How To Sell Your Rental PropertyWritten by Steve Gillman
Selling income property isn't like selling a house. You can paint a house, and get a little more because it looks nice. Rental property is different, because it's bought by investors, who look at income more than new paint. Raise income, and you increase value.Let's assume investors in your area expect a capitalization rate of .08. That means that they want a net return (before loan payments and taxes) of 8% on purchase price. If your three-plex generates $12,000 net income annually, they'll value it around $150,000 ($12,000 divided by .08). Make it generate $16,000, and you make it worth $200,000. Get More Income From Your Income Property Higher rents is obvious way to boost income, if you can justify it. Find out what similar units are renting for. If you're $60 below going rate, you can raise rents and not lose your renters. Raising rent $60 for three apartments means $2160 more net income annually. At a .08 cap rate, you just added $27,000 to value of your property. Consider other ways to raise rents. Your tenants may agree to $30 more per month if you have a carport built. That's $1080 more net income annually, meaning roughly $13,500 more value added to your property. ($30 x 3 units x 12 months = $1080 divided by a .08 cap rate = $13,500) Build that carport for $4,000, and that's a good return on investment right? What else do they want?
| | Ordering the Right Credit Reports to Repair Your Credit Written by Todd Disraeli
In this week’s article, I am going to offer some valuable tips and insight regarding how to order right credit reports needed to repair your credit. Believe it or not, a majority of credit reports offered on internet don’t have required information (File Number, Confirmation number, or Report number) needed to repair your own credit. So what happens? You try your best to launch a dispute (with wrong credit report), you find it impossible, you spend more money on new reports, you get frustrated, and you finally give up. Once you have given up, you have saved credit bureaus a lot of money—and they even made some off you in process! Below are four tips that will make process of ordering your credit reports less intimidating. These tips will also guarantee that you get right reports needed to repair your credit yourself. First Tip: DO NOT order your credit reports online. There are over 100 different types of credit reports available on Internet and very few can be used to repair your credit. When you order your credit reports by phone you are GUARANTEED to have following; File Number (Trans Union), Confirmation # (Equifax), or Report # (Experian). Once you have those numbers you can begin to repair your credit. Second Tip: When ordering your credit reports by phone, always choose option that says you have been declined credit or employment in last 60 days. When you choose that option you might get your credit reports for free. If not, you might have to pay a small fee. Third Tip: When ordering your credit reports by phone, choose to order your report without a score. Your score is not important at this time since we both know it needs improving and reports without a score often cost less and are sometimes free.
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