Sunday, 27 April 2014

National Realty Investment Advisors Share Tips for Finding Tenants

Each day, more people are partaking in the profitable venture known as real estate, and National Realty Investment Advisors indicates that investors in the city of Philadelphia are no exception. Although based in northern New Jersey for easy access for its quad-state investors, National Realty is a prominent component of the City of Brotherly Love’s real estate market. 
This specialty single-family residential management firm seeks to help investors, developers, homeowners, and related parties with their real estate investment needs. In a time when many people cannot afford to buy under today’s strict credit regulations, the rental market has exploded. Managed real estate is a smart business decision because tenants pay off your mortgage and provide you cash flow – when a property is done right. However, as an owner and operator “hands-on” landlord it can be quite difficult to maintain a property. There are various aspects that some people tend to overlook before they dive into this endeavor themselves.

People who are just starting their careers as landlords need to be careful when it comes to selecting tenants. When managing a property, they need to realize they are handing over the keys to the unit to strangers. Sometimes, renters may not have the same concerns in mind as the landlord. National Realty Investment Advisors strongly urges landlords to take the time to carefully identify and screen their tenants before allowing them to sign any lease. A landlord’s number one priority should be to look out for their investment by selecting the right tenants. In order to pick the right residents, landlords are advised to follow some guidelines.

First and foremost, landlords must adhere to the Federal Fair Housing Act. Even though property owners want to find suitable tenants for their residence, it does not mean that they can bypass this regulation. Landlords in the United States have no right to discriminate against tenants based on race, color, nationality, religion, sex, family status, or disability. In addition to this, some states even have their own fair housing rules that make it illegal to “steer” potential tenants toward or away from properties. National Realty Investment Advisors stresses the importance of following these regulations, or else the landlord can end up with a huge legal debacle on their hands.

NRIA believes that good tenants have respectable credit. Landlords will want to find residents who are financially responsible and who will have no problem paying rent each month. There are several ways to verify if a tenant is dependable when it comes to their finances. Verifying their income is one method and is often the easiest way to track a person’s credibility. Provide a credit application to the tenant that releases the authorization to receive their confidential financial information. Make sure that application passes current legal muster. Have it reviewed by an attorney for proper disclosures. 

The landlord should also request a copy of the latest month’s pay stubs from the prospective tenant along with at least one month’s asset statements. Two months is preferable. Check to see if they have any non sufficient fund charges from bouncing checks or if the deposits match their paychecks. Check their cash balances. Check to see that the previous landlord’s rent check cleared and matches the information they provided about that rent and landlord. Landlords can also call the tenant’s employer directly and ask several verifying questions. It is wise to confirm the employment, their monthly earnings and the length of time that the tenant has been working. A general rule of thumb is that a tenant’s monthly income should be three times their monthly rent.

National Realty Investment Advisors recommends running an official credit check. Again, with the proper disclosure and permission forms filled out by the tenant, one may also have to charge the prospective renter a credit check application fee. Landlords will want to see if their potential residents have a history of paying their bills in a timely manner and if they have ever had prior evictions, civil judgments, or bankruptcies. Another factor to be on the lookout for is the debt-to-income ratio or “DTI”. Again, generally rent should be one third to 38 percent maximum of the monthly gross paycheck income.

National Realty Investment Advisors states that landlords would be wise to perform criminal background checks on their clients. A thorough check will include a Federal Court Record Search, a Statewide Criminal Record Search, a County Criminal Court Search, a Department of Corrections Offender Search, and a Sexual Offender Database Search. Criminal information is usually held on public record, and landlords should do the best to protect themselves. In order to conduct a record check, all that the landlord needs is a name and birth date. In some instances, tenants may try to falsify information or try to hide their criminal records, so landlords should ask for a photo ID as well. A point of caution worth noting is that some states prohibit discrimination due to certain criminal convictions. The landlord will have to find a justifiable reason for turning down a tenant in various circumstances. Check with local legal counsel on these matters.

The ideal tenant has a consistent lifestyle. Landlords should look at their tenant’s background and credit check application to see if they have a habit of frequently changing jobs or residences. If they display a habit of moving often, then the landlord will want to be prepared to handle an abandoned unit or an eviction. National Realty Investment states it is much easier to be prepared ahead of time than it is to wait until the tenant leaves and have to start from scratch to find a new resident. Better yet look for a new tenant with more stability.

National Realty Investment Advisors Lists Important Tenant Questions

Before leasing a unit to a tenant, National Realty Investment Advisors recommends that landlords ask the appropriate questions. One effective tactic is to talk to the tenant’s previous two landlords to find out some important information. Tenants may be hesitant about revealing information from their last places of residence, so a landlord might have to do a little investigating on their own. When meeting with a previous landlord, there are several questions that should be asked.
  • Did the tenant pay their rent on time?
  • Why did the tenant decide to move out of their current residence?
  • Was the tenant evicted due to non-payment of rent or because they broke residential rules?
  • Did the tenant give a 30-day notice prior to the move?
  • How clean was the apartment kept during their residence?
  • Did the tenant cause any extensive damage to the unit besides normal wear and tear?
  • Was the tenant respectful to their neighbors?
  • Did the tenant complain often?
“It can be slightly difficult to find out the history of some tenants such as first-time renters or college students. In order to protect your assets, you should have them get a co-signer for their lease,” recommends Art Scutaro, Senior Project Manager from National Realty Investment Advisors. 

Wednesday, 23 April 2014

National Realty Investment Advisors Share the Real Estate Investment Checklist

According to National Realty Investment Advisors (NRIA), real estate investments are extremely lucrative diversification from financial paper assets especially for investors who are looking for long term gains. As experts in real estate investments and already known for building high valuation properties by locating unique and undervalued land, National Realty Investment Advisors has proven that if done correctly, real estate investments are stable income producing hard assets with real value and that can do wonders for your financial future.  
The buy undervalue in City environments, build at wholesale costs, and rent strategy so well proven by, NRIA, is particularly true in the case of real estate investments in the Center City area of Philadelphia, PA. Focusing exclusively on Philadelphia Investment Properties since 1996, NRIA has become the largest developer of custom Town Home rentals in the City. NRIA has a deep knowledge and command over real estate investment opportunities in Philadelphia including the different legal, zoning, permitting, building and rental codes and how to obtain very high return results safely. This is the reason why senior investment experts at National Realty Investment Advisors see a lot of opportunity for serious investors in Philadelphia.

A major reason for their excitement is the 10-year tax abatement that is offered by the Board of Revision of Taxes to people who are interested in new housing development or existing housing rehabilitation. NRIA believes that such tax abatements provide the ideal opportunity for serious and long term investors to make highly profitable and long lasting real estate investments. At the same time the tax abatement has proven to be highly beneficial for the overall development of the City of Philadelphia, something NRIA is keenly interested in.

However, the investment experts at NRIA also know that that if the proper homework and research is not done before making your real estate investment, then it may cost you the investor thousands of dollars. This is why it is extremely important to be aware of all the financial, legal and social factors before making a large investment in real estate – or have experts guide you safely.

National Realty Investment Advisors Share the Real Estate Investment Checklist

There are a number of factors that an investor should consider before making the decision to invest in real estate. However, National Realty InvestmentAdvisors highlights the 5 most important things to consider.

1. If you’re on your own Make Sure You’re Financially Ready

Although real estate investments can be extremely tempting due to their high returns, you need to be careful before you make the decision to invest your money – especially if you are going it alone. Make sure you know what it takes to be a real estate investor. It is by no means a way to become an overnight millionaire – without guidance. Real estate investments often take time to sell. So make sure you know what you’re doing or get competent expert advice

2. Have a Solid Investment Plan – or else have one prepared for you.

Any long term investment requires significant planning in order to give successful returns. When you decide to invest in real estate, make sure you have a solid plan. One of the main reasons behind the success of the National Realty Investment Advisors, according to Dan Hirshout Senior Project Manager, is to the systematic implementation for purchasing, building, and renting the real property investments of its customers efficiently. NRIA is well known for its ability to locate unique and undervalued land that can be efficiently developed for rapid earnings within 1 year. Therefore, make sure you also have some sort of a plan before you make a real estate investment – or else tap into the system of the experts.
3. Evaluate the Location Carefully 
Location, location, location, - that’s Real Estate Rule #1! Prime locations at under value prices are hard to find – but they exist. And that’s exactly what you want – Prime undervalued land. That takes study, experience, and market knowledge. In fact, location is probably the most significant factor that will decide the success or failure of your investment even if just outside prime locations. This is one of the primary reasons why NRIA prefers Philadelphia for real estate investments. According to them, Philadelphia has numerous tax, rental, and business advantages for real estate investors when compared with other Cities. Therefore, be very careful about the location of your investment and know your City. Or leave it to the experts.

4. Knowing the Right Time to Invest

If you have the opportunity to invest in the most ideal real estate property at the best location in the country, but if you don’t have a systematic acquisition, development, and rental plan it will never be the right time to jump in. Proper due diligence and property value, rental potential and newly built re-sale value is what creates the right timing. There are always good deals to be uncovered with the proper due diligence investigatory tools due the vast size of the real estate market. It just takes expert digging it all out! Today since the enactment of the Dodd-Frank banking regulations, creation of a truly independent appraisal process, requirements that all buyers/borrowers be able to pay and prove full income documentation, and the write down and recalibration of all balance sheets and inflated values written off since the time of the 2008 financial crisis, we are now in the most stable US Real Estate market in history. Those controls along with the government’s deep regulatory involvement in controlling interest rates make now the time to invest in discounted properties. A below market value proven property with good rents is always in vogue and meets the test of time.

5. Hire Professional Real Estate Investment Consultants

The safest approach, of course, is to avoid the risk of losing your investments to wrong decisions and lack of knowledge by hiring professional real estate investment consultants. However this group is few and far between to find since they often just work for themselves or large institutions. The right Professional consultants are not only well aware of the most potentially profitable investment properties, the best locations and the best times, but are also well aware of all the different legal and financial implications of your investment. This, again, is one of the primary reasons why real estate investment consultants, like National Realty InvestmentAdvisors have been hugely successful, providing both undervalued locations, under value construction builds, coordinated financing, five-year rent guarantees, and 10 years of no property tax in the right locations.

National Realty Investment Advisors Discuss The Promising Real Estate Investment Market

As National Realty Investment Advisors experts affirm, the real estate market has seen a drastic turnaround and now is a promising time to invest in residential properties. It can be intimidating to engage in the real estate market without prior experience. But with knowledge about the potential risks and benefits, prospective buyers can expect good things from their investments.                                                       

Real estate offers ample opportunity and promise compared with other types of investments, according to Entrepreneur Magazine. In today’s market, obtaining a bank loan and leveraging your capital is easy to accomplish when you’re buying a house.

Real estate investment offers specific tax freedoms that aren’t available through mutual funds and other investments. According to Entrepreneur magazine, in most cases, investors won’t pay taxes on their cash flow if capital is leveraged. They can also benefit from tax deductions that can be applied to other income. Additionally, investors can write off business deductions like travel expenses and other costs incurred to maintain properties.

According to Kiplinger finance advice, mortgage rates are at historic lows and buyers are feeling confident in the current market. Home values are looking strong.

Although the market can change quickly, National Realty Investment Advisors’ professionals agree. “It’s the best time to jump on the train,” said Dan Hirshout, Senior Project Manager. “With investment grade professionally-managed  new construction, you have built-in equity, top rents and with the 6-year-old Dodd Frank law regulating all appraisals and bank mortgage practices, (you have) the most stable realty market in 50 years.”

Jill Sjolin, a real estate agent located in Washington, told MSN, “We haven’t seen home prices this low in so many years, coupled with the rates being so low. When the money is cheap to borrow and the houses are cheap to buy, it’s absolutely the best time to invest.”

“Home values are stable,“ said Art Scutaro, NRIA Project Manager. “The lack of supply in the city’s empty lot environment means they have nowhere to go but up – due to the city’s demand trend of re-urbanization, there’s a low supply of lots.”

Before you jump into the market, you should learn about the potential opportunities and risks that it poses. Real estate is always a risky market, but some strategic decision-making can easily eliminate the chance of pitfalls. Forbes advises investors to start by looking for a property that doesn’t require a lot of time or management – two things that can be very costly. Properties such as college housing or vacation rentals are two examples that might fall into the high-maintenance property category.

Kiplinger suggests a few surefire ways to make a profit in the market. Flipping homes is a common strategy that helped some investors make a fortune after the housing bubble burst. It’s best to have cash when buying rundown properties, but keep in mind it is harder to get a loan when you’re buying a property that isn’t your primary residence. Plus, many of your competitors will make all-cash offers.

In a 2013 article, Daren Blomquist, Vice President of foreclosure-tracking website RealtyTrac, commented that house flippers “can do very well in a market where home prices are on the upswing,” and added, “That’s what we’re in right now in many areas of the country.”

According to Investopedia, flipping houses for profit requires strategy. Investors should look for homes that look worse than they really are, such as having cosmetic problems that are easily fixed. These properties are likely to have a small asking price and can easily sell for far more with a little bit of TLC. The next step is to look for sources of the lowest-cost labor and parts with the goal of minimizing expenses. Home prices are indeed on the upswing in many parts of the country, which is exactly what fixer-upper investors should look for when waiting for the most opportune time to buy.

The renters market is huge right now, which offers ample money-making opportunities for landlords and investors, suggest National Realty Investment Advisors’ real estate professionals. In fact, the rate of homeownership in the U.S. fell to 65.4 percent in 2012. That’s the lowest it’s been since 1996, based on Census Bureau records. Furthermore, apartment rents rose 4.1 percent in 2012 and the average interest rate for 30-year, fixed rate mortgages. These numbers add up to promising profit potential for landlords.
National Realty Investment Advisors Project Support Specialist Adam Levine adds, “The key is staying in the major growing Cities where people are flocking due to more job opportunities and the ongoing Gentrification Re-urbanization mega trends. Both young professionals and ‘empty nesters’ are flocking to the major growing cities like Philadelphia and New York because that’s where the opportunities are and all the energy and entertainment. Rents and values therefore have to keep moving up because there is nowhere to live.”

But even the smartest investors can fall into market traps, according to the investment consultants at National Realty Investment Advisors. Buying a property for less than it’s worth is always a possibility, but it’s avoidable. There are a few major factors to ponder whenever you’re considering a purchase. Pay attention to the quality of the neighborhood, as location will always determine market value. Consider the level of property taxes and whether this is something you can manage. The characteristics of the schools, crime level, job opportunities and amenities are also game changers.

It’s also important to examine the market in the surrounding area to get a good idea of what kind of value you can expect from your return. According to Investopedia, investors should check out the average rental rates in the local area and see if these will cover mortgage and expenses. Neighborhoods with an excess of listings and empty properties are probably not a good place to invest in.

With the housing market on an upswing of recovery, experts, lenders and market-watchers seem to agree that now is a safe time to invest. Investors have a slew of options that have the potential for strong profits in today’s market, including flipping homes and renting them out. Professionals like National Realty Investment Advisors and the Kiplinger financial advisors suggest that a long as investors avoid potential pitfalls and the market remains solid, real estate can be a promising avenue for investment.