foundation that goes into the ground. Look for large unusual holes found at the side of the property and cracks on the exterior paint of the building. You might want to bring a civil engineer and a contractor along to figure out how much it would cost to fix the property if you suspect the repairs involved will be substantial. You can also bring them along to give a “grim estimate” to the house owner and bring down the cost of the property.

Thirdly, roofing problems can be a persistent nightmare to you and your potential tenant if you are purchasing the real estate for tenancy purposes.When inspecting the house, look around the ceiling near the windows and around the edges of the walls to look for new paint or yellow spots or cracks with water in them. Most sellers would be smart enough to eliminate the water bubbles after a heavy rain when trying to sell the property, but it is always important to figure out if there is a major leaking roof which might cost you are lot into repairing it. Use this defect to negotiate the price of the property further if you are interested in the property.

Fourthly, another reason why the investment property in question might be a bargain might be because there are legal problems associated with it. Common ones include, multiple owners that cannot agree whether to sell or not. Litigation here would be futile and you should avoid such property once you learn about it.Another problem might be a lack of clean title. Did you know that the seller can be selling you only the building without the land or maybe there are existing tax liens on your property or some other liens that can prevent you from getting good title to the property? Spending some time chatting with a reliable real estate attorney to learn about common real estate problems in your area can save you lots of legal problems later.

Fifthly, bankruptcy of your seller or one of the part owners of your real estate may depending on the legal proceedings of your state affect your ability to transfer title quickly. Most states make it a requirement that the receiver of the bankrupt has to agree so pay careful attention to the bankruptcy legislation of your state. That being said, sometimes the banks are willing to sell you at a bargain so as to recover the bad debts quickly so do your homework before purchasing such an investment property.In conclusion, these five pointers can be used as a starting point for you to evaluate your property investment. Spend some time to think rationally about the properties that you have seen and see if they have any of the above flaws and consider if you want to continue purchasing them and whether the costs that you may incur in fixing them will justify the discount of the property to the market value. Above all, take massive action today and pursue your property investment dreams.

If you’re looking for a property to ‘flip’ – to buy low, fix up and sell for a profit – there are a number of things you’ll want to take into consideration. If your intent is to buy it as rental property, there’s a different set of consideration, and if you’re looking for a home of your own, there’s yet a third. Let’s assume, for the sake of this article, that your intent is to flip the property for profit.

Test 1: The Neighborhood Test- Before you invest another hour, do yourself a favor and take stock of the surroundings. The old saying in the real estate business that the three factors in selling a home are ‘location, location and location’. What is the location like? No matter how wonderful the property is, you’ll have a difficult time selling it for top price in a bad neighborhood. That doesn’t mean that it’s a bad property – depending on how low a price you can bargain, you still may be able to make a decent profit from it.Another consideration in the Neighborhood Test is a bit more subjective, and you’ll have a feel for it if you’re local and keep an ear to the ground.

Is the neighborhood in transition? A neighborhood that is on the cusp of a renewal effort like gentrification can be a great place to invest, as long as the upward momentum continues. An area that is on the outskirts of new development will often benefit from that as well. If, on the other hand, the neighborhood shows signs of slipping into a decline, you might want to pass the property by. If you can see that the neighborhood is slipping, so will prospective buyers.Are there ‘amenities’ nearby? Depending on the neighborhood and your prospective market, those amenities might include a neighborhood school with a good reputation, a corner store within walking distance, or a park right down the street.

In one Massachusetts city, for example, the value of properties in a formerly depressed neighborhood skyrocketed when a local university announced a commitment to provide full tuition to the children of neighborhood residents, and provided additional incentives to home buyers within several blocks of their campus. Investors who bought just before the announcement realized excellent turnaround on their investment.

Test 2: The Pricing Test- Is the home listed with a Realtor, or is it a FSBO? How realistic is the asking price? Is it in your price range? Can you work out a low or no-money-down financing option? How open to negotiation is the seller? Will you be able to realize a profit after making needed repairs?

Test 3: The Condition Test- This is one of the most important tests. The property you want to buy doesn’t require any extensive, expensive repairs. It should be structurally sound, without any major plumbing or electrical problems. If you’re just starting out, you’ll want a property with repairs you can manage yourself – repainting, refinishing floors, a little landscaping. If the property requires more extensive repairs, it will cut into your profit, or eliminate it altogether.When you view the property, really kick the tires. Look for indicators of hidden problems. Here are a few things to look for:

Moisture stains on walls and ceilings could indicate plumbing problems

Little piles of sawdust near corners or woodwork could mean termites.

Separations between floor and wall, especially outer walls which could indicate structural problems.

Lift tiles in suspended ceilings to examine the ceilings above for loose plaster, moisture stains and other indications of problems

Test 4: The Title Test- The final test is the title test. Be certain that the title to the property is clear, with no liens or attachments that could sour the sale. If there are, and you still want the property, work out a conditional sale, where your purchase is contingent upon the liens being satisfied.If the property passes all of the above tests with flying colors,
congratulate yourself. You’ve got yourself an investment property that could turn a pretty profit for you.

- Your Buyer’s Agent will offer a critique of a seller’s property beyond disclosing defects and will look for adverse material defects for your benefit.

- Your Buyer’s Agent will help you write the offer with your best interests in mind.

- Your Buyer’s Agent will help find information about the property’s history and liens so you can make an informed decision.

- Your Buyer’s Agent will give you advice within the scope of expertise as a licensed Wisconsin Real Estate Professional.- Your Buyer’s Agent will help you in obtaining financing.

- Your Buyer’s Agent will inform you of local real estate market conditions.

- Your Buyer’s Agent will help you negotiate the purchase and assist you in the transaction to help you get the best possible price.

- Your Buyer’s Agent will provide honest treatment, loyalty, confidentiality, and financial accountability.

- Your Buyer’s Agent will structure the offer with your best interests in mind.
A Buyer’s Agent is almost always a free service, this is because the Buyer’s Agent is paid from the Listing Agents commission.

1. Compare Property Values and Rents- Financial statistics only go so far; the best measure of a property’s market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.

2. Be careful – Tax laws may change- Don’t base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.

3. Specialize in something you Know- Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know the Costs going i- !Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know where your tenants are coming from- If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing.

6. Assess the tax situation- Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.

7. Investigate insurance coverage- If seller’s coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs- Ask the local utilities to verify recent utility expenses, especially
if any of these costs are included in your tenant’s rent.

9. Consult Your Accountant- Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.

10. Inspect- Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.

“Exclusive” would mean customers who actually ask for the information and would exclusively go only to you. The word “exclusive” claimed by most agencies is only an excuse to give high prices to their leads. There are four things you have to check in your search for leads.

* They are self qualified because they are the ones who requested for the information. Therefore, they are interested in buying or selling a property.

* If you have a list of leads, contact them immediately.

* Remember online consumers act on what they need or want immediately. They log into the Internet and request for information almost instantly and scout for more if they are not satisfied.

* One lead, one agent – this would mean exclusive but no obligation tied up to you as a seller or buyer. If you are done with your checking, try to keep your choices for leads high through different tactics.

* Go shopping and pick your market of one community with maybe 100 homes and businesses and be their only contact in terms of product or services.

* List all the people you know, maybe about a hundred. Send them brief descriptions about your product, letters, updates and information regularly at intervals. Ask them good referrals.

* If you are going to do some calling (cold calling) be sure you have your target market, know your objectives, have a script on hand or study them and it is important to be prepared for rejections.

* Go door-to-door. It is time consuming but it has its own benefits.

* Take advantage of your beauty or barber salon sessions and participate in the chitchat. You know how conversation covers a lot of topics. Be on the guard.

* Always have your business cards with you and make it a habit to give away a good number each day.

* Newspapers are good sources of leads. Try to read on and you will see prospective leads like those promoted, upcoming weddings, baby showers, new babies and others.

* Make a habit to get everybody’s email, even your acquaintances.

* Mass mailing of letters or direct marketing.

* Seminars are good opportunities for generating leads. Participants are tuned in to information loading mode.

When The Bills Stack Up

Sometimes, we make poor financial decisions. We buy things we don’t need. We spend money without stopping to reflect whether it’s a wise choice to do so. Other times, circumstances beyond our control buffet us about, causing money problems. Medical bills, unemployment and the economy can simultaneously wreak havoc on our financial lives. When that happens, the hefty mortgage payment that you struggle to pay each month can become unmanageable. Soon, you begin falling behind on the payments. When repossession looms, it’s easy to become frightened. But, you do have options.

Knowing Your Options

A repossession threatens to take your house away from you. If this happens, you’ll need to find another place to live. However, by selling your house and renting it from the new owner, you can escape the crushing force of the mortgage payment while continuing to live in your home. Plus, by selling your home, you’ll have the extra money you need to pay down other bills. Your credit cards, medical bills and other financial obligations can be eliminated.

Remain In Your House Without Worry

Thousands of people have been losing their homes to repossession. The banks have repossessed them when the owners haven’t been able to make the mortgage payments. When you originally purchased your house, you never intended to miss a payment. The thought of buying your own home motivated you to do whatever was necessary to protect your property.

But, things can quickly spiral out of control. When they do, it’s important that you realize that there is a way you can remain in your house without the worry of having it taken from you. If you’re having trouble making the payments on your mortgage and the repossession letter from the bank is around the corner, consider selling and renting your home back. For many, this is the perfect solution to an emotionally devastating event.

About The Author:
This article was written on behalf of Properties Direct ltd who offer cash for property to allow customers a quick property sale.