Provident Property Management

We talk a lot about investors in real estate around these parts. But why would anyone want to invest in real estate these days? If we look at our recent history, real estate has done nothing but drop like a hot potato. But therein lies the beauty of it.

There are several reasons to be investing in real estate right now, if you can afford it.
House prices are down, of course. That means you would be buying at the bottom, which is what every investor dreams of. We all want to buy at the lowest possible point. The idea with real estate is that you will of course sell at the highest possible point. According to a recent article from Time Magazine, three trends are setting up a perfect storm when it comes to real estate. The economic cycle, meaning the fact that we are in a recession right now; the real estate bust, meaning that prices have almost no where to go but up; and the inflation outlook, meaning inflation is likely to increase as the US stacks up the debt are all combining to create a perfect investment opportunity.

So that's the long-term side of it, but what about short-term reasons?
The biggie is of course monthly rental income. Let's say you buy a house with a fabulous mortgage rate and the payment is $500 a month. Depending on the area, you could possibly rent that home for $750 or even $1000 a month. That's $250-$500 in your pocket every month.
Another good reason: home equity. As the tenant pays down your mortgage, you have more equity in the home. You can use that equity to improve the home if needed, thus increasing rents, or use it to invest in other homes.

So why am I talking to you about this? How can Provident help with real estate investment? We can manage your property for you of course. Let's examine our earlier example of renting the house for $750 a month. When the house is empty, you as the owner need to advertise it, show it, pick a tenant, get a lease signed, and take care of maintenance issues from leaky roofs to clogged toilets. Not to mention holding the security deposit, taking midnight phone calls about clogged toilets, and hoping you get your rent every month. That may be easy for one house, if you don't have a high-stress job. But what if you have several houses, or want to get into several houses? Well my friends, if Provident manages that property for you, all you do is go to the bank to cash your check every month. Provident handles the rest. For a $750 lease, the monthly fee would be $75 (without any maintenance charges, which are on an as-needed basis). Sounds like a steal to me! Contact us for more information.