property owner – Premier Business Investments, LLC

Investing in a Single Neighborhood vs Spreading Out Your Investments: Which Option is Right for You?

As property investment is considered fairly low-risk compared to other types of investments, an increasing number of Americans have begun investing in property. If you’ve already bought an investment property and want to buy more, you’ve probably considered where you should be investing next?

Here’s something to think about, you should consider investing in multiple properties in the same neighborhood or diversify your portfolio by spreading out your investments to maximize your profits. Please continue reading to discover which option is right for you.

Benefits of Investing in a Single Neighborhood

Makes a 2nd Purchase Easier: If you have been managing a property in a particular area, you already know the neighborhood; however, you should also be familiar with your local laws, tennent demands, taxes, and insurance fees. This type of knowledge is very beneficial when buying another property in the same neighborhood.
Offers Good Returns: Buying another property in a neighborhood that has already been established as having a good ROI and cap rate is always a good idea and offers good returns on your investment. When you own a number of properties in the same market, it also creates positive cash flow. However, equally important, make sure you’re getting a fair market price based on the property’s location.

Benefits of Investing in Multiple Neighborhoods

Lowers Your Investment Risks: There are many reasons why diversifying your portfolio is emphasized in relation to any investment. Whether it’s stocks or property, diversification lowers your investment risk. Although the housing market is not as volatile as the stock market, there is always the very real possibility of negative changes in the market. These can come in the form of natural disasters, such as tornados or earthquakes that can create extensive damage to your home coupled with pricey repair bills. Alternatively, these changes can also come in the general depreciation of the value of a neighborhood. What once was a respectful neighborhood may no longer stay or be that way in the future. Moreover, by spreading your properties out, you are minimizing your potential losses and lowering your investments risks.
Future Appreciation: By buying multiple properties in different areas, it is almost guaranteed that the price of at least one of your properties will greatly increase in the future. This is due to new infrastructure and regeneration projects being built in the area, specifically designed to breathe life back into that location. For example, if a new mall is built near your home or if a new canal or garden is created close to your location, the price of your home will go up. To fully capitalize on this aspect, you should be looking into noteworthy future architectural changes and other projects taking place in the areas that you to invest in.

Why Hire Professional Property Management Services?

If you’re still unsure about which option would suit you better, you should hire Premium Business Investments to let us help you with your property needs. We will analyze the market and come up with the most suitable plan that meets your requirements. Investing can be tough, so let our experts take care of the nitty-gritty for you by contacting us today and discover a wide range of options that’s right for you.

July 24, 2020/by Mark Lepire

How to Quickly Determine the Value of an Investment Property

Property Management

Investing in property can be a tricky business as you need to ensure that the residence you’re buying has a good resale and rent value. This can be determined by location, quality tenants, and a number of other factors. If all of this sounds overly complicated to you, make sure to read through this quick guide that breaks down the value of property management companies and lets you make better financial decisions.

Here are three pro tips you can use:

Pro Tip #1: Calculate Rent Based on Comparable Sales in the Area

Before expecting to make any returns on a property, you need to have the price range validated by the volume and prices of houses that are being sold or rented out nearby. Avoid looking at national prices, just focus on the specific neighborhood where the sale is being made.

If you’re planning to sell or rent out a house immediately as a secondary property, this step is crucial to learning your margin of profit. However, if you’re a homeowner looking to buy your first residence or flipping it, you need to consider the location of the area as well as the following questions:

Are there hypermarkets nearby?
Are there schools nearby?
Is it conveniently located?
Is it in a good neighborhood?

All of these factors will increase resale and rental value, even if the property might be more expensive for you initially.

Pro Tip #2: Calculate the Rate of Investment (ROI)

Once the ideal location has been established, a better way to calculate your profits from rental properties is with an ROI. Below is a simple list that explains the basic concept of the ROI:

1. You buy a house for $400,000.
2. You rent out the property for $3,500/month.
3. The upkeep of the house costs you $400/month.
4. The ROI is the percentage of your profit per year, and it’s essentially a percentage of your earnings. For example, let’s say your annual income is $3,500 x 12 – $400 x 12 = $37,200. Therefore, your ROI per year is 37,200/400,000 = 0.093 or 9.3%.

It is essential to use the ROI to get an estimate of the number of years it will take to earn back all the money spent on the property and start making a profit. When you have a couple of houses to buy in mind, you should use ROI to compare them against each other to find the best bang for your buck.

Pro Tip #3 : Compare the Price Against the Quality

To maximize your profits, you need to be able to know whether a property is a good investment or not. Namely, is the price demanded for the house on par with the quality? Do excessive renovations need to be made to a house?

If you overpaid for a rental and end up splurging on renovations to make it attractive to prospective clients, the only way to recoup your losses is by charging your potential renters more. This drives away clients and guarantees loss. Always get a second opinion from an unbiased property manager before making a purchase.

Live a Stress-Free Life by Hiring a Property Management Company

If you have one or multiple properties that you want to rent out, use Premier Business Investments for a smoother ride. Our company has the marketing experience and resources to handle any matters related to your property from advertising to prospective clients to maintaining a property in a good condition. For more information, simply contact us today and get ready to maximize your property investments.

July 10, 2020/by Mark Lepire

Property Management vs. Self-Management: What’s the Difference?

Property Management

Real estate is a beneficial investment opportunity; once one has rental properties and is selling in the market, the next thing an investor needs to figure out is how to manage the property profitably.

In the market, there are two ways to manage property in today’s world; we either manage them as self, or we engage the services of a property manager. Property management entails many aspects on a daily:

Fielding complaints
Enforcing the lease
Finding new tenants when vacancies occur
Tenant screening
Making repairs when needed
Moderating issues between tenants
Determining rental rates
Evicting a tenant when need be
Advertising your property

Given the many responsibilities involved in property management, it is easy for the owner to decide on who takes care of the property. Property management saves one time and effort while at it; things are taken care of professionally and speedily, whereas self-management saves money.

Self-management

In self-management, the landlord is also the owner of the property. Tenants come to the landlord who is the owner when paying rent and when needing repairs for their household.

Property Management

In property management, someone else manages the property on your behalf but at a fee. The manager handles the day to day tasks and ensures that your property is profitable and maintained to avoid spoilage of one’s investment.

Differences in Self and Property Management

In self-management, we have more financial savings since the landlord the one managing the property and collecting all the rent. In property management, the owner has to pay agent fees.
In property management, the property managers have experience in the industry and know the dos and don’ts, not to mention a quick turn around when problems occur. In self-management, the owner who doubles up as the landlord has no experience in the industry and is exposing himself to legal risks and fraudsters.
In the event of vacancies in the property, a property agent will know how to screen potential tenants, unlike as they have the experience to weed out tenants who are likely to default; a self-manager will not have the same privileged because of lack of skill and experience.
In self-management, the owner has greater control of the property, unlike when the property is in the hands of property management, where the manager has no relationship with the property and handles it like a business.
In self-management, the prices set as per the discretion of the owner, which may be too low or too high, too little may mean the owner is running losses, and to high may mean the owner is not attracting customer, thus a loss situation. When a property agent manages the property, the reflects amenities and the location of the property.
In self-management, the owner is guaranteed of the returns and sure of the cost of repairs as they are in touch with the property. When the owner has engaged the services of the property management company is some instances, they tend to be fraudulent and steal from the owner by having unnecessary repairs, not to mention not depositing the rental income.
In property management, the owner has time to handle other businesses as they have someone watching their property. In self-management, the owner has limited time between their job and the management of the property as the owner has other priorities.

Overall it is better to find a property manager. One of the best property management companies is Premier Business Investments. They are known for their specialized services, and some of heir benefits includes.

Broken Doors and Locks Policy.Where when they have a broken lock or door, the tenant has an available spare key to use as an alternative or instant repair services where a locksmith goes to fix the tenants’ door.
Air conditioning services. During summer, the heat in the living room is not an added advantage, and therefore if the air conditioning is broken, then a repairer is asked to go to the specific apartment and fix the problem.
Bathtub and drains. Once in a while, the bathtub and drains get blocked, and one needs the services of a plumber to come and fix as Premier Business Investments is responsible for allocating a plumber to go and fix the two aspects.