Tips for a Successful Long-distance Real Estate Investment business

When you’re investing in the long-distance, it’s attractive to many people, but there are a few tips that you need to consider with this.

First, be clear on the goal.  This is something you should make sure to do in life. You should know clearly what the goal is, whether it be passive income, appreciation gain, or to have our money somewhere in stocks that it’ll grow

You should also know and understand yourself since it is linked to a goal.  The way you do this also does factor into how you handle investments and should be a factor when you’re doing this.

Going local is another good thing because you end up with less problematic issues, such as bad neighborhoods and poor investments, and you can make sure that when you do choose an investment, you make the smart choice by choosing the proper location for this.

Then you should scope out areas that can be accessible by flights that are cheap. Remember, if you’re going into investment, you may need to go out to the area multiple times before you make the purchase in order to talk to locals there, and people who will help with this.  You should make sure that you do pick a place that has cheap flights since it can eat into costs when you do research.

Finally, if you feel like you should go into investing in the long distance, you should go for it. Now, this isn’t going to be an easy thing, and it can be a bit frustrating, but you definitely will be happy with the experience.  Investments are usually a time eater, and the long distance factor does involve more headaches and frustration for sure, but you should definitely if you feel that it’s a viable option, choose to do it. If it does turn into a huge hassle, you’ll know by then that it’s not something you should consider doing again and again, and it might be smarter to choose a more local location for your investments and relocate to a place that has better options.

When it comes to investment, you’d be surprised at the different nature that this has to offer.  you’d be surprised at the actions that you may have to take in order to get a deal and a transaction done. Long-distance investments could be a great one to try out if you feel like you need to have something further away, or if the market that you’re by isn’t that good. But remember that it does take a bit more research, time, and more costs, especially if you have to fly, so you should always consider all of these factors when you’re getting into it, and choose accordingly what you’re going to do about any of this, and make sure that you have a plan, know how you are, and consider all of the factors when you do decide to get into this type of work.

Preventing Fraud and Employee Theft in Real Estate

Real estate business is a real profit machine. A successful real estate businessman should beware of frauds and employee thefts. Apart from fraud deals and customers, employees may also be involved in theft from the company. There could be a number of reasons for such an act such as financial pressure, rationalization or opportunity. It is difficult to find out if an employee is under financial pressure. Rationalization however is depicted through behaviour so the owner should treat all the employees equally such as the contractors, vendors and other clients etc. They should not be given extra leverage but should also not be treated as garbage.  The internal control of the company should be strong. For this purpose, we may adopt certain policies. Generally small business at a greater risk to employ theft as the employees are given interrelated tasks. Accounting is one of the most important things for entrepreneurs but it is overlooked most of the times. Maintaining internal controls for accounting and bookkeeping is important to a growing business.

Separation of Duties

If a single person is given multiple jobs, he has a lot of things under his control. This authority let the employee have extended access to the resources of the company. For example, if the same employee is given the work on accounts receivable and accounts payable. Such inter related tasks that provide extra access to the employee. Such access can give a great opportunity to an employee to embezzle money. In case of small businesses, we cannot separate all these functions to mitigate this risk in a small company a single task should be shared between two or more people.

Access Control

The accounting system of the company should have a controlled access. The accounting and property management software should be password protected. The financial paper work should also be kept in safes. The sensitive financial paper works and passwords should not be shared with just anyone.

Physical Audits

The company should not have loose cash hanging around. Good amount of money should be deposited away. One should also perform physical audits regularly as certain things in the inventory and supplies are around all the time.

Document Standardization

It is better that everything in the office is standardize such as invoices, expense reports and time card etc. It is also important to prevent frauds as it is easier for people to pass a false document if all of the documents look different. It is also difficult to find a certain document from the record if no standard format is being followed.

Trial Balances

Double entry bookkeeping is essential. Calculating daily balances provide insight of the system and helps in the discovering and investigating inconsistencies as soon as possible.

Periodic Reconciliations

Reconciling accounts on regular basis is most recommended to ensure the balance in the accounts match the deposits and withdrawals on the bank statements. It is easier to find irregularities if such an approach is used.

Approval Authority

Property management companies generally have a set financial limit. If actions are to be performed beyond that limit, the approval of the owner is required for example repairs over thousand dollars are approved by the owner. The exact measures taken to avoid frauds vary from company to company.

Conclusion

It’s not necessary that all types of businesses can implement all the above mentioned measures to prevent fraud and employ theft but some of them can be applied according to the nature and type of business. While hiring employees all possible investigations should be done to minimize such theft and fraud. 

Securing Real Estate Property

One of the first things tenants inquire about is the security of the house they are going to live in. This factor can make or break the deal. It is a landlord’s responsibility to protect the property that he will do happily because of the ownership but along with this protecting the tenants are also the concern of the landlord.  Before we see how to enhance the security of the property, why the security of the rental property is important should be perceived.

Reasons for securing property

As compared to owner-occupied residences, rental properties are a better target for criminals. There are more chances of a vacant rental residence at many occasions round the year. Rentals are usually located in middle class areas where the security is not given much priority. It is the landlord’s duty to keep the tenants safe as they are living in his property. It is not possible for the landlord to prevent all occurring issues but it is imperative for him to take all necessary measures to ensure the security of the tenants residing his property. Protecting the property is essential for the landlord himself.  If someone breaks in by destroying the household system, windows or the doors, the landlord will have to fix everything all over again. Any criminal activity around or in the property can lead to unlimited legal complications. It is better to be safe than sorry.

Security cameras to monitor the property

One of the most productive ways to ensure security in a rental property is to install security cameras. Certainly, the cameras cannot be installed inside the house but one or two outdoor cameras can really help in security improvement. 

Lock replacement

It takes a few bucks and a little time to replace the locks after every tenant. The older tenants should not have access to the house. The landlord however should have access to the house, announced and in appropriate situations. The lease should include such points so that there are no issues later. The tenants should not be allowed to change the locks without the permission of the landlord.

A lighted Surrounding

If the surroundings of the property are left in dark, there are more chances of crime. It is safer to light the surroundings, all the area around the house. Lighted places seem to be more secure and are less likely to be tested by some burglar.

Eradicating hiding spots

Hiding spots such as shrubs and bushes should also be lighted so that there are no such places that can assist someone in any criminal activity. In case the shrubs have grown too high or are occupying a lot of space, they should be trimmed in a way that they are no more a hiding place.  

A meeting with tenants

The landlord can arrange a meeting with the tenants and advise them over the security issues. Such a meeting can invoke the tenants to think over their part of responsibility in securing themselves and the property they are using.

Use precautions and luck together

It is easier to think everything will work find and nothing bad will ever happen. Such laid-back attitude can cause a lot of troubles. It is important to perform the parts of duty each one of us is socially assigned. The landlord should take both direct and indirect measures for the well-being of the tenants and the property. Protecting the San jose ca real estate property is not as difficult as if feels. One just needs to be vigilant and active.