Investor Or Landlord - Which One Am I?

Investor Or Landlord - Which One Am I? By Jeffrey Austin

Most investors think of properties in terms of gaining a profit rather quickly. But what happens to the investor who cannot sell a property due to the market conditions. Plan B would be to use the property as an income producer and lease it to a tenant.

When becoming a landlord, your first responsibility is to understand and abide by the state landlord tenant laws. These laws dictate the rights that the landlord and tenant have as well as some very specific rules regarding deposits, repairs, and requests. These laws actually dictate portions of the written lease. Always give the tenant a copy of the state laws.

Meticulously screen your applicants. Along with verification of employment, running a comprehensive criminal background check is highly recommended. Previous rental history is also helpful along with a credit history. The same system should be used for each applicant to avoid mistakes and possibly the accusation of discrimination.

If you are not using a property management company, you will need to use a residential lease. Make sure the lease you are using is specific to the state where the property is located. A lease for a home in New York will do no good if the home is located in California. State laws widely vary.

Keep detailed records of everything. Keep all original records. Make copies of checks received and always have the deposits and first month rent payments in the form of a money order or cashier's check. Provide the tenant with a receipt for the payments as well as recording them in a ledger for your own accounting.

Maintain a relationship with your tenant in a professional manner. You are running a business. You are not in business to make new friends. Striving to keep your relationship on a businesslike level will earn you more respect with your tenant.

Once your tenant has moved into the property, conduct regular inspections. Most states require a written notice to be delivered to the tenant when a landlord wants to inspect the home. These time-frames along with any other requirements can be found in the landlord tenant laws.

As most experienced investors are aware, you should always have a backup plan. The backup plan is usually not as favorable as the first choice but does allow for profit to be made. In this case, the profit will just come in at smaller dollar amounts versus one big paycheck.

Exclusive representation to buyers and sellers is a complex venture. Real Estate Homes, LLC philosophy has accomplished this with great success. For more information on investing in the Arizona real estate market and information on Phoenix Homes for Sale or Tucson Homes for Sale, please visit Real Estate Homes, LLC where you can search for all available homes for sale.

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Real Estate Investment Advice to Consider

Real Estate Investment Advice to Consider By Sherry Gabriel W Gain

A time tested method of money making is to make a real estate investment. A potential property that has all the ingredients to make it a viable preposition for an investment and for the money to grow is this segment of money making. You cannot however start investing off-hand. A real estate investing advice is to be had from some experienced people. It is alright to resort to machine-aided decision, yes, we are talking about computers here, but at the same time the human evaluation of the program is also to be given due consideration.

A property estate investment is ideal way of seeing your money grow. Trusted investments avenues like mutual funds or government guaranteed programs like treasury bonds, no doubt, are sound investments but investment in real estate can get you a far higher harvest. An important difference is that while these traditional methods of savings are sure to return an interest-added amount to you, they are limited in their scope whereas a real estate investor may find that the returns are considerably in the higher bracket. All the while, your investment in property estate remains very safe in the shape of property.

An adventurer that is the property estate investor has to invest money first and gets the benefits in return. He should be strong in his mind that he is not going to give in to fears and withdraw. This will only cause bitterness. Once invested, the money should be allowed to run through its gestation period, so to speak, to ripen and start earning more money. Any business has the inherent quality of running through bad patches and so does real estate investing. Even so, as an investor, you have very good chances of increasing the paid-up capital in a very positive way.

An unchartered territory, but not very much out of the way has all the potential to grow in to a good investment. Any estate investing advice worth its salt always has this aspect of investment held in any plan. A neighborhood that is seemingly barren of future development is seen by a prudent investor, you should be the first one to go and invest in it. After all, you can always hope to get rent even if the price appreciation is appreciating slowly.

When a commercial real estate property is put up for sale, an eagle-eyed investor goes and grabs the land. It goes without saying that he needs big money. But then, you also can hope to get the money's worth in manifold returns. The prices of different neighborhoods will completely be in very different brackets. The floor area too has a say here. The more of it, the more valuable it will be. The market price has to be studied before making the investment. Because this also carries a bigger risk if an economic downturn takes place, as it happened very recently worldwide. A real estate investing advice cannot ignore this factor.

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