Property Management
Investment properties can be very expensive. In fact, real estate is often the most expensive thing many people spend their money on. This can pose a problem for many potential investors. However, there are a number of options for financing a residential property. At least one of these options will be possible in a surprising number of cases, and often, multiple options might be possible. Let’s explore a few of the most common choices.
Bank Financing
This is the most common form of financing for a residential property. This requires the buyer to approach a bank and go through an application process. This requires a lot of paperwork, a credit check, and approval of the property, among many other things. If the bank approves the loan, the buyer must pay a sum of money in the form of a down payment and is usually required to offer some form of collateral. This is almost always the property that is being purchased, but doesn’t have to be.
Seller financing
Seller financing can be a little more tricky, because individual sellers tend to be less consistent than banks. However, if it works out, this can be a very efficient way to borrow money. A seller financed loan means that the payments are made directly to the seller over time, rather than the bank acting as a middle man. Because sellers are individual people, and because they’re often much more motivated to complete the sale than the bank is, they are likely to give a buyer much better terms on the loan. This could come in the form of a lower down payment, a lower interest rate, or payments that fluctuate over time according to the buyer’s ability to pay rather than interest rates.
Cash
Although it is rarely possible for a buyer to pay in cash, it can be a very successful option if you have the money. In this case, the cash is directly turned into an asset, and there are no loans to worry about. You also won’t have to worry about the potential of losing the property as collateral. Possibly the biggest benefit of paying in cash is that you won’t have to pay any interest. This could save you a lot of money.
Trade
This is probably the least common way to pay for property, but if you already own a piece of property that you no longer want, it’s possible that the seller may accept it instead of payment. It’s also possible to combine a trade with some of the other options. For example, if you finance a purchase through the seller, you may be able to make the down payment a house you already own that isn’t worth very much.
Need some more help with your residential property? Legacy Properties-PM is here in Denver, Aurora, Parker and more. Call 720.989.1996 or Contact us! We can help with anything you need, and we’ll be there from beginning to end.
Property Management
A dining room is nonessential for some renters, but having plenty of “flex space” can draw tenants to your Denver rental. When investing in single-family homes, trendy lofts or condos in Denver, you will likely find some homes with formal dining rooms and some with only eat-in kitchen areas. Although having at least three bedrooms and two bathrooms is ideal, having flex space commands higher rent. For help with your real estate investing questions, talk to an experienced Denver property manager who knows what today’s renters want.
- If your tenants work at home
For tenants who work at home or need extra space, a dining room can often work well as a “flex space.” If your tenants entertain a lot by fixing family style meals, a dining room is not superfluous. At the same time, there are easy ways to work around not having a formal living room space. If you invest in a property with a dining room but rent out to people who eat out all the time, your tenants can still put it to good use as a home office or playroom.
- If your tenants entertain
Because many renters in Denver like to entertain and have fun, look for investment properties with rooftop decks or outdoor living space. Look for an open layout. If the rental doesn’t have a formal dining room, tenants can place serving plates on a bar between the kitchen and Great Room or set up tables topped with attractive tablecloths. Some renters put bar stools at a breakfast bar as well as a small table in an eat-in kitchen area. When entertaining, guests can mingle in the main room or on a deck or patio.
In general, the number of bathrooms, bedrooms and square footage dictates the rental price. In Denver, rent pricing are climbing fast. According to an article by cbsnews.com, rents in Denver went up more than 5 percent each year since 2010. In 2014, Denver rent went up a whopping 9.2 percent.
At Legacy Properties-PM, we are members of NARPM, the National Association of Residential Property Managers. For more information on real estate investing in Denver, and Aurora or surrounding areas, please call 720.989.1996 or contact us.
Property Management
Mother’s Day is just around the corner, and we want to take a few minutes to honor all the Moms who work so hard to keep everything running smoothly. Whether their children are in diapers, college, or even grown adults, mothers continually put their children first, and help or guide them in any way they can. This year, we would like to say Happy Mother’s Day and offer residential property management to all the Moms out there.
Maybe your family has already taken the plunge and invested in real estate. If so, you know the challenges it can present to your family. Sometimes things come up at inopportune times. A furnace that stops working when the family has the flu, a leaky roof while you’re away on vacation, or a late rent payment when you were really counting on that money. A property management company can take care of all of the little details that cause stress and aggravation, allowing your family to continue to hold onto the investment without having to deal with any of the day-to-day details.
Other moms really want to do something to contribute financially to their family but have a hard time finding something that works for their schedule. With a traditional job, Moms feel pulled between work and home, constantly trying to find a balance. Some do it very well, but others find details such as finding babysitters, dealing with sick kids, and wanting to volunteer for things like field trips difficult to deal with.
Investing in residential property could be the answer for Moms who want to have a schedule that puts family first, yet has the possibility for bringing in some income. With the right investments and a property management company to help, being a stay-at-home Mom may be more profitable than trying to juggle a 9 to 5 job.
Whatever your situation, we want to wish all the mothers a wonderful day. We are a family-based business who understands what it means to work hard to build your family’s legacy. If you’re ready to find out more about investing in real estate in Aurora, Denver or surrounding areas we can help, contact us at Legacy Properties-PM or call 720.989.1996
Property Management
When you buy a rental property in the Denver area, your primary goal is to receive an immediate ROI (return on investment) in the form of monthly rental income.
Most investors find good deals on short sales, foreclosures or fixer uppers. With the help of property management in Denver in the Denver area, you will likely receive more in the form of rent than you pay out for expenses including a mortgage. When you rely on a reputable and experienced property manager to maintain your property, you also receive the added benefit of appreciation over time. After renting out an investment property in booming areas such as Littleton, Lakewood, Highlands Ranch, Parker, Centennial, Cherry Creek and Aurora, Colorado, you will one day decide to sell your rental property. According to a report by CoreLogic, Colorado is No. 1 for home appreciation in recent years. What’s more exciting for property owners is the fact that experts predict home values will continue to appreciate anywhere from 6 to 10 percent each year.
-
Enforcing the lease on your rental property
A residential property management company will protect your home as the asset is by enforcing the lease. When your tenants follow the lease, they are less apt to damage your rental home, condo or townhouse. It’s extremely difficult for most property owners to play the tough guy. A property manager enforces issues such as a non-smoking or no-pet policy that keeps your home in better condition for future resale purposes.
-
Maintaining the exterior of your rental property
Having a property manager means you have someone to check up on your property. Your property manager might notice a roof that’s damaged or stains in the driveway that a professional can remove before it becomes permanent. When you hire a property manager to tend to your Denver yard and home, you are more likely to experience appreciation in home value.
-
Making timely home rental repairs
If no one responds to a tenant’s request to fix a leaking refrigerator or broken pipe, the water damage can cause mold and mildew that dramatically decreases home value. You can have greater peace of mind knowing someone is always on top of problems.
A residential property manager keeps your home in good working order and looking good so that you can turn around and sell it for a profit without having to spend weeks or months getting it back up to minimum standards to sell. At Legacy Properties-PM, we are members of the NARPM, the National Association of Residential Property Managers. For more information on our property management services and advice on investing in real estate in Denver’s hottest communities, please call us 720.989.1996 or contact us.
Property Management
If you own residential investment properties, then you know the amount of work it takes to keep everything running smoothly. Finding quality tenants, collecting rent, dealing with maintenance calls, and enforcing the lease are just a few of the responsibilities that consume time and energy. A property management company can take the burden off of the owner by handling the day-to-day responsibilities, but it is important to find the best one to ensure your investment is being handled effectively. This list of questions will help you find the best manager for your property.
- How many years have you been managing properties? You don’t want to pick someone who is just starting out. Lack of experience may cause more headaches than just managing the property yourself.
- How many properties do you currently manage? One person can manage 30-40 properties, not including accounting responsibilities. Ask how many employees they have and do the math to figure out if they can give your property the attention it needs.
- Do you have referrals from previous or former clients?
- How do you handle maintenance issues? At what point does the manager contact you? When the repair gets to a certain dollar amount? How do they keep you apprised of the situation?
- How often do you perform property reviews? Exterior and interior reviews should be scheduled regularly to ensure the unit is being cared for.
- How is rent paid and deposited to my account?
- What financial records do you provide? Are there monthly statements available, and if so, how are they accessed?
- How do you communicate with tenants and owners? Is there a 24-hour phone number tenants can call with problems? Some larger companies offer an online portal for tenants and owners to access their account information and contact the managing company.
- How much do you charge for your services? Some companies charge a flat fee, while others do a percentage of the rent. Make sure it’s comparable to other reputable companies. Remember you get what you pay for.
- Are you a member of NARPM? Members of the National Association of Rental Property Managers are the cream of the crop when it comes to professionalism, dependability, and knowledge of the local market.
A professional property management company will be able to answer all of these questions without any qualms or hesitation. From their answers, you’ll be able to tell whether they are the right fit for your investment. If you own income property in the Denver area, call Legacy Properties-PM @ 720.989.1996 or contact us and we will be happy to answer your questions about our property management services.
