Real Estate and Mortgage
A. Sean Hinely
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Posts by A. Sean Hinely
Are you an Accidental Landlord or an Accidental Investor? Should you Be?
Apr 18th
The recent collapse of the housing market created an interesting sub-group of Americans-accidental landlords. These people have sprung up across the country when their real estate investment didn’t work out they way that they had planned. But, there are also many people who are starting to consider themselves as accidental investors. The two groups were born from the same mother, the housing crisis, but there are very real differences between the two. The differences hinge mainly on the ability to spin a negative into a positive, and that ability can lead to great opportunities for those who can do it.
A real estate investment had long been considered a sure thing in nearly any case in the years leading up to the housing crisis. Of course, all of that changed as property values plummeted and people found themselves unable to sell their properties for the profit they were planning on. Many of these people decided to rent out their properties, either because they couldn’t sell their property or to hold onto it until the market picked up and they could sell for what they hoped for. These people are considered accidental landlords, and many of them hate their new title since being a landlord can create numerous headaches they hadn’t planned on.
On the other hand, some people are taking full advantage of the housing crisis. With home values at rock bottom, making a real estate investment is cheaper than ever. Accidental investors are those who have seen the opportunity to make cheap purchases and taken advantage of it. Perhaps they stumbled upon the chance by inheriting a home, or simply saw the opportunity and went for it. By buying now at the lowest prices, accidental investors often rent out their properties to pay the mortgage payments and wait until the market improves enough for them to make a tidy profit off their investment.
So which are you? An accidental landlord or an accidental investor? If you have a piece of property that seems impossible to sell, you may want to consider becoming an accidental landlord. Property managers can make the process easier than you can imagine for only a fraction of the rental profit. And if you have the extra cash and are willing to take a risk, making a real estate investment or two and becoming an accidental investor could pay off big down the road.
Eventually the market is expected to recover, and when it does you’ll see a nice profit.
Sean Hinely is a Realtor, Property Manager & Co founder of Property Management Pros.com.” To learn more about Property Management, visit http://www.ColumbusRealEstatePros.com today!
The Dangers of Renting Your Home Yourself
Apr 17th
So your home hasn’t sold after being on the market forever. You’re tired of having to pay the mortgage on a home you don’t want. Renting your property out is probably the best solution for you, at least until the housing market picks back up. But renting your home yourself can be a tricky task. There are plenty of dangerous pitfalls that you can fall into. Usually, it’s a better idea to hire a property management professional to handle the rental of your home. They’ll be experienced in the process and know how to avoid many of the mistakes that can easily occur. You may not even realize, but there are numerous dangers that can come with renting out your home yourself.
One thing that many homeowners do when renting a home is to set the monthly rent at whatever their mortgage payment is and call it done. But renting carries costs with it, such as repairs you may not be prepared for. And your area may have rental rates that are much higher than your monthly mortgage payment may be. Property management companies are experts in the market, and know what a fair rental price is. You shouldn’t short-change yourself when deciding to rent. Professionals can ensure that you don’t. Another problem is proper advertising, which can be hard to do. Letting the pros handle it will get you a tenant quickly, since they know exactly how to attract renters.
Speaking of renters, they can actually be the biggest danger of renting your home yourself. It’s hard to find renters, for sure. But getting rid of bad ones is nearly impossible. Property management groups handle many functions that you may overlook. A rigorous screening and application process helps weed out the undesirable renters that can destroy a home and skip out on rent payments. And professionally drawn up leases ensure that eviction goes smoothly, should the situation come to that. Background checks and leases are vital to protecting yourself and your property.
A lawsuit is another danger you’ll want to avoid. If something is unsafe in your home and it causes injury to a tenant, you could be looking at an expensive lawsuit. Property management companies usually send a property inspector to your home to make sure it is meets all safety guidelines before renters move in, protecting you from a big lawsuit. And if you’re moving out of state, having property managers nearby makes handling minor repair and issues easy. Renting your home may be a necessity in today’s housing market. Taking undue risks, however, isn’t.
Letting a pro help with the process may be the smartest move you make, short of deciding to rent your property.
Sean Hinely is a Realtor, Property Manager & Co founder of Property Management Pros.com.” To learn more about Real Estate Investment, visit http://www.ColumbusRealEstatePros.com today!
Relocating Job to Another State…What to do With Your Home in the Real Estate Market
Apr 16th
If you’re facing a move because you’ve landed a better job in another state, congratulations! The economy is rough right now, and having a great position is something to be proud of. Something else that’s rough at the moment is the real estate market, something you’re likely to be already considering as part of your move. While buying a new home when you arrive at your destination will likely involve getting a great deal thanks to the buyer’s market, your current home may prove to be more of a challenge for you. Your home is a real estate investment, and you’ll need to decide what to do with it.
While the first thing that springs to mind is to sell your home that may not be your best option at the moment. Since your property is an important real estate investment, selling it now may not give you the return you would hope for. Property values have plummeted, and chances are fairly good that your home is worth less now than what you paid for it, even if you’ve made numerous improvements on it. There is another option, and one that you may not even be considering, that can be a better decision for you right now. That option of course, is renting out your property after you move.
Renting may seem off-putting. After all, stories of nightmare tenants abound. Just flipping on the television and tuning into daytime court shows will uncover plenty of them. But professionals known as property managers can let you avoid most of the headaches that many associate with being a landlord. These pros not only protect your real estate investment for you, they handle practically every detail that comes along with renting out property. From advertising your rental property to drafting the lease agreements, you’ll barely have to do anything other than collect your monthly rent check.
The rental market is much stronger than the rest of the real estate market at the moment. Renting lets you keep your property until you can get a better price on it in the future, ensuring that your real estate investment actually pays off. And since you’ll be in another state, your property managers will take care of repairs, maintenance, and other issues that arise with a rental property. No three a.m. phone call about a leaking roof for you to deal with. You deserve to get the most out of your home.
Selling now probably isn’t the best move for you to make. Renting provides you with plenty of benefits, and trusting a property manager to handle your rental removes any hassle.
Sean Hinely is a Realtor, Property Manager & Co founder of Property Management Pros.com.” To learn more about Property Management, visit http://www.ColumbusRealEstatePros.com today!
Now is the Time to Invest in Real Estate
Apr 16th
There is little doubt that the American housing industry will take some time to recover. Some markets in the country are finally beginning to see an upswing in sales and values, but many others are still stale. While countless Americans are struggling to try to sell their homes, there has really never been a better time to make a real estate investment. There are numerous factors that make this fact obvious, and considering all or even one of them will likely lead you to think seriously about becoming a real estate investor and take advantage of the current real estate market.
Homes are staying on the market for longer than they have in recent memory. In fact, most homes for sale have been listed for almost one hundred and ninety days. Motivated sellers? Absolutely. People are facing the need to sell their homes or face foreclosure, and the growing amount of time it takes them to do that makes them anxious to sell for less. That means that you’ll pay less for your real estate investment than you can even imagine. In fact, right now the average price of a home is at its lowest level in years. And the selection is staggering, since there are currently an incredibly high number of homes on the market to choose from.
So what’s the best way to make your real estate investment? That depends on your individual plans. One of the most popular ways is to take advantage of the low prices and low interest rates currently being offered to buy a home. Or two. Or more, depending on your means. While the real estate market may not be great for sellers, the rental market is booming. When you buy your properties, you might consider renting them out. You’ll gain income that can offset or even cover all of your loan payments, making it easy to hold onto your properties until the market improves and you can sell them for a profit.
This type of real estate investment is being referred to as accidental investing, since many who are implementing the strategy never planned on it. But taking advantage of the situation is a great way to invest in your financial future. It may seem risky, but the housing market is expected to improve eventually.
If you have the means, taking advantage of the low price, low interest rates, and wealth of opportunity will pay off for you in the end.
Sean Hinely is a Realtor, Property Manager & Co founder of Property Management Pros.com.” To learn more about Foreclosure, visit http://www.ColumbusRealEstatePros.com today!
The Importance of “Proper” Screening When Renting Out Your Home
Apr 16th
With the increased difficult that many homeowners face when trying to sell their home, more and more Americans are becoming landlords whether they really want to or not. But renting out your home can be a stress-inducing nightmare, especially if you get the wrong tenants. For this reason, the importance of properly screening potential renters cannot be overstated. There are numerous methods used for screening, but many accidental landlords may simply want to hire a property management company to handle the job. Skilled professionals, they can usually complete a much more thorough screening than you can handle on your own.
The most obvious of the issues that can come about for you if you fail to undertake proper screening is failure to receive rent. You’ll likely be depending on monthly rent payments to help you meet bills such as your mortgage. Background checks on potential tenants usually involve a credit history and comments from previous landlords. While this may sound complicated, it can be simplified with the help of a property management company who have screening programs in place to uncover this information. While you never know what a tenant may do, knowing that their rental history is clean is a good way to confirm that you’ll get your money when it’s due.
Some tenants are every landlord’s worst nightmare. From destroying your property to undergoing criminal activity inside, there is really no way to predict what your tenants might decide to do with your home. A worst case scenario would even involve America’s new scourge, crystal meth. A meth lab in your home can render it uninhabitable and cost a fortune to renovate. Criminal background checks are an absolute must when screening rental applicants. While you may pay a bit to conduct them, the truth is important to know. Again, a property management company will not only handle all aspects of your property once it is rented, they’ll also ensure that your tenants have a clean criminal history.
Your property is simply too valuable to take unnecessary risks with. While renting may be your only option at the moment, you don’t have to rent to just anyone. Although the housing market is still languishing, the rental market is actually still very strong. Sorting through your applicants to find the best renter is important. Screening helps ensure that you get tenants who will respect your property and pay their rent on time. If you don’t feel up to the task, the seasoned pros at a property management company will handle the job for you.
All you’ll have to do is enjoy your rent payments each month.
Sean Hinely is a Realtor, Property Manager & Co founder of Property Management Pros.com.” To learn more about Short Sales, visit http://www.ColumbusRealEstatePros.com today!
Home Won’t Sell…Foreclosure? Or Short Sale?
Apr 16th
The economic crisis has affected everyone, from all walks of life. One of the most obvious impacts has been in the housing market. Countless Americans are struggling to avoid foreclosure after their mortgage payments ballooned or they found themselves unemployed. If you are one of the unlucky souls whose debt continues to add up daily, you’re likely trying to decide what option is best for you. Unfortunately, your decision is likely to come down to two choices – Foreclosure or short sale. As tempting as it may be to pack your things and just walk away, you owe it to yourself to think about your options.
While foreclosure is essentially defaulting on your loan and allowing your lender to take over your home, short sales offer a way for you to try and escape from beneath your mortgage. Your lender must agree to a short sale, but if they do you will be able to sell your property for less than the amount that you currently owe on it. Believe it or not, foreclosure is something your bank wants to avoid almost as much as you do. It can be hard for them to recoup their losses if you default, and they may end up making more from a short sale than they would by taking over your home.
Short sales offer several benefits to homeowners facing foreclosure. While there will still be negative impacts incurred to your credit, they won’t be quite as severe. You’ll be in control of the sale, and the process is treated just like selling a home is normally treated. If you’ve never been thirty days behind on your mortgage payment, you can technically still qualify for a new home loan. While it’s difficult to find a lender willing to take that risk, you can technically do it. This is absolutely not an option if you end up defaulting on your mortgage. Your credit score will still drop as well, but the damage isn’t as severe as it would be in case of defaulting entirely on the mortgage.
While it may seem easier to simply let your home fall into foreclosure, it’s never your best option. As stressful as the economic and housing crisis can be, you should always consider your options. Short sales aren’t as easy as defaulting, obviously. But they can help you avoid the dread “f word” and make your future a bit more secure.
You owe it to yourself and your family to investigate all your options before just giving up, don’t you?
Sean Hinely is a Realtor, Property Manager & Co founder of Property Management Pros.com.” To learn more about Short Sales, visit http://www.ColumbusRealEstatePros.com today!
