08
May
By First Rate Financial Group
Real Estate

The 5 Best Power Tools For Home Improvement On The Market Today

The 5 Best Power Tools For Home Improvement On The Market TodayFor most people, their home is the most valuable investment they are ever going to make. Therefore, it should make sense that people will want to improve its value over time. In this case, people are going to need to invest in power tools. Those who are interested in home improvement projects need to know about the five most important power tools available in today’s market.

A Power Drill

While this might seem obvious, many people do not own a power drill. This is almost always at the top of the list of the best power tools on the market. It is a versatile tool that can handle everything from hanging pictures to putting in a fence. People need to make sure they know about the various options for drills on the market and find the one that is right for their needs.

A Jigsaw

A jigsaw is a unique but versatile saw that can help people with a variety of home improvement projects. This type of saw is great for helping people cut shapes and curves as well as straight lines. Try to find a jigsaw that has a variety of orbital settings. This will provide the user with added accuracy and speed.

A Circular Saw

This is another saw that is important for homeowners to have. This is great for heavier cutting jobs. They have the ability to cut through thick materials easily. There are both cordless and corded options and they pack a punch. Cordless varieties are a bit heavier but they provide the user with access to tight spaces

A Cordless Screwdriver

Traditional screwdrivers can pose a bit of a challenge and get uncomfortable over time. This is where a cordless screwdriver is helpful. This removes a significant amount of effort and makes projects go by more quickly. These screws can be used to both tighten and loosen screws.

A Rotary Tool

Finally, a great power rotary tool is a must. This is used to help people with cutting, grinding, sanding, and more. This is great for performing a variety of tasks around the home and can help people with numerous accessories. Do not overlook the value of a powerful rotary tool.

07
May
By First Rate Financial Group
Real Estate

What Is Pooled-Funds Investing?

What Is Pooled-Funds InvestingUnder the Jumpstart Our Business Startups (JOBS) Act, which was signed into law by President Obama on April 5, 2012, the Securities Exchange Commission (SEC) relaxed the rules about advertising investments. This allowed the trend of crowdfunding to expand dramatically giving real estate investors more opportunities for pooled-funds investing.

What Is Polled-Funds Investing?

A pooled investment fund takes in money from a group of investors to use to acquire real estate for larger amounts than each investor’s money would support. Prior to the passage of the JOBS Act, these pooled investment funds were only accessible by large investors through private placements and private real estate investment trusts (REITs). The minimum investment might be up to $250,000 or more. High-net-worth individual investors and institutions were the only investors capable of the buy-in to gain access to these investments, which usually offered better and more stable returns.

After the JOBS Act came into being, the advertising of these pooled investment funds was possible under the new law. The phenomena of crowdfunding came out of this. Money from many investors creates a larger investment fund managed by a professional team, intending to obtain strong performance results.

Better Investment Opportunities For The Smaller Investor

These new investment opportunities allow the smaller investor to participate in a greater diversity of real estate than they could achieve on their own. Moreover, an investor can create a pooled fund to acquire a property with the help of other investors. To use this technique to buy real estate, it is helpful to work with a qualified real estate agent or broker who understands this concept of pooled investment funds.

Due Diligence Required

Not all investment pools succeed in producing decent returns for investors. The SEC is no longer regulating these polled investments carefully. This means that the challenge of due diligence falls on the individual investor. Before investing, it pays to conduct exhaustive research about the pooled investment fund, the cost of the fund management fees, the expertise of the fund’s management, and their past investment-performance history. Always remember past results are no guarantee of future performance and never invest any funds that you cannot afford to lose.

Summary

The relaxing of SEC regulations in 2012 allowed many opportunities for pooled investments to flourish. While there is the possibility of strong returns on investment, there is also some risk. Investors considering a pooled investment fund, such as a crowdfunding deal, should conduct thorough due diligence and get advice from a qualified REALTORS® in the market where the property will be located before making any investment.

01
May
By First Rate Financial Group
Real Estate

What Is House Hacking?

What Is House HackingSome clever millennials are teaching the older boomers a new way to invest in real estate, which goes by the name of “house hacking.”

What Is House Hacking?

House hacking has nothing to do with computers, although you may go on the Internet to find candidates for real estate investments suitable for hacking. The goal of house hacking is to acquire a multifamily rental property, live in one part of it and rent out the other parts for enough rental income to cover most, if not all, of the expenses of owning the property.

Live Rent-Free

As the on-site manager of a property that you own, you do not have to pay any rent. If you are clever, and the rental market is robust in the area that you choose for house hacking, then the rental income from the other units in the multifamily property will be sufficient to cover the property’s expenses. Then, you live rent-free.

Finding A Hackable Property

Multifamily properties, up to four units, are the best candidates for house hacking. A two-story townhouse that divides into two separate living spaces, a duplex, a triplex, or a small apartment building may be suitable.

Cash Flow

Calculate the cash flow from the portions of the property that rent to others. If the rent covers all the expenses then the property is said to have a positive cash flow. That is the goal. Have some funds set aside to cover any downtime when a unit is vacant between renters.

Financing

Owner-occupied properties qualify for lower financing rates than non-owner-occupied properties, which are held purely for investment.

Landlord Headaches

As the owner/landlord you will deal directly with any tenant relations and problems. If a pipe breaks in the middle of the night, you are the one who will have to deal with the problem. Be sure to screen tenants thoroughly and maintain the property. Some do not like dealing with tenants; however, if you are careful when selecting tenants and handle any problems professionally, this work provides an excellent experience for understanding further real estate investments to build up your portfolio.

Summary

House hacking came about especially for those from the younger generation of millennials simply because buying a property is very challenging on one income and even difficult on two incomes. If you consider the payment of rent by others as part of the total income that supports a property, the math may work out better. When the numbers work out, you may have found an investment opportunity with house hacking. Work with qualified real estate agents and mortgage professionals who specialize in multifamily properties for the best results.