RentPro Blog

Why You Should Invest In Real Estate

Real estate investment is a great money maker. It can be a trap for some, however, if you know what you are doing and have the proper resources, you can make a great profit. There are many opportunities when it comes to real estate which are very favorable to revenue-driven people. 

The most obvious reason to invest in real estate is for passive income. This is a very appealing factor for a lot of people who are involved in real estate investments. If you can get your property set up with reliable tenants, you can make quite a bit of money renting to them. Depending on who you are renting to, the type of property, and where it is located could mean you bring in a lot of money each month. This money can give you a steady cash flow year-round which is a great thing to have in mind. 

Another reason to invest in real estate is the ability to purchase the property and eventually sell it for more than you bought it for. Of course there is a trend to how much you can make off of a property such as proximity to schools, grocery stores, and the quality of the neighborhood and property overall. A major mistake to avoid if you buy a property is to not upgrade it so much that the upgrades no longer affect the property value due to the fact that the surrounding area does not reflect similar improvements. If that can be avoided, you can still purchase a property, flip it with some nice upgrades, and sell it for a great profit. This is very appealing to people who are not that interested in dealing with the hassle and needs of tenants while still turning a decent profit. 

Lastly, a good reason to invest in real estate is that as long as the surrounding area does not get worse, odds are your property will increase in value over time. So, no matter what you plan on doing with your property, and as long as it does not fall into ruin, someday you will have a high likelihood of making a profit one way or another - through renting or flipping. Sometimes this value could be double or triple what you originally purchased it for. 

Real estate investment is a great side income to have. There are many options that it gives you as well so dealing with tenants should not eliminate this avenue for you. Real estate investment is a fulfilling route to take with great passive income options, satisfying renovations, and wonderful revenues when selling. 

How To Maximize Your Profit When Selling A House

There can be many reasons that lead you to sell your house. From needing the extra cash and downsizing, to simply starting a new chapter in your life. Whatever the reason may be, it is important to get the most money you can. After all, homes are a great investment and can easily give you a return bigger than what you put into it. Here are some things to consider when trying to max out your profit on your home.

Step one is to get your house appraised. This is a good time to slip in some renovations to increase the property value, but don’t go overboard as some luxury renovations won’t give you the return you are hoping for due to them not being realistic for the area you are in. Without this appraisal, you can not effectively sell for the best profit when you do not truly know the value of your home. Without this step, you will likely struggle when selling your house and you risk losing possibly a lot of money. 

From there, understanding the market of your area is important. Are you in a buyer or seller’s market? This is important because if there are more homes being sold than there are buyers, you are competing with a lot of other sellers. This will naturally drive down the prices of your home which will lead to a loss. This guides us to the next step.

Analyze the current market. Trends can form depending on where you are selling. A lot of people like to move in the spring and summer time as it is the most convenient for weather and if kids are in the picture, school transitions are easiest when they are on a break. There are other factors which could conflict as well such as organizing a new job while keeping the sale of the home going in the right direction. 

You’ve chosen the right time to sell. Now what? Use the appraisal to set the right price. If you price too high, you risk having to drop the price a lot and leaving the house on the market for longer. If the home is on the market for a long time, this may be an indicator to some people that there is something wrong with it and you lose out on opportunities. 

Finally, taking the best offer is better than the highest. The highest offer is nice and it can work out, however, higher offers may come with contingencies which allow people to bail on the contract. Make sure the contract with the buyer is secure and everyone is on the same page for the smoothest transaction possible. 

After the sale is all said and done, enjoy the new chapter of your life and make plenty of memories in your new place!

How To Get Your Real Estate License

Getting involved in real estate is not as hard as some may think it is. It takes a lot less time and money than other educational routes so for some it is a great alternative to traditional schooling. Of course rules vary by state, but here is a general guideline of how to get your real estate license.

The first step to getting your license is schooling. In the state of Colorado, you need 168 hours of class time in order to get your license. On average, this means it will take a working adult roughly 4 to 6 months to get their license.

The next step is to then pass the final exam. A passing score depends on the state, but for Colorado, you must pass this test of 100 in-state questions and 100 out-of-state questions with a 75% or better. 

From there, you need to pass the Colorado Real Estate Broker License exam. This consists of two parts: a 120 minute, 80 question test that consists of national questions and then a 110 minute, 74 question state-specific portion. 

Then, you need to pass a background check. This consists of submitting your fingerprints to the Colorado Bureau of Investigation where records from the CBI and FBI will be used to see if you have a clean history.

After that, you will need to get errors and omissions (E&O) insurance. This insurance is very important because without it, you can not receive an active real estate license.

Lastly, you need to complete your application and receive your broker license.

Having your real estate license is a great thing to have. It opens many doors for you and gives you great connections. When you have your real estate license, you can get access to better deals, networking opportunities, and other forms of commissions. It is a great way to make money as a main job or a side business as well as giving you plenty of options to work with so if you are thinking about getting your license, start now!

What is real estate investment? 

Real estate investment is any purchase of property that you intend to make a profit off of and not use for personal matters. 

There are many ways people can make money off of a property besides just renting it. You can make money off of land in a variety of ways including renting the space for someone to use as storage, flipping and reselling the property, and even going as far as to rent the land to a company to put solar panels on. You have many different options to think about when you have excess property and there are several options that can bring in some big bucks. 

I have a property that I am ready to make a profit off of, how do I start?

Making sure you have the funds is one of the most important starting places when you are trying to make a profit off of your property. Things can get very expensive very quickly in real estate and going into debt to finance this business is not ideal and should be avoided as best as you can. If there is something you can do without hiring someone else to do it for you such as painting or landscaping, do it on your own. Doing little things on your own and cutting out middlemen can save a lot of money when you are first starting out.  

How do I attract renters?

There are a lot of things that can attract renters to a property and there are at least as many things that can deter people, as well. Establishing your target renter is crucial to maximizing your profits as well as decreasing your odds of having a problem renter. Once you know who you want to rent to, plan your property in a way that suits the renter. For example: it would be harder to rent a property to a college student when it is a 20 minute drive away from campus than it would be for a young family who works nearby. 

I have a renter, now what?

Make sure they have appropriate funds to maintain rent payments and that they have some form of renter’s insurance in case of any damages. You can do this by requesting things such as pay stubs and getting coverage information from their insurance provider. Also, make sure you have a sound contract or lease for the renter to sign that clearly states the term length, price, and when payments are due. Also, have the contract include rules and expectations such as noise rules, pet limit, and other fees that you may want associated with your property. 

At the end of the day, do not be afraid to Google a question or ask a more experienced owner for their advice - this business is very welcoming and people would be glad to help you. Be smart, maximize your profits, and have fun!

Investing in green initiatives is a must here in Colorado. Our beautiful state ranked 10th in the US for eco-friendly behaviors last year and is expected to rank even higher this year. Many establishments in northern Colorado are even LEED certified, which is becoming increasingly attractive to investors and young adults. Going green isn’t just helpful for the environment, but can also save landlords a lot of money. Here’s 6 easy ways to make your property more eco-friendly!

Staying up to date on the laws affecting rental properties is so important as a landlord. Luckily, here at RentPro we’ve got you covered! So, let’s talk about the newest landlord-tenant Act that’s gone into effect this year. This Act is all about our least favorite critter… Bed bugs! 

Here’s what you need to know. First, if one of your tenants tells you that they suspect bed bugs you need to act quickly. The new law requires the landlord to have an official inspector conduct an inspection within 96 hours of receiving the tenant complaint. Next, the landlord must give written notice to the tenants of the inspector’s findings within two business days of the inspection.

What to do if the inspector does NOT find bed bugs: The landlord still needs to report the lack of findings to their tenant in writing. If the tenant isn’t satisfied with the inspector’s report then it is their (the tenants) responsibility to contact the local health department. No further landlord involvement is necessary unless determined by the health department.

What to do if the inspector DOES find bed bugs: Again, make the tenant aware of these findings through written notice. Next, the landlord has five days to carry out reasonable extermination measures that were determined by the inspector. The landlord will be fully responsible for paying the extermination fees. 

The good news is the landlord is not responsible for covering the cost of any damage that was done to the tenant’s personal property as a result of the bed bugs. Also, the landlord is not responsible for providing alternative lodging for the tenants during the extermination process. 

Bed bugs are definitely no good, but knowing the current laws affecting landlords is great. Make sure you’re following RentPro on social media to stay in the loop with all things property management.