Real Estate Investment Training - Real Estate Investors
Raise Rents Annually - 101 Street Smart Cash Flow Accelerators #64
Sep 27 2019
Oh and I'm back with another my 101 cashflow accelerators. It's so great to see you. This is part of a series when managing property, each one of the different segments of the 101 cashflow accelerators is divided into separate segments. This one focuses on managing your property. I've been buying, holding and selling property now for over 40 years. Love the business. And one of the things that we do is always teach you how to have effective property management, efficient property management and profitable property management. And this one is raise rants annually. You know, one of the big mistakes that landlords make is that they don't raise rents. They get very confident and comfortable in their relationship with their resident and they don't want them to move. I don't blame you for that. I'd want to feel the same way. However, what happens is inflation is a real thing.
Check with the Bureau of labor statistics and you'll find that inflation over the last 20 years has been about 2.94% per year. So in other words, you start a year in January with a dollar. You end a year in December 31st with about 97 cent so you already know you're going backwards by 3% and doesn't it make sense to raise your rents. Now in our standard rental agreement that I've talked to you about on other segments, one of the things that we've built in is an annual increase in rants built in that it's 10% now we tell our resident when we do our signing ceremony that I also covered in different segments. We tell them that it does say 10% however, we're going to look at the different expenses that we've had on the property to determine what the amount will be. For the purposes of this training.
It's to share with you that you should always raise your rent at least 3% just to be even with the beginning of the year, and to also take into consideration property, taxes, insurance, and repairs that you've had in the property. And when you use my paperwork, standard rental agreement, it already has a place built in for you to notify your resident that the rent will go up in 12 months. I hope this has been valuable to you, like it, love it, share it, and subscribe to our channel and I look forward to seeing you soon at my millionaire. Jump start training. If you'd like to know more about managing properties the right way, the street smart way, go to streetsmartinvestor.com look at the tools and you'll find my property management system volume eight call us (800) 578-8580. Have a great day.
Lou Brown has been buying, selling and holding property for 40 years and you are about to discover what a lot of so called gurus are missing.
* How to buy all the property you want without ever visiting a single bank or needing to qualify for a loan…
* How to have a buyer or renter before you even buy property…
* How to have them already pay you money before you sold them anything…
These are exactly the kinds of deals he does day in and day out. Most 'investors' are getting it wrong. It's not about the property, it's about the buyer. Buying right and buying cheap is what you'll do after you have the buyer.
Real Estate investors in all fifty states across Canada and fifteen foreign countries including as far away as Australia and New Zealand, have long regarded the training, systems and forms created by Louis Brown as the best in the industry, Quoted as an expert by many publications and authors, “Lou” draws from a wide and varied background as a real estate investor having been buying property since 1976.
He's invested in single-family homes, apartments, hotels, developed subdivisions and built and renovated homes and apartments. Each of these experiences has given him a proving ground for the most cutting edge concepts in real estate today. He's widely known as a creative financing genius with his deal structuring concepts.
Being a teacher at heart he enjoys sharing his discoveries with others. He has served the industry in many volunteer positions such as past President and designated lifetime member of the Georgia Real Estate Investors Association, the world's largest real estate investor group.
He is also founding President of the National Real Estate Investors Association, which serves as the umbrella association of local investor groups.
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