Hunter Estess @ Tumblr
Hunter Estess began working in real estate in the early 2000s, and received his degree in construction management in 2006. Today, he has hundreds of real estate investments.
One of the things that every beginning real estate investor needs to understand is that is a big difference between the business of investing in real estate, and the legal aspects of buying and selling real estate.
Lawyers find potential problems and explain to their clients all the details of what might happen in every legal scenario. As a real estate investor, you need to keep legal matters in mind, but you can’t think like a lawyer. Lawyers usually advise their clients to steer away from a deal if a deal has legal issues. At the same time, lawyers are not educated or licensed to provide business recommendations and advice to their clients.
The best approach is to understand that everything is negotiable. While a property or a building may have problems, almost all problems in real estate business come with a price tag. A property may have some legal issues like zoning, but you should ask yourself whether these issues are a deal-breaker, and what your price tag is for each issue.
You need to look at all legal problems as a way of getting more out of a deal.
If you are a buyer, you need to remember that the longer a negotiation lasts, the more likely the seller is to become cooperative when it comes to price. The reason for it this simple: when you are starting to negotiate, the seller is already spending the money from the deal in their mind.
Hunter Estess always takes his time to prepare for a negotiation and conduct his negotiations in a professional manner that increases the chances of a successful outcome.
Some real estate investors and developers, like Hunter Estess of Dash Development and Estess Contractors, don’t employ a workforce for their businesses, meaning that they qualify for a solo 401(k), also known as an individual 401(k). This retirement plan, if approached correctly, can help the sole proprietor of a company to add to his or her retirement funds.
The solo 401(k) only applies to owners of companies with no employees. Exceptions are made for the owner’s spouse should the spouse earn income from the business. Owners have two choices of solo 401(k) to choose from: the traditional and Roth versions. With a traditional solo 401(k), money is saved on a pretax basis and is grows tax-deferred. The money will be taxed when the owner withdraws it in the future, which could be problematic if interest rates are higher at that time. The Roth solo 401(k) allows the business owner to save after-tax dollars so that the money grows tax-free. Additionally, there is no tax penalty when the money is withdrawn in the future. Company owners may also choose to split their contributions between both these types of accounts.
Hunter Estess and other prominent real estate investors and contractors have found the solo 401(k) to be a beneficial plan for them. It allows the business owner to save large sums of money (up to $53,000 in 2016). Company owners should know that some firms that help set up these 401(k) plans also charge a fee for account activation and an annual fee of up to $400.
Source: http://money.cnn.com/retirement/guide/selfemployment_individual401k.moneymag/
Many successful real estate investors, like Hunter Estess, owner of Estess Contractors and Dash Development, secured their path to financial security through apartment investing. Real estate investors who are considering apartments as a vehicle for profit should consider some important factors before purchasing any property.
A significant amount of research should be invested on the part of the potential buyer to determine if the apartment equates to a good deal. Property cash flow is key, and this is often influenced by factors such as the size of the down payment, the interest rate, and the potency of the area’s rental market. The potential owner and investor needs to determine if the apartment will provide a worthwhile profit and how its cash flow will compare to other properties in the area.
Leverage is another significant consideration before investing in apartments. An investor can purchase more properties with less money down, but this can also lead to issues with negative cash flow if the value on the properties decreases. Consider buying into equity as a key component for apartment investing, as buying into equity is easier than creating it outright. Investors should also examine the benefits and difficulties of appreciation and be aware of the risks involved in this type of real estate venture.
Hunter Estess and other prominent real estate investors have become successful by avoiding the hallmark qualities of a bad deal. If there are issues with the numbers involved with an apartment deal, consider it a red flag. Avoid distressed properties, purchasing properties in areas of decline, and steer clear of properties that have been on the market for extended periods of time.
Source: http://www.creonline.com/blog/factors-to-consider-when-buying-apartments/
Originally published at hunterestess0.tumblr.com.
