Varun Ish Nanda along with his wife Roopsi Nanda & Father-in-law Dharam Gupta is a California licensed Realtor CalBRE# 02014714, specializing in sale & purchase of Residential real estate & Commercial real estate, serving clients all over California with Love.
Also specialing in all Kinds of Residential, Commercial and Business loans, our Team provides world-class service to you in every real estate transaction.
MAXIMIZE REAL ESTATE ROI USING D.O.L.L.A.R STRATEGY
Let's cut to the chase and straight away come to the most important aspect in Real Estate- Maximizing your Return On Investments (ROI).
Follow this D.O.L.L.A.R strategy step by step and apply in every Real Estate you buy to gain maximum profits every time.
Due Diligence: No matter if it's your first property or your tenth, each property is unique and has its own characteristics, pros and cons. Doing your Due Diligence as quickly and deeply is the first thing you should do even before you place an offer on the property- Do your research and check the property in consideration for any liens, physical deterioration, location pros & cons, crime rate, school district, neighborhood, safety, scope for growth, permits etc.
Observe: Market trends change rapidly over time and the investment that you wanted to make six months ago might not make sense today. Most people who get reluctant in investing in Real Estate because they think the market will go down, end up spending more on similar properties after just a couple of months. Observing market trends is the second most important step towards creating a strong ROI. Whichever State, City, or Zip Code you chose to invest in, observe the market trends for that particular area and understand if it's the best place to invest in or not.
Listen: Listen To your Realtor. If you are working with an honest, creative and logical Realtor, he will do all the leg work for you by crunching relevant numbers, negotiating on your behalf, coming up with creative strategies to add value to your property, and finding you deals that are suitable to your particular needs. Always know that a great Realtor is the one who listens to you first and understands your needs in complete details before beginning to work for your benefit. Realtors have access to a lot of tools and systems that can be used for gaining deeper knowledge about the property in question.
Leverage: The easiest way to access Leverage is to use your own money. The smartest way to access leverage is to use someone else’s money. Leverage is the tool that will increase returns only if you use it prudently. If you put 20% down on a property, you will still receive rental income based on 100% of the property value, making it a great return for your 20%. Say your property is worth $100,000 and you charge $750 in rent with $500 in mortgage, taxes and fees. You have a $250 profit on $20,000 down. That is $3,000 a year, or 15% return on your deposit. Good luck trying to get an almost guaranteed 15% on stocks. Remember, the bigger the leverage, the greater the return.
Add Value: Adding Value is probably the most important aspect of the entire strategy. When hunting for real estate, figure out what is the scope for value addition in a property. Not every property has scope to add value to, thus it becomes imperative that you know where you are investing. For example when buying an apartment or a condominium complex, see if there is enough vacant land to add a few more units, or facilities like parking spaces, pool, playground, barbecues and the likes. While buying a single family residential house, see if its fully upgraded or still has some scope. If it is already upgraded, then there is probably no scope to add value to it, which means your ROI will never be enough to keep your pockets warm.
Rent / Resell: Figure out what you plan to do with the property once you acquire it? Rent it out or Resell it within a particular time frame - Sitting on a vacant or parked property for too long will diminish your ROIs and fail to make you happy. Furthermore, who you rent out to makes a lot of difference on how much returns can you get on your investment. Renting out to businesses vs individuals Or renting out each room vs an entire house are some of the examples that can have significant affects in your ROI. Do your maths correctly and aim to begin getting returns from Day One onwards.
For Residential / Commercial Real Estate Services, Mortgage loans and Refinances, Connect with Varun Ish Nanda.
Follow this D.O.L.L.A.R strategy step by step and apply in every Real Estate you buy to gain maximum profits every time.
Due Diligence: No matter if it's your first property or your tenth, each property is unique and has its own characteristics, pros and cons. Doing your Due Diligence as quickly and deeply is the first thing you should do even before you place an offer on the property- Do your research and check the property in consideration for any liens, physical deterioration, location pros & cons, crime rate, school district, neighborhood, safety, scope for growth, permits etc.
Observe: Market trends change rapidly over time and the investment that you wanted to make six months ago might not make sense today. Most people who get reluctant in investing in Real Estate because they think the market will go down, end up spending more on similar properties after just a couple of months. Observing market trends is the second most important step towards creating a strong ROI. Whichever State, City, or Zip Code you chose to invest in, observe the market trends for that particular area and understand if it's the best place to invest in or not.
Listen: Listen To your Realtor. If you are working with an honest, creative and logical Realtor, he will do all the leg work for you by crunching relevant numbers, negotiating on your behalf, coming up with creative strategies to add value to your property, and finding you deals that are suitable to your particular needs. Always know that a great Realtor is the one who listens to you first and understands your needs in complete details before beginning to work for your benefit. Realtors have access to a lot of tools and systems that can be used for gaining deeper knowledge about the property in question.
Leverage: The easiest way to access Leverage is to use your own money. The smartest way to access leverage is to use someone else’s money. Leverage is the tool that will increase returns only if you use it prudently. If you put 20% down on a property, you will still receive rental income based on 100% of the property value, making it a great return for your 20%. Say your property is worth $100,000 and you charge $750 in rent with $500 in mortgage, taxes and fees. You have a $250 profit on $20,000 down. That is $3,000 a year, or 15% return on your deposit. Good luck trying to get an almost guaranteed 15% on stocks. Remember, the bigger the leverage, the greater the return.
Add Value: Adding Value is probably the most important aspect of the entire strategy. When hunting for real estate, figure out what is the scope for value addition in a property. Not every property has scope to add value to, thus it becomes imperative that you know where you are investing. For example when buying an apartment or a condominium complex, see if there is enough vacant land to add a few more units, or facilities like parking spaces, pool, playground, barbecues and the likes. While buying a single family residential house, see if its fully upgraded or still has some scope. If it is already upgraded, then there is probably no scope to add value to it, which means your ROI will never be enough to keep your pockets warm.
Rent / Resell: Figure out what you plan to do with the property once you acquire it? Rent it out or Resell it within a particular time frame - Sitting on a vacant or parked property for too long will diminish your ROIs and fail to make you happy. Furthermore, who you rent out to makes a lot of difference on how much returns can you get on your investment. Renting out to businesses vs individuals Or renting out each room vs an entire house are some of the examples that can have significant affects in your ROI. Do your maths correctly and aim to begin getting returns from Day One onwards.
For Residential / Commercial Real Estate Services, Mortgage loans and Refinances, Connect with Varun Ish Nanda.
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