Quotations by Symon He

Real estate investors have three advantages at their disposal: accessible leverage, rental income, and control over the investment. Leverage, when properly applied, allows investors to make larger returns with each dollar invested while having to put fewer total dollars into any one investment. Be careful of the risk here, because negative leverage can hurt your investment if the cost of debt is more expensive than the return on the investment. [2020] - Symon He

Real estate, as an asset, is a natural diversifier. Historically, when stocks, bonds, and other common investments have appreciated or depreciated, real estate hasn't followed suit. The many investment options in the real estate universe are abundant, which makes it possible to pursue diversification within the confines of your real estate portfolio. [2020] - Symon He

As the prices of goods and services go up, the rent you can charge your tenants will also increase. Historically, rents have kept pace with the rate of inflation, if not surpassing it over the long run. In constrained markets like San Francisco, where demand exceeds supply, rent outpaces inflation. [2020] - Symon He

Experienced property managers can be especially useful for screening and selecting good tenants, seeing to the day-to-day business of your rental properties, and removing the risk of excessive vacancies. [2020] - Symon He

A good example of a core investment (lower-risk investments with lower return potential) is buying a brand-new home in an established, mature neighborhood with a thriving rental income. The tenant is already in the home and has a stable income and a good history as a renter. You also have a thorough understanding of the expected appreciation over time in that area. Core investments are suited to investors who want stable rental income while minimizing risk as much as possible. [2020] - Symon He

Familiarity is very important in real estate investing. But the familiarity factor doesn't always play a major role in your final decision. If you're using the services of a property manager, then distance doesn't play that much of a role in your investment. The use of property managers has allowed me to maintain several successful investments in different parts of the country. [2020] - Symon He

Sources for Finding Potential Deals: 1) Multiple Listing Services (MLS); 2) Newspapers; 3) Craigslist; 4) Pocket Listings: The private listings that won't show up on the internet or in newspapers. These occur when the agent agrees to use their own private network (or the network of the seller) to find a suitable buyer. They can also be known as For Sale by Owner deals (FSBOs) when there is no agent to represent the seller. [2020] - Symon He

Buying an investment in a costly neighborhood might be outside your price range, but consider as an alternative the surrounding neighborhoods. Proximity to high-income areas can increase interest in your property. [2020] - Symon He

What I Look for in Tenants: 1) They have a reliable source of income (Ideally, a tenant will have a gross monthly income that is 4 times what you're asking for rent); 2) They have no prior evictions; 3) They pass full background and credit checks; 4) They have positive references from prior landlords. Questions for Previous Landlords: 1) Does the tenant owe any money? 2) Would you rent to this tenant again? 3) Were there any major repairs needed during their tenancy? [2020] - Symon He

Sites like Airbnb claim to offer insurance for the property, but subletting still exposes you to extra liability. In my opinion, it's not a good idea for landlords to allow subletting in their properties. Your explicit stance on subletting needs to be established in your lease agreement, usually using terminology like "subletting in the forms of collecting money or compensation in any form from houseguests for any length of time is strictly forbidden without express prior written consent from the landlord." [2020] - Symon He

In the United States, the data shows that May, June, July, and August typically have the highest volume of home sales. If one wishes to capitalize on this trend, then he'll have to seize that four-month window of opportunity. Better yet, he should drill down his analysis to focus specifically on trends in his target market. [2020] - Symon He

Staging involves setting up a (usually) vacant property in a way that looks professional, clean, and inviting. A staging company will use their own high-quality furnishings to professionally stage the property to look as appealing as possible, either just for a photo shoot or for a period of weeks to account for showings. The only time I would advise against a staged property is during a busy market. If the inventory is low and homes are selling quickly, staging a home is an expense that may not pay off. But if you're in a down season and you really are pressed to sell quickly, that's when a staged property makes a difference in the sales price and expediency. [2020] - Symon He