Freeing money from your investment property

Freeing money from your investment property:

In 2008, when the real estate market experienced a fall out, a lot of people ran from investing in real estate. As is the case in any market turn around, there are those who seem to benefit from the event at the expense of those who don’t. You may be one of the smart investors who bought at the bottom of the market and are still sitting on those investments. If you are, then this may very well be an article for you.

By now, you are probably comfortable with the concept of equity. Equity is simply the difference between fair market value of a property and the amount of money owed on that property. So if your property has a fair market value of $1M and you owe $500K, then you have $500K equity.

While this sounds great – having your money tied up in one property may not be the most effective use for that equity. One way to “unlock” some of that equity could be through a refinance option. This would be done by taking out a new loan, for more that you currently owe, paying off your existing mortgage and then investing the balance of the cash into another investment property. This is called leverage – effectively where you use less of your money to acquire more properties, by borrowing more against (leveraging) the properties.

The upside is that you would be able to own more properties – this creates the possibility for you to experience and benefit from market appreciation. The down side is that your properties would be encumbered for longer periods of time, your payments would increase, and you might become more sensitive to the effects of any vacancy. Again, this decision should be made in accordance with your personal risk profile – you need to understand and be comfortable with the possible outcomes of any investment decision.

Watch this space for more value add articles from RESE Property Management LLC, if you have any questions or would like to have a chat about anything relating to real estate, please feel free to call the writer.
  Call Tony du Preez @ 801-360-6424 or email tony@resepm.com

4 Symptoms of a Toxic Investment Property

The number of housing units occupied by renters in the United States has been steadily increasing since 1975, but there has been a sharp upturn in the past few years. In 2015, there were 43.58 million renters occupied housing units; this is up from 38.02 million in 2010. As housing demand rises, more rental properties are becoming available which means more investment opportunities. The question is, how do you know what is a healthy property that gives you a good return, and what is a toxic one that will rob you of all profits? Toxic property management is a soul-sucking, profit-draining venture, but there are ways to spot a toxic property before you get sucked in. Look for these four symptoms of a toxic property investment:

It’s Flubber!

Who would have known that you could actually make Flubber, it’s not just a Robin Williams thing anymore. Here are some fun ideas on how to keep the kids entertained over summer. Just head on over to this link  and you’ll be able to enjoy endless amounts of activities. Your favorite property management specialists, 46076_138064219568514_2620457_n RESE Property Management

Owners Workshop Jan. 7, 2015

Thanks to all those who joined us for our first owners workshop in January 2015. For those of you who missed it, here is what was covered: Owner/IRS Relationship:

– Relevant IRS Forms and Schedules

– Tax Benefits of Rental Real Estate

– Tax Implications of Rental Real Estate

Owner/Property Relationship:

– Net Operating Income

– Performance Measures

– Maintenance

Owner/Tenant Relationship:

– Quality Tenant Attraction

– Problematic Tenant Management

– Tenant Appreciation

These workshops will be held quarterly – join us for our next workshop in April.  Contact Rachel at 760-846-1501 or rachel@resepm.com for more information on our next workshop. Your Property Management specialists, 46076_138064219568514_2620457_n