There are plenty of reasons why you should at least consider getting an IRA, like the chance to make your money grow, the tax benefits involved, and the opportunity you have to watch your wealth build, which is a huge opportunity when you pair your IRA with a non-recourse loan. With a traditional IRA, you can make contributions with money you may be able to deduct on your tax return, and any earnings can potentially grow tax-deferred until you withdraw them in retirement. A Roth IRA gives you the chance to make contributions with money you’ve already paid taxes on and your money may potentially grow tax-free, with tax-free withdrawals in retirement. 

A self-directed IRA, however, can be used in tandem with a non-recourse loan, which has benefits of its own. A non-recourse loan favors the borrow because the borrow only loses their collateral, there is no recourse against you if you default, and your personal credit does not impact your chances of acquiring a non-recourse loan, and lastly, when you get a non-recourse loan with First Western Federal Savings bank, you get to work with the best non-recourse lenders in the nation. Speak with one of our representatives to learn more. 

In Times of Financial Uncertainty, You Are Safe

With non-recourse loans, the lender has to take the loss if there is a default on the loan. While the borrowed collateral is seized, there is no recourse on the borrower’s funds, possession, or funding sources. In times of uncertainty, this can be crucial in maintaining liquidity in your IRA as well as keeping your head above water while you spend your finances on needs to keep you safe. 

It can be a truly horrible feeling to know that you cannot meet loan obligations, and while defaulting on a non-recourse loan is never advised due to the impact on the borrower’s credit score, there may be less panic when you can no longer make a payment. Furthermore, when you open a non-recourse loan, your IRA owns it, not you. This means that you will not be held personally liable should anything happen over the life of the loan.  

When financial strain occurs, however, don’t hesitate to call First Western Federal Savings Bank. We have 40 years of experience and have emerged as one of the nation’s leading non-recourse loan providers! Contact one of our loan-lenders today if you are experiencing hardship or have questions — we will work with you to help you find the best solution. 

Non-Recourse Loans are Generally Offered on a Fixed-Rate Basis

While they are also available with floating rates, non-recourse loans are offered with a fixed interest rate. This means that when times are tough, your interest won’t be affected, and you don’t have to deal with fluctuating rates that make financial hardship even more difficult to navigate. 

Your Credit Score Isn’t Checked, But Your Credit History Is Evaluated

When you need financial assistance and your credit score keeps you from acquiring it, the stress can be overwhelming. Not in this case, however, as your credit score will not be checked when you apply for a non-recourse loan. This being said, however, when you apply for a non-recourse loan through First Western Federal Savings Bank, your credit history will be evaluated because it is important to assess how you pay off your debt. Your credit history will impact the loan, as we look at how well the loans were repaid. 

A Non-Recourse Loan Can Help Diversify Your Investments

First Western Federal Savings Bank helps people purchase real estate with their non-recourse loan and their self-directed IRA working in tandem. Residential property, commercial property, a multi-unit property, and agricultural property are all investment opportunities with a non-recourse loan and can help you diversify your portfolio, so the next time you are faced with financial uncertainty, you have liquidity from your investments that you can fall back on. 

Even if you’re facing uncertainty with a small amount of funds in your retirement savings, the potential for growth is unlimited. If you would like to know more about how you can use your non-recourse loan in tandem with your IRA, then contact us today.

You Get to Work with FWFSB

Lastly, one of the many benefits of applying for a non-recourse loan during this time is the chance you get to work with us. We take a client-centered approach to our work, listening carefully to your needs and concerns. Our decades of experience can act as a testament to how dedicated we are to serving our clients, as each loan request is evaluated by its own merits and our underwriting strategy is specialized to each loan. We view our customers as partners and work with them throughout the life of the loan to ensure it remains a sound investment for them. If you are interested in receiving a specialized loan, we are here to help! Speak with a non-recourse loan lender today.

The post Why a Non-Recourse Loan is Necessary, Especially Right Now appeared first on First Western Federal Savings Bank.

As a non-recourse loan lender, we’ve worked with clients to get them the financial support they need to invest in real estate options like vacation homes or rental properties. One of the things we discuss with our clients is their credit score. If you’re interested in getting a non-recourse IRA loan but are concerned about the state of your credit, here are a few quick tips you can follow to help bolster your score.

But What is a Credit Score?

First developed by the Fair Isaac Corporation, your credit score is not unlike a report card for your finances. Rather than looking at how well you understand geography, your credit report instead shows lenders your creditworthiness, or how likely you are to pay back any money you’ve borrowed. Your credit score is determined by looking at your credit and borrowing history. After looking at your credit history, the three main credit bureaus, Equifax, Experian, and TransUnion create a credit report using a scoring model and produce a number that’s somewhere between 300 and 850.

Why is a Good Credit Score Important?

Any time you apply for a line of credit or for a new loan, the lender will want a sense of how much risk they’re taking. They want to minimize their risks and save their money by only offering lines of credit to those they know will be able to pay them back. The better your score, the better the lending options you’ll have with lower interest rates. Lenders may limit their risk by offering higher interest rates with shorter repayment terms to those with lower credit scores. 

So what’s a good credit score and what’s a bad one? Here are the ranges of credit:

• Poor credit: 300 – 579
• Fair credit: 580 – 669
• Good credit: 670 – 739
• Very good credit: 740 – 799
• Excellent credit: 800 – 850

In a blog post from 2018, we spoke in-depth about the importance of a good credit score. In case you didn’t have time to read it, here’s a quick recap: A good credit score can help you with your insurance rates, with a higher score meaning lower rates. Your utilities might also be affected by your credit score, with your rates being affected. In some cases, the utility provider will ask for a larger security deposit. Perhaps most importantly for those looking for a non-recourse IRA loan, a good credit score can help you secure the best loan options. Lenders may offer your subprime loans, or may not offer you a loan at all if your credit score isn’t in the shape they’d like it to be.

How to Improve Your Credit Score

The fact is, improving your credit score is actually quite simple. The challenging part is how long the process can take. Even though this process can take several years in some cases, it’s important to start it sooner rather than later. Here are some proven methods for improving your credit score.

Take a Look at Your Credit Score

The first step is an obvious one ─ examine your current credit score. You can request a credit report from all three of the major reporting bureaus for free once a year. Once you’ve got all three of these reports, look for any reporting errors, inaccuracies, or signs of missing information. You can do this yourself or work with a financial advisor. Make sure to keep an eye out for obvious errors like missing or late payments. 

If you find information that is incorrect or needs to be changed, you can dispute the error to have it fixed. The credit bureau has 30 days to make these corrections, so starting this process early can only help.

Make Payments on Time

This tip might seem like common sense, but you’d be surprised at the number of people who struggle with making their payments on time. From credit cards to utilities to phone bills and more, the list of payments we have to make each month can be quite extensive in some cases. But making your payments on time does more than just keep your finances straight. It also helps to prove to lenders that you manage your money responsibly. Lenders look at your payment history as a way to predict how reliably you’ll make payments in the future. 

Making payments on time is easy when you take advantage of the modern tools and conveniences you have at your disposal. You can set up calendar reminders on your email or smart devices for the day the bill is due, and even set another reminder a few days prior to the due date. Many services, like phones, utilities, and car payments, now have an option to make automatic payments. This automatically deducts the payment from a linked bank account. This means you never have to worry about whether your bills have been paid or not; it’s all taken care of for you.

Manage Your Credit Limits

For some of us, we see a $1,000 monthly limit on a credit card and feel compelled to use every last cent of that limit. But in actuality, spending habits like these can hurt your credit score. Instead, think about your credit utilization, or how much of your credit you’re using every month. Managing your credit limit is easy when you approach it by taking a few steps.

First, tackle the remaining balances on the cards with the highest rates or the ones you use the most. If you use one card the most, it’s also not a bad idea to ask for a credit limit increase. When your limit goes up, but your balance stays the same, you’ll immediately lower the utilization on that line of credit. If you’ve got a large balance on a line of credit, rather than making one large payment every month, break it up into multiple, smaller payments over the course of the month. These micropayments help to show that you’re managing your credit limits effectively. Finally, you can even consider moving some of your debt around. Debt consolidation can help you to limit the amounts on some credit cards, or pay off a balance entirely. You could use a personal loan that has a better rate than your credit card to do this.

Examine Your Credit Accounts

One of the most common mistakes we see people make is when they open a new line of credit as a way to improve their credit score. In some cases, this can actually backfire and harm your credit score even more. The fact is, by having unnecessary lines of credit your name, you’re putting too many hard inquiries into your credit history, which can hurt it. Additionally, having too many lines of credits creates too many opportunities for reckless spending that can lead to increased debt. 

Another common mistake we see is people recklessly closing their unused credit cards. After all, if opening new credit cards can hurt your credit, closing them should help right? Well, not quite. The fact is, as long as your unused card isn’t costing you anything in terms of annual fees, you’re not losing out on anything. Keeping these unused credit cards open helps because it increases your credit utilization ratio. In effect, you have a high limit, but you’re only utilizing a fraction of it. 

Make use of Credit Boost Programs

Credit bureaus have developed a few programs that allow you to include more financial information when they create their reports. For instance, Experian Boost is a free program that helps you to increase your score. It works by connecting your bank account information to the credit reporting bureau and allows you to report your utility and phone bill payments on your credit history. Similarly, UltraFICO also connects with your bank accounts and includes them in your credit score. This is ideal if you’re good about managing your checking and savings accounts.

Remember to be Patient

We’d all love it if we could make a few phone calls and have our credit score jump overnight. But the reality is that improving your credit score is a time-intensive process. By practicing good financial techniques and managing your lines of credit and debt more effectively, you can start to improve your credit score. Conversely, while it takes time to improve your score, you can ruin your good scores remarkably quickly. Good financial habits set you up for long-term success.

Partner With Our Non-Recourse Lenders Today

When your credit score is high, you’ll find that you have better lending options than ever before. Are you interested in investing in real estate? Leveraging your IRA through a non-recourse loan is a great way to do it. Here at First Western Federal Savings Bank, we’ve got more than 40 years of experience with connecting our clients with the loans and resources they need to reach their financial goals. Contact our non-recourse loan lenders today to schedule a consultation.

The post Quick Tips for Improving Your Credit Score appeared first on First Western Federal Savings Bank.

Let’s take a look at some of the steps and actions you can take in order to minimize tenant turnover in your rental property.

Make Your Home “Market-Ready”

One of the first ways you can minimize tenant turnover starts even before applicants look at the property. Inspect your rental properly thoroughly. Put yourself in the mindset of a potential tenant. Think about things like the condition of the fixtures and appliances, the state of the flooring, and the appearance and maintenance of the walls and ceiling. As you move through the home, create a to-do list of all the tasks that you’ll need to complete before you start marketing the space to tenants. Additionally, take photos or videos of spots of damage or things you need to work on.

In addition to repairing or replacing these items, make sure you deep clean the home. A great way to save money on cleaning is to do it yourself, but if you have the time, energy, or know-how then it’s best to hire a good cleaning service. Your cleaning list, however, doesn’t stop at simply your floors and countertops. It’s always a good idea to have an HVAC specialist visit your home and inspect your HVAC system. This ensures that your new tenants will be able to breathe easy as they spend time in your rental property.

Another great way to make your home market-ready is by upgrading parts and pieces to improve the tenant experience. For instance, consider asking for additional power outlets and cable tracks to some of the most used rooms like bedrooms, kitchens, and living rooms. “Smart” upgrades like thermostats and air conditioners are an attractive feature for potential renters. They minimize utility bills and are easier to use and maintain. Security upgrades for doors and windows, like keypad entry and alarm systems, are a high-value feature for some renters. The addition of new, energy-efficient appliances will save you and your tenant’s money on utilities in the long run. Upgrades like these can go far in retaining a tenant.

Screen Your Applicants Thoroughly

Once your rental property is market-ready and you begin your marketing efforts to find a tenant, you can start screening your applicants. It’s best if you can meet the applicant in person, seeking a sense of how they might interact with you in the future. As part of your screening process, make a background and credit check a part of the application. This is a great step to ensure that your tenant will be able to pay rent on time and stay on the property for a longer period of time. This will also minimize the number of short-term renter problems you might face.

When screening your applicants, consider aspects like these:

• Is the applicant’s income at least three times monthly rent?
• What do their employment and rental histories look like?
• How did their former landlords feel about them and would they rent to them again?
• Are they polite, respectful, and prompt in their communications with you?
• Do they have personal references who are happy to endorse their character?

A Little Incentive Can Go a Long Way

An effective way to minimize tenant turnover is to offer benefits, perks, or price adjustments for those who agree to a long-term lease agreement. Many renters will jump at the chance to have discounted rent in return for signing up for a multi-year lease. Other strategies are to freeze rental prices for a period of time after the lease ends. Many tenants are more likely to agree to stay in the property for a longer period of time if they can reliably predict what the long-term costs staying there will entail.

Be Prompt about Your Responses

You trust your tenant to care for your property while they stay there and they trust you to take care of them when they need it. When your tenants contact you with a repair request or to respond to an emergency, you should do everything in your power to address the issue as soon as you can. It’s always a good idea to have a list of trusted repair specialists that you can refer to when your tenant might experience things like air conditioning problems, plumbing issues, and more. By responding to the requests and issues in a timely manner, your tenants think of you more highly and are more likely to state your property for a longer period of time.

Make Them Feel at Home

For those managing a multi-family property, creating a sense of community across your units is a great way to minimize tenant turnover. It can be as simple as inviting your tenants over for dessert during the holidays, or something as elaborate as organizing a community improvement project. In the same vein, take some time to get to know some of your tenants. Showing that you are invested in them as people as well as renters is a great way to establish rapport. It also encourages them to come to you with problems like noisy neighbors, damaged appliances, or leaky roofs. When tenants feel at home in their rental, they are more likely to cooperate with you to help you care for the property.

Find Your IRA Non-recourse Loan Today

Whether you’re looking to invest in vacation rentals, singular multifamily properties, or commercial real estate, the lending specialists at First Western Federal Savings Bank can help you do just that. We offer self-directed IRA non-recourse loans. You can get your IRA non-recourse loan by contacting us today and starting your application now.

The post Minimizing Tenant Turnover appeared first on First Western Federal Savings Bank.

Finding the right properties to invest in can be tricky, especially when you’re looking to get the most out of each and every dollar. Fortunately, it’s easy to invest in the right properties if you know what to look for. The fact is, some features in a house are more valuable than others. Join us as we outline some of the most valuable and most wanted features that renters are looking for in a home.

Why Are Some Features More Valuable Than Others?

It’s an age-old question: “What makes a house a home?” If you’ve lived in your home for a while or you’re new to real estate investing, you might not have a great answer for this question.

However, potential renters or buyers have a very strong sense of what they’re looking for in their next home. The fact is, the features that you look for in your home may not be the same ones that renters are looking for. That’s because expectations of what a home is and how it functions have changed with time. This is also reflective of changes in the housing market as a whole. For the most part, first-time buyers and young renters are content to settle for a home that does not have all the latest and greatest bells and whistles. But they are looking for a home that has usable features and fixtures in decent condition. To really elevate your investments and make it truly attractive to a wider variety of renters, you will want to ensure that the real estate you’re investing in has some of these features.

An Expansive Kitchen

Across many traditions, cultures, and countries the kitchen serves as a gathering space for family and friends. It’s the source for food and beverage, which naturally draws people to it. As such, many people choose to relax here before and after work or to do their homework after school in the kitchen. The current market trend is that people are looking for kitchens that have spacious floor plans so that their kitchen can serve as both a place to prepare and present their food. 20 years ago, the dining room was an integral part of any home. This preference has shifted, however, and many homebuyers are instead looking for a kitchen that allows them to easily transition into the living room rather than the dining room.

Bathrooms with Modern Fixtures

For those who have been in the real estate investing field for a long time, or have experience with general contracting, it’s a well-known fact that updating a bathroom is one of the best returns you can get on your home improvement investments. In order to save money and maximize your rental profits, choose to invest in properties that have updated and modernized bathrooms.

Remodeled bathrooms are an attractive feature for potential renters. This is because there is a shift in the market, and Americans are spending less time and money on spas, salons, and other luxury experiences. Instead, they’re choosing to re-create these activities in their own home. Similarly, many renters are looking for ways to save money on the utilities, and bathrooms that feature energy-efficient faucets, showers, and toilets are a major draw. In addition to new fixtures, a bathroom with recently redone tiling, vanities, and mirrors are also a major selling point for potential renters.

Renters Are Looking for Homes That Are Easy to Care For

The fact is, renters are looking for homes that are simple to maintain and easy to care for. In addition to the eco-friendly appliances and kitchens and bathrooms, renters are also inspecting features like what kind of flooring is in the home. While carpet is an affordable flooring option for you, you might find that you can ask for a higher rental price every month if you use hardwood floors. Renters appreciate how easy it is to clean hardwood floors or a laminate equivalent. When it comes to countertops, slate and concrete countertops are currently in vogue for kitchens and even some bathrooms. They’re regarded by many as easy to clean and more robust than laminate and particle board counters.

In addition to the materials the home is constructed from, the infrastructure of the home itself can make it easier for renters to maintain the space. Electrical outlets are increasingly more desirable fixtures in homes as Americans use more and more electronic devices every day. Older homes typically have fewer outlets, making it difficult for homeowners to use their electric cleaning devices to maintain the home. If possible, invest in a home that has an outlet on nearly every wall.

Start Purchasing Real Estate with Your IRA

By using your self-directed IRA, you can purchase real estate to turn into rental properties and develop a passive source of income. As the nation’s leading provider of non-recourse loans, First Western Federal Savings Bank can help you achieve your real estate investment goals by getting the funding you need. Invest in residential, commercial, multi-family, and agricultural properties today. Contact our lending experts today and start your application process now.

The post These Are The Features Home Renters Look For appeared first on First Western Federal Savings Bank.

One of the biggest concerns for many is the challenge of getting the initial funds, and First Western Federal Savings Bank is a non-recourse loan lender who can help. Using your self-directed IRA, you can obtain a non-recourse loan in order to purchase your real estate property. Learn more about non-recourse loans and real estate here. The catch with this process, however, is that there are certain criteria that the investment property must meet:

• The property must have its own roof.
• It must be located within the U.S.
• It must be appraised at $70,000 or higher.
• Property types can include houses, townhomes, and certain condominiums.

When shopping for an investment property, here are a few more things that you should keep in mind.

The Neighborhood

The three rules of real estate are: location, location, location. With this in mind, you won’t want to purchase a property in a neighborhood where people won’t want to live. Above all, you want to know that if one renter moves out, that you’ll be able to fill the vacancy quickly. If you’re investing in a college town, filling a vacancy will be much easier. On the other hand, if you’re located in a small town with steady homeowners, it may be more challenging to find renters. Also, keep in mind that there are some towns that discourage rentals by adding permit fees.

Property Taxes

Even though a rental property can bring in some money each month, there are also regular costs involved each month, including property taxes and the mortgage on the property. Property taxes will vary, so do some research before you start making offers on homes. You can talk to the local municipality’s assessment office to find tax information. And while you’re there, be sure to ask about any potential tax increases in the future.

Schools

High-quality schools will attract families with young children and possibly older adults going to college or continuing their education. Even though schools only indirectly affect the value of a property, it’s an essential consideration if you want to set a rent amount that will offset your costs.

Crime

Along with quality schools, crime is another important factor that will influence a renters decision on where to live. Look at crime rates for vandalism, serious crimes, and petty crimes. You’ll also want to note whether the crime rate has been increasing in the area or if it’s declining, and consider asking around to get an idea of how often police patrol the area. Whoever you end up renting to, they will want to know that the neighborhood is safe.

Job Market

If there are jobs available in the area, there’s a much higher chance of being able to fill your property rental. To check the current job market in your area, you can visit the U.S. Bureau of Labor of Statistics. Also, look out for any announcements that a company is moving to the area.

Amenities

Renters want to live where the amenities are, right? Popular amenities for a neighborhood include parks, grocery stores, restaurants, public transportation, entertainment, and gyms — essentially anything that people will want to see or do outside of their working hours. Generally, the closer these amenities are to the rental property, the better. However, keep in mind that some renters want to be further away from traffic and city life in order to enjoy some peace and quiet.

Future Development

Development, whether it’s housing or commercial, can be both good and bad. An increase in housing and retail spaces means a higher potential for renters and being able to offer them a range of amenities. The downside with housing development is that other properties could compete with yours and could have a negative impact on the price of real estate.

Number of Current Vacancies

If possible, look into how many vacancies there are in the area. If there are a lot, it could simply mean that it’s a slow time of year; for example, it’s summer and college students have moved home. It could also mean that the neighborhood is losing population and there will be fewer people needing to rent. Obviously, a decline in population is an indicator that you may not want to purchase in the town.

Average Rents

How much you can charge in rent will determine how much you’re earning each month. Look at comparable properties and find out how much they are charging. This will give you an idea of whether or not the income will be enough to cover the mortgage payment, taxes, and other maintenance costs. When you researched property taxes, if you learned that there may be an increase in the next year or two, take the potential cost increase into consideration.

Cost

The overall cost of the property may be one of the biggest factors to look at. With non-recourse loans, the cost of the property needs to exceed $70,000. But you also want to consider your own budget and how your IRA can help. Look into how the area may develop in the next few years to determine the potential for market growth.

Low Maintenance

The structure and makeup of the home itself is also a significant factor. If your target renter is a family with kids, make sure there are enough bedrooms, bathrooms, and a yard. When you complete a home inspection, look into the age of the roof, the condition of the foundation, if there are new windows, plumbing, and HVAC. With a non-recourse loan, the home needs to be built after 1940, so this should cut down on any potential issues that stem from old age. Regular maintenance will be needed regardless of how old the house is, so be sure to budget for any potential fixes or repairs.

Finding the right property to invest in is a large part of the process and deserves a considerable amount of research time and forethought.

At First Western Federal Savings Bank, we will do what we can to ensure that you are successful. And that starts with a reliable loan. With your self-directed IRA, you can apply for a non-recourse loan, which will protect your assets in the event that the loan goes into default. Learn more about purchasing rental property with a non-recourse loan and get in touch with our team today. We are a non-recourse loan lender that provides reliable service and honest loans.

The post 11 Features to Look For in an Investment Property appeared first on First Western Federal Savings Bank.

Summer is a big season for most vacation rental owners. You want to be sure that your rental is fully ready to withstand the heavy traffic of the season. Whether you’ve got a cabin at the edge of Yellowstone National Park in Cody or a beach house in Malibu, now’s the time to get everything ready. Take a look at how you can prepare your vacation rental property for summer, and if you don’t already have a vacation rental property, apply for a non-recourse loan with First Western Federal Savings Bank to begin investing in real estate!

Deep Clean the Property

This should practically go without saying, but when you’re getting your property set up for summer, a thorough cleaning is in order. Sweep away the cobwebs, dust from top to bottom, mop and vacuum (and consider getting carpets steam cleaned). Go through all the spaces and crevices you usually ignore, such as wiping out the cupboards and disinfecting the fridge. And since bathrooms are one of the harshest rooms to be judged, make sure your property’s bathrooms look impeccable (some updated decor never hurts, either).

Work on Property’s Exterior

Your vacation rental’s exterior is the first thing that guests will see upon arriving to your property, which is why you want to make an excellent first impression. But in addition to that, summer means spending lots of time outdoors. At the base level, your property should look great from the outside — swept up porch, tidied and trimmed up yard, and some hanging baskets or planted flowers are also a good call.

If you have a pool or hot tub, this is also the time to make sure everything’s working as it should, chlorine and other chemical levels are at a good place, any missing or broken tile is repaired, etc. Guests should have no problem using these amenities (you should probably update any instructions on using the pool and hot tub as well).

It’s also a good idea to have some fun yard or other outdoor activities available for guests. Frisbees, Nerf footballs, bikes, and even a volleyball net if your property has a big enough yard make for great summer time outside. A firepit is another excellent addition — make sure to equip your guests with logs as needed, benches or chairs for sitting, and pokers for s’mores as well. If you’re near the beach or lake, make some rafts for floating and skimboards for ocean fun available. All of these extras can go a long way in making your guests feel welcomed and excited for their summer trip to your vacation rental property.

Additionally, now is the time to do any last-minute fixes to your property’s exterior. If it’s time for a new roof or a new coat of paint, make sure you take care of these things in spring before potential problems arise in summer.

Take New Pictures

After a whole year has passed, it’s time to update your marketing, Airbnb, or VRBO posting with some new pictures. Oftentimes, a smartphone is not that great for taking high-quality pictures. Our non-recourse loan lenders recommend either investing in a nicer camera (if you’ve got the photography and editing skills to match), or to hire a real estate photographer to take some incredible photos that you can use. People choose your vacation rental property based on whether your property looks attractive and if they can picture themselves there. A picture is truly worth a thousand words, or in this case, perhaps even thousands of dollars.

Remodel as Necessary

If you’ve been looking to refinish the hardwood floor, replace the deck, retile the bathroom floor, or have any other projects in mind that should be completed before the busy season hits, spring is the time to put the ball in motion.

Figure out what projects are top priority, and which ones can wait another year. Set a timeline for when you want to have those future projects completed by, so that you won’t feel the time crunch as summer approaches.

Restock as Necessary

There are a ton of things to restock around your vacation rental property. Bedding, towels, and extra blankets should all be washed, dried, folded, and ready to go. Oftentimes, guests will forget some of their essentials or might experience problems with their luggage. If that’s the case, having some spare toothbrushes and toothpaste on hand can help them feel more at home and have one less thing to worry about.

Guests often rely on you for providing shampoo, conditioner, and body wash. You can either purchase individual samples of all three, or for a more eco-friendly (and budget-friendly) solution, purchase bigger bottles of everything and replace throughout the summer as necessary (or tell guests where they can find more).

Your guests might also love having some board games, playing cards, books, and movies on hand. This is especially handy when it’s a rainy day. If there’s something unique to your region, such as vineyards or orchards, consider welcoming guests with a treat to make them feel even more satisfied with their stay.

Check All Things Electric

No one wants to deal with burned out lightbulbs or malfunctioning ceiling fans when they’re on vacation. They want to not think about any of those responsibilities that they left at home. Do a thorough run-through of your vacation rental property to make sure outlets are working as they should, and all electric appliances are set to run without any hiccups.

Additionally, one of the first things your guests are going to look into when they arrive is your wifi. Make information readily available and easy-to-find, so that you not only can provide guests with internet access, but so you can also avoid having to deal with last-minute phone calls from guests who are trying to connect.

Ask Yourself the Final Question

Would you want to stay in your vacation rental property? Knowing what issues might come up later, will you still feel comfortable in this space? If the answer is yes and you feel completely satisfied with everything, then you should be all set for summer!

Ideally, by the time you get to the busy summer season, your vacation rental property is set up so efficiently that you barely have to make any changes or fixes. Preparing your vacation rental involves a lot of front-end work, but then getting to sit back and enjoy the summer yourself makes this form of passive income all the more worth it.

If you don’t have a vacation rental property or are looking to add another one to your investment portfolio, First Western Federal Savings Bank is your first stop. We are among the leading non-recourse loan lenders, offering you a personalized experience that other banks simply can’t provide. We’re here to help you from start to finish, and with a non-recourse loan, you can be well on your way to building up your finances and meeting your investment goals. Contact us today for home equity loans, IRA loan applications, refinancing options, and so much more.

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Our non-recourse loan lenders are going to explain some of the downsides to allowing pets to your rental property. We hope that this information will help you find the best solution for your investment property. Even though we are only involved with the non-recourse loan aspect to acquiring a rental property, we want every investor to be as well-informed as possible, in every step of the rental property journey. Learn more from our blog on the drawbacks of allowing dogs and cats, and work with First Western Federal Savings Bank for refinancing, purchasing rental property, vacation property rental loans, and so much more!

The Cons of Allowing Pets

Dogs and cats are the best, until they’re wreaking havoc on your home. When it’s your home, that’s one thing — you know how to properly clean up and repair any damage. But when it’s your rental property, you want to ensure this investment is gaining as much revenue as possible. Understandably, you don’t want a pet to be one of the sources of your financial losses.

There’s a Lot of Room for Error

Any pet owner will be the first to tell you that every animal has their own personality. However, much of this develops from owner expectations. When it comes to allowing pets in your rental property, there’s a lot of room for error — and a lot of this is due to the human in the household.

When animals are anxious, stressed, isolated, hungry, or full of energy, this is nearly always the cause of torn up carpet, scratched up doors and walls, or other examples of damage. So much of how a pet behaves is based on their owner. If the same owner ended up living in your rental property but didn’t have a pet, there’s a good chance you wouldn’t have nearly as many costly repairs to take care of after they move out.

Not only does your chance of property damage increase due to the actions of the owner, but also because of the animal itself. Every dog and cat are going to have accidents at some points. This could be a small ordeal that’s easily remedied, or it could be a situation that metastasizes because the owner doesn’t take clean up the damage appropriately.

In an ideal situation, you get a perfect tenant and a perfect dog or cat or salamander. But one of the biggest downsides to allowing pets is that until they move in, you probably won’t fully know what you’re getting yourself into.

Damage Can Be Costly

On one hand, holding out for a tenant without a pet could cost you money. You might not be able to find a renter as quickly as you’d like. On the other hand, if little to no time is lost looking for a renter, you’ll probably save money in the long run.

Scratches in the floorboards, rips or stains in the carpet, the massive amounts of pet hair — these things ruin the integrity of your rental property, and end up costing you money. Depending on how extensive the damage is, a pet fee might not be able to cover the expenses. If you don’t want to deal with the possibility of costly repairs, allowing pets might be a major drawback for you.

Your Property Might Not Be Ideal

Allowing big dogs in tiny apartments is nearly always a recipe for disaster. If you use your non-recourse loan to purchase a house that has a yard, it’s probably not as problematic to allow for bigger animals. But as we mentioned earlier, pets who cause damage are usually bored or anxious. If your property doesn’t seem suitable for pets (or for certain pets, like dogs over a certain weight), it’s more than fine to put some limitations in place.

How to Properly Allow Pets

Ultimately, you have to be the judge of whether or not you want to allow pets in your rental property. If you see more disadvantages to closing off a large portion of potential renters who have pets, you can put some rules in place to ensure the maximum profits with as minimal damage as possible.

• Check-In Forms: Have tenants take a detailed account of the state of everything in the property within the first 48 hours of their moving in. Compare their initial account with the state of things upon moving out, and hold them accountable for any obvious differences (other than the expected wear and tear).

• Pet Deposit: Depending on the area and price of the security deposit, charge at least $300 for each pet that’s living in your rental property. You can otherwise add a monthly fee onto their rent.

• Set Limitations: Worried about a Burmese Mountain Dog wreaking havoc on your property? Not wanting animals who shed? Put these expectations in place in the lease agreement. You shouldn’t have to sacrifice your personal level of comfort when renting out your property.

Our non-recourse loan lenders wish you luck in getting your property set up. Remember that the first step to setting up your rental property is applying for an IRA non-recourse loan with First Western Federal Savings Bank! We look forward to working with you.

The post Why Your Rental Property Shouldn’t Allow Pets appeared first on First Western Federal Savings Bank.

This is quite an exciting time, but as is true with any new endeavor in life, there’s a steep learning curve. Our non-recourse loan lenders have compiled some tips from current rental property owners to help you in this process. These are the things they would tell themselves if they were just starting out, and hopefully, these tips can help you.

Buy as though it’s your next house.

When you’re looking for a rental property to purchase, you should go through the buying process the same way you would if you were going to live in this home. Thorough inspections and thinking about this property in the long term are crucial.

If there are major issues with the property, such as cracks in the foundation or rotting wood, you should probably pass on the house — unless, of course, you’re comfortable paying to get it fixed. As a property owner, you could be liable for issues with the property that affect your tenants (such as repercussions from mold, asbestos, or lead pipes). The bottom line is, if you wouldn’t buy this house for yourself, you shouldn’t buy it for others to live in.

Cheap is not the answer.

It’s easy for rental property owners to outfit their places with cheap appliances, carpet, etc. After all, you just spent a lot of money on acquiring this property — having to throw down more money seems like too much.

As one rental property owner explained, “Your renters aren’t going to take care of stuff — either because they don’t know how to or because it’s not theirs, so they don’t care.” If your property is lived in for months to years at a time (versus a vacation rental which doesn’t have as consistent foot traffic), cheap things are not going to weather the storm.

When you’re planning for renters, you need to budget for durability. If you don’t, you can plan on having plenty of phone calls about the dishwasher breaking down once again, or issues with the lock on the door, or having to replace the A/C unit for the second time in four years. The saying is true: You pay for what you get.

Don’t overlook the look.

Way too many property owners get sucked in to rehabbing their property. They spend thousands of dollars trying to fix things and salvage others while making up for the shortcomings of the house, and they forget the importance of having a property that functions great and looks great as well.

Your kitchen tile that’s a work in progress is not going to appeal to potential renters, even if you let them know it’ll be finished by the time they move in. Your property is nothing without renters, so you need to sell potential renters from the get-go. Invest in making your place look great, buy a higher-value property that doesn’t require nearly as much work (if any at all), and spend the time and money needed for quality photographs that properly demonstrate your property’s value.

Start small.

For a first-time property owner, taking on a multi-unit place is quite the challenge. It’s not impossible, but it can be nice to get your feet wet with something a bit more manageable, like a single-family unit. This will help you get an understanding for how owning a rental property works, and should you choose to expand and invest in other properties, you’ll have the experience needed to do so.

Think and plan around being cash flow positive.

Your rental property can either be an asset or a deficit, and if it’s going to be a deficit, you’re better off with not investing. All decisions with your rental property should be planned and thought out with a cash flow positive mindset. You’ll need to leverage a lot of expenses with how much you’re going to be making each month — plan as much as you can of this before you begin investing.

Here are some initial things to consider:

• How much do you need to spend on the down payment, as outlined in the agreement of your non-recourse loan?
• What will your monthly mortgage payment be?
• What are all the upfront costs that you’ll need to cover?
• If you’re working with a property management company, how much will this cost?
• What do you anticipate being annual expenses (such as HVAC checks, plumbing problems that might arise, etc.)?

Once you’ve calculated these expenses, you can start to think about what you’ll need to be making each month in order to offset the difference, and to come away with a profit.

Do your research.

Talk with non-recourse loan lenders, listen to podcasts, look into finding a mentor (but make sure you can also provide something of value to them), read the latest blogs and articles, stay up to date on current housing market trends, and do anything and everything else to ensure you know the industry that you’re about to embark upon.

Bigger Pockets is a hub for real estate investors, and is full of educational resources and forums for you to learn from. They also offer a podcast, and there are countless other podcasts you can rely upon for tips and solid information. Additionally, you should find someone who’s rented out properties and can offer you some guidance. You can never learn too much about a topic, and finding out both the good and the bad for real estate investing is essential to help you be prepared.

Work With First Western Federal Savings Bank

Our non-recourse loan lenders have helped countless real estate investors for nearly 40 years. We would love to work with you and help you on your path! Real estate investing is one of the best markets you can get into, and if this is your first venture, we wish you luck. Whether for a vacation rental property or a long-term tenant rental, your success starts with First Western Federal Savings Bank. Apply with our non-recourse loan lenders today!

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Myth #1: There’s less of a demand for rental properties in 2019.

It’s true that the millennial generation is at or nearing the age of settling down and buying a home. It’s also true that they comprise nearly half of the buyer’s market for 2019. However, rental properties are an absolute must, for several reasons.

To start, there are millions of young adults, such as college students or recent graduates, who are in need of places to rent. The younger generation can’t be overlooked just because millennials are taking up a large portion of the homebuying market.

Secondly, even though millennials are approaching the traditional age of settling in and buying a house, many are grappling to do so. Wracked with student debt and jobs that don’t pay enough to live comfortably in the current economy, it’s very tough to afford a home. Additionally, millennials are more prone to switch careers frequently and move around as a result, instead of being tied down to one property.

Regardless of if more people are buying homes or not, it doesn’t change the fact that rentals are still in high demand. That’s why it pays now to start on a non-recourse loan application and to get ahead of the need for rental properties.

Myth #2: High mortgage rates mean I shouldn’t buy property.

There’s some truth to this myth, because mortgage rates have continued to rise over the past several years. However, this is an indicator by many that now is the time to buy, precisely because rates keep getting higher.

To add on, when higher mortgage rates exist, this discourages a lot of people from entering into the housing market. First-time homebuyers especially are less likely to go for a new place when they could likely save money on renting for another year, versus paying for a down payment and a monthly mortgage.

High mortgage rates are going to unfortunately continue, but no matter what, there will always be people looking to rent. Investing in a rental property through a non-recourse loan is one of the most assured investments, simply because rental properties continue to be in high demand.

Myth #3: If I want to stay in my rental property, I can.

People tend to think of their rental property as a second home for them — it could be especially convenient for vacationing, right?

However, if you have a rental property that you’ve acquired with a non-recourse loan, you cannot stay there. Additionally, your family members cannot stay there either. With a non-recourse loan, you can only rent to people outside of your family, and it cannot be a form of residence for yourself.

That being said, once you complete the terms of the loan and pay it off, the property would become a free and clear asset of your IRA. That means you could potentially re-leverage it with a non-recourse loan to buy more investment property. Or if you are of a mind to do so and over 59 ½ years of age, you could pay the taxes and take a personal distribution of the property so you could live in it once it has been fully distributed to you. If you have further questions about non-recourse loans, contact our lenders at First Western Federal Savings Bank to find the answers you’re looking for.

Myth #4: I can save money by purchasing a fixer-upper.

Considering there are whole TV channels devoted to fixing up old homes and renovating them to perfection, it makes sense why a lot of people are jumping on the DIY bandwagon these days.

If you’re highly experienced in construction and home projects (or have the time, materials, and money to learn), working on a fixer-upper might be a great passion project for you. It might also save you money — though we always advise safety and quality be prioritized over cutting costs.

If those descriptors don’t sound like you, a fixer-upper might cost you the same (or more) than if you had bought a more expensive — but completed — house to be turned into a rental. What’s more, a non-recourse loan cannot be used towards any construction or renovation costs.

However, the rules around self-directed IRAs do not allow the owner of the IRA to do physical work or improvements on the property. Any rehab must be done with hired labor or sub-contractors, not by the physical labor or talents of the IRA owner.

A fixer-upper can be less expensive in certain circumstances. But the truth is very few of us have the time and resources to truly see a profit from fixing up an older home. It’s no lie when they say time is money — fixer-uppers might seem cheaper up front, but the cost and time involved are oftentimes not worth it.

Our non-recourse loan lenders are happy to debunk any other myths that surround rental properties. Get in touch with the lenders at First Western Federal Savings Bank today to get started with your application! We look forward to hearing from you.

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Our non-recourse loan lenders are here to guide you in figuring out which kind of rental property you should invest in, based on the location of your rental property. There are so many options, that it can help to get some ideas that can narrow your decision down. Find out what kinds of rental properties you should consider based on location, and apply for a non-recourse loan today with First Western Federal Savings Bank!

If your property is near a college campus…

A tenant rental situation is the best option for you. Every year, there will be thousands of new students coming into the region, and thousands of students will be looking for housing. You can meet the demands of the student population by having a rental house, one that can either accommodate multiple people on the same lease, or potentially be broken up in a way that fits multiple leases — though the latter option might require some renovations, and as one reminder, a non-recourse loan cannot be used for home renovation and construction.

By being an excellent landlord and property owner, word of mouth and online reviews will spread like wildfire — ensuring you’ll have plenty of tenants for years (or even decades) to come.

If your property is somewhere remote…

A vacation rental property might be your best bet, depending on what the region has to offer. Even the most remote of properties could be a beautiful destination for someone who’s simply trying to get away — and if you make your vacation rental an especially unique point of interest, this is sure to attract people from near and far.

If your property is in the suburbs…

You should make your rental property one that’s set up with a long-term (year-long) lease. Houses are expensive to buy and out of budget for many people these days, but that doesn’t mean they don’t want to live in the suburbs. Whether it’s a family looking to put their kids in a good school out in the suburbs, or a couple with jobs in the city who have no desire to pay for big-city living, your rental property is sure to be right up their alley. One thing you could consider that would be especially attractive for people looking to rent in the suburbs is offering a rent-to-buy option. This is great for people who want to rent for now, but are intending to buy a home at some point, and fits well with the demographic of those leasing a property in the suburbs.

If your property is in a big city…

You could go for a vacation rental or a tenant-leased property, depending on a few factors. If you’re right by some tourist hot spots, there’s huge advantage to going with a vacation rental — it’s probably unlikely that people looking for a rental home are wanting to live near all the tourists. If you have an amazing house in or near the downtown area, you could turn this into a vacation rental, but people looking for long-term property rentals are likely going to be more drawn to this living situation. They’ll have all the comforts of living in the city, in a way that feels more authentic than living near the touristy parts.

In terms of profits, you’ll make more per day for your vacation renters than your long-term tenants — some vacation rentals are between $100-$250 a day, whereas rental homes are several hundreds or a thousand or so a month. However, you could make more consistent money off of tenants, especially if the city your rental property is located in has any slow periods, with significantly fewer tourists. All are things to consider when determining if your rental property should be used for a long-term renter or for guests on vacation.

If your property is near a landmark…

Definitely go for a vacation rental. Whether you’re 30 minutes outside of Mount Rushmore, or your property is right on the beach, you have something that tourists and travelers are specifically looking for. They want a spot that’s conveniently located to their ultimate destination, and you can absolutely meet their demands by turning your property into a vacation rental.

Similarly, you can make your property the landmark. A cabin in the woods, away from everything and everyone, or a quiet farmhouse that leaves all the hustle and bustle behind are often exactly what people are looking for.

No matter where your rental property is located, there’s so much potential for it to the serve its purpose, and generate some added income in the process. The non-recourse loan lenders at First Western Federal Savings Bank can help you get your rental property goals started by supplying you with an IRA loan. When you meet the requirements of both the rental property loan and your self-directed IRA, you’re well on your way to making your real estate investments happen. Submit your application today with First Western Federal Savings Bank!

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