Oct 13, 2016

Why this House doesn’t “Scare” us!

For the buy & hold investor and or Fix & Flipper, there is the allure of taking a distressed property and making it bright, shiny and livable to generate a good cash flow income.  There are many “distressed” properties tucked away in neighborhoods all over the country. Some are so distressed that the capital expenditure needed to renovate them outweighs the cash flow benefit and yet others are shiny diamonds under the surface just waiting for the right buyer to come in and polish them.   How do you tell the difference?   What do you look for in assessing these properties? Having the Vision To the every day buyer this house looks like a complete disaster. What the savvy real estate investor sees are these things: Looking beyond the trash, the garish poor paint job and the flea infested carpet there are hidden gems.  The walls are straight and plumb, showing no foundation settling or cracks. Paint can be covered up with fresh paint. The windows are relatively new and not broken so there is not a window replacement cost.  The trash can easily be removed and discarded.  Under the carpet happen to be lovely hardwood floors that just need a light refinish job so there is no cost to be incurred on flooring replacement. The other benefit is that the heating and cooling system up to date as well as current wiring, and electric box. These can all be big-ticket items that can run the budget up quickly. Many of the things in this house are simply cosmetic that can also make for a quick turn around in completion and getting it to market. When looking at this kitchen there aren’t too many redeeming qualities at first glance. However, when looking closer we can see the positives. The layout of the kitchen in relationship to the rest of the house is good and the plumbing will not have to be moved or replaced. A new countertop and base cabinet with an L-shaped peninsula, new backsplash and new upper cabinet doors with new hardware along with new flooring and this kitchen won’t even look the same.  This can all be accomplished without a complete tear out.  Adding an upgraded fixture to the existing stainless sink and modern appliances also will make the kitchen seem like a real upgrade. Renovation doesn’t have to “scare” you. With a vision, some attention to detail and knowing what to look for it can be a win win for you the investor AND the neighborhood will appreciate the appreciation!  

Oct 7, 2016

5 Rental Property Expenses Investors Should Always Prepare For

Rental property investment is a powerful way to enhance your finances. It can also be a major disappointment if you aren’t prepared. What are some of the costs which commonly catch landlords short, and threaten to turn their passive income dreams into money pit nightmares?   Unexpected Rental Property Repairs   For the savviest and most experienced investors there are few unexpected items. Yet, newer landlords almost invariably under budget for routine maintenance and emergency repairs. If you aren’t on your game this can cost you a lot more than just losing a single property. Frequent surprises can include needing to change the locks, busted plumbing, broken washers and dryers, AC units, roof leaks, and kitchen appliance malfunctions. Some of these are affordable, others can mean having to come up with thousands of dollars overnight, and potentially even housing your tenants somewhere else while the issue is remedied. Every part of a home has a limited lifespan, and often parts never survive that long either.   Tenant Defaults   Even the most perfect tenants on paper can default for a whole array of reasons. Divorce, job losses, illness, injury, family emergencies, and even just deciding they are going to go buy a home instead of continuing to rent. This may simply mean cash coming in slower than expected. Or it could mean going months without income, while covering the holding costs, and forking out money to an attorney for an eviction.   Tenant Turnover   In most cases you just can’t expect to put a new tenant into a property the day the old one leaves. For one you may not know when they are leaving. Secondly, there will virtually always be a need to make repairs and spruce the place up. This could be a pro cleaning job, or it could be replacing appliances, flooring, and bathroom fixtures. Again, these are days with holding costs, but no income coming in. If you are not a full time investor then you’ll also probably have to deal with marketing. That means having ads created and paying for them. This is why experienced firms are constantly working on maintaining a tenant waiting list.   Property Vacancy   Not only does this mean failing to bring in rents, cash flow, and positive returns, it also bring more risk. There is risk to the sustainability of your entire finances. How many empty properties can you keep covering the holding costs on with your paycheck from your day job? Then there is increased risk of squatters and vandalism to vacant properties.   Taxes   We should all be aware of property taxes which generally seem to go up every year. Then there are income taxes and capital gains taxes. These can cause investors massive problems if not prepared for. The most notorious characters of our country’s history seem to have been able to get away with everything and anything, except tax evasion. You can actually pay a lot less on money from real estate investment than a regular job; if you plan well. Or you could get hit with a tax bill for tens of thousands of dollars that you don’t have the free cash for. Self-directed IRAs, 1031 exchanges, and having a great accountant and tax strategy can help.   Summary   There are a lot of unexpected costs of being a landlord. Some ways to be better prepared and minimize these expenses include setting aside capital reserves, hiring a professional property manager, choosing turnkey property, engaging in real estate crowdfunding, and getting insurances and home warranties.  

Oct 3, 2016

Real Estate Investing: 4 Simple Ways To Get Started

Real Estate Investing: How Do I Get Started? We all know that real estate is an important and powerful part of our finances. We all live somewhere. How we structure that financially makes a big difference on the rest of our lives. Then we all need sound investments and a way to hack time and get ahead; earning more than just what we can trade our physical labor and time for. Real estate is the obvious choice here, and for most, it can be the only way to get ahead financially. So what are some of the fastest and easiest ways to get involved in real estate and to begin enjoying some of the rewards? 1. Be a Property Scout Everyone in real estate wants more deals. Rehabbers, turnkey rental companies, builders, and funds. They’ll often pay well or cut you in as a partner if you find deals that aren’t on their radar. There can be a lot to learn when trying to get into real estate investing. This simplifies things. If you find or stumble on property deals and can serve them to someone else to do all the hard work, and get paid for doing it – you are earning and learning at the same time. 2. Become a Real Estate Assistant This isn't really being an investor or being a realtor, but it could give you an entry into the real estate world, and provide some on-the-job training. Real estate agents, brokers, and investors all need lots of assistants to handle various parts of their business. They need receptionists, data entry staff, designers, and just general personal assistants. These may be low-paying jobs, but they will boost your knowledge while getting a paycheck. 3. Private Lending One of the easiest ways to participate in real estate investing without having to take time out to learn a new craft or to give up your weekends as a DIY warrior is just to loan your cash to an expert who does this full time. There are millions of deals to be done each year, so there is always a need for more capital to fuel rehabbing and acquiring more rentals. What if you just loaned your money to someone else, let them do all the hard work, and received a share of the profits? It’s fast, simple, and lets you just keep on doing what you love most. 4. Real Estate Crowdfunding Crowdfunding is a new technology-powered hybrid way to invest in real estate with ease. From your mobile phone, tablet, or laptop you can put your money to work in a variety of real estate investments with a few clicks. This can be a form of private lending or real estate partnership, or just directly investing in real estate with your retirement funds. You invest with the ease of an online trading platform, but get all the benefits of directly investing in property.  There are a number of simple ways to get started in real estate. Whether you’ve got free time but little money, or little time and extra cash to invest, there is an option for you. It’s just about what suits you and your financial goals best.

Apr 10, 2016

How to Invest with Holdfolio

People are always searching for the best way to invest their money. Double digit returns, tax benefits, and the opportunity to partner with full time real estate investors cause us to ask, what better way to invest than through real estate ventures with Holdfolio? If you’re someone interested in making a great return on real assets, then you’re ready to get started with Holdfolio.  Below are the steps that you will need to take to become our partner. Register Those that chose to invest with us will need to start with our simple registration process. Registration only takes a few moments of your time. We don’t collect sensitive information from our users & the information you do share with us is kept private on our secure server. Browse Current Investment Options After you have registered with us, you can browse through our investment opportunities. Most of the investments that we offer are equity deals in single-family homes. You will crowdinvest in a portfolio of properties, which allows you to diversify your investment dollars. Crowdinvesting pulls the resources of several people and places it into one pot. We target double digit returns so that everyone is satisfied with their profits. Select The Portfolio That is Right For You With our investment options, you can create a diversified portfolio. This is where the fun starts and you can choose the investments that are right for you. As long as a portfolio is open for funding, you can submit funds to the investment. Make Your Investments After you complete the first three steps you need to click the "Ready to Invest" option. You will then be guided through the final steps to complete the transaction. You will be able to use our investment calculator to decide the amount that you want to invest in our offerings.  Documents will then be given to you to save & review.  You sign the investment documents directly online & wire your investment funds to our secure escrow account. Watch Your Investments Grow and Wait For Distribution Now you can sit back and watch the money you invested with Holdfolio grow into a nice nest egg for you and your family. Enjoy quarterly payments of profit & see the return of your principal investment at the end of the investment term. With these few steps, you will be well on your way to investing in a diversified real estate portfolio with Holdfolio.

Oct 13, 2015

3 Things to Consider Before Owning Rental Properties

Holdfolio is operated by seasoned, full time real estate investors. Therefore, no one on Holdfolio’s team would tell you that going in alone, whether as a property owner or a real estate investor, is a good idea in this industry. That is why the founders of Holdfolio worked for years under mentors learning the best real estate investment strategies before feeling comfortable setting out on our own to create a real estate investment company. Below are the reasons why we chose to work together, rather than go in solo with rental property ownership. Working as a Real Estate Investor is a Full-Time Job If you want an easy way to make money in real estate, property ownership is not it. When factoring in the time it takes to find the property, fix it, list it, rent it(hopefully to reliable tenants), and then collect rent, you’ve got a pretty tight schedule. Next you’ve got to worry about taxes, insurance and all those little things that seem to constantly pop up. Unless you can afford to hire someone to manage the property, you’re signing up for a second job. Owning Property is NOT Cheap If you are looking for a passive way to make money in real estate, we hate to break it to you, but in addition to the time it takes, the property ownership expenses have just begun! Here are just SOME minor investments that come up in real estate investment properties: Property Management Cost (10% of Monthly Rent plus a markup up to 100% on any maintenance that is done) Property Tax Repairs Risk of Loss in Value of Property Possible Home Owner’s Association Costs Lawn and Landscaping Care Work-Life Balance They say that stress is one of the top killers, so if you are seeking ways to increase cash flow without contributing to a heart attack, you should consider other real estate investment options. Before you decide to go at it alone and invest your time and money, you may want to take a realistic view of how rental properties work and how your life will be affected. You’ll be constantly tending to the property and going through tenants who are frequently on the move and leaving you with the mess to clean up. And Lord help you if the property is near a college campus. Worst of all, you probably won’t earn enough money to treat yourself to that stress-free vacation the extra cash flow might have been intended for! A Unique Way to Make Money in Real Estate Want to become a real investor without all of the risks? Then give us a call today to learn how to make money in real estate without all the stress of property owning!

Jun 2, 2015

How To Invest In Real Estate Using A Self-Directed IRA

Here is one concept everyone learns quickly in retirement: taxes are high, money is short. For many thinking about retirement, they soon realize they’re going to need a bigger pool to swim in, i.e. more money, especially after the government takes its share of the 401k through taxes. Self-directed IRA’s are a blessing to individuals who want to take their retirement investing in their own hands. Investing in real estate with your IRA allows you to profit tax-free. With tax rates seemingly ever-increasing, and property values going up, now is a great time to invest in real estate with retirement funds. However, the risks involved & complexity of investing in real estate present a challenge for many individuals looking to get into the game. At Holdfolio, we have revolutionized the real estate investment process. Holdfolio provides an option for individuals to invest alongside real estate investment professionals, and Holdfolio has established a seamless process to complete these investments with your retirement money. Many of Holdfolio’s investors choose to work with The IRA Club to set up their self-directed IRA accounts. How to Invest Using a Self-Directed IRA Many people don’t even know Self-Directed IRA’s are an option for their IRA account. This option allows owners to choose their own investments for the plan. In order to open one, an individual must work with a custodian to hold the IRA assets. This company is in charge of the account and paperwork with the IRS. Once your self-directed IRA account is setup, which can be a simple process costing you less than $100, you can invest not only in bonds & financial products, but you can also invest in real-world items like property. The process is simple. It involves a roll-over from your established 401k or IRA company, to your new custodial account. Once the rollover has been completed you will then be able to purchase real estate. Strict rules must be followed and it is imperative to go along with them or be at risk for losing your IRA. Pro Tips on the Processes of Investing in Real Estate with a Self-Directed IRA Find an Eligible Property You Can NOT Invest In… Personal Residence Second Home Occasional Rental Buying a Property You Already Own  You CAN Invest In… Property You Newly Purchased Property Purchased Directly Through Your IRA Investing in Properties with Holdfolio Flipping Properties with an Annual Limit Traditional mortgages are not an option with IRA real estate investments. Therefore, if you don’t have enough money in your IRA to purchase an entire property outright, then the most viable option is to consider investing with a company like Holdfolio.  Holdfolio’s minimum investment creates an opportunity to invest in real estate with as little as $10,000. Please consult with professionals such as IRA Custodians, CPAs, or your financial planner. We can provide a list of some of the most popular Self-Directed IRA Custodians. A wealth of knowledge regarding self-directed IRA’s can be found on their websites. We encourage you to please contact us should you have any questions.

Apr 19, 2015

3 Tips You MUST Know To Run A Property Management Company

Managing property is not easy. It takes a lot of time, energy and know-how. At Holdfolio, it takes a whole team of staff who are certified real estate investment experts to keep our properties in line. Through this experience we’ve learned A LOT, and we wanted to share some advice with our readers. 3 Keys to Properly Running a Property Management Company 1. Have Concrete Systems in Place As humans with kind and open hearts, we want to give people the benefit of the doubt. This generosity often leads to disaster. Proper procedures for tenant and day-to-day operations must be in place. For example, finding qualified tenants for leasing is imperative to ensuring the safety of your property and return of your investment. 2. Communication Tenants, landowners, property managers and maintenance crews are all members of the same team. If an issue occurs, each party is involved in finding a remedy. For example, if property maintenance is needed the tenant, repairmen, vendors and landlord must all work together to address the issues. The more efficiently the problems can be communicated, the quicker the issues can be addressed. 3. Team Hire people who you know will be great employees due to their enthusiasm and problem solving capacity. These people will be the back bone of your property management company. Sometimes paying the little bit extra to get that person who you know will do a knock-out job is worth the investment. Need to Know More? Want to learn more about property management? Contact our staff at Holdfolio to learn more from expert real estate investors.

Apr 9, 2015

3 “Insider Tips” to Choosing the Best Rental Property

Finding the right property to invest in requires years of experience. It goes beyond just the location of the property, and it takes a trained eye to seek out the best investments. If you are thinking about investing in a property, we want to offer some great tips on finding the best rental possible. Here are three characteristics we use at Holdfolio to determine if we want to invest in a rental property. 3 Things to Look for in a Rental Property and What to Avoid 1. A Substantial Amount of Cash Gain from Day One! Robert Kyosaki, a well-known American investor and entrepreneur, once said it is imperative to make money when you buy a property. This way from the start there is no need to play a game of catch-up. You can lose a lot of money if there is the need to invest in improvements immediately upon buying a property. What to Avoid: Properties that have a negative cash flow from the start when there is a mortgage involved. 2. In-Depth Look at Location Thanks to the internet, it is easier than ever before to research every aspect of the location of your property. You can use websites like City Data or Zillow to do in-depth research on everything from the crime to the walkability of a neighborhood. What to Avoid: Even if you find a property that is in a good area, it is important to check out the schools. No one wants to bus their kids to a school with a bad reputation if they can avoid it. 3. Condition of the Property The structural soundness of the property is very important to check out. Take a look at the roof, foundation, walls, chimneys, etc. If you do not know what to look for during a home inspection, bring in a trusted inspector to check out the property with you. What to Avoid: Properties with long-term repairs that send your cash flow in the negative due to ongoing maintenance. Still Not Sure? Investing in a rental property is no easy task. Make sure not to settle on the first reasonable prospect, but the property that is right for you. With enough patience and know-how you’ll be seeing a ROI before you know it.

Mar 26, 2015

Holdfolio Versus REIT’s

When it comes time to invest your hard earned money, it can be difficult to decide where exactly you want that money to go. You might think back to the long journey it took you to acquire your funds, and even though we probably don’t need to remind you, it’s important that you know that it is important to explore all of your options to find an investment that matches your particular needs. Two great options for investors are REITs and Holdfolio. Both of these involve investing in real estate in two very different ways. REITs 101 A REIT, or Real Estate Investment Trusts, is a company that creates revenue via buying, leasing, renting and selling property. Those who invest in REIT’s basically acquire a passive form of income, because they are investing in the market. Pros • When you invest in an REIT it is highly liquid, meaning it is easy to buy or sell shares at any time. • There is no hassle. You are not a landlord, you are just a financial backer. Cons • Since this investment is so low risk, the returns are always very modest ranging from 2-4%. • There is no transparency! Most REITs are so large that it is unrealistic for an individual investor to understand exactly what is happening with their investment dollars. Holdfolio Pros • Since this type of investment is directly connected to a property, it does not fluctuate with the stock market. • You’re in the driver’s seat with Holdfolio. You get to select which portfolios of properties to invest in, so you can choose where your money goes • You will receive a stronger return of investment. With Holdfolio you can expect the yield to fall between 10-14% on average. Cons • Property investments are not as liquid, so it is not as easy to quickly sell your shares from Holdfolio. Your Money, Your Choice Make the best decision based on your financial needs when it comes to weighing Holdfolio and other options. If you have any additional questions feel free to contact us at Holdfolio! About. Holdfolio.