Business & Property

Tips to House Hacking to Benefits You in Many Possible Ways

House hacking is now getting popular and many people started to try it. This is one of the most promising real estate investing strategies especially for new investors. There are lots of new investors who are discouraged in starting their career in real estate business because they haven’t purchased their own home yet. This is one of the hurdles they think is the hardest. However, house hacking gives new light in real estate investing and a great feat to try by new investors even when they haven’t purchased their own home yet.

 

Helpful tips to house hacking effectively

House hacking is real estate investing strategy in which the investor rent out part of the property they live in. For example, if you live in one of the units of your multifamily property then you rent out the others. However, it isn’t limited to those who live in multifamily property only. Even if you live in a single-family home you can rent out one of the rooms and it is still counted as house hacking.

There are various benefits you can earn from house hacking. First, you will earn passive income. Second, you have chance to learn more about real estate business and how it works through smooth transition. Third, your household expenses will be reduced. Fourth, you will be able to pay down your mortgage quickly and save up. Here are some tips for house hacking:

  • Before anything else, you need to know how to find the right and best property. You can purchase multifamily property so you can live in one of the units and rent out the rest. Or, you can also purchase single-family home and rent out one of the rooms.
  • Decide your funding source since finance is one of the most important keys in real estate investing. Keep in mind that by implementing house hacking strategy, it means your status is as an owner-occupant. Thus, determine what kind of funding that benefits you the most. There are various options you can choose. Make sure to choose the best deal for the loan.
  • After deciding funding source, you need to do market research to find the best property. Once you find it, you need to run the numbers. You need to analyze the deal and find out more about the value of the investment. In running your numbers, you need to make estimation of rental income and property expenses. You need to do thorough calculation which includes property taxes, rental income, vacancy reserve, insurance, maintenance, utilities, and operating expenses.

By following those tips, your house hacking strategy will be running smoothly especially in the beginning. It is important that you plan everything thoroughly because even though this strategy looks simple, you still need to calculate your steps since real estate business is about game number. However, house hacking is more flexible than other real estate investing strategy since this is the very beginning of your journey to property industry. You will learn everything eventually.

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Business & Property

Accounting Tips for Your Rental Property Business

In managing your real estate business, it is a must to do your due diligence so that everything is stay in control. However, it can be overwhelming for investors to handle financial transactions as well analyze financial performance of business.

Accounting tips for rental property business

Administrative works might be one of the least desirable tasks to do for most investors. However, it cannot be left behind or else you will get more complicated problems in the future and is too late to fix.

One of administrative works related to financial management is bookkeeping. It is a task when you have to file receipts or record expenses of your business.

Tips to manage your rental property accounting

According to many experts in property industry, it is important to set up strong system for rental property accounting.

Thus, you will be able to get the most out of your investment in return. It is also highly suggested to learn earlier about all accounting stuffs so that you know the basic and system in the most efficient way.

Then, you will be able to make your own profit. So that, I will inform you about some useful tips you can try to manage and set up your rental property accounting system.

The first thing you should know is that it is important to distinguish between personal and business finance. Mixing them up will do no good for your business. Therefore, you should separate them both. It is highly advised to open business account from the start. This way, you will know exactly the flow of the transaction in your rental property business.

Any income and expense will be recorded thoroughly and won’t cause any confusion for you. If you have more than one property, it is safer and better to open separate account for each of them.

Next, you need to decide what kind of method to track your income and expense. Some investors use cash method while others prefer accrual accounting. Both are different but you can choose the one that fits you the best.

However, it is more recommended to use cash method if you are currently handling small business.

You need also be friendly to digital tools to help you set up the most effective system for your rental property accounting as well as bookkeeping. You need a tool that can help you to digitize receipts or invoices. You will also need digital tool to help you integrating bookkeeping, filing storage, as well as analyzing finance in one go.

Choose high-quality software and you can buy the premium one if needed as long as it gives a huge help for your financial management.

In managing your business accounting, you will need past data to forecast future expense. Thus, you will be prepared for what will happen in the future. It is also important to learn more about tax forms earlier.

If you still have difficulties managing all accounting stuffs, you can also ask for help from Certified Public Accountant or CPA. They will give you useful advice about all accounting system and its implementation. You will be educated through the best practices.

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Business & Property

Working with Neutrals to Dress Your Home

Don’t be afraid that you’re going to end up with colours that are “boring”. Neutral colours are often also referred to as “earth colours”.

Working with neutral colours to dress home

They range from ivories, beiges, taupes. Guilford green, and even wooden red. The neutrals appeal to the largest number of homebuyers because of its simplicity and because it’s the easiest to personalise as well. What are some of the things that caused people to adore these neutrals?

Interiors with neutrals would seem more spacey

The neutral colours come from earth colours surrounding our everyday lives. Unlike colours that grab your attention such as neons. It’s safe to say that you can’t get wrong with the neutral colours. Neutrals don’t distract your eyes, making it perfect for any room in your house. It creates a calming backdrop. An elegant feel of no-clutter and simplicity.

Beiges are simply gorgeous

One of the most popular neutrals is beige. Beautiful and timeless, this colour can be used for virtually anything for your interior space. Beiges are becoming increasingly popular for a long time now.

And it does not seem to be falling out of favour any time soon. Whether it’s walls or couches, beige is a brilliant choice for your interior. There is even a term called “greige”—the currently hip colour in town. The term stands for a combination of “grey” and “beige”.

Highlight your furniture by taking advantage of neutrals

This is particularly true for light-shaded neutrals. When your wall paint is already a rich, stark colour that contrasted with your floor, for example, the room is going to feel more “filled”.

It may create the illusion of more cluster. Having a deep red shade of a vase or other ornaments with a backdrop of taupe is going to highlight the ornament in a pleasing light without making a room feel stuffy.

Spa-like bathroom is achievable with neutrals

Who doesn’t want bathrooms that feel luxurious and makes the residents feel like they’re actually having a me-time inside the bathroom? White is particularly an excellent colour for the bathroom project. Patterned bathrooms are pretty common and homey, but nothing says exclusivity and luxury like an all-white bathroom.

The simplicity of the choice won’t just make it easy on you to chose matching bathroom items, white bathrooms also strike a strong impression.

Bring value to your redecorating project

It’s not an overstatement to say that investing in neutral colours goes a long way, especially when you’re considering to sell your house in the future. A lot of agents and home staging experts highly advised on repainting an interior if it’s not colour-neutral, especially when they want to fetch a good price or looking for a quick sale.

You may be invested in your bright orange-coloured room because the shade has a certain personal value to you. But your future homebuyers may not appreciate it. So the next time you’re deciding on colours for an improvement to your house, remember that neutrals are investment for your future home resell.

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Business & Property

How to Drive Your Investing to Sustainable Property Business

Building up courage to start business in real estate industry is not that easy. However, it’s more difficult to drive the starter to a lasting succeed. It is not impossible thing to achieve but surely need hard work. It is not easy to survive even in the first half year running real estate business. Passing a 5 year mark is quite challenging indeed. It is important to keep your fire aflame while driving your business to be more sustainable and long lasting.

One of the most important keys is to never give up on improving yourself. When you achieve a good start then you will be challenged with harder tasks to sustain it and make it last long.

Things you need to do to sustain your real estate business

So, what you can actually do to make your real estate business last long?

How to drive investing to sustainability property business

First thing first, you have to be rationale and stop overworking yourself. It is true that hard-worker is closer to succeed. However, you need to be smart and strategic as well. If you think handling all the work and scarifying your body will help growing your business then you are on the wrong path. What you need to do is delegating the tasks instead of pouring down all of them on your plate.

It is important to take time and choose more productive tasks instead of trying to swallow up all at once. Remember that you can make to-do-list so you will know which task is on the top priority.

In the first half year of your running business, it is easy to feel overwhelmed since you are just starting. It is easy to get burnt out at some points. However, you can rely on your team. In building your business, you need a good team. You can work with the best people that you feel comfortable to be around. You can hire accountant, Realtor, or attorney to help you accomplish certain tasks.

If you want your business to last long, it is important to know what patience is. It is easy to be in high spirit once you succeed with one project. You easily jump to another bigger projects in short time.

However, it is highly suggested to take things slowly. It is better to take one step at a time. It is also safer to follow the process so that you are not only trying to close deals as many as possible but there are things you learn throughout the process. Thus, it will give you more understanding of how everything works in this business.

Aside from taking one step at a time, it is also highly suggested to take a step back once in a while to evaluate yourself. It is important to do self-evaluation so that you will know exactly what your strength and weakness is in running your real estate business.

For example, you may be good at negotiating but you are not at managing administrative stuffs. Once you know them, you can start to improve and drive your business to be more sustainable.

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Business & Property

Joglo House Charm for Your Indonesian Resort Investment

The concept of traditional houses as a resort is a popular one among tourists who plan to visit Indonesia. This is evidenced by the many traditional house styles hotels, resorts, and even restaurants adopt to deliver the feel of an authentic Indonesian experience. If you’ve been dealing with business in Indonesia and are interested in doing one of the country’s major industry—tourism—then you probably have considered the traditional vernacular houses. Here’s one of the most iconic houses still widely used in Indonesia up until now, the iconic Joglo.

What is a Joglo house?

Joglo house originated from Java. It is a traditional house referred to as “omah Joglo”—in which “omah” meant “house”. The word joggle itself refers to the uniquely shaped roof. In the ancient Javanese culture, the shape of the roof denotes the social and even the economic status of the residents.

The iconic roof

The Javanese traditional houses has several roof styles. Those styles are one of the main indicators that differentiate one style of house to another. The “Joglo” traditional house has the steepest roof of all other traditional Javanese house types, especially compared to Limasan house and Kampung House.

Joglo house and social status

It’s been mentioned before that the Joglo house denotes the socioeconomic standing of the residents. In the past, only nobles and families of aristocracy live in the Joglo house.

Relieving the ancient times through staying in the traditional style noble houses is an experience on its own.

Characteristic trivia

The iconic roof is traditionally used only in the proper dwelling place, or in the “omah”, as well as the “pendopo,” a Javanese for pavilion. The Javanese houses are built within the constraints of walls. This is especially true for higher-status Javanese as well as the nobility.  In traditional philosophy, the house is always faced towards the sea of the South.

 

Pendopo or pavilion

In the traditional house structure, the pavilion functions as the social and public domain of a Javanese household. The area is used to entertain guests as well as hold social events. On occasions, the  pavilion is used for ritual purposes as well. This is where performance arts such as Wayang are often conducted.

Joglo house resorts

Joglo house styles has been one of the most popular traditional Indonesian houses you can find as resorts. It is a reminiscence of the Javanese palace lives and the lives of “ningrat” or nobles.

Joglo-styled roof in modern use can also be seen at airports and buildings with large halls. You can consider booking your first Joglo house experience through sites like airbnb. Luxury resorts specialties are also available. Here are some of the options that can be found on the aforementioned site; Modern Keraton Joglo House in Canggu, Teak Wooden Bungalow, affordable Indonesian Joglo House.

Even though the origin of Joglo is Javanese, it’s also easy to find resorts with Joglo style houses in places like Bali. The Joglo house style may be a good option for your next investment in Indonesia, particularly for guest houses and resorts. The appeal of the authentic Indonesian is timeless.

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Business & Property

The Regulation Of Leasing Property In Bali For Indonesian Citizens and Foreign

Leasing is financing by banks or institutions in the form of goods or capital for individuals or companies, both short and long-term. Daily expense becomes one of the obstacles for most people to get property in cash. For this reason, many banks or institutions that offer to lease to reduce the cost of purchasing property are adjusted to monthly income per person.

Leasing Property In Bali

Property in Bali is one of the favorites as a home or investment. Now, most people are very careful about using banks and financial institutions to get a property. Property purchases require a small budget. Leasing property in Bali with interest variants from various banks and financial institutions brings a breath of fresh air to everyone getting their dream real estate.

Unfortunately, many leasing proposals do not really pay attention to financial conditions, so there are many bad loans. For this reason, before applying for leasing property in Bali, it’s a good idea to make financial planning. If needed, you can hire a financial consultant to help organize so you can group the budget each month.

Leasing property in Bali not only attracts Indonesian citizens but also foreigners. In fact, banks and financial institutions in Indonesia facilitate leasing for Indonesians. While for foreigners there is a prohibition to make leases in any form.

Requirements for leasing property in Bali for Indonesian citizens
  • Indonesian citizens
  • 21 years old
  • Location of residence or work in accordance with a bank or financial institution where leasing applications
  • Complete the documents needed for leasing applications

As for foreigners, based on Bank Indonesia regulations that regulate rupiah transactions between banks and foreigners have certain rules. Although it is difficult or even not possible for foreigners to lease property in Bali, there are several ways that can be done. Foreigners who have a residence permit have a “hak pakai” property with the help of local residents.

In fact, there are many foreigners who have buildings, in the form of houses or villas. It is undeniable that property in Bali has a great charm and attraction for foreigners. This explains that in reality, it is not difficult for foreigners to own property in Bali. Many possibilities can occur regarding the ownership of foreigners’ property because there is a lot of help from either the agency or the local residents themselves. For this reason, it is ensured that leasing of property in Bali on behalf of foreigners is prohibited unless they take the name of local residents to apply for leasing property in Bali.

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Business & Property

How to Build Your Buyer List for Your Property Business

Buyer list is important thing you need to have and build for your business. it is not something that only wholesalers need. When you run property business, it is important thing that will help you build your business. Remember that property investing business won’t let you feel so sure about whom you are going to work with. Unexpected things may happen when you try to close the deals. However, it is not only buyer list you need. You have to build trustworthy buyer list so you can earn profit you expect from the deals you close. It is not supposed to only consist of people you have spoken with but you need more specific ones. It is challenging to build and develop trustworthy buyer list but it is something you can do by following these tips:

How to Build Your Buyer List for Your Property Business

Every Day is the Key

 In building your buyer list, you need to it every day. Always willing yourself to add to it anywhere you get a chance. You need to take note of everyone you are or have been working with. What you need to take a note is about their needs. It is also will be helpful when you run for the balls instead of waiting. Try to talk with many different people when you get the chance. You can also ask few questions regarding to their goals or business. You will learn a thing or two from even simple conversation. It will also give you more chances to sort out quality list to build.

Be Specific

 As mentioned earlier that you need not only buyer list but also the more specific and quality one. When you have found a target, you can start with simple conversation. However, you need to be more specific over the time. Thus, you will have overview of what they really look for. You will find out their preferences about locations, style, or price ranges of a house they like to have. You should retrieve as much information and don’t hesitate to ask for a business card. Thus, you will have contact information for follow up.

Trust Your Potential Buyer

It is highly recommended to be less skeptical to everyone you meet. Remember that everyone can be a potential buyer even those who not directly associated to this industry or at all. Make sure to treat everyone equally. You can try by sending a mass email then wait for the response. Don’t expect to receive 100% response from all the contact you sent the email to. At least you can expect half of them give positive response. Then you can continue your action by asking them for a phone call or email.

Stay in Touch

 Once you have potential buyers, make sure to stay in contact with them. You can reach them out periodically. It doesn’t have to be a full meeting. You can simply make a quick text, call, or email so your relationship will last long. This way, you will be able to notice if there is change preferences. Who knows if some of them are intent to partner up instead of buy property.

 

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Business & Property

Proper Ways to Look for Better Deals

Being a great investor in property business is not easy. There are many challenges to face and there is always not enough time. However, being a great investor is not only defined by the number of capitals or contacts you have. Of course, capital and contacts are important and valuable assets. However, they are not enough to make you a great investor which can build property business well. Being a great investor means you can look for better deals. It seems simple but not easy. Working on good or even better deals needs hard work. It also requires great plan and strategies.

How to look for better deals properly?

Aside from many challenges you need to face in order to build your business, you also have many assets and potential to maximize. Even little things are great potential you can use to close deals. Here are some tips to close better deals for your property business:

  • It is always mentioned that property business is not about feeling but numbers. Thus, you need to look at the numbers to look for good deals. This way, you will be able to decide the strength of a deal. While looking at numbers, it is also highly suggested to take conservative approach with all of the numbers so you won’t feel like tricked by the numbers. When you see that the numbers don’t deceive your judgment then you can precede the next step which makes you closer to choose better deals.
  • It is often that investors only focus on the number of deals they successfully achieve in a year instead of closing fewer, better deals. Of course, it is not wrong to make small profit from mediocre deals. However, you shouldn’t let a chance to close better deals slip off your fingers. Thus, it is important to know when to walk away and when to step forward of potential deals. If you think the deal is not good enough, you’d better walk away and look for more potential deals.
  • Setting up exit strategies is a great way to look for better deals. When you have multiple exit strategies, the higher the chance to close better deals. It is also useful to avoid unnecessary loss when you are already involved in deal that doesn’t go as planned. Your multiple exit strategies are your backup plan. Remember that in every business, the unexpected is unwelcome but sometimes it is unavoidable. However, you will stay safe if you have exit strategies which will lead you to find better deals in the end.
  • To be able to recognize good deals, you need to know what the expenses are first. You need to make sure that you know the holding cost, interest expenses, as well as closing costs. Seasoned investors might have good idea once they take a look at a property. However, it is not easy for new and inexperienced investors. If you calculate the expenses thoroughly, you will even find hidden expenses which can help you find out if the deal is good or not.
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Business & Property

Benefits of Word of Mouth Method in Property Marketing

There are many strategies you can use for property marketing. Direct marketing, indirect marketing, and many more are available to use to fit your liking. However, there is also word of mouth method in property marketing you may need to consider due to its effectiveness. This method is actually not new at all. This can be considered as manual or traditional method in marketing in general. However, this method seems to work efficiently in property business as lots of investors show their interest in using this method and the result is positively good in return.

Word of mouth method in property marketing benefits

Word of mouth method in marketing strategy is considered as recommendation which is made by satisfied customers to their network of personal contacts. The recommendation can be both in oral and written forms.  This is effective method because most customers are more eager to try new product or service recommended by their close friends or family. This strategy is more convincing in the customer’s point of view. It is more promising in the investor’s point of view. Here are benefits of word of mouth method in marketing:

  • This method is more effective in building trust to customers because most of them are more willing to try, purchase and stay loyal to brand or service referred by their friend or family member. This strategy emphasizes more on customer service and customer experience unlike the traditional marketing strategy which emphasize more on self-branding.
  • Word of mouth method in property marketing is less expensive than more modern marketing strategy such as putting ads on television, printing brochures, or campaigning on radios. Those who have experience in property business must have known that the cost of marketing is not cheap at all. It can even take large portion in operating budget. Thus, this strategy seems to be a great solution to have more affordable marketing.
  • This method of marketing is also a great help to build brand awareness. People will be easier to recognize your brand or in this case your property. Unlike social media which seem to be more exaggerated in many ways, word of mouth marketing is more convincing in providing resources which can be easily shared by customers to their families or friends.
  • It says that communication can be made not only by words but also by body language. Word of mouth is often to be done by direct communication and interaction between friends and families. This is why this method is more effective because customers will be more convinced by subtle body language such as when they friend’s eyes are so enthusiast while recommending your property.
  • Cold calling marketing startegies are less effective these days because people are getting immune to it in which they tend to ignore it instead of giving response. Meanwhile word of mouth method in property marketing uses warmer kind of communication by involving more intense emotional response. Thus, you need to formulate your strategy to drive this method so your property has positive light in return.
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Business & Property

The Benefits of Using Virtual Reality in Property Business

With the advancing technology, everything looks easier to do. You can do many tasks using high-technology devices. The most current advanced technologies appear in a form of virtual reality. It is mostly used for gaming. The popularity of this feature is rapidly increasing in recent years.

It has expanded to business industry like real estate sector. This has become one of high-technology devices used by investor for strategy marketing. Even though only few of property investors have used virtual reality as their marketing strategy tool, it is predicted that the use of this feature will bloom in the future. How so?

Find out benefits of using virtual reality for property marketing

Benefits of the virtual reality in property business

Living in modern life has made use realised that we cannot do many things without the help of technology. Even for small tasks, we can count on technology. No wonder that technology has expanded to property business where virtual reality has begun to be used recently. Are there any benefits from using virtual reality for property business?

The first benefit is to make the process of staging to become more seamless. It is easier for homeowner, for example, to visualise their property to buyers in more interesting views. Virtual reality makes the staging look realer even without visiting the real location.

Thus, this also makes staging process more efficient because there is no time to waste.

The next benefit is the marketing will look more interesting. There is no such thing like boring process in marketing your property to the customer. They will be able to see your property in more interesting way due to the use of virtual reality.

Everything can be seen from different angle. The visualisation will look better as well because it is provided in 3D.

There is no limit in space and time while using virtual reality as marketing strategy. Home buyers can walkthrough and experience a home without stepping outside their own place.

They can even explore potential property to buy all around the world no matter where the place is. Thus, they can experience for more than one home in a day because they don’t have to go from one place to another to do so.

There is no need for home seller to home staging. Furnishing home is no more needed when you have virtual reality. You can assist your potential buyers in visualising the property with virtual reality.

This saves your energy and time to do the home staging because this process is often time consuming and exhausting in reality.

There are more things that your customers will experience when they put the goggles on. It is different from looking to drawings or renderings. Every scene is delivered in 3D motion which makes them feel like they are in a real home at that time.

Even though they cannot touch the furniture, they at least know the visualisation which makes them able to consider whether or not they are interested to buy the property of yours.

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