ProfitfromRentals.com - Investment Properties Chicago
HOME | JOIN OUR MAILING LIST | CONTACT US
Call us today! (800) 341-0576
Home
About Us
Investment Properties
Income for Retirement
1031 Exchange
Self Directed IRA
Before & After Photos/Videos
Property Analysis Tool
Investor FAQs
Webinar for Investment Properties
Webinar for Cash Flow Property
Webinar for Investment Properties
Join Us
Cash Flow Properties
Turnkey Cash Flow Property
                         
Social Media Buy Investment Properties
 
Profit from Rentals is a BBB Accredited Real Estate Investor in Skokie, IL

Profit from Rentals is a BBB Accredited Real Estate Investor in Skokie, IL
Why Real Estate

Successfully Investing in Real Estate
Successful investors know that it is best to distribute investment across several “asset classes” that are not completely connected with each other.  Most people have assets in stocks, bonds, cash, and real estate.  Typically, real estate is poorly represented in investors’ portfolios, which is unfortunate because estate brings stability to an investor’s portfolio that stocks and bonds do not.

Real estate is poorly represented because the means of investing in property is not easily available. For most investors their main real estate investment is their home.  Investing in only one property is similar to only investing in one stock; it is risky and does not guarantee a strong return.  Some investors have chosen a different route and expanded into Real Estate Investment Trusts (REITs). REITs pose two significant risks, first they can yield returns that vary significantly every year.  Secondly, any income generated is fully taxable at regular income tax rates.  REITs are best suited for 401(k) plans and IRAs because they are tax-advantaged accounts.

PFR’s provides a real estate investment alternative to REITs, by offering turnkey multi-unit properties to passive investors seeking above average cash flow.  Our properties offer great returns, low volatility, and include the tax benefits of directly owning real estate.  

The best and most stable real estate investment models share two fundamentals in order to build financial wealth: cash flow growth and equity build-up. Cash flow is the rental income minus all of the costs incurred, including the mortgage payment. Equity build-up results in paying down the mortgage balance over time and appreciation of the property.  
PFR provides buy-and-hold investment opportunities that combine cash flow growth and equity build up. PFR acquires, renovates, and sells multi-unit residential properties in the Chicago area.  Our sister company Elite Rentals & Management provides excellent property management service in order to have prescreened tenants in place.
We have extremely high standards that properties must meet regarding, risk, cash flow growth, and appreciation potential. We always focus on providing high cash flow properties. 

PFR guides investors throughout the entire process, from choosing properties, creating the purchase contract, obtaining a mortgage, going through the closing process, assisting to find an insurance agent or setting up a legal entity to hold the property, and getting a qualified property management service in place. 
All investing requires a certain amount of risk, but we are here to help you alleviate the risks through our industry knowledge and managing the risks that we can control.

We have comprised a list of the major risks associated with investing in residential real estate:

Maintenance & Repair Costs:
Any property is going to have some maintenance and repair costs related to the normal wear and tear on the building. Generally, the only time maintenance and repair costs become excessive is when a there is a large amount of intermit maintenance work at the time of purchase, damage from the tenants, or weather damage. There are a number of variables to consider when purchasing any property, such as painting, plumbing, landscaping, and appliances.  Additionally, repairs and maintenance tend to be more costly in larger, more expensive houses.

In order to attract the best tenants and higher rent you must have a well-maintained property.   PFR has high standards and ensures that the properties meet our specific criteria before we are willing to offer them to investors.  Also, we have a thorough screening process for our potential tenants. By selecting the best, most responsible tenants it will help to minimize the amount of damage caused by tenants.

Owner Liability & Mitigation:
PFR is pleased to assist investors with finding and insurance agent.  It is important to maintain a minimum liability insurance coverage of $500,000 per property.  Some investors choose to purchase supplementary umbrella insurance, in addition to their liability insurance. 

Another option for investors is to form a Limited Liability Company (LLC) to hold their investment properties in addition to property and liability insurance. If you prefer to form an LLC for holding properties, PFR is happy to provide guidance.

High Vacancy Rates:
PFR partners with property managers who are highly selective of their potential tenants and perform thorough background checks.  Tenants must meet employment, credit, criminal history, and housing turn over standards in order to minimize the risk of property damage, non-payment of rent, and vacancy.

PFR cannot guarantee the tenants conduct after they sign a lease, but we do strive to keep vacancy rates below industry average.  Using an exceptional property manager to oversee the properties is crucial to maintaining high rent, good tenants, and a low vacancy rate.

Failure to Pay Rent:
Inevitably, some tenants fail to pay their rent on time.  Generally this is a result of poorly managed finances.  However, occasionally unplanned circumstances arise such as death, disability, unemployment, divorce, and other extenuating circumstances, which can cause financial strain.

The key is to have well written lease agreements that have provisions so the security deposit can be used toward late payment penalties and unpaid rent if necessary.  The lease agreement will also define in detail the eviction process. Unlike other states, in Chicago if eviction is necessary, it is only a 5-8 week process.
Still, between a strong property and pre-screened tenants we are able to reduce the probability of unpaid rent.

Lack of Property Appreciation:
While we cannot guarantee that a certain property will appreciate year after year, PFR is extremely selective about the properties it acquires.  There are many variables that can affect appreciation rates, for example, how well the property is maintained, school districts, crime rates, proximity to transportation and shopping, inflation, unemployment rates and natural disasters.

We are unable to predict all of these variables, but through our highly selective process which includes having associates in the field, we are able to assess the impact of change on our properties over time.
Nevertheless, our properties do not rely on appreciation to deliver outstanding returns because they provide excellent cash flow.

 

|  Return to Previous Page  |  View Investment Properties  |

 
Home | About Us | Contact Us | Privacy Policy | Join Our Mailing List