South Jersey Real Estate Investors Association

The Impact of Student Debt on Qualifying Tenants

As an investor and housing provider, one of the things I fear most is a long-term vacancy. I’m
about to face the worst vacancy of my life… all three of my children will finally be out of the
home, with two of them heading out over the next few weeks in pursuit of educational
advancement. In today’s world, that advancement is usually accompanied by something else
we are becoming all too familiar with in the United States, student debt. My children will leave
school in 3 years with around $50,000 in student debt, which has become easier than ever to
access. Never before have I seen such willing lenders who are anxious to provide funding to
someone who statistically is less than likely to make the lender whole. As an industry, this
overfunding of student loans, and the high volume of defaults, will begin to affect how you and I
manage into the future.

Starting at the end of June, student debt will no longer be paused as a side effect of Covid, and
payments will again be called due. Over one-third of all Americans between the age of 18 and
30 have some type of student loan. Thirty percent of those loans were already delinquent
before the Covid pause. As a housing provider you are going to see the impact of this over the
next several months and years and need to be educated and ready to make the best decision
possible.

Having been a private investigator and housing provider my entire adult life, I have seen the
ebbs and flows ... Read More…

Your Short-Term Rentals Can Generate 6x Gains 

by David Pickron

Rarely in life can the quick version of anything ever compete with the more time intensive “real deal.”  Think of any instant food and you will quickly realize that I’m telling the truth.  The same had held true for real estate investments for at least the last century… but times, they are a changin’.  As you look at your portfolio it may be time to consider transitioning some of your long-term holdings into short-term rentals, and here is why; short-term rentals can generate up to six times the amount of revenue as a long-term hold.  My average long-term hold properties cash flow at around $200 per month; my short-term rentals cash flow just over $1200 per month. Does that get your attention? 

As you consider transitioning from long-term to short-term rentals, you should examine the following factors to help ensure that the changeover is successful: location, needs, and saturation. 

LOCATION

The old mantra of location, location, location in relation to real estate has endured because it is true.  For short-term rentals, it may even be more important.  A friend of mine recently converted their 5,000 square foot custom home in a regular residential neighborhood in Phoenix, AZ  into a short-term rental.  In his mind, he had already cashed the checks after he listed the home on the popular short-term rental sites. But there wa ... Read More…

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Use Design To Increase Investment Property Value and Attract Tenants

Renting is on the rise in the U.S., which means landlords are in the perfect position to find new tenants. According to research, rented homes made up 34.7% of the market in 2020. Of course, other property owners are taking advantage of these higher numbers, which means your house needs to stand out. Fortunately, you can attract renters with the right design choices. Here are a few tips that can help make your property attractive to would-be renters.

Beautify the Outdoor Spaces
When updating your rental property's design, don't forget about outdoor spaces. A neat front lawn increases curb appeal, while a comfortable backyard helps renters envision living there. You can find plenty of ways to beautify a yard to great effect:
• Create a dining area
• Build a deck
• Install outdoor lighting
• Add a fire pit
• Plant flowers

It's a good idea to hire professionals to handle backyard landscaping rather than tackle these projects yourself, especially if construction is involved. As you consider contractors, make sure you shop around and look for deals to minimize costs. You should also read reviews and check with local associations for complaints.

Consider a Property Manager
Property management is a full-time job. If you decide to take it on yourself, you'll be solely responsible for the following:
• Scheduling repa ... Read More…

When deciding to build a home, accessibility is not often the top must-have feature that comes to mind. However, accessible homes are not only aesthetically pleasing to the eye but also functional too. Therefore, if you are planning on building an accessible home, what are tips on how to go about it.

What is an accessible home?

If you're new to the concept or, conversely, have your heart set on building an accessible home, it might be helpful to first define what an accessible home is. Simply put, a home with easy accessibility is a home that is designed with simplicity in mind. Moreover, a home with easy accessibility makes moving in, through, and around the property easy to do.

Benefits of building an accessible home

Accessible homes are growing in popularity for obvious reasons. One of the main reasons many homeowners are starting to favor accessible homes is that they can meet your most basic living requirements efficiently. As an example, you won't usually find many steps to climb to get to certain areas in accessible homes. Another example may be having an additional guest bathroom on the main floor for when you have visitors around. Accessible homes are also beneficial (and often safer) for seniors to get around in, not to mention making your home more accessible to visitors with disabilities.

Popular features of accessible homes

When designing a floor plan for your new accessible home, here are some popular features you may want to consider incorporating into ... Read More…

This month, SJREIA has added not one, but two bonus learning opportunities to the calendar! 

First up, join us on Wednesday, March 17th for a FREE webinar featuring National REIA speaker, David Pickron. If you are an active or aspiring landlord, this event is for you. 

It's a crazy time to be a landlord! Local, State and Federal regulations are restricting landlord access to the background history of potential tenants. 

At this webinar Speaker David Pickron will talk about how landlords can adjust their tenant qualification process during these challenging times to find THE BEST TENANTS possible!

David will be teaching attendees: 

1. How to create and use rental criteria to protect yourself and your investment.
2. Strategies for rental history verification processes and increasing tenant requirements.
3. How to update the way you process employment and income verification.
4. How property inspections can work in your favor.
5. What investors can expect in the future and how Rent Perfect can help. 

Based in Arizona, David has over 25 years of experience in the eviction and tenant screening fields. David is the owner of AAA Landlord Services, Inc as well as Rent Perfect. His companies have helped both evict and place tenants in the Arizona market since 1992. David has been recognized as a leader in tenant screening since 2001. David is a regular contributor to many industry publications and shares his insider knowledge through online training available through his company we ... Read More…

We are just a few short days away from our event of the year! Join us on December 5th for a full day of virtual learning featuring over 20 local and national speakers. You won’t want to miss this free SJREIA expo that is sure to set you up for success in 2021.

Throughout the day, you will hear from national speakers including Marc Halpern, Steve Lloyd, Marco Kozlowski and more. In this post, we are introducing you to investor, speaker, author, coach, and consultant, Mike Butler, who will be covering Landlording: How to Consistently Get Paid Over 100% of Your Rents Each Month.  

Mike Butler began his real estate investing career while working full time as an undercover police detective in Louisville, KY. What started with $1,000, a few fixer-uppers and rental properties evolved to a full time career in investing. He soon developed his “investor friendly” simple investor Books Pro SystemTM with Tenant TrackingTM and Loan Customer Tracking.

This simple system allowed Mike to exponentially grow his investing business and catapult his career. Mike has used his knowledge and experience to write his bestselling book, “Landlording on Autopilot” that serves as the go-to training manual for thousands of landlords and property managers around the world.

On December 5th, Mike will be leading an interactive training presentation that will teach you how to guarantee 100% of your rent each month, which he writes in great detail about in Chapter 12 of his bestselling book.

Throug ... Read More…