New Property Management Company Great Jones Helps Democratize Passive Income From Real Estate Investing

NEW YORK, May 21, 2019 /PRNewswire-PRWeb/ -- Stock markets are hovering near all-time highs, unemployment is the lowest since 1969, and the US is seeing solid economic growth. Yet many people still feel financially stretched.

In 2018, the Survey of Household Economics and Decisionmaking (SHED) showed that nearly 78 million Americans, especially younger workers, have a 'side hustle' or a 'gig' job to help make ends meet and afford their lifestyles. And, even if you are maxing out your 401k, will you ever have enough to retire? If the economy follows typical patterns, a recession is somewhere on the horizon. So, how does the average person plan for their future?

Like most things, planning for the future requires making concessions in the short term. Cutting back on incidental spending, budgeting, or even working a second job. But there is another path forward available to most people. New real estate services, like property management company Great Jones, democratize real estate investors' ability to generate passive income.
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Once limited to institutional buyers, those with large investment funds, or the very knowledgeable DIY-er, investing in rental properties and maximizing NOI and ROI is now approachable even for those who have never wielded a Montblanc or a hammer.

"Real estate has always been a logical investment, from a numbers perspective. Property increases in value while you can depreciate the structure. Thus, you can take a deduction while your investment value increases," said Dave Diaz, co-founder of Great Jones. "Finding the right property in the right area means you are not as susceptible to swings in value or the economy. Families always need a three-bedroom two-bath home in a decent school district. The key is to finding the right property."

If you are considering purchasing a rental property, there are three questions you need to have answered: how do I find the right property, how can I afford it, and how do I manage the property?

Finding the right property

For finding investment properties, there are now websites like Roofstock that allow you to search nationwide for fully vetted investment properties, many already rented. Also, real estate search engine Zillow shows estimated monthly rental prices for most homes across the country, along with their 'Zestimate' of the home value. Plus, many cities now have real estate investing groups where you can meet other investors and wholesalers who buy and flip properties to investors.

Financing investment properties

The second step is determining how to finance a rental property. The most straightforward path is a traditional loan, often requiring 20% down. If you have good credit and some cash on hand (you can even tap your retirement accounts), this is a good route to go. Through Fannie Mae's HomePath program, you can find auctioned properties that only require 5% down. But these may need significant repairs to make them rentable. If you own your own home and have equity in it, you can also consider the option for a home equity line of credit to finance the down payment on a rental property. If you want to get creative, you can search out other lenders or form a partnership with your friends to start investing. Just be wary of the fine print.

"With the right property, rent is consistent and the risks are minimized. Over time, your renters pay for your investment," says Dave Diaz. "After the loan is paid off, that rental income either goes straight to your bank account, or to your retirement. And, you now own an asset free and clear."

Managing your rental property

Now that you own a rental property, how do you find tenants, set and collect rent, and handle repairs and upkeep? You can definitely do it all yourself, but that gets more challenging when your rental property is an hour's drive away. Or in another state. That's where national property management services like Great Jones come in play. For a small fixed fee, they manage all aspects of the property for you: setting a competitive rent rate based on market data, collecting rent, finding tenants, and - best of all - managing repairs and maintenance. Yes, you still have to pay for that new toilet, but when you're getting it closer to wholesale than retail pricing, it is a much easier pill to swallow.

With these new classes of tools and services available to all, it is easier than ever to invest in passive rental income properties. Start building your real estate portfolio and diversify your investments to hedge against economic uncertainties.

SOURCE Great Jones