Have you heard the secret about investing in real estate? We would have to live under a rock to have not heard the encouragement, “It’s time to invest!” You may have received notes from your favorite REALTOR® that state it’s a great time to buy real estate. In a few years when our economy is again buzzing with activity we will hear someone say “I should have bought a couple of rentals.” It is no secret – timing has always been the trick to investing.

In order to get a grasp on the skill-set needed for owning real estate properties, it is important to talk to the experts. Property managers work for homeowners. Some of their duties would be to secure tenants, manage maintenance and handle the emergencies. There are many professional property management companies in our area, several of whom were willing to share their wisdom and insight.

Who rents a house, condo or apartment? Greg Hansen of G.K. Hansen Real Estate explains that in the current economy there are families that have lost their homes to foreclosure and need a rental property. Many are struggling with credit challenges and cannot qualify for a new loan to purchase. Hansen noted that he is seeing new tenants asking for longer term leases – knowing it will be several years before they can qualify again. Also, there will always be those who do not want the responsibility of homeownership. Renting and leasing can be very appropriate for some.

When is the best time to invest in rental properties? And why? Several answers stood out when local area property managers were queried. Ron Dickerson of R.W. Dickerson Management Co. says, “It’s always a good time – it’s a solid investment. I can walk up and touch it. Stock can be gone with no recovery but I will always have the property.” Time has indeed proven that in spite of economic ups and downs, the real estate investments continue to have the least risk. Dave Baker of Baker and Associates says, “I cannot remember a better time to buy. Prices are favorable.” With low interest rates, if an investor can qualify for a loan, this is an opportune time to take advantage of the marketplace. The tax benefits are worth investigating. When the tenant pays rent and the rent pays the expenses plus the mortgage, over time, it can be a self-funding retirement investment.

Now that ownership is a reality, what’s next? How and why would anyone use the services of a property manager? Dave Baker feels that, in his opinion, most horror stories about residential property management occur with properties that are self managed. “The owner is too close to the property itself, the tenants, and owners may lack the experience to make the tough decisions.” Ron Dickerson feels that there are many rules and entrapments. He finds it extremely important to understand the law and to be able to work with attorneys. Some of the duties of the property manager would be to advertise, locate, screen, place the tenant and collect the deposits and rents. Also, to keep records, pay bills, forward net proceeds to owner, inspect and handle maintenance. Property managers handle deposits and damages. When necessary, they handle the eviction process. All are well worth the professional management fee.

These property managers all agree that investing is wise – all are property owners themselves. They believe in their product and the services they provide.

Each real estate investor must evaluate his goals. Retirement, college, or estate building – reasons abound. The time is now! We invite readers to contact the many qualified REALTORS® and Spokane-area REALTOR® companies that also offer professional property management services. When you choose a REALTOR® who abides by the Code of Ethics, you are choosing a professional property manager you can trust, and their expertise and professionalism will be valuable for achieving long-range investment real estate goals in the Spokane region.

Published in the Spokesman Review September 26th, 2010.

My flower pots are empty and screaming for attention! With great anxiousness I await the blooming trees. Then it snows! Before I get myself into a “twitter” let’s talk about our landscaping. Whether considering how we live with our landscaping choices, or we are going to sell (now or in the future) here are some ideas I have gathered over the years. In fact, having just been with several different buyers recently, I’ll share with you some of their comments.

First, do you like simplicity or all the master gardener details and variety? Buyers with children do not like a yard requiring time consuming maintenance. Also, I noticed that ponds, waterfalls, and taller ledges (while visually attractive) don’t appeal to protective parents. If you are like Jim and me, our little pond offers pleasant sounds, a variety of colors and plants, and a pleasing visual effect – but we have to watch the grandkids closely when they visit. Consider how you will live in your yard – and who. Maybe the birds, squirrels and occasional turkeys and deer will help you make some decisions. For instance, all my spring bulbs are in fenced areas. Those deer find tulips delectable!

The plan to stay in our homes for many years allows us to “do our own thing”, but what if we’re trying to sell a property? Here are some ideas: consider good color in the front yard. Red and yellow. Psychologists tell us that yellow is the first color our eyes process – but I’ve always said a pot of red flowers will do wonders for first impressions. Walkways are more pleasant if they are curved – maybe flowers marking the pathway. There are so many different water features available now that wouldn’t cause parental concern – it’s worth considering. Water enhances ambiance, is relaxing and refreshes the spirit. Some flowers have a pleasant fragrance – use them near the front entrance. Not enough can be said for neatness. Bushes trimmed, trees not blocking views, shrubs healthy and grass mowed.

Here’s a suggestion: if you are going to sell, start on the yard first. It takes awhile for plantings to grow – then go to the inside for fresh paint and decluttering. Oh yes, a side benefit – if you start sprucing up your yard, it will encourage the neighbors to do the same. That helps create a great first impression when buyers drive down the street. In every neighborhood we have lived in, there has been one “neat-nik”. Now that is pressure! Motivating. You might even decide that everything looks so good – why move? That doesn’t sound like a Realtor, does it? Hmmmmm…

Let’s put a little effort into the thought process… haven’t we seen economic cycles before? Hasn’t the American spirit shone each and every time to reach new heights? Can’t we believe in ourselves? Of course. Here are a few statistics that will brighten your day.

Wait, isn’t that the aroma of sweet, fresh and beautiful roses in our future? The Federal Housing Finance Agency published statistics – results of the last 5 years (based on Third Quarter 2008.) Spokane was in the top twelve stable marketplaces – ranking number nine! The United States rate of appreciation, on average for the last five years, was 28.78%. Spokane was 62.03%. Considering the backward trend of recent months: national was an average of -4% (remember, that was also considering places like California and Arizona with huge losses.) How encouraging it is to look at our community with a decline of only 0.70%?

Yes, we have had an abundance of homes on the market, yes it has been more difficult for buyers to secure loans but there are still buyers and sellers in the marketplace. Where are the roses? It’s time to invest. Interest rates are low and there are good properties available.

I heard Donald Trump interviewed this last week and the question was asked of him “what are you doing, Donald?” His reply, “buying”. The quote from author and speaker Denis Waitley sums it up “Success in life comes not from holding a good hand, but from playing a poor hand well.” Do you smell those roses yet?