Real estate investing is easy once you have an idea of what you are doing but there are many moving parts. The one gear that can make or break a real estate investment project is the execution of the renovation. You could have bought the property for the right price, this is where you make your money, but not properly executing a renovation can kill all the hard work done upfront.

Before I learned how to contract properties, wholesale and/or invest, I knew the cost of construction and materials. I was into DIY before it was mainstream. At first it was by force because my father had me helping him with projects around the house. Later in life it grew on me. It pains me still today to pay for items I know I can do myself but it no longer makes business sense for me to do those items.  I remember a contractor trying to charge me above retail prices because I was young, well dressed and an investor. After I explained the process of the work he was being hired to do, the cost of the material and the time it will take, I asked for a realistic price. Not to my surprise I received an amazing price. I still do this today when contractors try to overcharge and it usually works. In fact, they respect me more for it. While you are not doing the work you want to know what goes into doing the renovation. How can you hire a contractor if you do not know what he is being hired to do? Also, do not judge a contractor only by a finished product but from start to finish. I have walked projects that looked great but once I “looked under the hood” I notice the craftsmanship was lacking. Read More→

Your business is unique. Make sure that QuickBooks knows how you operate.

QuickBooks was designed to be used by millions of businesses. In fact, it’s possible to install it, answer a few questions about your company, and start working right away.

However, we strongly suggest you take the time to specify your Preferences. QuickBooks devotes a whole screen to this customization process. You can find it by opening the Edit menu and selecting Preferences.

Figure 1: The My Preferences window in QuickBooks’ Preferences

This is the screen you’ll see when you go to Edit | Preferences in QuickBooks. You can turn features off and on, and customize the software in numerous other ways. For Real Estate investing you should turn on the “Use Class tracking” AND “prompt to assign classes”. This will allow you to see each property with its own Income Statement. Read More→

Land and lots just sat on the market for years during the last economic down turn and now are a hot commodity on this hot market.   What most people do not realize is that land is a much more complex transaction.  

PROPERTY

How large is the property?  Typically a lot is sold with an individual price for the entire parcel.   Larger tracts are often sold at a price per acre times the number of acres.   Properties in downtown areas with high density zoning are sold by the square foot, so a couple of inches will change the price. 

ZONING

First, what is the highest and best use?   Determine first whether the property in the city or in the county. If it is in city limits, go to the city’s zoning ordinances.  If not, go to county zoning.   Is it residential, commercial, or agricultural? What is the zoning on the property? Zoning is usually stated on tax records.  Unfortunately, all the counties and cities in Georgia have their own zoning codes and what holds true about a zoning code in one area, is totally different in another.  Generally speaking, in order of density: Read More→