September 2015

What Kind of Property Makes the Best Rental?

In 2006, NASA admitted they had accidentally taped over the original recording of the first lunar landing.

In 1962, Decca Records had a choice to sign one of two bands. They chose Brian Poole and the Tremeloes. The band they rejected? The Beatles.

In 1788 the Austrian army accidentally attacked itself and lost 10,000 men.

Clearly, mistakes happen. The same will be true for your real estate business, though hopefully to a lesser extent than the examples mentioned above.

However, one mistake that can be deadly to your real estate business is this: choosing the wrong property.

Making the mistake of picking the wrong property is a lot like picking the wrong spouse. It can be incredibly stressful, expensive to get rid of and detrimental to your well being!

But how do you know what the right property is? After all, there are a lot of properties out there.

  • What should you buy?
  • What should you avoid?
  • Are four bedrooms better or worse than two bedrooms?
  • What about garages?
  • What about neighbors?
  • Color? Age? Size?

These are important questions you should be asking if you want to buy the right deal and have the most success as a landlord, so let’s dig in on several things that I look for when shopping for a rental property.

Keep in mind, all of this depends heavily on the trends in your location. Furthermore, the following list is not a bunch of rules you must follow, but rather pieces of wisdom that I’ve picked up on and have served me well. So let’s get to it.

(Click to read on BiggerPockets…)

Can You Invest in Real Estate With Bad Credit? (Maybe… Here Are 5 Ways to Do It)

One of the most common questions I am asked each week on the live BiggerPockets Webinar is simply, “Can I invest in real estate with bad credit?

It’s a great question, considering twenty-five percent of Americans have a credit score of less than 600, according to the Wall Street Journal. That’s a huge chunk of individuals who are unable to obtain a mortgage, thus making real estate investing a difficult task.

So, can you invest in real estate with bad credit?

Well, I have good news, and I have bad news:

  • The good news is YES; you can invest with bad credit. Later, I’ll explain five ways to do it.
  • The bad news is you probably shouldn’t. Unless… (We’ll get to that. But first…)

Why Do You Have Bad Credit?

Bad credit can happen for a variety of reasons. Perhaps medical bills caused the issue, or maybe identity theft. Maybe a person lost their job and had to miss some payments. The economic recession that started in 2007 led millions of Americans into financial difficulties, destroying millions of credit scores in the process.

But also, sometimes bad credit is caused by good ole fashioned stupidity and ignorance. A credit card here, a credit account there. Vacations, new clothes and other “need-it-now” luxuries have caused thousands of people to lose their good credit score and wind up in a rough spot.

No matter what reason you have for having low credit, it doesn’t matter anymore. It’s done. You have bad credit. But the real question is:

(click to continue reading on BiggerPockets)

 The Surprisingly Simple Reason Why You Feel Stressed

“The tree that never had to fight
For sun and sky and air and light,
But stood out in the open plain
And always got its share of rain,
Never became a forest king
But lived and died a scrubby thing.”

-Douglas Malloch

Many years ago, researchers in Illinois planted a number of small trees inside a greenhouse, dividing the trees into three groups.

  • The first group was supported firmly by a wooden stake to help it grow tall and straight.
  • The second group was not staked at all, but left to grow free.
  • The third group, like the second, was unstaked, but the tree was manually shaken back and forth for several minutes every day.

After several months, the researchers looked at the three groups of trees and saw the inevitable: the trees in the first group that were staked were tall but weak. The trees in the second group were of medium height, but also fairly weak. The third group, which has been shaken daily, had developed strong roots and a thick trunk that would help it grow up tall and strong, though perhaps slower than the other two groups.

The analogy should not be lost on you: strength comes from adversity. No doubt you have seen this in other areas of your life. Problems will arise, and it’s how you deal with them that will define your future. But how do you handle problems without being frustrated, stressed, irritated and unhappy?

On a recent project, I think I discovered the surprisingly simple answer.

Where Does Stress Come From?

 (click to continue reading on BiggerPockets)

 

The Stupid-Simple Truth on How to Buy More Real Estate Deals

“I can’t find any good deals, Brandon.”

I hear this over and over and over from individuals on BiggerPockets and out in the real world.

And I get it.

It’s hard to find good deals today. Real estate is becoming more and more popular, and even mediocre deals seem to be snatched up before conservative investors ever have a chance.

However, today I want to share with you the stupid-simple truth about acquiring more deals this year.

Are you ready for this?

The stupid-simple way to get more deals is this: analyze more deals.

Let me explain.

Real Estate is a Number’s Game… in Several Ways

Real estate is a number’s game, but I’m not referring to the financial side of it.

Real estate is a number’s game in the same way that dating is. Or being a salesman is. Or begging for money on the street corner is. It’s all about the odds. 

Related: Forget the MLS… Here Are 7 Clever Ways to Find Great Real Estate Deals!

In dating, the more guys or girls you ask out, the greater the chance of one of them saying yes. The more people you date, the greater the chance one of them will become your future spouse. Therefore, if your goal is to get married, you’ll find it incredibly difficult to get there if all you do is sit at home and read about dating.

 (click to continue reading on BiggerPockets)