Informative Speech Outline How and Why Own Rental Property Opening Statement – “Who likes money? Who likes making money every month without have to actually go to a job? Who would like to know one way to start building wealth? Introduction According to Fortune 500 magazine Real Estate is the quickest way to wealth build. Common practice Important steps * Find a RE expert that knows and understands the demands of an investment property vs. owner occupied property. 1. Renter friendly – at least 2 bdrm, should be 3 to 4, 2 baths 2. Priced competitively – foreclosure, 3.
Well maintained – paint, clean, good appliances, etc * Decide what type of property 1. Single residential – 2. Multifamily – Duplex or apartment (you could live on site) . Single-family houses are generally less expensive than apartment complexes because of pure size, but generate less income. Apartments, on the other hand, can require more upkeep 3. Commercial * Consider hiring a property manager. 1. Property owners become emotionally attached 2. Property mgrs is a business and are know that it is just a building 3. Decide if you want to do maintenance yourself.
If you have the skills, equipment and temperament to deal with upset tenants and a backed up toilet at 2 a. m 4. Cost about 10% of monthly income, but could net much more dollars due to contacts and knowledge. According * Decide what your goal is. 1. Steady monthly income 2. Flip – lower price so u have more instant equity or a flip * Get preapproved for a mortgage unless you have cash. RE expert should know and trust a good investment lender. Financing investment property is different from residential property in that it requires a much larger down payment and has higher interest rates than owner occupied. Start looking Choose property where people want to live, close to shops, parks and decent schools, and in a well-kept neighborhood. There’s nothing worse than owning a rental property without any renters. In addition, check out any restrictions on renting with the home owners association, which, if there is one, can have a say in any rental agreements. Your RE expert can preview the homes so to reduce the amount of time you are walking from house to house. I have clients that have bought houses without ever personally looking at them.
I tour the house take pictures, have an inspection, advise on rentability and etc. * Once the property has been chosen, and contract is accepted start advertising. Include in contract that you can show home to perspective renters before closing. * Key to ensure a good tenant 1. Home is clean and attractive – paint, carpet, appliances, etc… 2. Partner with a company (property mgr should do it) to run credit and criminal on perspective tenant. — credit will not be perfect 3. Check all references!! ** If you are diligent in this process the you and the tenant should have a very positive experience! * Ensure all docs are signed 1. Application (SS#), lease, settlement stmt, auth to run credit and criminal * Make sure repairs are addressed quickly! * If tenant becomes past due deliver the “Notice to Quit” the day of delinquence. Notice to quit gives the tenant notice that explains what is expected and the consequence. Usually 3 day for non-payment 1. If 5 day grace deliver notice on 6th day 2. When delivered tape notice and picture with date stamp