Real Estate 411: How do I protect my investment property during the winter months?

Maximize your ROI with these tips on caring for your investment property

Seasons are changing, we are no longer experiencing 105 degree heat and we can actually enjoy sitting, eating and playing outdoors – at least for a short while. The changing of the season brings new maintenence issues that will need your immediate attention.

During these next few months we will have more rain and colder, more extreme temperatures – you want to be prepared for the fall and winter months and do what you can to preserve and protect your investment property.

Here are our tips on things to do to make sure your property is prepared to handle the colder weather and avoid unnecessary energy loss and or cold weather disasters! Whether you own one or 20 properties, doing these things now will pay off when Spring comes!

Winterize:

• Protect your water supply lines by covering exposed faucets
• Insulate lines exposed to cold
• Use insulation foam to seal cracks and crevices
• Seal windows and doors to cut down on energy loss
• Fill cracks in drives and parking areas to protect from additional damage due to freezing water
• Paint and spackle doors, windows, and fascia sofits – this will pay dividends next spring!
• Replace and seal damaged siding and wood – this will save you money now, before additional damage is done by the wet and cold weather

Avoid frozen pipes:

• Locate your home's water cut-off valve NOW - learn how it works so you can act quickly in case of an emergency
• In case of broken pipes, turn water off at the main shut off, if the location of the main shut off is unknown, turn off the valve located on the hot water heater (generally located on top of the water heater)
• Cover all foundation vents by filling the openings with foundation plugs - ideally, you should install your foundation plugs in late October and remove in late April
• Disconnect water hoses and wrap outside hydrants and spigots
• Drain your sprinkler system before the first freeze
• If your home has a hot tub or pool, keep the water circulating constantly in freezing weather
• If the temperature is below freezing, leave the heat on and open cabinet doors under sinks, allowing warm air to circulate around pipes

Avoid the expensive cost of potential repairs in the Spring by being proactive in the maintenance of your investment property this fall and winter.

Other important items:

• Test and replace (if necessary) all smoke alarms
• Replace A/C and heater filters for better efficiency
• Clean out gutters and downspouts
• Continue your landscape maintenance - mowing, edging and weed-eating for a while longer
• Trim bushes back and tree limbs away from the roof
• Spread out the fall weed killer and fertilizer

Need help with your property management?
For assistance in managing your investment properties, contact CENTURY 21 Judge Fite Management Company, a locally owned, certified full service property management company. C21JFPM has been successfully managing homes in the DFW Metro area since 1952 and continues to manage over 1500 local homes. For more information call 972-780-5380 or visit www.C21JFPM.com.

Help your tenants protect themselves with Renters Insurance
We also strongly advise that you recommend Renters Insurance to your tenants to cover their personal property and protect their household from major losses. For more information, or to obtain a competitive quote, contact Linda Shade with CENTURY 21 Judge Fite Insurance (214) 446-2571.

CENTURY 21 Judge Fite Company

800-451-8055 or email 411@judgefite.com

5 Tips for Successful Real Estate Investing

In today’s real estate market good deals are abundant for those ready to invest.

In fact, today a buyer can buy real estate and have a better cash flow than in years past. Two years ago an investor would be happy with buying an investment property that could cash flow $200.00 a month over the mortgage payment. That was figured on a 20-year mortgage including taxes and insurance. Today you can buy rentals that will cash flow up to $400.00-$500.00 or more per month.

TODAY’S OPORTUNITY IS BETTER THAN EVER.

Plan your future with rental houses in it. Buying investment property today comes with low interest rates and lower taxes due to the lower sales prices - resulting in lower payments than just two years ago. Rent prices are stable and we continue to see a growth in the rental market due to our economic times.

Once you buy an investment property, follow the model of successful investors and hire a professional management company to handle the day to day minutia. Spend your time locating those real buys and let a property management company do the management.

Be sure to look at homes that need work. Mortgage companies are not generally interested in spending more funds repairing them, resulting in you getting a lower price. All sounds real simple, right? It doesn’t have to be complicated, following a few simple steps will help you get started. The following tips will keep you on track as you grow into a real estate mogul with successful investing!

5 TIPS FOR SUCCESSFUL REAL ESTATE INVESTING

1. Make a plan – Determine how many houses you want to purchase per quarter, per year, and know how much cash-flow you want each property to produce for you over and above mortgage, insurance and expenses. Other items to plan for are:

a. What areas do you want to target? Look for properties that meet your criteria in the areas that you choose.
b. Look for a win/win in every purchase; it needs to work for you, the bank and the owner.
c. Don’t get emotional, learn to negotiate – this is a business purchase.
d. Remember that ugly ducklings can be made beautiful. Look for properties you can fix up to increase the value of the neighborhood – which in turn increases your investment.

2. Know your objectives - Write out your objectives for investing. Do you want to

a. build future wealth on investments that will cash-flow itself while building a retirement income on a 20-year note,
b. build short-term wealth that provides a monthly income from the cash-flow on a 30-year note,
c. or, get immediate cash by buying low and flipping (fixing up and selling for a profit)?

3. Set your Parameters – Determine the parameters in advance, i.e. what type of house will you buy? What type of lease will you take? What can you afford to buy?

a. Go for the lower maintenance, more popular styled home for your area: i.e. 3 bedroom, 2 bath, 2-car garage, central heat and air, with brick exterior. Remember, the better quality home the better quality tenant/lease you will be able to secure. Stay away from homes that require continuous maintenance and upkeep (i.e. homes with wood siding).
b. Go with a minimum 2-year lease. A tenant who signs a 2-year lease will most likely sign for another 2 years, and another 2 years – you are already 6 years, into paying off your investment!
c. Know how much money you can invest in a property without breaking YOUR bank! Look for REO’s and houses that have been on the market for a very long time (180 days +).

4. Get your $$$$$ in order – Of course you will have to get your credit in order and have a good relationship with your lender. Here are a few “secrets” from the experts to continue your success:

a. Have a 6 month “emergency” fund put back to protect you and your investments.
b. Save money to take care of your future. No one else can do this for you.
c. Pay attention to your business, your assets, what you are spending and what you are saving.
d. Learn to GIVE. It will come back to you.

5. Use a property management company – One of the biggest mistakes and “time guzzlers” is in trying to manage your investment properties yourself. Experts advise you NOT to manage your properties yourself...”don’t worry about the $45 and $50 items that need to be fixed at your property, instead focus on the $40,000 equities that are out there!” A property management company will take care of these things for you, freeing your time and resources to develop your investment portfolio:

a. advertising your vacant property
b. thoroughly screening a prospective tenant
c. performing move-in, move-out and periodic inspections
d. expediting emergency repairs
e. handling regular maintenance and upkeep of your property
f. overseeing any legal or collection issues

Real estate investing is a proven way to build wealth, and anyone can start! Use these simple tips to get started then contact a trusted real estate professional to help you with your first purchase.

Happy investing!

To find a real estate professional, contact CENTURY 21 Judge Fite Company, a locally owned DFW real estate brokerage with over 70 years of real estate, mortgage and insurance experience. Call 800-451-8055 or email 411@judgefite.com.

Find out how to make your property management worries disappear. Contact CENTURY 21 Judge Fite Management today! Call 972-780-5380 or email propertymanagement@judgefite.com.

Planning to buy a home? Here are 6 easy steps to purchase your dream home.

Most Americans do not pay cash for their largest investment, a Home. Plan today for your future. If you don’t someone else will.

STOP going to those back room, cousin and brother-in-law deals that sound too good to be true. Remember, if it sounds too good to be true it most likely is. I sat with a couple in the conference room yesterday who had given a man$ 5,000 for their down payment only to learn he was not the owner, they lost $5000!

First step on how to get a great mortgage is to call a Centurion Mortgage Company loan officer at one of CENTURY 21 Judge Fite offices. I personally refinanced 20 mortgages with Centurion Mortgage 6 years ago and they took care of me throughout the entire process. My interest was protected from beginning to closing.

Second step is to pay for them to run your credit from the same three credit agencies that will be used to qualify you for the loan. Once the loan officer views your credit that will allow them to identify any challenges that exist. Never lose sight that Real Estate Builds Wealth. Have the Loan officer go over with you any derogatory issues that may exist and write down a plan to clear them up.

Step three - begin with the smaller balances and work up to the larger ones. When you clean up issues on your credit the end result is you get a cheaper interest rate which affects the monthly payment for the next 15 to 30 years. Allow the loan officer to explain the different types of loans available to you and which one fits your financial situation. The loan officer will identify how much you need for a down payment and closing costs ahead of time, avoiding those last minute emergencies of trying to locate additional monies for closing. Plan ahead is always the best and cheapest approach to buying big ticket items.

Step four , organize your financial information and identify all of your recurring expenses, car loans, credit cards, existing mortgage loans, child support, gym memberships, etc.

Step five, identify your gross income including child support if you are the recipient. Have check stubs for the present and previous pay periods. If you are gaining financing through a traditional bank you will need to follow the same procedures. If you are going through a bank it is better to have established a relationship a year or two in advance of needing a loan. Shop Bank rates as you would have the Centurion Loan officer do for you on their loans.

Step six, once you receive a letter of pre-approval from a reputable mortgage company, you can now move forward and select a Professional Realtor at CENTURY 21 Judge Fite Company (the number 2 CENTURY 21 Agency in the World) to assist you in finding the right home for you and your family. Judge Fite himself said it well “Begin the rest is easy”. You are in charge of your future wealth, do not leave it up to fate or you will go homeless and hungry. Take action today to change your future for the better.

How can I build wealth with Real Estate?

Jim Fite, President of CENTURY 21 Judge Fite Company in Dallas / Fort Worth, shares his easy tips to building wealth through real estate investments in this month's 2-minute video, below. For more information on the Real Estate 411 campaign, click here.

Can Real Estate Help Me Build Wealth?

More millionaires are made through real estate than in any other industry!

FACT: 60% of homeowner’s wealth is from the equity they have built in their home.

FACT: The average homeowner’s net worth is 46 times the net worth of the average renter.

FACT: During the last three decades, home values have increased an average of more than 6.0% per year.

FACT: There have been more millionaires made through real estate than through any other wealth building medium anywhere in the world!

A wealth of housing data clearly demonstrates that housing is a good long-term investment. According to a study by the U.S. Department of Housing and Urban Development, 60 percent of a homeowner’s wealth is from the equity they have built in their home. A Federal Reserve study has shown that the average homeowner’s net worth is 46 times the net worth of the average renter.

You might be wondering if buying a home right now is a smart financial decision. The fact is, homeownership is key to building long-term wealth, no matter when someone buys. Studies show that, over time, most homeowners will steadily build equity. For example, during the past three decades, home values have increased an average of more than 6.0% per year*.

If you’re one of the five million people who list their home for sale this year, it has been shown that when it comes to selling a home, you’re better off using a real estate professional. Someone who can get the job done in half the time and can sell it for more than if you sold it on your own. That’s because CENTURY 21 Judge Fite Real Estate Associates are experts—they have extensive experience staging the home, marketing it, showing it and attracting qualified buyers to view it. They can explain options in your area that best fit your situation. Every market is different, contact a real estate professional before you embark on buying or selling real estate.

To find a real estate professional call us at 800-451-8055 or email 411@judgefite.com.

To search over 70,000 North Texas properties, or find out how you can start a career in real estate, log on to www.CENTURY21JudgeFite.com.

*Source: NAR existing home sales historic series.