Our first speaker today was Chala Mohr with Coldwell Banker in Denver, CO. Today Chala wanted to go over how to get into an investment property. There are a few ways to get an income property the first is to save the 20% you will need for a conventional loan. The second option is to find an investor, whether this be family, friend or business partner. Your third option – Chala went over is to turn your current home into the rental property, with this option you have to make sure that you can qualify for another loan to purchase your new home. Also with this option you need to make sure that you have lived in your current residence long enough – this will depend on the restrictions in your loan documents. The last option she discussed was selling your home and using that equity to buy two homes – an income property and a residence to live in. Remember Chala can help with a current home valuation.
For this step you should be talking to a lender – like Denise Wing of Academy National Mortgage – she will help figure out what you can qualify for and what you need to accomplish your desired loan or loans. If you are not ready she can help you figure out what you need to do to get ready for the future purchase of an income property.
Owning an income property can be a risky venture and by taking the time to talk to an accountant like Cindy Dudden of Gracie & Dudden, PC or a lawyer like Jo Kitto of Ambroziak and Kitto can reduce your risk by explaining some of the advantages and pitfalls of owning a rental property. These two industries can help you understand your tax liabilities and deductions that will come with a rental property as well as protect you by designing a lease that will best protect you and your tenant. A lawyer will also work with you to start a corporation to keep your personal and investment issues separate to protect you assets. Be sure to make sure have everything in place to keep you protected! One other thing Chala suggests before jumping into the rental market is to have at least a six month nest egg to cover the mortgage and operational bills, that way if the property does have a tenant for a month or so you can cover that without panicking.
Chala Mohr also recommends a good home warranty with an income property – this will protect your income as when a furnace or large appliance goes out the warranty company will send out the appropriate repair person and repair or replace the item that is broken. Chala took this time to remind us that when you purchase a home with her she gives you a home warranty for this first year as a gift.
When you are ready to purchase your income property call Chala Mohr and she can help you find the best property for you. She will help you determine what the projected rent is in the area you are researching and will help you find the property that will have the highest yield of net income. If you are looking at moving from your current property and turning into a rental she will determine what other properties are renting for in the area. The one thing last thing that Chala highly recommends but cannot provide for you is hiring a property management company. Working with a good property management company will save you lots of time and trouble; they will find qualified tenants, collect rent, make sure that all the current laws are followed and with a property management company you are less likely to get sued.
The next topic Chala went over with us is why is now a good time to invest. First and foremost is because of the increase in property values in our market, people now have equity in their homes which allows them to have access to possible capitol. Secondly, the vacancy rates for rental properties in the metro area are below 1% due to the recent floods. But even before the floods the vacancy rates were below 10% – people want to live in the Denver metro area! Lastly, the interest rates are still low – 4.5 – 5% for a 30 year loan! With our market doing so well the price of an average home is down from its summer high at 319,000 to 312,000, and there are around 10,500 active properties on the market which is almost as much as we had this time last year, so there are a lot of options out there!
So if you are looking at jumping into an investment property or know of someone who is, Chala would love to help. She can also help those who already have income properties and would like to sell and either move their properties or upgrade them while doing 1031 exchange.
Our second speaker today was Leailia Bartleson with Your Personal Assistant Service in Golden, CO. Your Personal Assistant Service is a full service concierge service in Colorado. The definition of concierge is “the keeper of the keys” or someone who takes care of all the details. Leailia will take care of all those little details in your life so you can stay focused on the big things. One of those things that Leailia can take care of is setting up reservations for that special dinner or setting up a romantic dinner for two in your own home while you are out and being gone when you bring home your special someone for a surprise. Are you planning an event at your home? Well, have Leailia pick up and set up the decorations, set up the buffet, serve you guests and clean up so you can send your time having fun with your guests. Leailia and her team can take care of any event large or small. She also has a new service of providing a wedding day coordinator; this is a person that takes care of all the tiny details that will make your special day perfect. She makes sure the flowers are where they need to be, the cake and cake table are looking just the way you wanted and that the reception is set up the way you planned without you having to worry about it. If you are feeling overwhelmed in your daily life you can hire Leailia to do your grocery shopping or even deliver a meal to you –whether at home or on the job, she can stand in line for you at the DMV or return a gift, pick up a prescription or run your vehicle to the shop – all those little things that seem to cut into your day. Do the holidays stress you out, well give Your Personal Assistant Service a call and they can do your holiday shopping, decorating your home or office, pick up groceries for a holiday party or decorate your office for the season. Leailia has a lot of experience with visual merchandising and can set up your displays to best draw clients in to spend money! Having the right window and floor displays can bring in more people and create excitement about your business and products. There are other things in business that Leailia and Your Personal Assistant Service can do for you to take the pressure off of you, like proofreading and editing promotion brochures and annual reports, data entry, copying, corporate gift baskets and correspondence. All of things are things that take time away from what you need to be doing – working your business. They also can offer administrative services as well as personal assistant services for your employees and customers when needed. So whether you need someone to run that one errand or sit at your house and wait for a repairman, if you need an extra hand at the office or to set up an event give Leailia Bartleson and Your Personal Assistant Service a call!
Leailia Bartleson * Your Personal Assistant Service * (303) 257-5953 * info@YourPersonalAssistantService.com * www.YourPersonalAssistantService.com