Investor Relations

Technically speaking, 100% of my clients are Investors. Simply put, if you own a home and it is not your primary home and you are collecting monies from it from leasing it out, you are an investor! Some investors like to purchase real estate, fix them up and resell the home for a profit. Others like to receive montly cash flow from the property by leasing (renting) it out. These are the investors I most commonly work with. But, just the same, I do help investors find and purchase homes as well as sell their existing inventory for 1031 exchanges or to cash out. Selling homes that are tenant occupied are no problem with me.

Full Service Property Management

Working with Real Estate Investing, over a three year or longer time period, typically means that you will be renting out the property at some point. In April, 2012 Leonard Baron came out with a great article for the beginner Real Estate Investor that highlights some great tips. For the full article, click here!

Mr. Baron's article, "Real Estate Investing 101 - Tips for Future Property Moguls, " discusses some major starting out rules. Begin buying property as your Personal Property - This rule has some great advantages, but may not work all the time. The concept is whenever you buy a home, think of it as a future rental property. Buying Real Estate as a personal property allows you to put down a lower down payment and typically with a lower interest rate. The common downpayment for an Investor loan runs between 20% to 25% down in comparison to a 3.5% down for a FHA loan. Now, you will have to stay in the home as your personal residence for at least a year to 3 years (check with your accountant or attorney), but that will allow you to save up for the next home and fix up the first home. Of course, you may not want to move every 3 years and you may lose some opportunities by waiting, so this rule is great when you are first starting out or at that point to, well, move on!

Another rule in Mr. Baron's article is also a great talkng point. Think Long Term with Real Estate Investing. The Real Estate sales market dips and peaks throughout a 10 year period. This means the resale value of the investment home will vary throughout the time you own it. Just likes Stocks and Bonds, buy low and sell high is always the best rule! But, with Real Estate, the real key is to buy an investment that in the future will provide you with a positive cash flow while you wait for the market to meet your selling goal and build equity into the home whilst the tenant pays your or part of your mortgage.

Here's where Property Management comes into play. Realtors sell homes by helping buyers buy a home and/or Owners sell, or list, their home. Property Management Realtors have those skills plus the experience of working with leases, tenants and renting homes. Basically, these skills can help the Real Estate Investor focus their attention on homes that typically rent well and generate the highest Rate of Return and positive Cash Flow. Keep in mind that Cash Flow and Rate of Return are different concepts that are both important to ones success as a Real Estate Investor.

The Rate of Return (or Return On Investment - ROI) is like the interest rate you would receive on a CD or Bond. If you had $60,000 to invest, your options could be to purchase Real Estate using the monies for a downpayment or to buy a long term Certificate of Deposit. The questions then becomes, which would yeild you more money over a 10 year period? Of course, with the Real Estate Investing, there are other expenses such as the monthly mortgage payment, HOA, Taxes, property management fee and other maintenance, upkeep and upgrades amounts. Here is where the Cash Flow becomes important. Cash Flow would be the amount collected in rents and they would be positive or negative after you subtract these expenses. A positive Cash Flow will yeild you a higher ROI or Rate of Return and the sooner you are earning a positive Cash Flow, the highter that ROI will be over time. When working with a Property Management Realtor, the goal is to find an investment that creates a positive Cash Flow in the shortest amount of time. Which then in turn, if done correctly, you may see an ROI or Rate of Return of 8%, or greater, over the long haul of 10 years or longer.

Hold on, there IS more! The above example was purposely simplified. There are other costs involved when purchasing a home, which include the downpayment, closing costs, points on the loan and any upfront expenses to get the house ready to live in or to rent. And the ROI example above did not include the appreciation value which adds to the Rate of Return. For more simple information on this topic, check out Mr. Baron's article, " What Is A Good Real Estate Investment?" on Zillow at, click here!

Ashburn: Ashburn, Virginia is one of our favorite investing locations and property management areas. Here are a few homes currently on the market as of January, 2014, their comparable Sold rate, Rental rate and possible Rate of Return. (NOTE: the rate of return is based on a few assumptions and market conditions. For more information on the actual numbers used, please eMail us and we'll explain the process.)

Ashburn Farms - Townhouses with 3 BR and 2 BA+ priced under $350,000, recent comps based on 11 similar homes have sold on an average of $339,500, past 3 month rental prices are between $1800 - $2200, expected rental price in Winter is $1900, assuming 25% down with interest rate of 4.75% and calculated on List Price of $325,000, could yeild a rate of return of 13.90% over a ten year period, does not include all closing and purchase costs or initial rehap if needed.

Ashburn Village - Townhouses each with 3 BR and 2 BA+, priced below $350,000 with recent comps based on 6 similar sized homes have sold on an average of $315,500, past 3 month rental prices are between $1900 - $2200, expected rental price in Winter is $1950. Assuming 25% down with interest rate of 4.75% and calculated on List Price of $325,000, the former home could yeild a rate of return of 15.41% over a ten year period, does not include all closing and purchase costs or initial rehap if needed.

Investor and residential Property Management for condos, townhomes or single family homes in Ashburn neighborhods like Alexander's Chase, Ashburn Village, Ashburn Place, Ashburn Farms, Ashburn Square, AshleaTrails, Belmont Country Club, Belmont Forest, Belmont Glen Village, Belmont Greeene, Belmont Ridge, Belmont Land Bay, Brambleton, Briarfield Estates, Broadlands, Broadlands Station, Crossroads Manor, Emerald Ridge at Brambleton, Estates at Overlook, Evergreen Hamlets, Evergreen Reserve, Evergreen Village, Falkners Landing, Farmwell Hunt, Faulkner's Landing, Goose Creek Village, Loudoun Valley, Moreland Estates, One Loudoun, Potomac Green, Reserve at Waxpool, Ridges at Ashburn, Stonegate, The Meadows, The Preserve at Goosecreek, The Reserve at Waxpool, The Villages at Loudoun Valley, Trent Grove, Village of Waxpool, and Willowsford. Or in Sterling neightborhoods like Broad Run Farms, Brooks, Cabin Branch Forest, Cascades, Countryside, Colonade at Dulles, Dominion Station, Environs, Forest Ridge, Fox Creek, Foxlee, Great Falls Chase, Grovewood, Jefferson Village, Loudoun Valley Estates, Lowes Island, Medina Homes, Mirror Ridge, Oak Tree, Parkside at Dulles, Peace Plantation, Potomac Hunt, Potomac Lakes, Potomac Falls, Richland Forest, Richland Acreas, River Bank Woods, River Crest, Rolling Woods, Seneca Chase, Seneca Ridge, Spring Grove Farm, Sterling Park, Sugarland Run, Sugarland Square, Tall Oaks, Trailside, Westerley, Woodland Village, and Woodstone and neighborhoods near you in Loudoun and Fairfax Counties, Virginia!

Lease Pricing in Ashburn, Virginia

Average Rental Prices based on Bedrooms and Full Baths in 20147, 20148, & 20149, looking at Fee Simple homes only, primarily town houses and single family.

Lease Pricing in Leesburg, Virginia

Average Rental Prices based on Bedrooms and Full Baths in 20175, 20176, & 20177 looking at Fee Simple homes only, primarily town houses and single family.