We work with real estate investors to purchase real estate to generate cash flow, equity and diversify investment portfolios.
Whether you’re a seasoned real estate investor or want to buy your first investment property you need local knowledge and extensive experience to secure the right properties that will cash flow. We employ strategies to buy right based on location and growth and to find distressed and early stage foreclosure properties. We look at potential cash flow and expenses of the property including taxes and maintenance as well as compare rents of similar units in the area and review tenant occupancy to understand if the property is available with ongoing leases in place. We understand that owning rental property is part of an investor’s business plan and treat it as such. If you’re ready to invest or re-invest here are some things to consider:
Payment Strategy: Mortgage, Cash, Retirement fund, 1031 Exchange, Inheritance, Stock Options
Different purchase methods have different requirements. For example, a 1031 exchange requires specific time frames be met for identification and exchange of property. When using retirement funds often the money used for payment needs to be sent directly from the fund to escrow to avoid potential tax penalties. If a mortgage will be applied for, it must be a mortgage that allows the owner to lease the property after purchase. These are just a few examples of many requirements when purchasing investment property. It’s critical that you work with agents that understand the ins and outs of investment property as maximizing your investment dollars often depends on it.
Considering The Extra Expenses
Every property has items that the owner is ultimately responsible for. Below are some to think about when purchasing an investment property:
- Property Taxes
- Maintenance
- Repairs
- Service Calls
- Wear and Tear
- Landscaping
- Property Management
- Insurance
- Damage to the property
- Utilities
- Appliances
- Tenant Non-Payment
- Potential legal fees
- Depreciation
- Hold time
- Cost basis
- Tax Preparation
Calculating Your Return On Investment
Once total expenditure is derived the true test is return on investment. Use the below calculation to estimate your ROI. First, take your total equity, and divide it by your annual return. You can calculate your annual return by doing the following:
Gross Income – Expenses (including mortgage payment) = Cash Flow Cash Flow – Income Taxes + Principal Payment = Return
To calculate your return on investment = current equity / total return. It is important to calculate this return annually, especially relative to other investments so you can compare your rental property’s performance. This is an essential calculation before buying any type of investment property.
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REVIEWS
- zuser20171209062055191Jerod Lee was very awesome, the best realtor my husband and I have ever had . My husband sold our 3rd house for almost 21 yrs and he was very professional, friendly, honest, personable and not a fast talker or a game player which my husband and I have had before, he was a fresh of breath air.Jerod made selling our house fast and very easy for us since we have not lived in Idaho for 8 years and was using our house in Boise as a 2 nd home,I highly recommend Jerod as a realtor and when my husband and I do move back to Idaho., I will use Jerod once again,
- frankk7Knowledgeable, responsive, and kind -- Jerod helped us quickly navigate a challenging seller's market in downtown Boise to purchase a condo that hit each of our needs (and most of our wants).Jerod suggested offering a quick close to help bring the seller closer to our preferred price (and it worked!), and his team delivered on getting an inspection done within a few days, organizing Title, utilities, documents, etc... they were so on top of each of the details, in such a short period. Jerod responded to early morning texts and late night calls, and we appreciated his (and team's) expertise at each step.Along with the above, Jerod is wonderful to work with. He was kind and attentive to our young children, friendly and respectful to us, and expecially thoughtful to our COVID concerns. His team left us the wonderful surprise of an Idaho gift basked when we moved in, and Jerod treated us to a celebratory lunch at a cafe down the block. We'll look forward to staying in touch, even when not buying/selling a home.
- YousefNasri8I could not have asked for a better home buying experience. As a first time buyer, I was very nervous and not the most knowledgeable on the process. Jerod is extremely transparent, knowledgeable and a delight to work with. He is communicative in all aspects and will explain anything you want to know about the process. He made my home purchase a breeze and I will gladly work with him again. I highly recommend anybody to work with Jerod for their real estate needs. True professional.