How Adding a New Deck Can Increase a Home’s Value
Your home’s exterior can make a huge difference in the number of people interested in your home: and how much it’s worth. If you’re interested in boosting the price of your property and aren’t afraid to put in a little extra work, here’s how adding a deck can increase your home’s value! Add Visual Appeal Visual appeal is one of the biggest reasons to add a new deck! Not only does a new deck look fantastic, but you can paint or stain it any color you want. This allows for a custom and gorgeous look that will set your lawn apart from anyone else’s. This type of addition is especially valuable if your lawn is otherwise unremarkable or has low spots that gather water near your home. The deck will give you a dry and comfortable place to sit and a way to hide drainage as you guide this water away from your property. Increase Usable Outdoor Space Since 2020 there’s been a large emphasis on usable exterior spaces that allow homeowners to get the most out of their homes. Instead of letting your home be uninspiring outside, you can enjoy a new and usable outdoor space that looks fantastic. This will ensure you get more benefits like vitamin D and can enjoy the fresh air. Over time this is proven to improve mental and physical health and can be awesome for everyone within your home. Affordable Materials Mean High ROI How much of a return you get on your investment depends on how much you paid for your lawn or rooftop deck and whether the market will be able to add that value to your home. Most decks add around 80% of the price of the build back into the property. Although this may not seem like a lot, if you built your deck five to ten years ago, that means you get to enjoy using it for that period of time and then enjoy selling your home for more money. Don’t cut corners, though! Get materials that are high value and able to last for as long as the future owners will need them. Can Add Square Footage to Property How large is your home? If your deck is large enough, you can often add its space to the square footage of your property. This is an incredible chance for anyone with a smaller house to spread out the area a little and possibly boost the value of their home without having to build an entirely brand-new bedroom onto the home. This can vary from state to state, so look into local laws and guidance, and work with a professional realtor before you decide to follow this update. Makes Home More Interesting to Families If you’re planning on selling your property any time soon, a deck will add a lot of valuable interest to your home. Buyers will love the idea of spending time outside with their loved ones and will instantly picture what their life will be like if they bought your home. Keeping up to date with the best polyurethane for decks you can find, and ensuring it always looks fresh and new, regardless of how old your patio is, is important as well. Nobody wants to buy a property with a rotting or old deck that they’ll have to replace or take down in a matter of years. Safer Area in Backyard In many areas, there are tons of risks within a backyard, from puppy poop to fire ants and even scorpions if you’re in a place like Arizona. Adding simple cedar deck boards and creating a gorgeous deck will give you a chance to pull up and away from your lawn. You can still enjoy it and get the most out of the outdoors without having to worry about where you’re stepping. Adding materials like hog wire deck railing makes it even safer, ensuring nobody falls or trips when they’re on your deck. Great Entertainment Space Entertainment is a must! We all love having friends and family over, so creating a space that’s not only a focal point but also attractive for your friends and family to visit will make a huge difference. You can take this even further by adding a grilling and outdoor kitchen area on your deck. Over time awesome memories will be created here, and it’ll feel like the main space of your home. It’s vital that if you do this, you ensure your wood is treated often and that your property is able to handle anything that’s thrown at it. This is especially true if you have more than ten people in any gathering on your deck. A New Deck Can Change Everything Whether you’re eager to sell soon or you’re trying to create a property that will be a great nest egg eventually- your deck matters. Add value by building this great entertainment space soon. Sam Willis is a freelance writer that loves sharing his knowledge and expertise on real estate. He lives in Atlanta, Georgia where he enjoys spending time with his wife and researching real estate trends in his free time. Sam’s work as a freelance writer can be found on Building Product Advisors, a new construction industry resource launching in Fall 2022. – Sam Willis
How to Hone in Your Home-Buying Priorities
There are a myriad of factors that you must take into account when you’re searching for a home. In addition to your budget, you need to think about how long you want to live in a home, what neighborhood is best, and what school district you want to be in. Of course, some of these considerations are more important than others — especially when you’re choosing between a starter home and your forever home. Consider these tips and help from Franklin Investment Realty to establish your priorities and make the right choice. Assess Your Plans for the Future One of the biggest factors that will influence your home search is how you envision your future. If you plan on having kids in the next few years, for example, investing in your forever home may be a better idea. It will likely be bigger, offering more room to expand your family. Along with the additional space, though, will come more need for upkeep — and a bigger price tag, too. Still, the additional cost may be worthwhile if you really want to put down roots in the area you’re shopping in. You can also avoid the hassle of moving again if you choose to invest in the home that you plan to stay in forever. Although a forever home will cost more, it could also be a wise financial move if you’re able to snag a low interest rate on your mortgage. Conversely, if your plans for the future include a home that you can rent out in a few years, a starter home may be the better bet. A starter home will allow you to build equity and then eventually turn the property into a source of income. Additionally, if you plan on staying for the long haul, it can be a good idea to explore your home warranty options. Not to be mistaken for homeowners’ insurance, a home warranty protects your home from incidentals, like appliance breakdowns or problems with essential systems like HVAC, plumbing, electrical, and more. Check out these steps to find the best home warranty provider. Decide What You Can Afford Your budget will likely be a deciding factor in whether you go for a starter home or your forever home. In most cases, a forever home will be pricier because it will be bigger than a starter home, and it may also be in a better area or have more amenities. You will need to weigh whether these additional features are worth the bigger monthly payment you’ll be faced with. Although a starter home may have a lower listing price, there may be substantial repairs or upgrades necessary to get it to the point you want. According to statistics, the average home remodel costs between $19,800 and $73,200. This is no small sum, and it could offset the savings you gained by choosing a starter home. This is especially true if you choose a fixer-upper that needs extensive repairs. Finally, you should consider how easy it will be to resell the home you choose. Life changes can happen unexpectedly, and even if you opt for your forever home, you may find yourself needing to sell it. A starter home will likely be more difficult to resell — especially if you only invest in minimal upgrades. A forever home, on the other hand, will likely attract more interest from prospective buyers. Get Your Priorities Straight Before House Shopping Finding the right house can be difficult, but it can also be rewarding when you finally find the perfect home. Before you can find the perfect home, you need to determine whether you’re looking for a starter house or a forever house — and you need to get your priorities straight. – Suzie Wilson
Durable Renovation Projects to Reduce Maintenance
Maintenance can be one of the worst parts of any property. We all want a home that will last and look great while also being cost-effective: but is that realistic without putting in a ton of constant work? It can be! These are some of the best ways to get your property into great condition and halt the need for tons of maintenance! Windows That Can Handle Anything Your windows can be the best or worst part of your property. If they’re loose and leak air, you know that your heating and cooling bill will be wildly expensive at all times. If you’re struggling with these bills, consider updating to storm windows. Not only are storm windows more likely to stay sealed for longer regardless of weather and surroundings: but they’ll also protect your property if you’re in an area that deals with hurricanes, tornadoes, or thunderstorms. Of course, storm windows cost more than the average window: but it’s worth it. Updating Your Appliances How old are your appliances? If you’ve had to call someone out to help with your dishwasher more than twice in the last year, or your oven feels like it’s letting out tons of heat and isn’t cooking your food as evenly as it used to: it could be time to update your appliances. This is an expensive fix: but you don’t have to worry about that expense for long! Going for energy-efficient appliances means that your home will be comfortable, and your electricity bills will stay lower than you’d ever expect. Replacing An Older Roof How old is your roof? An older roof will let out far more air and cause leaks, make your home more susceptible to rodent and insect life, and can be generally hazardous. If you’ve been spending years using a roof cover board and doing one-off repairs to try and make your roof last longer, it could be time to give up the chase and replace it full out. This replacement will give you the chance to kill off the amount of maintenance you need to complete on your home. Composite insulated roof panels can also boost how well your home keeps the temperature. Keeping an Eye on Your Siding How old is your siding? If you notice you have issues with ants, or your home seems to be getting a lot of noise pollution:, it could be time to update your siding. By looking at it, you can check to see if it’s warping, bent, discolored, or cracked: all signs that it’s time to update it. Updating your siding will fix a host of other issues and allow you to have a low-maintenance home with lower monthly bills to boot. Updating Your Lawn With Native Plants Plants that are native to where you live are one of the best things you can do to reduce maintenance and work on your property. These native plants will ensure your lawn doesn’t flood and, instead, the water into the soil. They can also reduce the amount of work and watering your news to do on your lawn since these plants will already be acclimated to the surroundings they’re in. Replacing an Older Garage Door How old is your garage door? An older one will be worse at keeping out moisture and insect life and can even get stuck open or closed: making it hazardous for whoever is in the garage. Replacing this door is also a home renovation project that offers the largest return on investment and gives you the chance to update your property’s look. This is a must to avoid future trouble. Repairing Cracked Concrete Cracked concrete is going to hurt you in the long run. When it goes through freeze and thaw cycles, these cracks will get larger and larger until you have to replace the entire slab. Instead of ignoring them, or working around them, consider either repairing the cracks: or replacing the pavers with some that are designed to be cracked. These come in gorgeous patterns that can allow them to move more fluidly with changes in the ground without cracking and can last longer. Swapping Carpet for Sturdier Options You may love your carpet flooring, but it’s not good for you and could be adding to how often you have to replace your HVAC filters. Carpet traps dirt, grime, and dust, and even if you vacuum, it doesn’t give up all of it. Although it may look cleaner than the average wood floor, it’s full of oils and debris that nobody should want to keep on their floor at all times. Beyond this, carpet ages quickly and can go even faster if you have pets or children. Swapping the carpet for hardwood, tile, or laminate can save you in the long run. Your Home Can Be Low Maintenance Although you may have already poured hours of work and time into your property: there’s no reason it can’t start to be lower maintenance starting today! Take the time to follow some of these tips, and make your property a dream to take care of in no time. Sam Willis is a contributor to Innovative Building Materials. He is a blogger and content writer. Sam is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that increase property value, maximize energy savings, and turn houses into homes. – Sam Willis
Five Ways Real Estate Developers Can Invest in Safety
Successful real estate investors know how to juggle everything. They can make a profit, attract prospective tenants, and protect workers’ safety all at the same time. Developers who cut corners, though, may pursue profits above all else. In addition to the ethical concerns this brings up, it’s typically not an effective approach. When you skimp on safety, costly liabilities may come to fruition. Find out what it takes to become a real estate developer — and how you emphasize safety in your projects. Always Implement a Contract You may not think of a contract as a safety feature, but in many ways it is. An effective contract will outline the responsibilities of each party. This is important when you’re contracting with construction workers. Your contract should clearly identify the standards that they will be held to regarding safety. As you’re drafting this document, you may use Word so that it’s easier to edit, but you should convert it to a PDF before sending it to a client. You can do so with a Word-to-PDF converter tool. Keep an Eye on Construction Some real estate developers may take a metaphorical vacation between the time when a property is purchased and tenants are sought. This is a major safety risk, though, as a construction site should have constant oversight so that liabilities are avoided. This starts with choosing a site that has minimal flood or fire risk. Once building starts, a developer should further ensure its safety by establishing clear guidelines and enforcing them consistently. Personal protective equipment should be supplied, for example, and required at all times. Work With Trustworthy People It can be hard to know who’s trustworthy in a business context, but making this discernment is an essential safety issue for any real estate developer. In addition to a construction crew, you may need to work with professionals such as investors, a marketing and sales team, and an attorney. When you are looking for these people, you should ensure that they care about safety as much as you do. Install Lighting to Protect Pedestrians and Drivers Lighting is another essential component of your development’s overall safety. You might not think that lights can play a major role in reducing crime and preventing accidents, but research proves that they do. Indeed, if you have a parking garage on your premises, you need to ensure that drivers are able to see — even if there are canopies or tunnels. If you’re looking for canopy lighting, strategically placed lighting will ensure visibility so that pedestrians are safe. Ensure You Have the Right Qualifications In many states, there are no explicit requirements to become a real estate developer. If you aim to conduct real estate transactions, you may need to obtain a real estate license to do so. The criteria for licensure vary from state to state, but most areas require an educational component and passing a test. If you simply want to develop properties, though — and allow somebody else to manage the real estate — you can likely do so without a license. If you are seeking funding from a bank or investor, though, they may be more willing to provide financing if you can prove your qualifications. Pursuing real estate development is an ambitious decision, but it can pay off if you’re willing to invest in safety, protect yourself with contracts, install the right lighting, and ensure you have the necessary qualifications. If you’re looking to buy or sell an investment property, contact the experts at Franklin Investment Realty today! – Shirley Martin
How to Make Your Rental Property More Desirable
When it comes to investing in rental properties, it’s all about generating income to ensure profit. But like all types of investments, it comes with a risk. Mitigating those risks will require preparation, proper planning, and knowledge. Are you aware of the features that renters look for in a property? Are you sure those features will appeal to them? Whether you want to market your investment property or upgrade your current rental property, you should make it stand out. From significant modifications to minor tweaks, there are many tricks and hacks to make your property more appealing. To get you started, here are three of the most important steps you can take to make your property stand out from all the competition in Philadelphia, PA, and boost your revenue. 1. Hire a property manager You can always decide to manage the property independently, but you should know that managing a rental or even multiple properties is a full-time job. Achieving high returns requires constant attention and assessment of expenses versus the rental value to maintain quality tenants. An experienced and licensed professional will handle all the daily operations as they evaluate all areas with a focus on the long-term goal. You can also hire a backyard landscaping professional to upgrade your outdoors and lawn. But before you connect with a local contractor to discuss the upgrades and request a quote, you can research and assess companies by reading their online reviews. If you’re on a budget and worried about the costs, you can also evaluate which companies offer the best deals or credits for your landscaping project. 2. Fix any repairs This might sound obvious, but it’s easily overlooked. Walk around the property and look for areas that need fixing. Do you see any cracks in the walls? Are there any loose door knobs, light switches, or anything that seems off? Some quick fixes might seem minor, but they can make a huge difference. You want a good reputation and to show tenants that you’re an attentive and active landlord from the beginning – so ensure all appliances are in great condition. Constant maintenance during tenancies is important since it shows you care for your tenants and property; plus, it’s a good strategy to attract quality clients. 3. Video marketing your property If a picture is worth a thousand words, how many is a video worth? Video marketing is one of the most effective marketing techniques. And for other obvious reasons, renters connect more with houses visually, making it ideal for real estate expansion. Start by designing a video showcasing your property to attract prospective tenants. You can use a merge video tool to edit and quickly combine videos and images to design meaningful content. The tool basically allows the user to edit and share the exact moment they want to film/capture. Stand Out From the Competition Designing an appealing rental property can seem overwhelming or costly, but with the tips highlighted in this guide, and a compelling marketing video to attract quality tenants, all the hassle should be worthwhile. If you need a reputable property investment company in Philadelphia, PA, contact Franklin Investment Realty to help you in your venture. – Rhonda Underhill
5 Tips to Keep in Mind When Home Buying Amid Rumors of a Crash
Pandemic trends led to a high-demand real estate market, with a new wave of remote workers buying in more affordable rural areas, and driving prices up. With inflation on the rise in general, and many housing markets remaining hot through a predicted downturn, it may seem a risky time to buy a home, or to invest in a new property. Despite signs of real estate being overpriced, the growing number of first-time buyers and investors are keeping the real estate market growing, even while slowing. There are plenty of deals to be had, but no one wants to get stuck paying too much for something that doesn’t keep its value. Homes, and property, as a general rule, are good investments, but as we learned in 2008, investors can tip the scales enough to bring a crash. While it’s true we’re in new territory, and one would expect a “correction” in markets where prices continue to rise beyond what local median incomes can support, the comparisons to the 2007-2008 housing market crash and the Great Recession are stirring unfounded anxieties. Consider these tips for navigating the homebuying process. Tread Carefully with Foreclosures Buying a foreclosed home could be one option to save money on your investment. But it’s crucial to understand what you’re getting into with an as-is property deal. For example, though you may be able to waive an inspection (especially if you’re buying cash), it’s not always a good idea. A home inspection can reveal issues that you would otherwise be oblivious to – leading your new property to become a money pit in no time. Hiring an inspector ensures that you find out about leaky plumbing, out-of-date HVAC systems, and roof issues long before signing over your cash. Make Essential Improvements First Treating mold and other hazards is a solid first step, and a good deep cleaning is often in order. You may also consider low-maintenance landscaping to increase your (or your tenants’) enjoyment of the home and yard. After all, the less time spent working, the more time you’ll have for relaxation. Cleaning the windows, because it’s often neglected by even the most fastidious homeowners, can make a real difference in the presentation of the home. The rooms are slightly brighter, the views more crisp. Cleanliness can have an overwhelmingly positive effect on our response to new surroundings. Thankfully, you can comparison-shop for the best window washers near me. Verify Potential Purchases Ahead of Time When buying a home while there’s looming uncertainty, there’s always a possibility that legal issues will crop up. Foreclosures are particularly susceptible to both structural and legal problems. But it’s smart to check out the property’s title status before making an offer – or at least before locking in a contract. As Rocket Lawyer explains, in most areas, you can perform a free property title search through the county assessor. It could take some digging. But confirming that the title is in good shape is a must when you’re investing in a potentially awful investment. Have Cash In Hand If you’re looking for a rental property to invest in, you may have funds available for an outright purchase. But if you’re a first-time homebuyer or are taking out a conventional loan, low rates aren’t the only thing to know about in a recession. Because many real estate markets are becoming increasingly competitive, prospective homeowners can expect to play hardball when it comes to making an offer. That might mean asking for seller concessions or closing cost support is a no-go. You’ll also need cash for your down payment and incidentals, whether you’re going with a conventional loan or an alternative with lower up-front costs. Conventional loans require a 3 percent down payment minimum, and they are available at fixed or adjustable rates. By paying more up-front, a homebuyer is proving to the seller that they can afford any unexpected costs during escrow. To be the most appealing to sellers, waving around a bit of cash can’t hurt. Plus, if your down payment is 20 percent or more of the loan amount, you could skip private mortgage insurance (PMI) – a significant savings over the lifetime of the loan. Keep an Open Mind Because talk around the real estate markets and anxiety over a repeat of the housing crash and great recession, the perception of a volatile market, of an impending crash, or even of a slowing market could affect the prices of individual homes. Another look at a fixer property in a good neighborhood could be worth your time. Similarly, comparing financing options or offering more cash at closing could boost your appeal to sellers. The predictions are in and despite similarities to the last housing crash, most housing markets will only slow slightly and the demand for housing will continue to drive home prices up. The current forecasts predict that buying today is still a good investment over the long haul. Buying or selling in the greater Philadelphia area? Make sure to work with a skilled agent from Franklin Investment Realty! Contact them today! – Shirley Martin
First-Time House-Flipping How-Tos for Seniors
Have you considered starting a house-flipping business? As a senior with time and the motivation to work hard, it can be a good idea to go into the house-flipping industry. This is one of the businesses that give you the opportunity to get exercise while making some money. Here is an outline the things you should consider that will help you get started with flipping houses. Consider Financing To acquire the first house to flip, you need money. There are costs involved when buying a house to flip, including renovations and marketing. The money you need to renovate the house depends on market conditions and you should also consider utilities, taxes, and insurance while working on it. The Mortgage Reports notes that one of the options is getting a loan, which can be difficult sometimes as banks consider first-time flippers risky borrowers. Once you get several houses under your belt, you’ll raise your profile and find it easier to get approved for credit. Use Software to Your Advantage As a property flipper, you’re now running your own business, which calls for utilizing technology to help with areas like marketing. Your logo, for example, will be on your business cards, your letterhead, your website, and all your social media accounts. The challenge with designing an eye-catching logo is that the combination of graphics and text must convey your values and your messaging, but you don’t have to spend a fortune on a graphic designer to get this done. You can go online and make a logo for free today using one of thousands of professionally designed logo templates that you can customize to your liking. SimplyShowing points out that there will likely be pros that you’ll use for repairs and upgrades that you either aren’t equipped to do yourself or don’t have the time to complete. You may also employ a property manager to handle ongoing maintenance like lawncare and appliance upkeep. In any of these cases, your best bet is to check out payroll software that is robust enough to handle timely distribution of paychecks, as well as tracking labor expenses per project. Look for a platform that will generate W-2s and direct deposit. How to Find the Ideal Property Not every house out there is a good investment. Buying a house “as is” for example may not be as beneficial as you’d think, as there’s always the possibility of costly repairs in the future. Finding good real estate will help you sell without problems, and you can raise your profits significantly. First, ensure the home is in a great location. Begin with searching local cities and neighborhoods. Consider areas with rising real estate sales, a thriving town, employment growth, and other indicators. Also, consider safety in each neighborhood. You can use services like ADT to know what’s happening in a neighborhood. Next, check the condition of the home to know if it would require too many renovations. If the condition is not too bad, calculate the market value of the property. Don’t overvalue as you still need money for renovations and other upgrades. Understand the 70% Rule When analyzing the amount they can pay for a house, skilled flippers use the 70% rule. The rule states one should never pay more than 70% of the properties’ value after repair before all those repairs are done. This means if the after repair value (ARV) of the home is $200,000 and you need $30,000 in repairs, the rule states you should not pay anything more than $110,000 for the home. This is a valuable guide you can use when you enter the house flipping business. Be Cautious About Fixer-Upper Property When buying fixer-upper property, you need to be cautious. While it’s an option when you want to save money, you can be stuck with massive costs for renovations and repairs. Ensure the home does not require a major overhaul to be ready for the market. Things like foundation problems, HVAC upgrades, mold and asbestos, and electrical work could be a deal-breaker. While estimating repair costs, always add about 20% in the estimate to ensure you don’t end with a property that would take you ages to sell. Flipping houses is a risky business that can also be rewarding if you understand how to approach it. If you make the right decisions, you will make good money. Learn everything about flipping houses, including payroll processing, dealing with taxes, evaluating a property for repairs, and calculating market value. This guide could be the starting place for your journey in house-flipping. Franklin Investment Realty specializes in the acquisition of investment properties, leasing, management, sales and development of properties in the Greater Philadelphia area. Contact us today for more info! (215) 382-7368 – Shirley Martin
What to Know Before Buying a Commercial Building
Buying a commercial building is the best way to push your business ahead and make massive strides: but if you decide poorly or don’t plan well enough, you could be setting your company up for failure. Whether this is your first commercial building or your fiftieth, it’s vital that you consider some things before making that purchase. These are the top ideas to think over. How Much Space You Need Now and Will Need in Ten Years Although you may be looking at some of the most incredible buildings and feeling inspired by them: it’s vital that you consider the space within them. Before anything else, plot out what a reasonable growth plan for your business for the next ten years would be. Of course, it’s a good idea to be realistic, but every company changes and shifts over time, so it’s vital that when you put in the money, you know that this building will be able to handle your needs. If you’re expecting to bring in more employees or change to bulkier equipment within the next five years, you’ll need to get a commercial building that has room for you to grow into. What Features The Building Has, And Which You Need What features does this commercial building have? Does it offer an updated breakroom with awesome options for your employees? Does it have attractive architectural louvers that ensure the HVAC system runs like a dream? Is there ample parking with easy access to the building? These may seem obvious, but one of the biggest mistakes you can make is buying a building without looking at what it offers: and considering what you need. On the other hand, if a building is just outside of your budget, but you love the details and amenities it has: consider buying lower and looking into the cost of adding those amenities yourself. Although this will make you put more money upfront, it can turn out cheaper overall. Do The Spaces Work For Your Specific Needs Many features that buyers look for in commercial office design ensure the building is perfectly suited to their business. If your budget is tight, it’s good to be flexible, but not so flexible that you try to turn an overheated warehouse into a call center. Look at the layout of the space, consider the number of rooms and their current use, and think about whether or not this speaks to what your business needs. Although you can update things and change walls or the layout whenever you want, it’s expensive to do so and should be avoided if possible. Is The Location In An Area Easy to Reach By Customers and Employees Whether you’re going for a 5,000 square foot or 20,000 square foot building: it’s vital that you consider the location. If you’re not planning on running your business alone, is this location a space that customers and employees could easily access? Although you shouldn’t buy a city-center location if you can’t afford it, it’s a good idea to keep as close to populated areas as you can. Land may be extremely cheap in distant communities, but if you can’t get enough employees to work the machinery or handle operations: it’s not worth the saved money. Try to find a balance between affordable and accessible for your employees. How Are You Financing This? Can You Afford it Even if Sales Dropped? How do you plan on financing your commercial building? Are you planning on getting a long-term loan that you’ll pay back in sales, or are you paying for it out of pocket? If you’re getting a loan, it’s vital that you ensure even if you lost fifty percent of your sales, you’d still be able to afford this space. Although nobody wants to think about their business dropping that much, 2020 showed many companies that they have to be prepared for any possible incidents that could happen. Careful planning and budgeting will protect your company even if everything else goes south. Do You Have a Team Behind You Helping Make Decisions? How are you deciding on this property? Are you the only decision-maker, or is there a board you have to gain approval from? Try not to work alone on this decision, and loop in an experienced commercial real estate agent to help you. Not only will they be able to show you more properties that you may not have considered, but their experience will also help you avoid making any big mistakes. Your business is a large investment of time, work, and money, so don’t go into any huge decision until it’s been thoroughly discussed and plotted out. Buying a Commercial Building is a Huge Investment Buying a commercial building is a massive investment that will tie your entire financial future into whether or not your company succeeds. It’s important to plan ahead and work with an experienced real estate agent to make sure you’re making the right choices. Sam Willis is a contributor to Innovative Building Materials. He is a blogger and content writer for the real estate industry. Sam is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that increase property value, maximize energy savings, and turn houses into homes. – Sam Willis
Want to Upgrade a Fixer-Upper?
Want to Upgrade a Fixer-Upper? Know How to Proceed to Get the Most Profit Purchasing a home in the Greater Philadelphia area, renovating it, and then flipping or renting it can be a profitable investment. However, you should know a few tips, or you could find yourself losing money. Franklin Investment Realty will be there to guide you through the process and here are a few tips below. Consider a Real Estate Owned Property A real estate-owned property is one taken by a lender due to failure to pay. You can find listings for REOs in Philadelphia and the general vicinity on a real estate listing site, such as realtor.com. You can also check for listings through an auctioneer or on a bank or government site. Typically, an REO property is less expensive than a standard listing. Be cautious as you look for REO properties, though, because some may need significant repairs. Take into account the location and the nearby amenities. These play a major role as to whether the home will sell or entice renters. Additionally, get an appraisal to determine the listing price compared to the actual value. Rent or Sell Carefully weigh the pros and cons of renting or selling. Keep in mind that you’ll be responsible for the yearly taxes, even if you have periods when the home is vacant, if you rent. You’ll also need to maintain the house and make repairs as necessary. If you sell the home, you’ll only need to worry about paying taxes once. In addition, you may need to make certain repairs before closing if you sell. As a general rule, a home that you sell is held to higher standards than one you rent. Therefore, if the house needs significant repairs after the renovation, it may be in your best interest to rent the home. You should also take into consideration the housing market. If the current conditions are in the buyer’s favor, you may want to rent first and sell when it’s a seller’s market. When marketing the house, be sure to list it widely online with good photography. Use the best online image size converter to guarantee that your images look their best on each website. You can also use social media to publicize your listing. Know Your Responsibilities and the Law Know what you’re responsible for first before renting a home. Firstly, and possibly most importantly, you’ll need to comply with Pennsylvania laws. For instance, you must take care of major repairs, such as a broken toilet or heater. If you don’t keep the property up to code, a tenant may have a legal reason to withhold rent. You’ll need a written lease or rental agreement. The agreement should include information, such as the rent price and when it’s due. You may want to hire legal assistance to ensure you’re in adherence to Pennsylvania laws. Think About Hiring a Property Manager A property manager handles maintenance and repair. Hiring one may be especially important if you don’t live in the Philadelphia area since every time something needs to be repaired or maintained, you’d need to be there, possibly outside business hours. It’s also beneficial if you’re busy or unfamiliar with home repair. You can find local options online. Make sure you read reviews first as you compare. You’ll want to check for licensure and certifications. Turn That Fixer-Upper Into Profit Ensure your investment is profitable by making a sound decision regarding renting or selling. It’s also essential to understand the law and hire assistance when needed. – Rhonda Underhill
Guide to Philadelphia Investment Property
Guide to Buying Rental Property In Philadelphia Millennials, people between the ages of 23 and 38, have surpassed Baby Boomers as the nation’s largest adult generation. But they still trail the Boomers when it comes to being heads of households. But the strange thing is, millennial households dominate the home rental market. Because our largest adult generation would rather rent their home than own it, the real estate market is ripe for people looking to invest in income properties. America’s Favorite Long-Term Investment The popularity of real estate is near an all-time high. Low interest rates and the millennial generation’s desire to rent rather than own is increasing the demand for rental real estate. Is it time to get into the landlord business? Owning a piece of rental property can be a great investment when it is approached with a long-term outlook. Someone else pays down your mortgage, you keep the rent that exceeds the mortgage payment, and hopefully the home’s value increases over time. Financing Can Deliver Better Returns Some people think that if you are going to buy an income property it should be done with all cash. That way the entire rent check goes into your pocket. As an example, an investment of $100,000, the price of the home, may return $12,000 per year ($1,000 per month x 12), or 12%. However if you bought the same house using leverage, with only 20% down ($20,000), after interest charges your return on investment (ROI) could be over 25%. Where To Look: Location, Location, Location Everyone thinks they need to purchase a rental property where the monthly rents are the highest in a neighborhood where the buyer would want to live. That is not necessarily true. The people who gain the most from owning rental property are the ones that buy in areas with the greatest potential for appreciation. Remember we need to be thinking long-term. House appreciation will almost always surpass the money earned from growth in rents. This is where working with a knowledgeable realtor comes into play. They know where the desirable areas are that offer the greatest potential appreciation. Down The Road Owning a few paid off rental properties can really add to your Social Security check when you are ready to enter into retirement. You won’t have to “cut back” your lifestyle in retirement. You will be able to take more vacations, drive a nice car, and do the things that you have always wanted to do. Those things may be volunteering your time or spending more time with the grandchildren. If golf is your thing, you could visit and play some of the notable courses around the country, or even better, buy a golf simulator and play those courses on your projector without ever leaving your house. In The End You could invest in the stock market, but try going out to a company you’ve invested in and tell them you would like to tour the facility or look at the books. Fat chance of that ever happening! With an income property you are in control and you can drive by or enter it almost anytime you want. Owning income property can be an excellent investment. Approach it like a business and it can generate a substantial passive monthly income. Just realize that an income property is not an instant cash cow, it is a long-term investment. And in real estate, you make your real money when you buy, not when you sell. So spend some time with a Franklin Investment Realty agent that knows the market and can guide you to the better areas in and around Philadelphia to invest in. – Karl Kennedy