Sun Rock Property Management » lakewood ranch property management

Real Estate Wins

Sun Rock Properties — Tue, 07 Jun 2011 12:35:00 +0000

So you have $100K. What do you do with it?

You could put it in a money market savings account with an average return of 0.30% APY. After one year you will have earned $300.

You could put it in a CD with an average return of 0.50% APY. After one year you will have earned $500.

For an IRA, you are still looking at 0.50% APY. After one year you will have earned $500, but withdraw it early and you will be taxed heavily.

You could buy gold as the commercials will tell you, but gold has doubled in price over the last 2 years and this isn’t 2009.

You could give it to your broker to invest, but the stock market is turbulent and if you are getting a 4-5% return, you are doing better than 95% of investors. After a great year in the stock market, you will have earned $4,000 – $5,000.

But if you take your $100K and buy a bank owned property. Let’s say you find a 3 bedroom house in a decent neighborhood and negotiate with the bank for $90K. You spend another $10K on closing costs and fixing the place up. You can then rent it for $1200 per month. In this example you don’t have a mortgage, since you had $100K to start with, so you only pay taxes and homeowner’s insurance. Say your taxes for the $90K home are $2000 per year and insurance is $1000 per year. Your monthly expenses are $250 per month. Your gross income is $1200. Your net income is $950. After one year you will have earned $11,400 for an 11% return on your $100K. Where else are you going to get that kind of return?

Real Estate also has the advantage of tax breaks through paying a mortgage or deducting expenses on the property. Appreciation is a thing of the past, but if you buy under market conditions and have the cashflow to hold it for 10 or more years, you will make money when you sell it.

Even in the Great Recession, Real Estate still wins.

For expert property management in Treasure Island, St Pete Beach and Lakewood Ranch, Florida, contact Sun Rock Property Management

The Other Number

Sun Rock Properties — Wed, 01 Jun 2011 11:47:00 +0000

When looking at comparable properties to see how much to list your property for rent, you not only have to look at the listing price, but also the number of days the property has been listed. A property listed for $1500 per month and sitting vacant for a year is worth $0 that year. The same property listed for $1000 per month and leased after one week is worth $12,000 that year. The rental rate is not determined by what you think it should rent for or the exorbitant rates realtors list similar properties for.

The rental rate is how much the new tenant agrees to pay when they sign the lease and put down the deposit. Nothing else.

Recently, we had a new buyer believe they could get higher rent then what we were getting. The $900 per month didn’t seem like enough when there are similar properties listed in the neighborhood for $1200 – $1400 per month. But if you look at the other number, number of days on the market, those properties had been listed for 9 months to a over a year.

I’d rather have the $900 per month and my $10,800 per year, than $0. Vacancy kills real estate investments.

Look online to get a ballpark range of what to list your property for. Start on the high end and then lower it every few days until you are getting enough phone calls. In this ‘owners’ market for rentals, there will be plenty of leads once you get the right price point.

For expert property management in Hillsborough, Pinellas, Manatee and Sarasota Counties, Florida, contact Sun Rock Property Management

So I was talking to this realtor…

Sun Rock Properties — Sun, 30 May 2010 14:52:00 +0000

about a property her client was interested in renting. She asked me what the comission was for leasing the property. I asked her what she meant and she was direct in saying, ‘how much do I get paid when my client signs a lease?’

I continued the questioning because I thought it would be interesting to hear the greed drip through the phone. She said usually the comission is ‘one half of first month’s rent’. Since we charge less for our own leasing fee, I had to tell her we do not have a commission to offer. That was the last I heard from her.

Now I don’t expect people to work for free, but some questions came to mind. What if this property was the absolute perfect one for her client? How much would that be worth? If a realtor located a property for a client, it was the ideal place, the client loved it and it improved the client’s life, wouldn’t they rave to all of their friends and family about the realtor?

The realtor might have received 10 referrals from that one prospect and maybe 10 more from each of the new referrals. Maybe 100 commissions were thrown away in a chase to get paid, rather than putting the client first.

At Sun Rock, we give before we get. The purpose of this blog is to give quality information to real estate investors. By doing this we have earned well-educated and informed clients for life. This is the difference between chasing a paycheck every month and building a successful business.

Not saying all realtors act like this, but anyone who does, Sun Rock Property Management does not want to do business with.

For quality property management in Lakewood Ranch, Florida, contact Sun Rock Property Management now.

What Happens in Florida, Will Happen Everywhere Else

Sun Rock Properties — Sat, 24 Apr 2010 15:44:35 +0000

Want to know what will happen in the U.S. Real Estate Market? Watch Florida.

Jim Cramer says Florida is the template for where the US housing market is headed.

Florida real estate lead the way during the boom and the bust, and will lead the way in a recovery. Look to Florida to find out what will happen next.

For pre-purchase investment consulting and expert property management, contact Sun Rock Property Management. We manage your investment in Bradenton, Sarasota and Lakewood Ranch, Florida.

Is Your Property Manager a Realtor?

Sun Rock Properties — Fri, 09 Apr 2010 22:10:00 +0000

Most property management companies are run by Realtors. They can manage your property, or sell it, or whatever. Too bad for you the Realtor can make a lot more money in a lot less time if they throw your property on the MLS, have a buyer come along, and get a 4% commission instead of managing it.

The mindset of a realtor is not the same as a real estate investor. Realtors are salespeople, helping people buy and sell their homes regardless of capital gain or loss. Investors are seeking high returns on their money, generating cashflow and building wealth. During the boom and bust of the mid 2000’s, many realtors got burned thinking they were investors just because they were in the real estate business.

Usually a Realtor will get into the property management business, thinking it is easy and will generate a little extra income. The result is a domination of Real Estate Agencies, who also do property management. Would you hire an electrician who does a little plumbing on the side to fix your sink? No, you would hire a plumber.

The lack of focus and priority among these companies makes finding a good property management company hard. Sun Rock Property Management was developed by real estate investors to offer an alternative to the realtor/property management companies.

Property Management is all we do.

For focused, efficient management with a personal commitment to you, contact Sun Rock Property Management.

As Home Prices Decline, it is a Great Time to Invest in a Rental Property

Sun Rock Properties — Wed, 09 Dec 2009 22:55:59 +0000

In Manatee County home and condominium re-sales rose in October. However, there’s still a debate about the housing market recovery.

According to the Florida Association of Realtors, sales of existing single-family homes in the Sarasota-Bradenton market rose nearly 50 percent in October compared to the same month a year ago. Sales of previously-owned condos also escalated.

Bargain-hunters and first-time homebuyers seeking the federal tax-credit deadline pushed the sales spike. This led to a decrease in the median sales price from a year ago.

Whether you are looking to purchase a condo on the 10th-hole in River Strand or a beautiful home in the Lakewood Ranch Country Club, prices are right for an investment in a rental property.

Contact Sun Rock Property Management for all your investment rental property management needs.

Lakewood Ranch – Property Management Perspective

Sun Rock Properties — Sat, 28 Nov 2009 17:42:00 +0000

East of I-75, in the 34202 zip code, is the master-planned community of Lakewood Ranch. Lakewood Ranch offers a variety of different properties and amenities to suit any lifestyle.

The neighborhoods of Greenbrook, Summerfield, The Lake Club, Lakewood Ranch Country Club and Riverwalk are connected by the trademark of Lakewood Ranch, miles and miles of nature trails. For active residents, Lakewood Ranch offers several outdoor activities including golf, tennis, polo and cricket.

Other community features include parks with picnic areas, children’s sports fields, lakes, conservation areas and impressive landscaping.

Lakewood Ranch is very desirable. It is located in close proximity to shopping, entertainment and dining. Inside of the Lakewood Ranch community lies the Town Center offering a variety of shops and restaurants, Publix, YMCA, Lakewood Ranch Medical Center and Lakewood Ranch High School.

For the prospective investor, there are a variety of residential properties to choose from. It is best to contact a property manager for pre-purchase consulting and specific rental rates.

For expert property management in Lakewood Ranch, contact Sun Rock Property Management.