The summer season is coming to a close. All those vacations, family visits and local adventures may have spurred your clients’ interests in earning some extra income through the purchase or rehabilitation of a rental property. Whether they’re targeting long-term tenants, extended-stay business travelers or weekend warriors a la Airbnb, there are many opportunities to create an additional income stream through real estate – and many borrowing opportunities to facilitate this new venture.
SAVING FOR WINTER
While it may be too late to cash in on the summer crowd, the fall is the perfect time to execute small- and medium-sized rehabilitation and renovation projects, or to purchase a turnkey asset. Now that school’s back in session, many entrepreneurs, stay-at-home parents and work-from-home employees have the time and ability to turn their attention to other projects like home renovations. The slump between the start of school and the holiday season also provides the perfect buffer to brush up on what it truly takes to own and operate a rental property. This can encompass everything from marketing the listing to creating a rental agreement, understanding local rental ordinances, carrying out general maintenance and repairs and calculating NOI.
This time of year is also ideal for us for a few reasons:
- As I’ve mentioned before, we have to make sure our pipelines remain full in anticipation of the inevitable holiday slump prior to said slump’s arrival.
- Many borrowers who are familiar with traditional mortgages may not be aware of the other loan options available to them.
Viable options for those looking to increase their property’s value and supplemental income include rental loans, fix-and-flip loans and construction loans, aka FHA 203(k) rehab loans. Many folks are unaware they can obtain one loan to meet their entire property’s needs, from purchase or refinance to renovation, through Finance of America.
Nest eggs, emergency savings and college funds should not be put off, or suffer a major hit, in the pursuit of other goals. Not when there are viable, attractive options offered through qualified professionals such as yourself. Just like your own goals, a prospective landlord will not wait until Nov. 15 to consider making some extra cash by renting out his property over the holidays. Rather, it’s more likely he’ll be gathering this data now in anticipation of a stable holiday income stream that will lead to an optimistic New Year. Take a page out of your own book, and make sure those within your network are armed with the information they need to take the next step on their goal to financial freedom!