How to Be Your Own Property Management Company

It is highly recommended once you have multiple properties that you invest in the services of a good property management company. They will handle the day to day aspects of your property and free up your time to go out and make new investments. However, like in any other business, you should know how every aspect of your business works yourself before you outsource it to someone else. That’s why it’s not a bad idea to manage the first property you purchase on your own. This will teach you basic property management and people skills. You will also know what to look for when you decide to hire a third party property management company to take over.

When managing your first property yourself keep these general guidelines in mind.

1. Never be friends with your tenants. Instead, make sure your relationship is a business-friendly one. The last thing you want to do is take your friend to court for an eviction or get into a fight over raising the rent or providing services.

2. Know that people by nature cause problems. Properties don’t pay late, cause damage or cause high vacancy (unless they are poorly maintained of course). People cause these problems. So make it a point to lease to good tenants and good companies. Do background checks on tenants who apply for your space and ask for references. Having no tenant is normally better than having a bad tenant.

3. Record everything in writing. As manager of any real estate, words spoken are not worth very much and normally won’t hold up in court. So make sure that you write everything down including rent increases, promises to pay, renewals, or improvements or repairs that you or the tenant have agreed to perform.

4. Know your market conditions. Always know what your competitors are doing with their properties. Know what deals they are offering to tenants, what is selling and who is buying. Also you should have a firm understanding of the landlord-tenant laws in your jurisdiction to make sure you are not violating any of them. Consult with a qualified attorney and educate yourself.

5. Have nothing in your personal name. Protect yourself and your personal assets from lawsuits by having your properties and businesses legally detached from you personally. The properties should be in an LLC or in another type of legal entity that you and your attorney and tax advisor find most advantageous. This way if a tenant files a lawsuit, he can only go after what is in the LLC or entity’s name and not after your home or personal belongings and assets. Also make sure not to commingle personal funds with corporate funds in any way because this can open you up to personal liability by the legal theory known as “piercing the corporate veil”.

6. Develop your people skills. When managing commercial real estate you’re responsible for managing people of many different types including your tenants, employees, contractors, vendors and government authorities. Make sure to show patience and calm in your personal dealings and never let anger or your temper make decisions for you.

7. Know your lease agreements inside and out. Make sure you understand all of the rights you have according to the terms of the lease, and more importantly, the rights you are giving to your tenants. I have heard many arguments between landlords and tenants end with the phrase “it’s in the lease”. If you don’t know your leases then you don’t know your business.

8. Have a written business plan for the property. Commercial properties are not really real estate, they are businesses and you should treat them as such. A good and well thought out business plan has a property summary, a market analysis, a sales and marketing plan, a management summary and a financial plan.

9. Know yourself. We all have strengths and weaknesses when it comes to our business skills and personal skills. Be aware of your strengths and try to build on those. Also know your weaknesses and when possible hire them out to people who you know can do a better job of it that you can.

Set a goal for your own personal cash flow.

Managing your property is a job and like any other job you deserve to get paid for it. After setting up a budget that takes into account the income and expenses of the property, set an amount that you will collect as a payment to yourself as the owner and operator of the building. Treat that amount as you would any other expense on the property because the truth is, if you weren’t doing this work then you would be spending that money to pay someone else to do it.

Real Estate – Putting Those Profits Where They Belong in Your IRA Account & Your Pocket!

I’m going to talk about my favorite subject in a little more detail today…Real Estate, and how it can put more of that green stuff where it belongs…in your wallet!

A self directed Roth IRA invested in real estate allows the owner to keep more profits in the account, rather than handing them over to the government. Some of you may have little knowledge about purchasing real estate in your IRA. Many people still think that the only investment options are stocks and bonds or certificates of deposit. Well, there is a lot more that you can do!

Whether you want to buy raw land, single family homes, commercial property, an apartment building or a mobile home, you are surely hoping to make a profit. You may want to hold the property for several years and wait on the value to grow or you may be a rehabber, planning to flip the property for a quick profit. Either way, the self directed Roth IRA invested in real estate has several advantages, and here are a few.

First, there are no capital gains taxes. All returns are either tax-deferred or tax-free, depending on the type of account that you have and the withdrawals that you make. Purchasing real estate in your IRA can be easy. It just takes some time and knowledge, as well as the right custodian.

Many brokerages will not handle a self directed Roth IRA invested in real estate. It’s not that the IRS doesn’t allow it. The laws regarding retirement accounts allow people to invest in almost anything. It’s just not a traditional investment type and most brokers are not familiar with it. And, you would be better of to choose someone who is.

So, in order to begin purchasing real estate in your IRA, you need to find a company that is familiar with the option. Otherwise, you could run into problems down the road. Let’s say that you decided to let the new broker down the street manage your account.

You knew about the advantages of a self directed Roth IRA invested in real estate, so you took the plunge and bought a single family home, using funds from the account. The property is held in your custodian’s name and all income and profits are returned to the account.

Your son needed a place to live, so you decided to let him rent the property, since it was vacant. Being unaware of the self-dealing rules, the custodian allowed this to go on. Once the IRS saw that rental income was going into the account from one of your relatives, the account was audited, the tax-deferred status was lost and you were forced to liquidate the account. Why?

Because one of the rules about purchasing real estate in your IRA is that family members may not live in the homes that you buy. You can’t even buy a house that you plan to live in after retirement and hold it in your retirement account. It all falls under the self dealing laws and if your custodian is unfamiliar with them, then you will become the loser.

If you have knowledge and expertise about buying and selling property, then a self directed Roth IRA invested in real estate is simply another way to grow your portfolio. If you need to learn, there are people who can help. So, get some help and start investing in your future.

Joe Fazchas is a Real Estate investor as well as owner and founder of, a company that partners with private individuals and lending corporations nationwide for the sole purpose of financing and/or rehabbing investment properties. All of which is done using a proven “turn-key” Real Estate system…The ILOC IRA.

The US Housing Slump And Its Repercussions On Miami Beach Real Estate

The sun, sand, vibrant lifestyle, dazzling nightlife: These are but a few words that perfectly fit the description of living in a diverse and thriving place like Miami Beach. Tourism is the main driving economic driving force, and along with the tourism boom comes a flurry of housing and property developments.

The city’s economic fundamentals are sound, and majority of the real estate offered on Miami Beach are expensive single-family homes, spacious estates and seafront mansions, as well as upscale condominium units and apartments.

Current Mortgage Rates According To Freddie Mac

According the Federal Home Loan Mortgage Corporation, or. “Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.25% in Q4, down from 6.56% in Q3; the rate was 6.22% in Q4’05.

Over the last five years, metropolitan areas with the largest single-family home price gains include California’s Riverside-San Bernardino-Ontario areas, up 155.3%, and Los Angeles-Long Beach-Santa Ana, up 142.3%, followed by the Miami-Fort Lauderdale-Miami Beach area of Florida, up 135.4%.”

The US Credit Crunch And Its Effect On The Housing Industry

As the current US housing market slump is weighing heavily on property developers, pre-construction condominium and housing assets in Miami Beach are also feeling the pinch.

Local realtors, especially those who have experience selling property in Miami for decades, are concerned that present buyers are reluctant to borrow from lenders, which results in many people shying away from condominium and apartment auctions. At present, housing analysts note potential buyers are adopting a wait-and-see attitude, anticipating what happens next to the market, and on what the Federal Reserve’s next move would be.

How Miami Beach Is Weathering The Slump

Amid the current slump in real estate markets and the effect it has made on global markets, there still appears to be a demand for affordable pre-constructed houses in a good location such as Miami Beach. This helps to explain why just last weekend, the downtown Miami real estate market had to extend their open house transactions beyond midnight.

One good thing to note is that, during first half of this decade, there was a record low set in mortgage rates, more growth in employment opportunities, burgeoning growth in Miami’s population, and an ever-increasing interest from overseas visitors, immigrants, and investors. Despite the positive attributes, Miami real estate developers and brokers are still asking for government support. Industry observers here are thinking that perhaps the state legislature could help adjust taxes imposed on home developers.

Still, many developers are saying that real estate prices are comparatively exorbitant, and that that property developers couldn’t manage to lower prices without government support. The real estate market in Miami Beach is projected to ease, which is a positive sign that the real estate market is stabilizing.

With housing projects created to target middle-income earners, sales are expected to rise significantly next year. Market analysts note that the housing market will continue to provide a strong foundation to the economy even as the market adjusts to the current slump.

Miami Real Estate –