5 The Prophet to the Real Estate Agent

After we have purchased the property, we move on to the next stage, which is the daily coping of a distant investor with a property located overseas.

There is no doubt that owning and controlling properties from this country is a challenging task. We encounter challenges and obstacles that are not sure someone told us about them at first, especially if you bought the property from a salesperson whose goal is only to sell you and not tell you about problems.

Some of the challenges are how to find quality properties at good prices, how to find good tenants, how to minimize mishaps and costs along the way, and how to manage this whole thing when we are in Israel at all.

If you are new to the field and just want to know where to buy the first property in the huge US, my advice to you is not to focus on the property but on who you are taking with you on this journey and it is the company or lender who will help you in the process. People come to me who bought properties on their own because they did not want to pay for escorts and now they need help. It's fine to try to do things on your own but think for a moment what it will take from you. Can you leave work for a few months to test and do market research on a particular area, or get to properties within 24 hours of being offered for sale to be the first to be. How much will a 3-month hotel, rental car, round-trip flights to Israel cost you? It is known that Israelis do not like to pay a professional, there are those who succeeded and fell for a good management company and the contractor did a good job and by and large it works for them, but until the first glitch they will have to deal with alone. The biggest mistake is to get three days to buy a property and return back to the country.

Think for a moment what the interest of a management company to rent you the property quickly or give you priority when you have one house and they earn you 90 dollars a month, what interest them to keep you as a customer. Now think that you are joining a group of investors with over 100 properties in the same management company and if one house from the group is empty and not leased they should be accountable. A management company that stands on the contractor's head and does not give up on anything small because they then have to deal with these malfunctions and give explanations.

This moment that something goes wrong and you do not have someone to help you is the most frustrating moment and at this moment you understand the power of a group.

So what are the five things a professional analyst must know?

1. One of the main things that is a must as a real estate investor is to love the field, to do things out of passion and enthusiasm, if you do not like what you do you will not succeed. In the first crisis you will despair.

Before you even look for a management company or contractor, you must know the market in which you work. Professional real estate investors will do their homework and study their market well.

Who is the population that lives here?
where do they work?
What are the main sources of employment?
What is their average salary?
Are there universities and colleges?
What is the trend of the real estate market?
How long does an average house stand for sale on the market?
Is there a population increase in 20 in recent years?

And many other questions that will help you get to know the market in which you work. After that we will go down to the resolution of neighborhoods and prepare a profile of an average family living in the neighborhood:
where do they work?
What is their salary?
What car does the family have?
How many children do the average family have?
What is the average price for a house in the neighborhood?
What is the average rental price in the neighborhood?

After checking the neighborhood data, if the data seems reasonable to you and the average house price fits your budget you can focus more and start looking for properties in the neighborhood. If the price is high for you probably this neighborhood is not suitable and look for another neighborhood. You have to find the valley and match the level of the neighborhood to your budget and your expectations, so you will know in advance which house you are going to buy and who will be hired.

3. You must prepare an investment strategy. What are we going to buy and at what budget and at what level of risk do we want to be. For example, if you have $ 150,000, you can buy a newer house in a good neighborhood that will be rented for $ 1,500 to good, high-quality tenants, or three properties for $ 50,000 in a weaker neighborhood, each of which will be rented for $ 800. Income of $ 1,500 per month or $ 2,400 per month, which will you choose? The answer lies in your ability to deal with restraints on the one hand and your level of mental resilience - will you be able to sleep at night when you know that 10,000 km away you have a house with a tenant who does not pay?

The cheaper we buy, the higher the yield on the paper, but in order to truly achieve this return you need the whole array around you to work properly and that means knowing to buy a good house at a cheap price, to renovate it on a good level, to know to filter tenants rather than compromise.

A good neighborhood house that will cost $ 150,000 will make an average 7.5% return. The difference is that in most cases tenants will have a good income and stable and we can sleep well at night knowing that we are guarding the property on the other hand is very likely this property will increase in value over the years so we actually earn twice.

Three cheap properties worth $ 50,000 will make an average of 10-11% yield. Consider more expensive maintenance because the properties are older and even if one of them is not rented you will still have income from the other two.

I personally combines cheap properties along with some more quality properties to balance. The bottom line is that even if you choose to buy three cheap properties you must understand what you buy and what can happen along the way and of course prepare with a reserve of several thousand dollars ready for each scenario.

4. Create a winning team.
After knowing the area and deciding which properties we want to buy we need partners along the way who will help us succeed. A good real estate investor is one who has an excellent professional team. You must know these partners well and they must benefit from getting to know you, otherwise they will have no interest in you making money.
A contractor who will not do you a good job will cost you a lot of money down the road.
And I will give you a small example:
In one of my houses we replaced the paving from laminate flooring to ceramics. Instead of scratching and removing the lamination floor, the contractor decided to glue the ceramics to the lime, saving him time and money. The work was done quickly without my knowledge and there was no way of knowing when the entire floor was ready. After six months, the residents began to complain about moving tiles. Of course, at this stage the contractor no longer answered the phone and there was no way to get it. We had to make new flooring at a cost of several thousand dollars.

So how is a contractor chosen anyway? One of the important things is that the contractor be licensed and insured. You do not want to be in a situation where one of the workers is injured while the contractor is suing you. The second thing that can happen is that the contractor disappeared in the middle of the work. At best, the purchased materials remained in the property and you lost only the advance payment you paid to the contractor. In the worst case, you paid a large down payment or the entire amount in advance.

So when choosing a contractor do not choose the cheapest and do not choose the most visited, but the contractor that seems to you the most reliable, sometimes there is no choice and must make a decision based on a gut feeling and hope we chose the right contractor, time will tell. Try to get as many recommendations as possible from your property manager or other investors who have already worked with him.

5. The management company you work with is your key to success. Choosing a management company over the other can make the difference between success and fall. A good management company will recognize the neighborhood and advise you where to buy and buy, what level of renovation to do in the property and who your tenants will be.
One of the important things is to know who are going to be your tenants and a good management company will know how to filter tenants and choose the best for your property. This management company is much more than sending an electrician a short electrical repair. It will take you a while to find this good company and sometimes it will cost you quite a bit of money and frustration. But once you find it, you will only be able to sit on the side and see your income coming on time and your assets rising.

One of the most important things you usually neglect is visiting one property for several months. It is usually recommended to perform twice a year, for the winter check the heating systems, open gutters and towards the summer it is recommended to check the air conditioner and replace the filter. At each visit, make sure that the tenants keep the property, ask the management company to take pictures of the visit.

Once we have created a winning team, a good management company, we have chosen good neighborhoods and quality homes, there is no reason why it will not work. Now our goal is to buy more and more and increase our portfolio. You will have ups and downs along the way, but with the right team at your side it will be easy to climb back.

Friends I was happy to be an entrepreneur this week and I hope I gave you enough important tips to succeed in creating a stream of passive income.

Anyone interested in a personal consultation session - free of course, is invited to contact me.

I will be happy to accompany you and help you create a better economic future for you and your family.

Yariv Golan - Real Estate Investments in the USA
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You are invited to visit my site.

http://bit.ly/2D584sO

Office - 073-3744707

Mobile - 052-3737510

Good luck later.