South Jersey Real Estate Investors Association

 A System and Discipline by Tony Youngs

I remember when I attended my first seminar back in the 80’s the speaker said you have to have a system and discipline. I knew what the system was because he was teaching it. But I did not know what the discipline was until I began to apply the system. The discipline is that you have to take the action to make the system work properly. Through months and years of trial and error, I now know what he meant by discipline. I had to discipline myself to always take action, even when I didn’t feel like it. Despite all the easier softer ways of doing things today, I still sometimes don’t feel like it. But I force myself to take action.

Many years ago, I found something on the internet that I printed and framed and it is on my office wall. It’s called, the “7 Excuses”.  I can’t do it, I’m not feeling it right now, I’m too busy, I’m too tired, There’s no guarantee it’s going to work, I’m not good enough, and my luck sucks. I still to this day do not know who the author is, but I read that from time to time to keep me motivated. I always check to see if I’m making excuses. Let’s break it down.

I can’t do it: if that’s what I’m thinking, I’m probably right, But if I change it to, I can do it, I’m also right. I must program my mind that I can do it, Then all I need to do is try, and if I run into a hurdle, I find a wa ... Read More…

Your Short-Term Rentals Can Generate 6x Gains 

by David Pickron

Rarely in life can the quick version of anything ever compete with the more time intensive “real deal.”  Think of any instant food and you will quickly realize that I’m telling the truth.  The same had held true for real estate investments for at least the last century… but times, they are a changin’.  As you look at your portfolio it may be time to consider transitioning some of your long-term holdings into short-term rentals, and here is why; short-term rentals can generate up to six times the amount of revenue as a long-term hold.  My average long-term hold properties cash flow at around $200 per month; my short-term rentals cash flow just over $1200 per month. Does that get your attention? 

As you consider transitioning from long-term to short-term rentals, you should examine the following factors to help ensure that the changeover is successful: location, needs, and saturation. 

LOCATION

The old mantra of location, location, location in relation to real estate has endured because it is true.  For short-term rentals, it may even be more important.  A friend of mine recently converted their 5,000 square foot custom home in a regular residential neighborhood in Phoenix, AZ  into a short-term rental.  In his mind, he had already cashed the checks after he listed the home on the popular short-term rental sites. But there wa ... Read More…

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When you consider all the things you need to know about flipping houses—be as prepared as possible. If you want a chance at success in this type of real estate investing, do plenty of research about the processes, the market, and the industry–especially when you are flipping a house for the first time.

We discussed in our blog post on investing in properties that real estate businesses require you to be financially capable and knowledgeable about the ins and outs of the industry. You may also need help in understanding how to manage and successfully rent or sell your property, especially when you're looking to flip homes. To expand your knowledge, you can consult business experts or study books related to real estate businesses to keep yourself updated. In addition, you can join educational or real estate networking communities, such as the one we cultivate on SJREIA, that share valuable and practical insights to help you get started.

Like most business endeavors, there are always outliers and other factors that can affect the goals that you may not have considered previously. So, in the spirit of being prepared, let’s talk about six things that could negatively impact your house flip and how to prevent them from derailing your project and potential profits.

Disclosure from banks

Many homes bought by flippers are foreclosures s ... Read More…

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Investing in real estate can be a profitable way to grow your wealth, but it isn’t without its challenges. The guide below from South Jersey Real Estate Investors Association will answer your questions about investing in real estate as a beginner.

The Perfect investment property
Investing in real estate can be a great way to earn passive income; however, not all properties are created equal. Ideally, you’ll want to look for properties that generate positive cash flow — so you can cover your mortgage payments with your rental income alone.

Financing Your investment property
Once you’ve chosen a rental property and made sure it’s a good investment, you'll need to think about how you’re going to pay for it. There are various ways to finance your investment property, including buying with cash, using all or part of your existing home as collateral, or taking out a loan from a bank or mortgage company. If you’re planning on taking out a mortgage, be sure to review PennyMac loans and rates to get an idea of how much you can afford to spend.

Finding Help With Managing or Renting
One of your biggest tasks as a landlord is overseeing your property and addressing any issues that come up — whether it's handling maintenance, dealing with tenant questions, or deciding when to raise rents. Unless you’re planning on managing your investment property your ... Read More…

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Use Design To Increase investment property Value and Attract Tenants

Renting is on the rise in the U.S., which means landlords are in the perfect position to find new tenants. According to research, rented homes made up 34.7% of the market in 2020. Of course, other property owners are taking advantage of these higher numbers, which means your house needs to stand out. Fortunately, you can attract renters with the right design choices. Here are a few tips that can help make your property attractive to would-be renters.

Beautify the Outdoor Spaces
When updating your rental property's design, don't forget about outdoor spaces. A neat front lawn increases curb appeal, while a comfortable backyard helps renters envision living there. You can find plenty of ways to beautify a yard to great effect:
• Create a dining area
• Build a deck
• Install outdoor lighting
• Add a fire pit
• Plant flowers

It's a good idea to hire professionals to handle backyard landscaping rather than tackle these projects yourself, especially if construction is involved. As you consider contractors, make sure you shop around and look for deals to minimize costs. You should also read reviews and check with local associations for complaints.

Consider a Property Manager
Property management is a full-time job. If you decide to take it on yourself, you'll be solely responsible for the following:
• Scheduling repa ... Read More…