In this episode of the Well Kept Wallet Podcast we have Vincent Turner is the founder and CEO of Planwise, a startup that provides an online tool that allows you to see and understand the impact of current and future financial decisions.
What you will learn in this episode
- What it is like to work in a startup
- How he created a startup from scratch
- How he got people on board with what he was doing
- His recommendations on how you can get direction with regards to creating a startup and finding a career you enjoy
Quotes from Vincent
“Skate to where the puck is going to be rather than where it is.”
“People care about what they want to do., not the money required to do it.”
“A big part of being in a startup and running a startup is convincing other people that what you are doing is important.”
“Once you find a group of people who you trust, who you can work with, and you start building great things together, I don’t know a better feeling in the world”
How to connect with Vincent
Linkedin: Vincent Turner
The U.S. rental market is booming. Renters are turning to extended leases as a cost-effective alternative to save for their future home purchases. Plus, when the economy and housing market plummeted in past years, many families were forced into short sales and foreclosures creating more and more renters on the market. The high demand for rentals yields increased profits for rental property owners who can charge higher rents.
Considering entering the property management industry? Use these 10 tips to get started.
Invest Long Term
View purchasing a rental property as a long-term investment. A short stint in the property management industry is not likely to generate a much profit. Real estate investments typically start to produce cash flow after a few years. Time, money and effort are necessary exertions to generate a high return on investment (ROI).
Pick the Right Property
Invest in a property up to par with personal standards; don’t settle because it’s cheap. Take location, size and amenities into consideration. Check out comparable rentals online to see what other landlords and property management firms charge per square foot. Rental rates are based on zone, unit upgrades and communal facilities. The monthly rates help determine how affordable the property is for the buyer.
Avoid Fixer Uppers
Unless buyers are experienced in renovating large properties, they should purchase rentals as close to move-in condition as possible. Property managers should not attempt to make renovations prior to renting out units when they could be earning monthly rent to contribute to their profits. Upgrades often take longer and cost more than initially expected, so those without experience are likely to lose more time and money than anticipated. As long as buildings are structurally safe and clean, it’s better to start leasing units right away and upgrading as needed in the future. Consider purchasing an already occupied rental building. New owners can honor old leases and avoid the hassles of marketing to new tenants.
If a property seems too good to be true, it probably has underlying issues. Be smart and savvy in the real estate industry to protect capital against scammers. Hire a realtor to assist in the process of negotiating better deals and identifying red flags. Follow the property purchase protocol, which includes hiring an inspector to guarantee the building is up to code.
Research the Industry
Network with other property managers and read up on the local real estate market. Being knowledgeable on rental standards and trends can help proprietors gain an edge on the competition. The more educated a property manager is on local real estate, the lower the risk of a failed investment.
It’s smart to begin investing when there is enough money for a down payment in the bank. However, buyers should reside in the cities where their investment properties are located. Typically, small-sized property owners live near investment properties in case of emergencies. However, living close by is not necessary if the titleholder hires a live-in landlord who maintains the building.
Look for Rising Neighborhoods
Avoid investing in properties located in neighborhoods with multiple foreclosures or vacated residences. Although initially less expensive, these settings are not attractive to potential lessees. Consider areas where young professionals and other typical renters reside and work.
Determine the potential ROI before closing on a property. In order to calculate returns, add up rent income (minus expenses) and determine how much the property produces per year. Then, divide yearly income by the invested cash equity, which includes the initial deposit, closing costs and rehabilitation fees.
Don’t forget about net appreciation, which can add 1 to 2 percent return every year, after subtracting capital repairs and improvements. Adding these two percentages together (yearly ROI and net appreciation percent) gives property investors a rough idea of the ROI percentage they can expect to make in a typical year. The formula also helps gauge the rate at which a profit can be made.
Buy as Personal Residence
A buyer can purchase a home as an owner-occupant to receive the most affordable financing with a lower down payment. Owner-occupied properties must not be rented out during the first year of ownership, even if the owner is residing onsite. Future property managers can use this time to understand which features need fixing and updating in order to attract potential leaseholders. By taking care of issues ahead of time, tenants are likely to be more satisfied later when the leasing period begins.
Keep a Day Job
Prospective property managers should maintain or attempt to increase their current incomes in order to afford down payments and provide maintenance and repairs. Down the road, when the investment begins to turn a profit and a landlord decides to invest in additional properties, supplementary income may not be needed.
These 10 tips are good starting points for individuals looking to enter the real estate investment industry. Conduct heavy research to truly determine if this occupation is a good fit. The time, energy and money required to own and lease property is complicated – be well aware of potential risks before beginning the process.
About the Author
Tali Wee currently lives in Seattle where she handles the community outreach for Zillow. She is captivated by, and appreciates everything real estate related. Tali is a former renter and a new homeowner.
In this episode of the Well Kept Wallet Podcast we have Jesse Marrus, who is the founder and CEO of Street ID, which is an innovative online financial career matchmaking and networking site. After spending several years in the financial recruiting business, Jesse saw a need for a website that would connect qualified candidates with financial institutions and that is exactly what he created.
What you will learn in this episode
- What the benefits are when you are working for yourself versus someone else
- The difficulties of transitioning from working in the corporate world to being your own boss
- The value of having a network to help you start and grow your business
- How getting an MBA can be valuable as an entrepreneur
Quotes from Jesse
“It’s very rewarding to be able to work for yourself and build something”
“Any entrepreneur that doesn’t tap into their network is doing a themselves a huge disservice”
How to connect with Jesse Marrus
Phone: (646) 783-7523
On Saturday afternoon I decided to go run some errands and when I opened my car door I noticed that an audio book that I had in a nook below my car stereo was laying on my passenger seat. I thought to myself, ‘that is strange?’ Then I noticed that my glove box was open as well as my center console; I had been robbed.
I looked around the car but there was no sign of forced entry. Then I remembered that when I went grocery shopping the night before that I had my hands full and I forgot to lock my car doors. Someone must have been walking around from car to car checking to see if doors were unlocked because another neighbor had a similar experience.
So what about the $27?
Well, at one point I thought that I should put a few dollars in my center console for when I see homeless people so that I have something to give them. So I was fully stocked as I had about $7 in the center console when this occurred. Then recently I went through a drive-thru to order breakfast and I realized that I had forgotten my wallet. I was frustrated because I had to drive back home to get it. I decided that a good solution would be to put a $20 bill in my glove box so that if this ever happened again, I would be covered. Well, that is not the case now as the mysterious thief now has my “homeless people money” and my “I forgot my wallet money”.
Take away: Remember to lock your doors no matter where you are. Yes it is still possible for people to break in, but locks are a there for a reason. They deter people who are not motivated enough to break in and I am sure it would have kept the person out that got into my car.
Stay safe America (and world).
If you’re trying to save money, take a good look at what you’re spending your money on. I’m not talking about necessities like food and living expenses, but rather things you are paying way too much money for. In fact, there are several things that you may be paying full price for when you don’t need to. CreditDonkey.com uncovers the top ten things you should always buy used.
The first one is really a no brainer. It’s no secret that new cars lose their value immediately. In fact, some experts say a car loses 20% of its value the second you drive off the car lot.
In comparison, a slightly used vehicle may be a great deal when it comes to the sticker price and the insurance cost. Do your research, though. Check out the car’s history and compare the car’s true value to what you’re paying. You definitely want to make sure that what you’re buying isn’t a lemon.
The same goes for bicycles. Unless you’re looking for a professional grade bicycle, you can likely get a good deal on a used one. You may even be able to pay a fraction of the retail price at a garage sale. Chances are the previous owner barely even rode it and is just looking to make more room in the garage. The same goes for kids and their bicycles. Kids grow so quickly; they usually grow out of their bicycles in a year or two. As long as the bike is in
relatively good shape, you can probably get a great deal.
Let me repeat what I just said. Kids grow up fast. When it comes to clothing, they probably won’t be able to wear anything for more than a season. That’s why buying kids clothing secondhand makes so much sense. You can save between 50-75% off the retail cost if you shop consignment stores or garage sales. Because parents sometimes try and save special outfits for picture time, you may even be able to score some clothing that the previous owner only wore once, or possibly not at all.
While kids grow out of their clothes quickly, they also tire of new toys just as quickly. Kids are notorious for pleading with you for the latest toy, only to abandon it the next week. Many toys simply end up on the bottom of the toy box. Give your wallet a break and buy gently used toys instead. Just be sure you check for any items that may have been recalled.
Just as with toys, you never know whether your aspiring sports star is really going to want to play more than one season. Don’t kid yourself; sports equipment is expensive, even if it’s made for a pint-sized player. Before you shell out your hard-earned money for a new hockey stick, new football pads or a new pair of golf clubs, let your child try them out. Buying used sporting equipment is a great way to ease your child into a sport without being too disappointed if they don’t keep it up.
When it comes to large exercise equipment for the grownups, you’re probably looking at the same deal. How many times have you seen a “slightly used” treadmill, weight bench or stationary bike for sale? We all start out with great intentions, but oftentimes these types of items end up with clothing hanging off them. Do yourself a favor and check out the used exercise equipment first, before you buy.
If playing in the school orchestra, or school marching band, is more to your child’s liking, you can save at the second-hand store for that too. Instruments easily run upwards of several hundred dollars. Unless Mozart is practicing in the next room, give used a try before you shell out the big bucks.
Do you have a kid in college? If so, you know how much money it costs. After the tuition, one of the biggest costs may be for textbooks. They can easily cost upwards of $100-$200 a piece! That adds up to a big chunk of change. If you can, try to find used books for sale either in bookstores or online. If you can find them, you’ll likely save a lot of money. If they stay in good shape, you may even be able to recoup some of the cost by selling them to another student next semester.
Large Baby Gear
At the other end of the spectrum, if you have a new baby there’s really no need to buy everything brand new. From the highchair, to the baby swing, to the portable baby bed, all will cost around $100 or more if you buy new. Most of these items are made to last, so why not save a lot of money and buy used. Again, though, make sure you check for any recalled products to keep your baby safe.
If you don’t claim to be a home contractor, or even a weekend remodeling guru, you probably don’t get much use out of the tools sitting in your garage. However, there will come a time when you need to fire up the power tools. Since you aren’t putting much wear and tear on them, consider picking the tools up at a local garage sale. As long as it works, you probably don’t need the latest model on the market.
So, if you want to save some real money, consider buying used when you can. Obviously, you don’t want to do this with everything, but there are some real deals out there if you know where to look.