“With so many obstacles and regulations in the weed business, owning your real estate is the only thing we can control in this industry,” Sally Vander Veer, CFO of Denver-based pot shop Medicine Man, tells Inc. “It's essential to long-term success.” That’s because, if you don’t own your own grow-house, it's typical for landlords to up the rent significantly after marijuana-growers invest huge sums of money converting the space. And the local real estate business is booming for buildings perfect for growing weed (aka zoned as light industrial). Vander Veer and her brothers bought just such a building in 2014 for $2.5M, and they recently sold it for $6M. Among all the uncertainty in the pot business, weed entrepreneurs can only make one safe bet: buy real estate….read more
Archives for April 2016
Around this time last year, I wrote an article highlighting ideas for paying for your child's college education. One of the best strategies to pay for college is to actually investing in rental real estate. This will be an update including the steps we’ve used ourselves.
1. When our daughters were very young, we decided to buy rental properties in order to fund their monthly college savings plans. We bought these homes with mortgages and our goal was to create $250 a month of positive cashflow for each of them after paying taxes, insurance, and the mortgage payment. This $250 a month would be invested into a brokerage account for their future college expenses. We followed this plan for years and over time their college savings compounded slowly. During this time the savings account for my oldest daughter grew to a little under $60,000. This included the $250 monthly contributions and the increase in market value of the various investments.
$250 invested per month turned into $60,000 in 16 years.
2. Last year, when my oldest daughter was a sophomore in high school, we used $40,000 of her college savings to buy a single-family rental home for cash. This home is within 2 miles from our home. It was a foreclosure and we needed to invest another $5,000 to make repairs, paint, and install new flooring. After completing the renovations, she was left with around $15,000 in her college savings account… read more
Choosing a property management company to oversee your rental can seem like a daunting task. How do you effectively vet a property management company?
For one thing, you know that the relationship will most likely be a long-term, ongoing one, so finding a solid property manager is important. Additionally, when entrusting one of your largest assets to someone, you’ll want to make sure they’ll manage it properly, and will be able to help you get the best returns possible. It’s a tall order!
But while there’s no shortage of property management companies; it’s important to remember that not all companies are the same. While a great manager will make life easier, and will be able to help you get the most out of your investment, the worst of the bunch will allow unscrupulous tenants in, charge exorbitant fees, and cause havoc with your rental.
But don’t let this scare you off! Fortunately, finding a solid property manager isn’t as difficult as it may seem. As when sourcing tenants, your search for a qualified property manager starts by knowing what to look for. To help you in your quest, here are a few things that you should ask in order to find a property manager that’s not only qualified –but excellent.
Check Out Their Credentials
A reputable property management company should have a number of credentials and accolades to their name. Once you have a prospective property management company lined up, head over to their website and see what you can find. You shouldn’t have to search too hard; if they’ve received recognition in a specific area, they should have that prominently displayed on their website.
See What Their Fees Are Like…Read more