When you’re renovating a rental property, it can be difficult to know how many upgrades to include. Should you spend the extra money and hope it yields a higher rental income, or just keep it simple?
On this Q&A Monday, I’m answering this question—and more! You’re going to hear my thoughts on rental upgrades, choosing to work with a real estate company, attaining funding, and setting up business entities. Don’t miss episode 669 of Investing in Real Estate!
On this episode you’ll learn:
- How to decide how much to spend on rental property renovations.
- What makes Morris Invest different than other real estate companies.
- The difference between working with Fund&Grow & getting bank financing.
- How to know how many LLCs you need.
How to Decide How Much to Spend on Rental Property Renovations
When you’re looking to upgrade your rental properties, you can either do the bare minimum renovation, or add value in hopes of raising rents. Neither is necessarily right or wrong, When you’re making this decision, consider your targeted demographic and take note of what’s appropriate for the neighborhood. If you want to add value to the property, be sure you invest into features that a tenant will care about and be willing to pay for!
What Makes Morris Invest Different Than Other Real Estate Companies
In recent years, we’ve shied away from the term “turnkey.” This is because we’ve realized how much more goes into helping our clients create a wealth building plan. At Morris Invest, you won’t simply get a turnkey property. Instead, we like to focus on providing a customized, full-service experience for our investors. This includes helping you reach your goals and setting you up with other companies (like accountants, property management teams, and financing experts) that can help you on your unique journey.
The Difference Between Working with Fund&Grow & Getting Bank Financing
Working with Fund&Grow is a different experience than you would get if you were to walk into a bank and apply for funding. Fund&Grow can help you attain zero interest credit cards, whereas a bank provides a traditional loan. Both are excellent options for investors. Especially right now, traditional financing is able to provide low interest rates. We see many of our clients use Fund&Grow as a down payment, and finance the remainder of their investment with a traditional loan. Both are great avenues to pursue, and I suggest that you explore both to see what is a fit for you.
How to Know How Many LLCs You Need
While we are not lawyers or accountants, we are happy to share what we’ve been advised to do. We’ve been told that if you’re collecting income in a state, you should set up an LLC there to make filing taxes easier. We’ve also been advised to hold approximately $250-300k of value per LLC. As always, please consult your own accountants and lawyers for personalized advice.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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