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Q&A for Investors: Part 2

Jun 25, 2018

Q&A for Investors: Part 2

Here is Part 2 of our Q&A Interview for New Investors. How long will the investment be? Holdfolio’s goal is to own the property long term to collect rental income & take advantage of the benefits of owning real estate. It is in the best interest of everyone that Holdfolio sells the property at the right time, this event may occur sooner or later depending on market conditions, performance factors, and desires of the investor members. If it is not the right time to sell, then Holdfolio will continue to hold onto the property for cash flow. Do investors share in any of the tax benefits of owning real estate? Yes. The company will be writing off depreciation on the property and all other business expenses related to the operation of the rental properties. So, the taxable income you make from this investment will be reduced by these tax benefits. However, this will vary upon the opportunity. What makes Holdfolio different from other crowdfunding platforms? Holdfolio is operated by full-time real estate investors, no middlemen meaning all the opportunities on the platform are solely sourced by the company. How do the legal agreements describe the relationship between investor members and the manager? For the most part, the manager retains the right to make all day to day decisions, however there are certain decisions that will be made through a vote of the investor members in order to reach a majority consensus. The partnership is facilitated by a limited liability entity & the manager is the responsible party for the acts of the company. When are profits distributed to investors? Holdfolio disburses profit to investors quarterly. This means that you will receive profit from your investment deposited directly into your account during the first couple weeks of January, April, July, & October. To date the average return to partners is 10.17%. *This return does not take into account possible increases or decreases in the value of the investment. Further, the performance of our portfolios in the past does not guarantee that they will be successful in the future. More information about our track record is available to registered users. How do I get my invested capital back? After Holdfolio holds the property to collect rental income, the property can be sold for a profit or refinanced with long term debt. In the event the property is sold, you will receive the return of your invested capital plus the profits from the sale. If the property is refinanced, you will receive a return of your invested capital & still keep your interest percentage in the company. It is also possible for you to sell your ownership to recoup your investment. In this scenario, either Holdfolio can purchase your ownership, or we can assist in a match-making effort to find someone interested in purchasing your ownership. Holdfolio retains a first right of refusal to purchase your ownership should you decide to sell. In general, you cannot sell your ownership within 12 months from your initial investment date.
Q&A for New Investors: Part 1

Jun 25, 2018

Q&A for New Investors: Part 1

Here at Holdfolio, it is common for us to receive similar questions from new investors. This interview was conducted with one of our investors in early 2018. What kinds of questions did you have for HF during the brief introduction call?  The ones mostly found in the FAQs. The call mostly was getting to gain a better understanding of how they operate. What is the minimum investment? Varies on the opportunity. Recently increased to 20k. Why did you choose HF? It is a passive approach and their returns are attractive. What were the steps and processes to invest with HF? Simple. After deciding on investment it was a 3-step process completed online to invest. Simply clicked through the “Ready to Invest” button. After signing the investment agreement you are able to fund your investment. You can initiate a wire transfer or mail a check to be deposited into our secure escrow account. How much time do you apply to managing your investment with HF? I log on to my dashboard every so often to check the status of investments. Everything is updated quarterly.

Mar 14, 2018

Holdfolio Download Episode 8 – Multi-family Due Diligence for Investors

In this latest podcast Ep.8, Jacob and Sterling dig deep into the learning lessons and winning strategies behind their latest acquisition. "Deal Talk" reveals topics like these: Finding deals Physical inspections Counter-offers and negotiations Due diligence Equity raise Structuring a deal with investors - preferred return with split Documentation and much more! Join us for Deal Talk: Behind the Scenes of our Latest Acquisition, as Jacob and Sterling discuss actionable advice and tips to executing their latest deal (Buckridge at Southport).  If you like the show, be sure to leave us a five star rating and review on iTunes. If you would like to send in questions to the podcast please email info@Holdfolio.com

Feb 20, 2018

Holdfolio Download Episode 7 – Multi-Family Due Diligence for Investors

In this latest podcast Ep.7, Jacob and Sterling reveal some of the “red flags” you may encounter when you conduct due diligence, including common questions like these: What is a "rent roll"? Do I need to conduct a lease audit? What if the masonry, concrete, windows and property require maintenance? What are “normalizing” expenses?  If you like the show, be sure to leave us a five star rating and review on iTunes. If you would like to send in questions to the podcast please email info@Holdfolio.com

Nov 13, 2017

Are You Adding Too Many Finishing Touches To Your Rental Property?

One of the biggest questions real estate investors have (or at least should have), is how many finishing touches and add ons they should give a remodel.  There are many factors which play into this. Some standard finishes will differ based on your particular market. Others should be different based on what the tradition and market history is locally, and the price point of your property and surrounding properties. All of these factors can be make or break when you are trying to turn a profit on your properties.  The Danger of Over-Improving Property One of the biggest dangers of investing in real estate is over-improving your investment properties. It is the number one pitfall for first time investors. First timers often sink way too much money to over improve a rental property, and often times, they never get any return on the investment. Unfortunately, many investors just don’t know what really adds tangible value to their properties. Being smart and sensible with your value adds can be major when it comes to turning a profit.   When it comes to buy and hold rental properties, it should be attractive to your level of prospective renters. Keep in mind the type of perspective tenant you are looking to attract, and what kind of amenities they need and do not need. Listen to what the market is telling you. But many times landlords must remember that tenants are going to put some wear and tear on the property, and chances are a lot of updates are going to have to be done every time you turn tenants. It could be in 6 months, or 24 months. You just don’t know. So, instead of going all out, especially on items which are easily dirtied or worn, go for slightly more affordable options, and more durable finishes. For example; carpet which can be cleaned, instead of tile which may need to be completely replaced if it is cracked. Or stainless steel sinks, versus custom materials which can stain. This approach applies to flips as well. You’ve got to know what really adds value, and not do any more than that. You’ve also got to know your buyers. Will they be renting the place out? Then stick to the above principles. In most cases, end buyers are going to have different tastes to you. That means no matter how nice you make it, they are likely to redo a lot of your work. Why put in unique, over the top finishes, if they are going to be pulled out and thrown on the curb a week after closing? They also aren’t going to pay you more, just because you think the design is nicer. Many tenants have a set range for the rent they are wiling to pay, and special add ons do not always help move that needle. Just because you spent a few dollars more per square foot on counter tops and flooring, doesn’t mean you’ll get an extra dollar on the sales price. What’s Your MVP? What investors need to know is what their MVP is. That is the Minimum Viable Product. That doesn’t mean be cheap. Do it right, make it look nice, but don’t throw away money. Otherwise you may have to sell at a loss, may not be able to sell at all, or are going to be making a lot less than you thought. You need floors, a roof, countertops, cabinets, bathroom fixtures, and freshly painted walls, but you don’t have to try and win any design awards. Basic countertops will work in most rentals. If you are doing a luxury renovation, you might get away with poured concrete or granite, instead of quartz. You can let the next buyer or renter get their own fridge, or stage it with a basic model, versus spending thousands on a smart fridge which may not be the right model your buyer wants. Know what the minimum standard expected by local buyers and renters is. You can go a little bit above that if you want to move it faster, if you can get a good deal on the materials. But don’t overdo it. There is a lot of confusion around what standard rentals and house flips should be finished too. It is also an area which can make or break investors fast. Know your values, and consult an actual appraiser, not just a Realtor to find out. Then set your own standard minimums based on your area, while looking out for deals on slightly higher quality, but neutral materials.

Nov 10, 2017

Holdfolio Download – Episode 5 Adding Value To Rental Properties

On this episode of the Holdfolio Download, Holdfolio Co-Founder and CMO, Sterling White talks about the importance of "value adds" for rental properties. What are some of the easy and simple value adds you can make to your property, and what are some of the things you should avoid? Listen in to find out Sterling's take on the best value adds you can make to your rental properties. Below are some pictures and examples of value adds that we have made to some of our properties. All new, clean laminate flooring took the place of old, high maintenance carpet in this living room. The cabinets in this kitchen were replaced with new, sleek ones. A simple two-tone paint scheme was given to this home. It gives a simple but impressive first impression to potential tenants. A common recreation area was added to one of our multi family properties "Garfield Place". The grill and benches are inexpensive but provide a great amenity for tenants. If you like the show, be sure to leave us a five star rating and review on iTunes. If you would like to send in questions to the podcast please email info@Holdfolio.com

Oct 18, 2017

Rental Property Investing: Vacation Rentals vs. Long Term Rentals

Short term, Airbnb style rentals have been gaining a lot of attention lately, especially in major metropolitan cities.  The question is, how do they stack up as an investment strategy for long term income property investors? Are they more profitable? Or are long term annual rentals still the best way to go? Hot Rentals in Hot Spots Many real estate investors and entrepreneurs have discovered that there are very juicy rental rates to be found by leasing their units to short term renters for a day, week, or month. A whole new crowd has jumped into this industry to capitalize on this. It is a trend we are seeing more and more each day.  When rented as a hotel, property owners can often get far higher average rates than as annual rentals. What may rent for $1,000 a month to a regular long term tenant, may rent for the equivalent $3,000 per month on Airbnb. There is clearly a lot of value in this short term rental strategy, but there can be some drawbacks.  These rough figures can be very misleading. They don’t account for higher vacancy rates, taxes, wear and tear, and property management costs. All of which can take a big bite out of those anticipated rents. More importantly; experienced investors know that short term and vacation rentals can be highly volatile. Short term rentla rates can fall just as fast as they rise, due to demand. There are many causes including the economy, new lists of top vacation spots, storms, gas prices, and other factors. All of which can catch short term rental property owners by surprise. Those who have paid high prices for these assets, assuming they’ll be able to rent at these high rates, can be caught short, and find themselves in tough financial situations if they are not careful. If the numbers won’t work on a deal as an annual rental, be very, very wary. Research around popular message boards and forums frequented by users of AirBnb, VRBO, and more.   Long Term Rentals In contrast long term rentals offer real estate investors more consistency, stability, and reliability for their investment portfolios. Good long term tenants can also save a lot on property management, maintenance, and marketing. That can even out the spreads a lot. Even more so when investors are purchasing homes at far lower prices. It doesn’t take a genius to figure out that the yields on a $80,000 home that rents for $1,000 a month in the Midwest, may produce better yields than a condo on the coast that rents for $3,000 a month, but costs $500,000 or more. It is important to run these numbers before deciding on a short term or long term strategy  Both vacation rentals and long term annual rentals can produce income and attractive returns for investors. It’s all about the numbers. Unfortunately, many are not doing the full math, or are looking far enough forward when trying to jump on the Airbnb bandwagon. Do your math well. Get a second opinion from an expert. Make sure your choice matches your personal financial goals and timeline.  

Oct 12, 2017

Holdfolio Download Episode 3 – Multifamily 101

Join us as we take an inside look at real estate investing at Holdfolio. Each episode Holdfolio Co Founder and CMO Sterling White will share stories, insights, and knowledge from Holdfolio. Holdfolio Download will be available on many podcasting platforms including iTunes, Google Play, Stitcher, Soundcloud, and more. To download Episode 3 of the Holdfolio Download click here. On Episode 3 of the Holdfolio Download Sterling White gives us some tips and strategies for when you are ready to invest in multifamily real estate. Full show notes can be found at Holdfolio.com Email any questions to info@wordpress-145597-764319.cloudwaysapps.com
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WATCH VIDEO Sterling White and Jacob Blackett recently purchased 46 units

Sterling White and Jacob Blackett recently purchased 46 units

WATCH VIDEO How To Become A Dominant Force In Your Market by Your Mid 20's w/Sterling White

How To Become A Dominant Force In Your Market by Your Mid 20's w/Sterling White