Tag: #knowthecost

Property Management: The Pros and Cons

Posted on | by Allison Zuck

Two weeks ago, before the holiday, we covered the pros and cons of self management. Although we are a property management business, we want to be completely transparent with what you are getting into. We want you to make the best choice for your real estate, even if that’s going with self management instead of using us. However, we also want you to be fully informed. So, here are some pros and cons of hiring a property manager.

Cons of Property Management

First, you do not get to dictate how the property is maintained. When hiring a property manager, you are saying you trust them with your investment. If you hire the wrong property manager, this could potentially backfire.

The other biggest con is the cost. You have to be able to afford the rates property managers charge. They’ll take a cut of your profits. Additionally, they’ll take a fee for the new tenants they bring on board. However, as long as they fit within your budget, that shouldn’t be too much for you to handle.

Pros of Property Management

They make your life easier. After you hire a property manager, you are essentially earning income while hands off. They have more specialized knowledge of the market, as they keep track of many properties.

Additionally, property managers don’t have the same emotional connection to your property. That means they can make objective decisions about your property that you may not be able to do.

They also have a network of maintenance services, so that you don’t have to scramble to find someone to fix issues in your property. Essentially, with just a monthly fee, they’ll take care of all the day to day decisions about your property, leaving you to focus on more important things.

Essentially, you need to decide what’s best for you! You know your property the best. If you think it will flourish more with a property manager, get one! If you think self-management is the way to go, stick to that plan. You can always change your mind and go a different route if the first doesn’t work for you. Just do what’s best for your business!

To learn more about this topic, check out the article that inspired this post: https://www.biggerpockets.com/blog/property-management-vs-self-management#the-bottom-line-no-one-cares-about-your-properties-like-you-do

Self Management: Pros and Cons

Posted on | by Allison Zuck

Property management is an essential part of real estate investment. There are pros and cons to the two options you have: doing it yourself or hiring a property management company like All County Legacy. Often, it can boil down to costs and your own personality. So, lets dive into some of the details of self management this week and next week we’ll cover what the advantages and disadvantages of hiring property management is.

Self Management

Self management is when you are the only one responsible for your property. You get all the profits, but you also do all the work. Here are some pros and cons:

Pros:

You don’t pay a property management fee. Because you are doing it all yourself, you are saving the cost of their services.

You also get to choose your own tenants. If you are very selective about who lives in your property, not hiring out to a property manager can make sure that you get to choose your own tenants, instead of relying on someone else to make the selection for you.

Cons:

It’s a large time commitment. Many real estate investors are looking for a stream of income that does not consume their days. Fully managing their own property would take up quite a bit of time.

Additionally, you don’t have an expert on hand to ask questions to. You will have to keep your real estate knowledge current, to make sure that you are making smart decisions and following the law. Not only will your property manager have up-to-date knowledge, but they will also have connections and experience that will help you make financially sound decisions; something that could be harder for you to do on your own.

Next blog, we’ll look into property management. Taking a look at both ways to care for your property will help you make the best decision for you, which is most important for your investment business.

 

For more information about this topic, check out the article that inspired this post: https://www.biggerpockets.com/blog/property-management-vs-self-management#the-bottom-line-no-one-cares-about-your-properties-like-you-do

Off-Market Properties are the New Market

Posted on | by Allison Zuck

Off-market properties are hard to find. You don’t have the ease of access of it popping up on the internet. But, they can be very profitable for you to invest in. Think of them like the hidden gems of real estate. There are three main reasons why these off-market residences are so great for investors.

Negotiation

First, you don’t have to jump through as many hoops to negotiate on the property. In fact, you work with less people than a traditional piece of real estate. This means that you are better able to obtain a price that works for you and the seller, because you don’t have the same amount of middle men involved in the process.

Competition

If the property isn’t on the market, then other buyers aren’t looking at it as closely. Sometimes, for marketed real estate, you will have to outbid other interested investors. This isn’t as much of an issue with an off-market property, because not as many people will know about it.

Lower Price

If this property isn’t getting as many bids, you can open a negotiation that satisfies you and the seller. The market sometimes drives the prices of houses up, but an off-market find can enable you to get the best deal possible.

It can be helpful to your business to pursue leads that are off-market. These leads can hopefully grow into some of your most lucrative investments!

 

Strategizing Success

Posted on | by Allison Zuck

You can get caught up in so many things  when starting a new business! You can micromanage all the details and lose sight of the big picture, or you can focus so much on your goals that you forget to put in the supporting work to get there. It’s easy to be overwhelmed. If you keep some simple principles in the front of your mind, you’ll have nothing to worry about. Here are three tips to get you started.

Keep Your Goals

Your goals are super important. If you forget what you want to achieve, it will be hard to get there. Therefore, in order to make sure you achieve what you want, always remember your final plan. Make big dreams and keep them! You can figure out where you want to end up, and then figure out how to work backwards from there. You can only get there if you know where you’re going!

Know the Costs

You need to keep all angles of the money in mind, from costs to profits. If you don’t know what you’re spending money on, or what’s bringing in the profits, your business won’t reach its full potential. It’s also okay to hire someone to keep track of everything if you have too much on your plate. Just make sure you know what’s happening at your business all the time!

Keep Growing

Your business needs to keep growing continuously. Because of this, you need to set yourself up for growth. One of the best ways to advance your business is to use marketing. Marketing will help you reach more people, and will hopefully make you more money in the process. However, try to figure out the sweet spot of spending and making money. At some point, you won’t gain anything, even if you’re spending a lot of money. Once you find the sweet spot, you can make your business move past it, and then invest even more in marketing.

Starting a new business is overwhelming, but keeping these three things in mind will help you achieve all your goals!