As Alann and I celebrate our one year anniversary of living in the St Louis area, I thought I would talk a bit about why someone may choose to live here.
Some good reasons to move to MO:
The land is gorgeous. It is very green and lush. The landscape is greatly varied- flat lands, rolling hills, lakes and rivers. We've got something for everyone.
You can live in any kind of built environment you choose- an isolated farm or downtown St Louis- all within just a few miles.
There are lots of activities to enjoy outdoors- fishing, hunting, lounging on the lake or river, camping, hiking.
There are tons of cultural activities to enjoy as well- a fabulous zoo, lots of museums, a wonderful children's museum, Busch Stadium for Cardinals' games, and lovely parks. There are lots of historical buildings to visit and appreciate. If you are into wine, there is some beautiful wine country around St Louis.
Speaking of sports- there are 5 major sports teams in MO, as well as some good college teams to follow. Mizzou (the University of Missouri in Columbia) is quite popular in St Louis.
You can enjoy all four seasons, and each is unique. Winter is cold and snowy; sledding and snowman building are quite popular with the youth. Spring is often tumultuous, with spectacular thunderstorms. Yes, tornadoes are common across the state, but less common in and around St Louis. The summers are hot and humid, but not too hot or too humid. And the evenings and nights often cool down. And fall, which we are experiencing now, is a great season as well. The air is crisp and clean. The leaves change to beautiful colors and the kids have lots of fun making piles to jump into. The days recently have been in the 70s with nice cool nights.
Need some more information? This article is a good stepping-off point.
So, now that you are interested in moving to St. Louis, where do you start? We can help you find a place to rent for a while. Or if you prefer, find a good home in a nice neighborhood that needs some help, and our sister company Provident Development Group can renovate to your tastes and designs. Contact us for more information!
Wednesday, October 5, 2011
Monday, October 3, 2011
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.
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.
Thursday, September 29, 2011
Connect with us online
Did you know we have a Facebook page too? Click the Like button to the right of the blog and Like us on Facebook. There you can stay up to date on all our blog posts.
Speaking of blog posts, we are changing our posting schedule a bit. Starting tomorrow, we will have a special guest post on Fridays. Our in-house posting will change to Mondays and Wednesdays. If you or someone you know might be interested in writing a guest post, please contact us at marketing.ppmrents (at) gmail (dot) com. It can be anything to do with real estate, home improvement, or property management.
See you tomorrow for our first special guest post!
Tuesday, September 27, 2011
What can you do for a real estate agent?
So, you're a real estate agent. You may be asking yourself, what can Provident Property Management do for me? We've compiled this short presentation to help you decide if we can help you.
Thursday, September 22, 2011
Hope on the horizon?
It's the question on everybody's minds. When will the housing market and the economy in general stabilize? When will our house prices quit dropping? When will we be able to not hear all this talk about recession anymore?? (Maybe that last one is just me.) Well, a few sources seem to think we are getting to the end of all this hullabaloo. According to a recent article in the St Louis Post-Disptach, "PNC
Financial Services Chief Economist Stuart
Hoffman thinks [housing prices have] almost fallen far enough. He told a
group of the bank's clients today that St. Louis area housing
prices will fall about 5 percent this year, then stabilize in
2012." I'm sure this is welcome news for most of us.
So if you are looking to invest right now while prices are low, we can manage your properties in an affordable manner. You can get a good return on your investment, and not have to deal with all the headaches that come with tenants. You won't have to worry with Provident on your team. Contact us today.
So if you are looking to invest right now while prices are low, we can manage your properties in an affordable manner. You can get a good return on your investment, and not have to deal with all the headaches that come with tenants. You won't have to worry with Provident on your team. Contact us today.
Tuesday, September 20, 2011
So, what do you do?
What do you tell someone who asks about your job? How would you explain what you do?
Here's our explanation-
Alann is a rental property manager. He finds people who own a house that want or need to find a tenant to rent the house from them. He evaluates the unit and helps the owner decide on a fair amount to expect from the rental. He then markets said property and attempts to secure a tenant for that amount. He runs background checks on potential tenants to ensure the unit will be taken care of properly. Every month, the tenant writes a check to Provident Property Management for the rent. Alann takes care of any maintenance or needs of the property, and writes a check for the balance to the owner.
"Does Provident only manage houses?"
No, of course not! Alann will manage any rental property- single family houses, duplexes, triplexes, apartment complexes. If someone owns a property that is legally considered a dwelling, Alann can manage it for the owner.
"What about investors with multiple units? Can Provident manage multiple units?"
Of course! Imagine the ease of only dealing with one check at the end of the month, instead of dealing with multiple checks coming in at various times throughout the month. With that check comes an itemized listing of any maintenance or other expenses associated with the properties, so the investor (you!) always knows exactly where his money is going. Imagine the ease of knowing that all of the units are rented, and if there are vacancies, that someone else is managing those vacancies and working to fill them as quickly as possible.
"What if I just want to rent my home out for a short time, say until the market turns around and I can sell it?"
Perfect! We can definitely help you. Provident doesn't make you sign a contract for a specific amount of time. To make things simple, we focus on tenant-terms. If you come to us with a house that you want to rent for a year, you pay the $150 set up fee (discussed under pricing), then we work on getting a tenant. When the tenant's lease is up, you are free to leave for whatever reason. We won't charge you a going-away fee if the unit is vacant. If you choose to continue allowing us to manage, there is no cost to you to get a new tenant.
Here's our explanation-
Alann is a rental property manager. He finds people who own a house that want or need to find a tenant to rent the house from them. He evaluates the unit and helps the owner decide on a fair amount to expect from the rental. He then markets said property and attempts to secure a tenant for that amount. He runs background checks on potential tenants to ensure the unit will be taken care of properly. Every month, the tenant writes a check to Provident Property Management for the rent. Alann takes care of any maintenance or needs of the property, and writes a check for the balance to the owner.
"Does Provident only manage houses?"
No, of course not! Alann will manage any rental property- single family houses, duplexes, triplexes, apartment complexes. If someone owns a property that is legally considered a dwelling, Alann can manage it for the owner.
"What about investors with multiple units? Can Provident manage multiple units?"
Of course! Imagine the ease of only dealing with one check at the end of the month, instead of dealing with multiple checks coming in at various times throughout the month. With that check comes an itemized listing of any maintenance or other expenses associated with the properties, so the investor (you!) always knows exactly where his money is going. Imagine the ease of knowing that all of the units are rented, and if there are vacancies, that someone else is managing those vacancies and working to fill them as quickly as possible.
"What if I just want to rent my home out for a short time, say until the market turns around and I can sell it?"
Perfect! We can definitely help you. Provident doesn't make you sign a contract for a specific amount of time. To make things simple, we focus on tenant-terms. If you come to us with a house that you want to rent for a year, you pay the $150 set up fee (discussed under pricing), then we work on getting a tenant. When the tenant's lease is up, you are free to leave for whatever reason. We won't charge you a going-away fee if the unit is vacant. If you choose to continue allowing us to manage, there is no cost to you to get a new tenant.
Thursday, September 15, 2011
Fall Home Maintenance Tips
Here are some excellent tips for Fall Home Maintenance from Sound Money Matters.
Check these items soon before the weather turns chilly.
Check Weatherstripping on Windows and Door Frames
Check the weatherstripping around windows and door frames for drafts now. Then head to the home repair store to pick up new materials. Damaged weatherstripping can allow leaks during a heavy rain storm. They also let the warm air out and cold air in, which will increase your home heating costs. If the draft is really bad and weatherstripping doesn’t fix it, you may need to replace the window.
Look for Roof Leaks
During the next rain, go up in your attic and look for leaks. Also check ceilings and around windows for leaks. If you find anything, caulk the windows or call a roofer for repair. Do it now, before the winter really sets in!
Clear Brush Around the House
Clear brush that could become a haven for insects and rodents. If you live in a fire zone, clear any brush or shrubbery that overgrew during the summer.
Test the Furnace
You don’t want to find out your furnace is broken on the first cold night. So, crank up the heat now to test the furnace. You may notice a bad smell at first. If it doesn’t clear up soon, call an HVAC specialist to check the system.
Check the Fireplace for Cracks and Brush
Fall leaves have a way of gathering around the chimney. Clear out the chimney cap to prevent sparks from starting a fire on the roof. You should call a chimney service to inspect your chimney and any gas lines leading to it for cracks or leaks. A damaged chimney or gas line could start a fire in your house.
Check these items soon before the weather turns chilly.
Check Weatherstripping on Windows and Door Frames
Check the weatherstripping around windows and door frames for drafts now. Then head to the home repair store to pick up new materials. Damaged weatherstripping can allow leaks during a heavy rain storm. They also let the warm air out and cold air in, which will increase your home heating costs. If the draft is really bad and weatherstripping doesn’t fix it, you may need to replace the window.
Look for Roof Leaks
During the next rain, go up in your attic and look for leaks. Also check ceilings and around windows for leaks. If you find anything, caulk the windows or call a roofer for repair. Do it now, before the winter really sets in!
Clear Brush Around the House
Clear brush that could become a haven for insects and rodents. If you live in a fire zone, clear any brush or shrubbery that overgrew during the summer.
Test the Furnace
You don’t want to find out your furnace is broken on the first cold night. So, crank up the heat now to test the furnace. You may notice a bad smell at first. If it doesn’t clear up soon, call an HVAC specialist to check the system.
Check the Fireplace for Cracks and Brush
Fall leaves have a way of gathering around the chimney. Clear out the chimney cap to prevent sparks from starting a fire on the roof. You should call a chimney service to inspect your chimney and any gas lines leading to it for cracks or leaks. A damaged chimney or gas line could start a fire in your house.
Tuesday, September 13, 2011
When I say "foreclosure" do you think money?
Looking to invest in some rental properties? Think about buying foreclosed houses. These can be a GREAT investment. I know, I know. There are a lot of bad perceptions out there about foreclosed properties. The owners' trashed the place, or stripped the copper. The locations are all terrible. But in our current situation, that simply isn't the case. A lot of foreclosures are in nice neighborhoods where the owners simply could not afford the house payment. Maybe there was a layoff or medical problem involved. But according to RealtyTrac, foreclosures are worth looking into.
According to the article:
And when you do buy that foreclosed home, either for your family or for an income property, contact us to manage your new rental property, or to manage your previous home if you are unable to sell it. We work with investors and home owners who cannot sell.
According to the article:
Okay, so now you are considering it. But what do you look for in a foreclosed home, either for your family or for an income property? Consider this article: What to look for when buying a foreclosed home. Start there, and do some research.
"Highlights from the RealtyTrac 2nd Quarter Foreclosure Sale Report for the St. Louis metro area:
- The average sales price of a foreclosure sale home was $80,067 which represented a 43.40 percent discount from a non-distress sale
- For the U.S., the average sales price was $164,217 and the average discount 33.09 percent.
- Of the 2,138 foreclosure sales during the quarter, 684 were pre-foreclosure sales and sold at an average price of $95,243 which is a 32.67 percent discount.
- For the U.S., the average sales price was $192,129 and the average discount 20.51 percent.
- Of the 2,138 foreclosure sales during the quarter, 1,454 were REO’s and sold at an average price of $70,356 and an average discount of 50.26 percent.
- For the U.S., the average sales price was $145,211 and the average discount 39.92 percent."
And when you do buy that foreclosed home, either for your family or for an income property, contact us to manage your new rental property, or to manage your previous home if you are unable to sell it. We work with investors and home owners who cannot sell.
Thursday, September 8, 2011
How our economic situation affects home owners
I ran across this interesting article about how the Economic reality shifts thinking on homeownership. It made several great points about our current situation and the American dream about owning a home. Basically, times have changed. People are staying in their homes for longer before trying to sell them. Others are choosing to rent for longer, even when they could afford to buy.
This little tidbit caught my eye: "Legions of homeowners remain underwater on their mortgages or unable to move because they can’t sell their house." Also from the article "a recent report from Morgan Stanley found that the U.S. homeownership rate has fallen below 60 percent when delinquent borrowers are excluded, a sign of the country’s move toward a 'rentership society.'"
If this sounds like you, contact us. Whether you already own an income property, or need or want to move out of your current home but cannot sell it, call us! We can manage your property, find a quality tenant who will care for your property, and you can hold your house until you are able to sell it, and possibly make a profit in the meantime!
This little tidbit caught my eye: "Legions of homeowners remain underwater on their mortgages or unable to move because they can’t sell their house." Also from the article "a recent report from Morgan Stanley found that the U.S. homeownership rate has fallen below 60 percent when delinquent borrowers are excluded, a sign of the country’s move toward a 'rentership society.'"
If this sounds like you, contact us. Whether you already own an income property, or need or want to move out of your current home but cannot sell it, call us! We can manage your property, find a quality tenant who will care for your property, and you can hold your house until you are able to sell it, and possibly make a profit in the meantime!
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