Frequently Asked Questions


 

First Time Buyers

How do I start investing?

Answer: You get started by being ABLE to invest with Investable Realty.

A- Available to look and analyze properties. Take the time to know the value of a deal. Go and look at properties in all different kinds of conditions from full rehab to ready to move in.

B- Buyer not a tire kicker. That means you have to be able to make a decision. We are in a fast paced market and you have to buy when the iron is hot!

L- Lending – you must be familiar with the different loan products offered to investors and have a line of credit and your finances ready for your purchase. Know how you will fund your deal before you contract it.

E- Educated – take classes that are offered from many sources on the various topics and processes on investing in real estate. There are numerous opportunities to gain knowledge offered every month from many different venues. Get involved and start learning!

How much money do I need?

Answer: This varies on a case by case basis. The cash involvement depends on the house your home’s purchase price and level of discount that you are able to purchase the home at.

What is the best investment strategy for me (Buy and Hold vs. Flip)?

Answer: Both of these strategies are great ways to make money, but you will have to decide what your investment goals are. Buy and hold investments are a more long term strategy in order to build equity, while receiving a monthly cash flow. Fix and flip investment is a great way to build cash in a shorter period of time.

Do I need to have good credit to buy a rental house?

Answer: Although a strong score can positively impact loan terms and interest rates, it is not always necessary. There are often ways to invest even if you do not have great credit. Our agents can connect you with investor-friendly lenders to discuss all your options!

Is there financing available?

Answer: Yes, financing is available from various sources from Hard Money Lenders, Small Banks, and Private Individuals. Your Investable Realty agent will guide you to the right source to fit your particular purchase.

How do I pick the right house?

Answer: The best way to pick the right house is to contact one of our sales agents and schedule a time to meet and have a consultation. Our agents will listen to your investment goals and assist you in finding houses that will fit you desired goal.

How do I know whether I’m getting a good deal?

Answer: This largely depends on your goals. Each deal and its value is different depending on the customer. We pride ourselves with helping investors calculate whether a specific deal is going to be beneficial, and making recommendations to fit their needs. Contact an Investable Realty agent today to have your specific case discussed.

What is the difference between property management and self management?

Answer: Self-Management is just what it sounds like, you manage your property yourself. For some property owners this is an option and time and knowledge are the two big deciding factors for most owners and investors. Professional management means you hire a real estate professional who provides property management services.

What are the risks of self managing a property?

Answer: The risk of self-management is that you can’t be everything to everyone at all times. Put a value on your time and your knowledge of resources and compare to a professional property management company. “Save a dime to spend a dollar” is very applicable to rental properties.

How do I become a landlord?

Answer: Start by contacting one of our investor-savvy agents. They can help locate rental properties to purchase as well as a tenant for your property!

Can I buy a rental property in my name or do I need to set up an LLC?

Answer: Yes, you can purchase property in your own named, but it is not advised. When you purchase property in your personal name you subject yourself to more personal liability. Purchasing property in an LLC offers additional layers of protection for you as an investor.

How do I register my rental property in Dallas County?

Answer: You must start by getting an application to register your rental/lease property. You may obtain an application with the attached requirements and forms on the City of Dallas website here or by contacting the City of Dallas Code Compliance office at (214) 670-5708.

What is required to own a rental property in my city?

Answer: Each city is different. We have this information readily available. Please contact us so we can give you the best information regarding the city in question.

What if I don’t live in the Dallas/Fort Worth area? Can I invest out of state?

Answer: Yes, we have many of our investors that purchase properties from us that are not located in the D/FW area. If you contact one of our sales agents we can discuss the many options available to you in order to assist you in managing an investment from other locations across the U.S.

What if I don’t live in the United States?

Answer: At purchase, foreign buyers will acquire a U.S. taxpayer identification number (TIN). Waiting until the time of sale to obtain a TIN may cause difficulty recovering money withheld pursuant to FIRPTA.

FIRPTA (Foreign Investment in Real Property Tax Act)
To keep in mind upon a sale, under FIRPTA, a buyer must withhold 10% of purchase price if the seller is a foreign person. No withholding is required if the seller is a U.S. citizen; green cardholder (lawful resident); or resident alien (meets either the physical presence test—present in the U.S. for at least 183 days in the current calendar year; or the substantial presence test—present in the U.S. for a weighted average of 183 days over three years).

Sellers

How can I sell a property if I have a tenant occupying it?

Answer: Selling your investment property with a tenant in place may seem like a challenge although if you have all the proper documents prior to listing the property this can be a very simple process. Seller’s should have update to date rent rolls, lease & deposits, and other critical documents to help make the process smooth. Please contact one of our agents to provide further details on how to sell a property with a tenant.

What are the tax implications of selling my investment property?

Answer: When building your real estate team, one of the members should be a good CPA that you can consult on your particular situation with your finances and taxes. At Investable Realty we can provide the necessary resources to connect you with a reputable CPA.

Do I pay income taxes when I sell my investment property?

Answer: Yes, but every situation is different. We recommend seeking tax advice from your accountant or the IRS website.

Can I sell my property as-is / do I need to repair my property before selling?

Answer: Yes properties can be sold as-is in many cases. Since our clients are cash buyers the seller will not be required to make any repairs prior to closing.

Can I sell a property with foundation damage?

Answer: In most cases yes. Majority of our clients are investors and have the ability to purchase homes with foundation issues.

General Questions

Who can use your brokerage services?

Answer: We love working with anyone who is wanting to buy or sell real estate properties with an investment-minded goal. We work with individuals who are first time buyers, seasoned investors, and sellers. We also work with larger, institutional investors. If you caught the real estate investment bug, chances are we can help you.

Are there any fees to use your services?

Answer: No, we charge no fees for our services. We get compensated similarly to other real estate agents, which is largely commission-based on completed transactions.

Where do you provide these services?

Answer: Currently we provide our services in the Dallas / Fort Worth, Texas area. We expect to cover more areas in the future. If you would like to inquire about coverage in your specific area, feel free to contact us.

Are you looking for more real estate agents?

Answer: Yes, we are always interested in speaking with talented and passionate Real Estate Agents. Contact us at careers@2020rei.com if you would like to discuss a career with us.