We Help Investors Locate and Purchase Rentals
Let’s cut to the chase and leave out all the fluff. At this very moment, you’re interested in investing in rentals. Right away, you fall into one of three categories…
If you’ve never invested in real estate before, this is you. This is the type of client that says “I’ve heard about some opportunity in your area, and I’m interested in jumping in”. Greenhorns are usually timid, have many questions, and want to try and learn everything they can before they take the plunge. If this is you, we got your back. With over three decades of experience in hand picking the perfect rental property, you’ll be fine.
You have at least one property, and you’re looking to expand. You’ve had some success with your rental, and you’re starting to get a feel for the game. You’re thinking…damn, this is working for me pretty well, why not ‘think bigger?’
Better known as, “the boss”, this is the seasoned investor. You calculate CAP rates at the dinner table with your family, and have sweet dreams about cash flow, and nightmares about vacancies. You’ve done this so many times, picking up another property is like taking the dog for a walk. You understand the importance of a great partnership with a local agency, and how they can take the burden off your back while you rake in the cash.
Here’s a fact.
No matter the category here, you need help. That’s right, even you Hefe.
Anyone can turn on their computer, or browse google on their smart phone to do some research on listings in the market you’re interested in, but are you as good as us?
Don’t get offended, but we think not 😉
With three offices and three decades of experience, we’ve perfected the craft of procuring rental property for investors that will net real gains. Don’t look to some frumpy realtor who does this on the side and sells a few places a year, or use your aunt Lisa who got her license that collects dust and claims she can scoop you up the best deal in town.
How This Actually Works
It’s easy to say “oh yeah, we find you rental properties and then manage it”, but what actually makes us different here? Let’s look at the general step by step process.
All it takes is for someone to call, web chat, or fill out a contact form and say “Hey Douglas Realty, LET’S DO THIS THING”. That’s our cue to put on our thinking caps
Explain Your Situation
Tell us what category you fall under that we discussed earlier. Give us a sense of your experience level. If you’re really learned in this stuff, we don’t want to make you say “well, yeah, duh”. And if you’re new to this, that’s great. We love helping and teaching people.
We’ll ask some general questions, like what city are you interested in buying in, what price range are you comfortable in, and are you looking to finance or do cash?
A lot of times, new clients will say “Honestly, you tell me. How much house can I get for x amount of dollars?”
We Lay Down the Details
We’ll give you the pros and cons of each city we manage it. Quality of tenants, prices of properties, average rent, vacancies, etc. We want you to feel like you have a great general consensus of all your options.
Once we chat and determine the details, our trained agents will team up and send you the properties in that city with the most potential. We’ll look at costs to get the property rent ready (typically painting, flooring, appliances, small repairs) and weigh those costs against the selling price. In other cases, we find completely turn key properties that we can start marketing right away.
We’ll gather up our top 3-5 listings and send them your way for you to browse through.
Calculate the Numbers
At the end of the day, you’re doing this to make money. It’s that simple. That’s why this a successful landlord always buys based on numbers, not emotion. The biggest way to determine a good investment is calculating the CAP rate, and here’s how it works…
We estimate the yearly rental proceeds, subtract out management fees, vacancies, repair costs, and taxes. We take that number and divide it by the purchase price of the property. If that percentage is above 7%, we consider it a really good deal. Here’s an example:
$1,400 monthly rent multiplied by 12 months gives a total of 16,800. Subtract out our management fees, taxes, and some repair costs, you’d be right around $14,000. Let’s say you paid $160,000 for the property, we would divide 14,000 by 160,000 giving you an 8.75 CAP rate. Yipee!
Being in business so long has allowed us to develop some great relationships with lenders, title companies, home inspectors, etc. If you’re not wanting or able to pay cash for a property, worry not! Those who we use to help you get financed are low pressure, and will help you determine your eligibility FOR FREE and won’t hassle you, because we told them not to 😉 .
One of our licensed real estate agents will oversee the transaction and be your assigned real estate agent.
Here’s the cool thing. When you let us find you the perfect rental, we offer discounts on the management end of things. We’re not here to stuff our pockets in the short term. Our only interest is in building a long lasting relationship and help you grow you portfolio.
If this sounds like it’s too good to be true, it’s not. We’ve been doing this for a long time, and we want to see you succeed. Contact us today and let’s get you in on the action.