The real estate market continues to be on a red hot tear. Bank accounts are fat, vacancies are low, and demand is still sky high for rental units. Fat, Low, and High. Happy Dance times. Three market conditions that always, always, always, lead investors and landlords down the path of asking this #1 Asked Question: “Should I continue to rent my property or should I Sell it?” It’s a Simple question with a sometimes Difficult answer. Emotions come into play. Emotions like fear, greed, regret, anxiety. “What if I sell it and the market goes up another 10% next year?” “What if I keep renting it and the market goes to Hell-in-a-Handbasket?” The harder answer to conjure up for most of my landlord and investor clients are the logical ones, like this all-encompassing question you should be asking: “How do I determine, OBJECTIVELY and with FINANCIAL NUMBERS, if Selling […]
The phone call or email or text exchange always happens this time of year. It’s more predictable than what happens if you eat that Free gas station sushi and your digestive system. It always starts out with the landlord-angry-frustrated-pissed off-incredulous-beside themselves after they have sat down with their accountant or CPA and gotten the news about how much in taxes they have to pay on their total income for the past year. They’re heads are about to explode like a Super Nova. Finally the question gets asked to me,”Should I keep renting this house or sell it?” It’s at this point that the serious, logical dialogue starts and it usually covers the full gamut of financial calculations, emotional reasons for each action plan, and finally a projection of the results for each. Ultimately, each landlord has to make that decision themselves. But assembling the critical data to make an informed […]
Tick Tock…..time stops for nobody. We are quickly approaching the end of the calendar year and for most investors and property managers that means the end of your tax year, too. As such, it’s time to consider how to best wrap up your 2016 for maximum effect towards your Financial Freedom. Here’s some boxes to flip up the flaps and peer into: YTD P&L: Yes, it seems like this should be self-evident. But after counseling hundreds of investors and property owners, what constantly comes across is how frequently this review gets skipped, especially when profits are strong. However, doing a quick review now is beneficial to compare the P&L to past years to confirm if any expenses are perhaps out of line–both too high and too low. Both can be valuable indicators of something to dig into deeper. (Sidenote: To get a quick and accurate ROI on your property’s profitability […]
Why do sooooo many investors lose money on real estate? ….Because They Buy: The Wrong Real Estate At the Wrong Time For the Wrong Reasons In the Wrong Way From the Wrong People In the Wrong Location Using the Wrong money/financing The investors who have epic failures typically combine more than one of these reasons. Don’t be an epic failure. Be an Epic Success by getting educated and being disciplined.
Forbes recently published a concise article on how real estate investing can help you become a Millionaire. Yes, there are plenty of folks making this claim, but I do like how this author augments it with counterarguments that it’s not for everyone. In other words, it is not easy. Doable, but not easy. Here’s the link to the article: http://www.forbes.com/sites/brandonturner/2016/10/18/4-things-you-need-to-become-a-millionaire-through-real-estate-investing/#119bf80732b8 (Sidenote: If you’ve been a student in any of my courses for the Indiana Association of REALTORS (IAR) continuing education classes, MANY of his bullet points will look extremely familiar as we covered these in granular detail.)
Did you know there are options to use rental properties to help pay for your kid’s education? Here’s an article describing the IN’s/Out’s on exactly this strategy: Using Rental Property for College Education Expenses As always, if we can assist, call or click. Dan Baldini is the Founder of Polaris Real Estate & Polaris Property Management, LLC and has been an Adjunct Professor in the College of Business Finance Department at Butler University in Indianapolis where he taught Real Estate Investing. Dan focuses his practice on the residential real estate markets including Indianapolis, Carmel, Zionsville, Fishers and other surrounding areas. Dan continually seeks out new resources for Team training and education in order to keep all the Team members skills on the leading edge of real estate best practices. He is an active real estate investor himself, owning and managing a portfolio of investment properties in the Indianapolis markets. A resident of the Northside area since 1979, Dan […]