Property Management websites - with interesting articles and more!

National Apartment Association
NAA serves the interest of multifamily housing, owners, managers and suppliers and promotes a high lever of professionalism in this industry.

http://www.naahq.org/Pages/welcome.aspx


Institute of Real Estate Management.
Is dedicated to ethical business practises and maximisation of value in real estate across different type of properties.  Find also interesting articles and more.
http://www.irem.org/

Property management Rating

Here is a great web page to check your property management rating. Make sure that you check how is the rating based on and the amount of complains filed in the last few years. Also note that the bigger the company the more likely to have a disagreement with a landlord.

http://www.bbb.org/atlanta/business-reviews/property-management

Taxes and real estate

Did you know that travel, meals and even entertainment can be treated as tax deductible expenses?
To lower your income tax the rule in the US is that you have discuss your property during, before or after a meal or entertainment you can deduct the cost of it. Make sure you keep all record of who you where with, what did you discuss and where.
Travel its also deductible as long as during your trip you have spent more than 50 per cent of your time (8 hours business days) doing business.
Depredation: Personal property like all what a house could hold that is not for its basic operation can be deprecated.

Real estate as a business

In order to succeed in real estate you have to treat your investment as a business.

Here are some tips:

-Good accounting its critical, not only to do the sales return at the end of the financial year but also to keep track of what the numbers are telling you and therefore make a good financial decision.  For this its paramount to keep good book keeping using a software such as Quick books, to be able to analyse all the information.
-Make a chart of accounts to be able to see where the money in expense its going (appliances, repairs, general, etc)
- Detail transactions in the debit (depreciation expense) or credit (accumulated depredation).
- Have a journal of entries.
- Make sure you put this info frequently to avoid an overwhelming amount of work accumulated.
- Keep track of your cash flow
- Capital rate should never go below your interest rate otherwise its negative leverage.
Cap rate is the net operating income divided the value of the property.
- Calculate your ROI periodically.
- Comparison Report: Compares data from your real estate with other data.

Real Estate Tips:

- If you don't know your numbers then you don't know your business
- In the USA real estate is a highly favoured investment under the tax laws.
-Appreciation will cover some of the investors mistakes.
-Don't believe that its possible to get in the very bottom of the market, building value from real estate development over time takes not only skill but expertise.
- Know intimately the area of city or town you choose. Understand and know well your preferred type of real estate investment.
- Recognise the signs of a declining neighbourhoods.
- You will be better off giving up a little ground and generating some good will and resolving any disagreement before it becomes too serious.
- As Benjamin Franklin once said" "Due Diligence is the mother of good luck"
- Have your team lined up before you make an offer.
- The property management company you choose it will the key member of your team. Find the best one you can and work with them closely.

Comments from the USA

I would be really grateful if anyone that is looking at this blog from the USA would like to comment of how is like to live in the following cities: Phoenix, Atlanta, Kansas, Miami and Las Vegas. In terms of weather, transport, safety, entrainment, work, environment, etc.

Thank you!!

Termites in Atlanta

When doing your due diligence make sure you watch out for termites as these pests can cause serious structural damage to buildings. They live in colonies so if you see one you are likely to see more around. 

A termite inspection could cost aprox. 75 dollars, but if you want to save get an inspector that is both qualify the home and the termites.  Termites also like the dark so if you see some signs of termites in the outside of the property you are likely to have many more inside.  More often than not you their  presence goes undetected until the timbers are severely damaged and exhibit surface changes.

Here are some precautions for termites:

Avoid the contact of susceptible timber with ground. This can be done by using termite resistant concrete, steal or masonry foundation with  appropriate barriers. Termites could even chew through piping made of soft plastics and even some metals, to exploit moisture. In general, new houses should be constructed with embedded physical termite barriers so that there are no easy means for termites to gain concealed entry.

- Use timber treatment and pre treatment.

- Use naturally resistant timber such as Turpentine Tree, Teak or White Cypress  

US Property: There is light at the end of the tunnel

It looks like finally prices in the property market are reaching the bottom end, and although its expected to stay there for a while there are some early indicators that tells us that there is light and the end of the tunnel and we can expect to see a slowly improvement in the real estate market.    Supply and demand are starting to show some balance. Rent its now more expensive than buying in most of the USA. 

There is a growth in the US population of  around 3 million  year, so taking that into account its not hard to see than in 10 year there will be the need of  a lot more homes. 

As the economy improves all those kids that have moved back with they parents will be looking for their own place.

With the creation of new jobs there will be the increase of rents and the housing construction will resume. 

  

USA Property Today Tonight: Buying advice (as seen on Today Tonight)

5 Pitfalls when you are buying property in the USA.

Never buy a property because it looks cheap on the Internet and make sure that:

1. You are aware of all the charges and rates, as they differ from state to state
2. What are the tax implications in your circumstances.
3. Make sure that there is no mortgage mix up otherwise you can end up owing a lot on your new property.
4. Make sure you have a good property manager you can trust.
5. See it for yourself. Make a trip to the US it can be well worth it!