Please allow me to share with you Odell Murry’s review of my book. House Investor’s Manual. It will be out soon and investors, especially new investors should read this book. Investment properties which include rental properties require management. It appears a lot easier than it looks. Thank you for indulging me.
Lambert Munz’s explanatory guide about the DO’S and DONT’S of buying properties to flip or rent is complete with valuable and useful information for the first time property investor.
As he notes for the investor, it is imperative to spend wisely, knowing which properties to choose enables success. Concurrently, it is important to buy carefully and intelligently. Munz details the pitfalls to avoid always reminding the buyer to stay focused on the purpose of the venture: to make a profit.
Munz distinguishes between buying to flip verses buying to rent as each venue comes with its own distinct set of parameters. He likewise offers sound advice to the rental property buyer by outlining strategies from pricing, marketing, and maintenance issues as well as educating this buyer about the differences between rent control and rent stabilization and how these policies may affect the outcome of the purchase.
In conclusion Lambert Munz knows and understands this business and willingly shares his expertise. Enjoy his book, follow his wisdom, and reap the rewards befitting a wise and sound investment.
Odell Murry is President and Founder of MAI Financial Services, Inc., and is a licensed real estate broker and mortgage banker. He has many years of real estate experience, having been involved in the ownership and management of several residential, commercial and industrial real estate investments. Previously, Mr. Murry spent two decades in the retail industry as a leading executive at several national companies. He has served as a member of the board of directors of the Vallejo General Hospital and is a present or former member of National Mortgage Bankers Association, National Association of Realtors, California Association of Realtors, Burbank Board of Realtors, and current board member of California Mortgage Association.
Welcome back from the wonderful holidays. Saw all family and grandkids.
Now it is back to work. It has been a challenging year with all the foreclosures. Lots of new buyers for the investment properties. I might mention that investors especially from out of town hire a buyer’s agent rather than a seller’s agent. The seller’s agent must represent the seller. The buyer’s agent represents your interests. I have written a book that will be available soon that guides buyers on what not to buy. A friend of mine that is a mortgage banker has partnered with buyers of short sales. However, they will not buy condos. In my book one of the investments I recommend against is condos for rentals. Experienced renters avoid them because associations don’t like renters. The renters feel like they are being spied upon. If they are coming from apartment living condos remind them of apartments. They are looking for detached living such as a home.
I am cancelling my comments service. Too many fruitcakes and I received fruitcake for Christmas. However, you can email me at propertymanager@arbourpm.com
Happy day! Old year is coming to an end. We lost many accounts because of foreclosures. Our clients owed more than the property was worth. They felt it would take years for values to equal mortgage amount.
You can’t blame them from quiting to drag a dead horse.
I did read some good news for Sacramento Ca. The organization that recurits new business to locate here announced that they have more inquires from companies exploring the possiblility of locating in Sacramento then at any other time. Two new companies are close to making the decision to locate here. This means jobs. Sacramento lost more than 45,000 jobs during this great recession.
I feel 2010 will be better so- HAPPY NEW YEAR EVERYBODY!
All investments require management. Some require less than other investments. Real estate is more management-intensive than most other investments. You can do it yourself or hire a professional property manager.
I encourage new investors to try managing by themselves for a while to better understand what the professional has to handle.
Many of our new clients are former DIY owners who are frustrated and exhausted from handling details, demands, and personality conflicts with their customers, the tenants.
FINANCIAL REQUIREMENTS
Let us discuss the financial requirements of being a landlord. One of my colleagues made a profound statement in a class we were attending: “DON’T OWN REAL ESTATE UNLESS YOU CAN AFFORD IT.” What did he mean? Most rental income won’t cover emergencies such as replacing a roof, major plumbing problems, or electrical, air conditioner, and heater failures. Other expenses are reserves for rent uptime and advertising. Some experts say that you should allow about $1,300 annually for maintenance of a single-family home. Depending on age, new homes would be less while older homes would be more.
An excerpt from my new book HOUSE INVESTORS’ MANUAL
This economic crisis has caused a great deal of hardship for many. Losing a home and losing a job is devastating. For others, this may be an opportunity to buy affordable homes that were unreachable before. If people have a job and feel comfortable with the future, now is the time to take advantage of the low prices and interest rates.
For investors, now is the time to buy investment property if they are able and ride on up the increased values that will happen again.
I knew the market would eventually crash, and when a realtor friend asked me if I was planning to “move up” using all of the equity I had acquired with my present home, my response was, “my home is overpriced and so are the others”. I remember Alan Greenspan, the former fed chairman, stating that real estate would experience a soft landing. I thought, well, he is an expert he should know.
I secretly felt that the market would crash, but didn’t want to appear negative to my real estate buddies. Anything that increases in value that quickly will come down hard later, especially when the values are higher than the median income of the community.
What then, was driving the market?
Speculation along with fraudulent loans made to unqualified people. Speculators sell to other speculators until the last one gets the one before the crash.
I feel very lucky because I bought my home nine years ago and the value went way up but later dropped about $200,000. Yet, I still bought $55,000 less than the current value today. Some financial planners will tell you to not pay off your home quickly, but rather to invest in more lucrative investments that will return more than what your current interest rate is along with the tax deduction. I wonder what they are saying today.
I am not a financial planner, but my advice is to pay your home off as soon as you can. Some will say I will lose my tax deduction. Think about this scenario. You are paying $1.00 and depending on which bracket you are in, for example 30%, you are saving 30 cents. I have a plan for you – pay off your home and pay me the amount of your former house payment for real estate services and deduct 30 cents for each dollar you pay me. You will have a free and clear house and still have your tax deduction.
My best to you and good luck in the future. Good times will return again.
My name is Lambert Munz and I have been licensed as a Real Estate Broker for 44 years with the CA Dept of Real Estate. I currently am President of Arbour Real Estate Management, Inc. Background was as a Buyer’s Broker for Investment properties. Currently a property manager and have been for 27 years. We offer residential and commercial management services. I hold two designations: RMP Residential Management Professional and MPM Master Property Manager. Awarded by NARPM National Association of Residential Managers. Past President of NARPM Sacramento chapter. My services are available in Sacramento CA. Visit my web site for more information on Sacramento Property Management http://www.arbourpm.com
