Property Management and Investor Information: November 2008

The Sacramento sales market is seeing increased sales dominated by those purchasing REO's (Real Estate Owned by banks).  This sales activity is driving the average sales price down to the 200k range.  

What I am seeing that is noteworthy is that investors are able to pick from multiple properties listed by banks that are going for prices significantly less than 100k that will rent for $1,000.00 per month or more.  In many cases an astute purchaser can find houses around 80k that need $5-15,000.00 in fix up cost to make rent ready.  These properties still rent for around $1,000.00 per month!

If you have cash, this is a great time to put your money into Sacramento real estate.  Think about it.  100k earning a return of 6-10% cash on cash return with an upside potential of 2-5% appreciation plus depreciation writeoffs. 

I can tell you for a fact that this alignment of the stars has not occured in Sacramento during my lifetime.  (I will not reveal my age but I graduated from U.C. Berkeley in 1977.  I know that the economy sucks and who knows what will happen.  But, to see rent decreases we will have to have super high unemployment or population loss. I like the odds on this investment opportunity.

If you are looking to buy in Sacramento, give me a call!  If I can't help you I will find someone who can. 

 

Of course, HomePointe can manage your rental home that is located in Sacramento, Elk Grove, West Sacramento, Lincoln, Roseville, El Dorado Hills, Cameron Park, and everywhere in between.

www.HomePointe.com

Since I am a property manager I often get asked if a contractors license is required for a gardener.  The answer is "maybe".  

For routine yard care to cut the lawn (mow and blow) a license is not required even if the weekly job is over $500.00.  But, if the company does any repairs or installations that exceed $500.00, a contractors license is required.

Many property managers trip up on this by having their gardener put in a new sprinkler system and/or lawn because they like their yard service.  

Landlords should also be checking that all their vendors have proper licenses (contractors for jobs over $500.00 and a business license), liability insurance, and workers compensation insurance if they have one or more employees.  Be careful here, you could get sued by an injured employee if your vendor does not carry the proper insurance.  

www.HomePointe.com

If you are new or an old timer in the property management business and need help with education I suggest you check out two national organizations that are here to serve you.

The National Association of Residential Property Managers (NARPM) is the newer of the two.  Go to www.narpm.org for more details.  This organization is focused on property managers and property management companies that manage single family dwellings, duplexes, and other small  residential properties.

The Institute of Real Estate Management (IREM) has been around since the Great Depression.  Go to www.irem.org for more details.  This organization focuses on training and supporting professional property managers and companies that manage commercial properties and apartments.

Both are great and should be considered required for anyone making a living in the property management industry.  Networking and obtaining new business is also a focus of both organizations.

 

www.HomePointe.com

 

 

Our marketing strategy is to be seen and be available to meet the needs of our many clients.

We have three offices in the greater Sacramento Area.

We are located at 5896 South Land Park Drive, Sacramento, CA (near I-5 and Highway 99 between Natomas and Elk Grove just south of downtown Sacramento), 1220 Melody Lane, Roseville, CA (near Highway 80 between North Highlands and Lincoln) and 8856 Greenback Lane, Orangevale, CA (near Highway 50 between Citrus Heights and Cameron Park).

In addition we work very hard to be seen all over the internet so that we can attract as many rental prospects as possible (we use www.Craigslist.com , www.PostLets.com , www.NetRent.com , www.Googlebase.com , www.Vast.com , www.HotPads.com , www.Lycos.com , www.Oodle.com , www.Enormo.com, www.DotHomes.com and www.HomePointe.com ), plus free signage, free vacancy lists online and printed, and our open house system that gets more vacancies seen on most weekends than any other property management company we know of.

Need a rental anywhere from Lincoln to Elk Grove or Cameron Park to West Sacramento?  We have more available inventory than most companies manage.  Our inventory currently exceeds 140 so you are sure to see something that will meet your needs.  Do not delay, most of those will be be rented within the next 30 days!

www.HomePointe.com

We have rentals in the following communities: Rentals in Sacramento, Rentals in Natomas, Rentals in Elk Grove, Rentals in Laguna, Rentals in Galt, Rentals in Franklin, Rentals in West Sacramento, Rentals in Davis, Rentals in Orangevale, Rentals in Citrus Heights, Rentals in Fair Oaks, Rentals in Gold River, Rentals in Carmichael, Rentals in North Highlands, Rentals in Antelope, Rentals in Roseville, Rentals in Rocklin, Rentals in Granite Bay, Rentals in Lincoln, Rentals in Loomis, Rentals in Marysville, Rentals in Plumas Lake, Rentals in Olivehurst, Rentals in Rancho Cordova, Rentals in Rosemont, Rentals in Cameron Park, Rentals in El Dorado Hills, Rentals in Shingle Springs, Rentals in Serrano, Rentals in Rescue, and more.

FREEE-Waste RECYCLING All California RESIDENTS AND BUSINESSES WELCOME Event Sponsor: California Middle School on Land Park Drive at 1600 Vallejo Way Event Location: When: NOV 8th & 9th 10am•4pm This service proudly brought to you by California Middle School and Neuwaste Business Recycling. 310-734-6700 www.neuwaste.com ELECTRONIC ITEMS ACCEPTED I know the person running this event from Newwaste so I am sure this will be a great event. We all need to recycle whenever we can so please try to take advantage of this event. www.HomePointe.com