 When tenants are asked why they don't just buy a home, the answers often include, "my credit is bad." Improving your credit is not as hard as most people believe but it does take some action. Credit is established by a payment history. It is important to know what kind of payments are used to create a credit score. Some payments are not reported to the credit bureaus, but can be used as "non-traditional" forms of credit. These payments include cell phone, utilities and rent payments. If you have no credit score, these "non-traditional" payments can be used to prove your credit worthiness and are acceptable for certain home loan products. Keeping good records of these payments are important and can be the proof you need to qualify for financing.
In the case of having poor credit due to slow payments on past loans such as a car payment or bills that were turned in for collection or repossession, that can still be overcome. The first step comes from learning what shows up on your credit report by having a bank pull a report and is willing to show you the results. If there are outstanding balances or collections, they must be addressed. It is possible that the creditors are willing to negotiate a payoff that is less than the actual amount you owe. Using a tax refund, for example, to pay off old debt would be a smart way to use those "extra dollars." A phone call to the creditor requesting a discount, in most cases, will result in a payoff that may be affordable and will be a step in improving your credit score. In any case, clearing any bad history is critical before any "good credit" can be obtained. If credit report shows only limited use of credit and the score is low, there is another way to correct this problem. Of course, the answer is to obtain recent payment history to show you now have the ability and willingness to make timely payments. One way to make this happen is to go to a bank or credit union and tell them what you are trying to do. Request a small loan of $1,000 or whatever the lender's minimum loan is. Use the loan proceeds to open a savings account or Certificate of Deposit to be held by the bank as security for the loan. The bank is 100% guaranteed that the loan will be repaid since they are holding the money to apply to the loan if you don't make the payments. Once the loan is in place, be sure to make timely payments until the loan is paid in full. The bank will then release the hold on the funds in your savings account. You will have accomplished two things: you improved your credit score, and you have money in the bank! Plus, the bank is now more willing to consider you as a risk for future loans. Building credit, or repairing credit is not an overnight thing, but is vital to making the leap from paying off someone else's mortgage to paying off your own.  A lot of challenges come with owning and renting properties. From remembering to bill your renters to staying on top of maintenance needs for every property, there is no shortage of things to do.
If you own many properties that you rent out or even just one property, there are a lot of headaches and challenges you can face along the way. One thing you must do as a landlord is make sure the property stays in shape. Amanda Hinson, who rents out a property of her own, says that she must “call on tree trimmers, painters, construction workers, the plumber, and electrician for help with maintenance. If there's something I can manage myself, I will do the work such as cleaning gutters.” However, when you don’t live near your rented property, it is not easy to find the best options to keep up the maintenance, let alone to do the work yourself. You also can’t check if your renters are following the rules, such as not having more people than agreed upon, or taking on another pet. So how can you live with peace of mind while managing your property? By using a property management service! Reno Property Management Service with Clark Real Estate is a great solution for owners in the Reno/Sparks area. A family business run by Charles and Rick Clark, they will help you rent out your Reno or Sparks property without the usual stress and challenges. When asked why someone should use a property management service, Amanda Hinson said that it was “convenient, low stress, it provides me peace of mind and freedom to manage my personal house more. I can give time to what's really important.” Give time to what is important to you, such as your own home and family, while the professionals help you advertise, collect payments, do maintenance, find good renters, deal with emergencies, and more! And on the flip side, renters can find property more easily with the Clark Real Estate website. They can find what they are looking for among Clark Real Estate’s options, while you still get money as the property owner. As Real Estate’s brokers find the best tenants for your properties and find the best properties for tenants using their unique qualification process, start relaxing and doing what feels most important again.  Mortgage interest rates are on the rise. After enjoying a long break from higher rates, home buyers and homeowners are realizing the impact of even small changes in interest rates. True, rates are far from what could be considered high. (As a comparison, consider mortgage rates in 1982-83 being over 16%.)
Currently, every $1,000 of financing a 30 year mortgage costs only about $5 per month. Here's what that means: If your budget allows for a monthly mortgage payment of $1,000 (not counting escrows for property taxes or insurance, PMI or HOA dues) that equates to a $200,000 loan. If interest rates continue to rise as experts predict, even a 1% increase in rates reduces that $1,000 monthly payment to about $178,000 in financing. That's a difference of about 11% less buying power! That could mean the difference between the home of your dreams and one you will settle for. History shows that housing market activity actually goes up when rates increase. The reason? Buyers realize they may miss out on getting the house they want with the payment they can afford. That results in a higher number of buyers looking at the same time. This drives up prices as more homes are sold with multiple offers. There are some steps borrowers can take to improve their situation in a rising interest rate market: 1. Get pre-approved by a lender with competitive rates and a reputation of being able to move a loan from purchase to closing in a timely manner. 2. Pull together all the information your lender will need before you get together with them. This will include:
4. Be prepared to address any negative items that may be on your credit history. Having these items in advance will speed up the approval process significantly and give you an advantage in being able to move quickly when the right house becomes available. Finally, discuss "locking" the interest rate with your lender. In a rising rate market, it is critical to understand the lender's policy to lock in a rate to protect you from changes that could occur prior to the closing of your loan. Typically interest rates cannot be locked until you have a purchase agreement signed by all parties and you have confidence in the closing date as well as having resolved any contingencies such as house inspections. While rates are rising, it's still an excellent time to invest in real estate. Taking advantage of today's rates will make you look like a genius in the future and you will have locked in a stable payment for a long time to come.  Whether they’re itching for something to do during colder months, motivated by the occasional Saturday when warmer weather prevails, or inspired by a marathon of a favorite DIY show, there always seems to be at least one improvement project on every homeowner’s to-do list.
DIY Doubts If you count yourself among that cadre, it might be tempting to cut costs by tackling every task yourself. But, unless you are a veteran do-it-yourself homeowner who’s had a lot of experience with complex and costly renovations, there are probably some projects that should be left to the pros. For instance, most renovations experts say sanding floors requires a special touch that takes lots of practice to develop. So, even if you are able to rent the necessary equipment at a reasonable price, inexperience may lead to ugly mistakes that can be costly to fix. And, while it might be possible for a handy homeowner to complete simple electrical projects, like installing a dimmer switch or replacing a light fixture, the risk of shock and fire outweighs any cost savings for more complicated wiring projects, according to experts quoted in Architectural Digest. Likewise, they recommend that installing bulky or heavy items, like granite countertops, should be left to those who have the tools and techniques to do so without hurting themselves or the materials they are working with. Easy Upgrades Still, there are plenty of projects that even novice DIY homeowners can handle with a minimal investment of time and money. For instance, you could install new cabinet hardware and faucets in the kitchen and bath to give the rooms an almost instant cosmetic upgrade. A fresh coat of paint on walls, cabinets, or even a single wall offers much the same effect. And, while you’re at it, consider replacing dingy switch plates and outlet covers to create a clean look throughout your home. Projects to improve energy efficiency also offer an excellent return on investment, with many resulting in savings right away. For instance, adding weatherstripping around doors and windows and installing a programmable thermostat can help you control heating and cooling costs. Replacing conventional light bulbs with environmentally-friendly LED bulbs can cut energy usage and save you time and trouble over the long haul, because they don’t need to be replaced as often. Plus, your local utility company might offer rebates and discounts to help you cover the costs of some of these items. Staying Safe Even easy do-it-yourself tasks can present some risks and challenges. After all, you may need to mount a ladder to repaint a room or replace a light bulb. And, while a power drill can come in handy for everyday projects like installing a towel rack or hanging pictures on a wall, it can also create homeowner hazards. Before you begin any project, experts recommend that you keep these safety tips in mind: ●Wear the right clothes. Avoid wearing jewelry, loose clothing, or shirts with loose or long sleeves that could get caught in equipment. Be sure to wear goggles when you might be exposed to airborne debris, and use earplugs when operating noisy equipment. ●Prep your workspace. For safety’s sake, you need to have a clear work area. Make sure you remove all clutter from the floor and any other spaces you’ll be working in, such as the front or back yard. If you’re doing a major project that spans multiple rooms for longer than a week, you’d be wise to move any belongings that will be in the way to an inexpensive storage unit until the work is complete. ●Practice precautions when using power tools. For instance, you should never leave a power tool unattended while it is on. In fact, before you leave your work area, unplug any tools and make sure they are out of children’s reach. Follow the owner’s manuals and any warnings when using, caring for, and storing power tools to ensure they’ll work safely for years to come. ●Keep an eye on your surroundings. Be conscious of sharp objects, power tools, and other equipment in your workspace. Remain aware of other adults who enter your area, and keep children and pets out of the vicinity while you work. ●Mind your ladder. Read and follow instruction labels before using the ladder, and make sure you’re using the right ladder for the job. For instance, it’s important to select a ladder that’s tall enough for you to comfortably access the project area and that can bear the weight of you and your equipment, according to its stated weight limits. Finally, be sure to place the bottom one foot from the surface it’s leaning against for every four feet in ladder height. ●Have easy access to a first-aid kit, and make sure it is well stocked. You won’t want to treat serious injuries yourself, but scrapes, scratches, bumps, and bruises are common even during successful renovation projects. ●Mind your ladder. Read and follow instruction labels before using the ladder, and make sure you’re using the right ladder for the job. For instance, it’s important to select a ladder that’s tall enough for you to comfortably access the project area and that can bear the weight of you and your equipment, according to its stated weight limits. Finally, be sure to place the bottom one foot from the surface it’s leaning against for every four feet in ladder height. Following these suggestions about tasks you should leave to professionals, manageable DIY projects, and safety precautions will hopefully help keep both you and your home in good working order for a long time to come. 
With Valentine's Day just a heartbeat away, now is the time to think about those traditional themes of loved ones, property management, and real estate. Well ok, maybe these three topics aren't routinely considered all at the same time, but why shouldn't they be? After loved ones, real estate and homes are things in life that are pretty high up on everyone's priority list - so let's take a 'seasonal' look at how they might be related to each other.
Love yourself with real estate investment A few ways that someone might pamper himself or herself to show a little self-love is to buy a new set of golf clubs, schedule a relaxing massage for those aching muscles, or perhaps go a bit further out on the limb and buy that alluring new new sports car. While all those are wonderful perks to contemplate, none of them - even the car - has the permanence or the deep inner satisfaction that an investment in real estate brings. And even better - the security and the value that real estate returns to you is very much like being loved back. Love your spouse with your real estate investment There might not be a better way in the world to express your love to a spouse than with a real estate investment. Sure, some people might object and suggest diamonds or other jewelry as the supreme expression of caring, but jewelry usually ends up stowed away in a box somewhere, only to be retrieved for special occasions. An investment in a home is something that surrounds your spouse every day with the warmth and depth of your feeling, and for any other kind of property, it still represents a long-lasting commitment to him or her that cannot fail to impress with its own unique permanence. The steamy side of love and real estate You could do the expected and arrange for a fancy date to celebrate Valentine's Day with your spouse or loved one, but you've probably done something like that already, if not many times before. This year, impress him or her with something completely different, and earn major kudos for originality. Why not stay at home this time around and celebrate the day for lovers by discussing some of the red-hot topics of real estate and property management? Try nibbling on your lover's ear while whispering the latest market statistics on average prices and absorption rates. If that doesn't reduce him/her to quivering jello, a candlelit dinner with breathy exchanges on amortization schedules is sure to do the trick. And if these two don't quite provide the spice you'd hoped for, you may have to bring out the heavy artillery. Slip in that video on urban sprawl and tax assessments while giving a slow, sensuous foot massage - it just might be the most memorable Valentine's Day you ever share with your loved one. Let's start with the scope of things. Just how much could the Tesla Gigafactory ignite Reno's economy and housing market? Here we see why they don't call it a factory, but a gigafactory:  Photo by Teslamondo.com Let's just talk in terms of physical size. What does a structure that size do to an economy? It brings immediate jobs in the construction of the structure, it maintains jobs as a whole workforce is needed to run that place, and then it brings tourists--because Reno is now on the map and has one of the wonders of the world (so to speak!). So what does that mean for your real estate investment portfolio? If you have any real estate in the Reno area, hold it. Now is not the time to sell, unless you're converting up into more units. If your properties are frustrating and not bringing in a profit, consult one of our property agents. We are happy to give you some pointers on making your investment a success. If you don't have any real estate in the Reno area, let's get started. The Tesla Gigafactory is scheduled to bring in 6500 jobs ranging from lower-level manufacturing to higher-level engineering and technology. That means a range of incomes and housing needs. Rental Properties: Just about ANY rental properties will be a good investment at this time. Look for properties close to major highways, and units that cover their cost today, with the ability to improve and raise the rents in the future. Fix and Hold and Flip Properties: Nevada mandated that at least half of the workforce at the Tesla gigafactory needs to be Nevada residents. The other half will need a place to call home! Assume that much of the other half will be higher level engineers, scientists and inventors. While Reno is striving to offer the best in Sciences and Engineering education, the Tesla factory will need the best of the best in 5-6 years. Look at properties with that timeline in mind. What improvements can be made to a property with a 5 year budget, and with a tenant in place for much of that time? Look for neighborhoods with artists and innovators; neighborhoods that are just starting to show improvement is where you'll find the bargains. Start your improvements on the exterior of the property to further advance the revitalization of the neighborhood. Property Management: Let the professionals do the day-to-day maintenance and management of your property. It is going to take 5-10 years before we experience the influx of revenue and jobs that Tesla promises. If you are living out of state, there's no reason to take on the hassle of managing your new Reno real estate. With a 5-10 year timeline, it's time to get comfortable, and we can help! With our proven track record of filling vacancies and maintaining properties, Clark Real Estate can turn your real estate investing dream into a reality. “The present is theirs; the future, for which I really worked, is mine.”
― Nikola Tesla There's a spark, a current, of electricity and excitement in the Reno air as business owners and property owners imagine the possibility of the Tesla Gigafactory coming to town. There is much discussion about state-offered incentives and benefits. Will it be approved? Will the benefits be worth it?
We think so. In real estate we see the value of new businesses infiltrating a city. We see how home values go up as the supply of inventory is more in demand. Further, we see how new companies bring in new revenue, that is spent in local restaurants, boutiques and salons. New money helps the local economy, and new people bring a sort of awakening to a community. We've noticed how new energy invigorates a neighborhood. New and improved landscaping, fencing and front doors suddenly dot a once rundown street. At Clark Real Estate, we are excited about the possibilities of co-branding with the legendary Tesla. Nikola Tesla* was an underdog who never gave up on his dreams. Reno has been coined an underdog, and now it doesn't have any excuses to give up on a brighter future. Engineer and physicist Nikola Tesla (1856-1943) made dozens of breakthroughs in the production, transmission and application of electric power. He invented the first alternating current (AC) motor and developed AC generation and transmission technology. Though he was famous and respected, he was never able to translate his copious inventions into long-term financial success—unlike his early employer and chief rival, Thomas Edison. [History.com]
 Reno is a great place to own a rental property (or two or three). Over half of Reno's population lives in a rental unit vs. their own home.
Since the economic collapse in 2008, Reno's renter market has changed from short-term tenants to ex-homeowners. “Everyone’s doing it”—renting, that is! That means it’s a great time to have this hot commodity! Our three and four bedroom rentals are the first to fill up. If you're looking to purchase another investment rental property, we recommend buying a house with as many bedrooms and bathrooms as possible. Look for new construction or plan to do a full renovation. Clark Real Estate is a full-service real estate investment agency offering assistance in purchasing and property management of your investments! |
Clark Real Estate
305 W. Moana Ste C Reno, NV 89509 (775) 828-3355 Reno Property Management
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