25:["$","$L26",null,{"category":"$27","relatedArticles":[{"id":"cG9zdDoyNTU3MjQ=","databaseId":255724,"postId":255724,"author":{"node":{"id":"dXNlcjoz","databaseId":3,"userId":3,"avatar":{"url":"https://secure.gravatar.com/avatar/47938df052bf0a5283bd6b77ab786737?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. Some staff members also hold the Certified Educator in Personal Finance (CEPF®) designation from the Institute for Financial Literacy.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Michael","fullName":"SmartAsset Team","lastName":"Carvin","name":"SmartAsset Team","postCount":{"pageInfo":{"offsetPagination":{"total":1417,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"mcarvin","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybToxOTkwNA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":19904,"categoryId":19904,"link":"https://smartasset.com/real-estate-investing/articles","name":"Real Estate Investing","postCount":{"pageInfo":{"offsetPagination":{"total":61,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"real-estate-investing","ancestors":{"nodes":[{"name":"Mortgage","slug":"mortgage","__typename":"Category"}],"__typename":"CategoryToAncestorsCategoryConnection"},"parent":{"node":{"name":"Mortgage","id":"dGVybTo4Ng==","slug":"mortgage","__typename":"Category"},"__typename":"CategoryToParentCategoryConnectionEdge"},"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$28","date":"2024-07-17T19:23:59","excerpt":"

Hiring a property manager can be a smart investment for property owners seeking professional oversight. Costs typically range from 8% to 12% of the monthly rental income. Additionally, some property managers charge a one-time setup fee, often around $300, and may also require fees for lease renewals and finding new tenants. While these expenses can […]

\n","featuredImage":{"id":"cG9zdDoyNTU3Mjg=","databaseId":255728,"altText":"Property owners meeting with a property manager.","date":"2024-07-17T19:18:11","fileSize":1477007,"mimeType":"image/jpeg","modified":"2024-07-17T19:19:09","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2024/07/iStock-1705486868.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-7-17","readable":"July 17, 2024"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjoxMTc=","databaseId":117,"userId":117,"avatar":{"url":"https://secure.gravatar.com/avatar/9fffe2eb35204e151b68731435d247c5?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Arturo Conde is a senior editor at SmartAsset. He has a master’s from the Graduate School of Journalism at Columbia University and a bachelor’s from the College of Arts and Science at New York University. As a certified educator in personal finance, he edits and writes content that focuses on retirement, investments, home buying and other financial topics.\r\n\r\nArturo is a bilingual native in English and Spanish, and also writes as a freelance journalist for NBC News, among other publications. His articles have been published in Fusion, Univision, City Limits, the NACLA Report on the Americas and WhoWhatWhy, as well as La Opinión A Coruña newspaper in Spain.","additionalMeta":{"expertise":"Financial Planning, Retirement Planning, Investment Planning, Tax Planning","__typename":"User_Additionalmeta"},"email":null,"firstName":"Arturo","fullName":"Arturo Conde, CEPF®","lastName":"Conde, CEPF®","name":"Arturo Conde, CEPF®","postCount":{"pageInfo":{"offsetPagination":{"total":38,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"aconde","__typename":"User"},"reviewedBy":null,"writtenBy":{"id":"dXNlcjoz","databaseId":3,"userId":3,"avatar":{"url":"https://secure.gravatar.com/avatar/47938df052bf0a5283bd6b77ab786737?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. Some staff members also hold the Certified Educator in Personal Finance (CEPF®) designation from the Institute for Financial Literacy.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Michael","fullName":"SmartAsset Team","lastName":"Carvin","name":"SmartAsset Team","postCount":{"pageInfo":{"offsetPagination":{"total":1417,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"mcarvin","__typename":"User"},"factCheckedBy":null,"secondEditor":null,"hideAuthor":true,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/mortgage/how-much-does-it-cost-to-hire-a-property-manager","metaDesc":"How much it will cost you to hire a property manager varies based on the fee structure and the property's location.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":5,"title":"How Much Does It Cost to Hire a Property Manager?","__typename":"PostTypeSEO"},"slug":"how-much-does-it-cost-to-hire-a-property-manager","status":"publish","title":"How Much Does It Cost to Hire a Property Manager?","uri":"/mortgage/how-much-does-it-cost-to-hire-a-property-manager","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":null,"editedBy":{"id":"dXNlcjoxMTc=","databaseId":117,"userId":117,"avatar":"$29","description":"Arturo Conde is a senior editor at SmartAsset. He has a master’s from the Graduate School of Journalism at Columbia University and a bachelor’s from the College of Arts and Science at New York University. As a certified educator in personal finance, he edits and writes content that focuses on retirement, investments, home buying and other financial topics.\r\n\r\nArturo is a bilingual native in English and Spanish, and also writes as a freelance journalist for NBC News, among other publications. His articles have been published in Fusion, Univision, City Limits, the NACLA Report on the Americas and WhoWhatWhy, as well as La Opinión A Coruña newspaper in Spain.","additionalMeta":"$2a","email":null,"firstName":"Arturo","fullName":"Arturo Conde, CEPF®","lastName":"Conde, CEPF®","name":"Arturo Conde, CEPF®","postCount":"$2b","slug":"arturo-conde-cepf","__typename":"User"},"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybToxOTkwNA==","children":"$2e","databaseId":19904,"categoryId":19904,"link":"https://smartasset.com/real-estate-investing/articles","name":"Real Estate Investing","postCount":61,"slug":"real-estate-investing","ancestors":"$30","parent":"$33","__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["$35","

3 Ways Property Managers May Charge You

","

Understanding how much it costs to hire a property manager is essential for calculating the return on a real estate investment. Property management fees can vary significantly based on the services and the region. Here are three common ways property managers might charge you.

","

Percentage-Based Fees

","

In many regions, property managers charge a percentage of the monthly rental income, typically ranging from 8% to 12%. For example, if your property rents for $1,500 per month, you might expect to pay between $120 and $180 monthly for management services.

","

This fee covers general management tasks such as tenant screening, rent collection and maintenance coordination.

","

The advantage of this model is that it aligns the manager’s interests with the property owner’s, as their income depends on the property’s performance. However, for high-rent properties, these fees can add up significantly, making it important to weigh the cost against the benefits.

","

The exact percentage can depend on the local market’s competitiveness and the level of service provided.

","

Flat Fees

","

Some property managers prefer to charge a flat monthly fee, which can provide predictability for property owners. This fee usually ranges from $100 to $300 per month, depending on the property’s location and the complexity of management required.

","

As an example, a property in a high-demand urban area might command a higher flat fee due to the increased workload and service demand. Conversely, properties in suburban or rural areas might incur lower flat fees, reflecting the reduced management intensity.

","

Property owners should clarify which services are included in this flat fee and whether any additional charges might apply for specific tasks. There is also greater financial liability during periods of higher vacancy, as the fee does not change based on the rental income.

","

Per-Project Fees

","

Beyond the standard management fees, property managers often charge per-project fees for specific tasks outside regular services. Tenant placement fees can be equivalent to one month’s rent, ranging from $1,000 to $2,000 in some high-demand areas.

","

Eviction processing or major renovations may incur additional charges, which can vary significantly based on the complexity and location of the project. For example, an eviction process in a city with high legal costs might be substantially more expensive than in a smaller town.

","

The costs of property management services are influenced by various factors, including geographic location, property type and the chosen fee structure. Property owners should carefully evaluate these elements to make informed decisions that align with their financial goals and the effective management of their rental investments.

","

Services Offered By Property Managers

","

","

Property managers can offer a wide range of services such as tenant screening, rent collection and maintenance coordination. Tenant screening includes verifying applications and conducting background checks. Rent collection services streamline the payment process for timely and consistent income.

","

Maintenance and repair services are also offered by property managers. They coordinate regular upkeep and address emergency issues. This can include hiring and supervising contractors for repairs, managing landscaping and handling any tenant complaints related to property maintenance.

","

Additionally, property managers often provide financial management services. These can include budgeting, accounting and regular financial reporting. They can prepare monthly and annual statements, track expenses and manage property-related finances.

","

Despite the variety of services, property owners may still need to handle certain aspects themselves. Strategic decisions, such as determining how much you should charge for rent, planning property improvements and long-term investment strategies, often require the owner’s input. Additionally, owners may need to be involved in significant financial decisions, such as approving large expenditures or negotiating major leases.

","

Bottom Line

","

","

How much it will cost you to hire a property manager varies based on the fee structure and the property’s location. Percentage-based fees typically range from 8% to 12% of the monthly rental income, while flat fees can be between $100 to $300 per property per month with additional per-project fees for specific tasks like tenant placement or evictions. While these costs can add up, the convenience and professional oversight provided by a property manager often justify the expense, which could also be tax-deductible.

","

Tips for Real Estate Investments

","$36","

Photo credit: ©iStock.com/Drazen Zigic, ©iStock.com/Lordn, ©iStock.com/bernardbodo

"],"experts":null,"link":"/real-estate-investing/how-much-does-it-cost-to-hire-a-property-manager","published":{"datetime":"2024-7-17","readable":"July 17, 2024"},"shareInfo":{"title":"How Much Does It Cost to Hire a Property Manager?","origin":"/mortgage/how-much-does-it-cost-to-hire-a-property-manager"},"isNewsArticle":false},{"id":"cG9zdDoyNjU4Njg=","databaseId":265868,"postId":265868,"author":{"node":{"id":"dXNlcjoz","databaseId":3,"userId":3,"avatar":{"url":"https://secure.gravatar.com/avatar/47938df052bf0a5283bd6b77ab786737?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. Some staff members also hold the Certified Educator in Personal Finance (CEPF®) designation from the Institute for Financial Literacy.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Michael","fullName":"SmartAsset Team","lastName":"Carvin","name":"SmartAsset Team","postCount":{"pageInfo":{"offsetPagination":{"total":1417,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"mcarvin","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybToxOTkwNA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":19904,"categoryId":19904,"link":"https://smartasset.com/real-estate-investing/articles","name":"Real Estate Investing","postCount":{"pageInfo":{"offsetPagination":{"total":61,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"real-estate-investing","ancestors":{"nodes":[{"name":"Mortgage","slug":"mortgage","__typename":"Category"}],"__typename":"CategoryToAncestorsCategoryConnection"},"parent":{"node":{"name":"Mortgage","id":"dGVybTo4Ng==","slug":"mortgage","__typename":"Category"},"__typename":"CategoryToParentCategoryConnectionEdge"},"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$37","date":"2024-10-23T12:57:19","excerpt":"

\n","featuredImage":{"id":"cG9zdDoyNjU5MTc=","databaseId":265917,"altText":"A landlord shakes hands with two of his tenants after agreeing to a tenancy-at-will arrangement.","date":"2024-10-23T10:56:28","fileSize":52869,"mimeType":"image/jpeg","modified":"2024-10-23T10:57:05","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2024/10/iStock-1410734306-modified-f391afd5-22fa-4228-81b6-612340d4bf1a.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-10-23","readable":"October 23, 2024"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjoxMjA=","databaseId":120,"userId":120,"avatar":{"url":"https://secure.gravatar.com/avatar/9be66d92947dd5b190bf90987b5e85f2?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Patrick Villanova is an editor for SmartAsset, producing comprehensive personal finance content to help consumers make better decisions with their money. His particular areas of focus include retirement, financial planning and investing. Patrick studied English at the University of New Hampshire and currently holds the Certified Educator in Personal Finance (CEPF) designation. \r\n\r\nPrior to joining SmartAsset, Patrick was a senior writer at MagnifyMoney, where he covered investing. His career began in journalism and included 11+ years at The Jersey Journal, where he covered sports and news as an editor. His work has appeared on Yahoo Finance, MSN, NJ.com, and The Star-Ledger. He lives in Portland, Oregon.","additionalMeta":{"expertise":"Retirement Planning, Social Security, Estate Planning, Taxes","__typename":"User_Additionalmeta"},"email":null,"firstName":"Patrick","fullName":"Patrick Villanova, CEPF®","lastName":"Villanova, CEPF®","name":"Patrick Villanova, CEPF®","postCount":{"pageInfo":{"offsetPagination":{"total":307,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"pvillanova","__typename":"User"},"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":true,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/mortgage/tenancy-at-will-florida","metaDesc":"Tenancy-at-will refers to an agreement where there is no formal lease, and the tenant occupies the property with the landlord's consent.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":6,"title":"How Tenancy-at-Will Works in Florida","__typename":"PostTypeSEO"},"slug":"tenancy-at-will-florida","status":"publish","title":"How Tenancy-at-Will Works in Florida","uri":"/mortgage/tenancy-at-will-florida","tags":{"nodes":[{"name":"news-sitemap","__typename":"Tag"}],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":null,"editedBy":{"id":"dXNlcjoxMjA=","databaseId":120,"userId":120,"avatar":"$38","description":"Patrick Villanova is an editor for SmartAsset, producing comprehensive personal finance content to help consumers make better decisions with their money. His particular areas of focus include retirement, financial planning and investing. Patrick studied English at the University of New Hampshire and currently holds the Certified Educator in Personal Finance (CEPF) designation. \r\n\r\nPrior to joining SmartAsset, Patrick was a senior writer at MagnifyMoney, where he covered investing. His career began in journalism and included 11+ years at The Jersey Journal, where he covered sports and news as an editor. His work has appeared on Yahoo Finance, MSN, NJ.com, and The Star-Ledger. He lives in Portland, Oregon.","additionalMeta":"$39","email":null,"firstName":"Patrick","fullName":"Patrick Villanova, CEPF®","lastName":"Villanova, CEPF®","name":"Patrick Villanova, CEPF®","postCount":"$3a","slug":"patrick-villanova-cepf","__typename":"User"},"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybToxOTkwNA==","children":"$3d","databaseId":19904,"categoryId":19904,"link":"https://smartasset.com/real-estate-investing/articles","name":"Real Estate Investing","postCount":61,"slug":"real-estate-investing","ancestors":"$3f","parent":"$42","__typename":"Category"},"isModifiedBeforePublished":true,"contentBlocks":["

Tenancy-at-will in Florida refers to a rental agreement where there is no formal lease, and the tenant occupies the property with the landlord’s consent. In such arrangements, either party can terminate the tenancy at any time, provided proper notice is given. Florida law requires a specific notice period, depending on the rental payment schedule – typically 15 days for month-to-month agreements. This type of tenancy can arise when no written lease is established or when a formal lease expires but the tenant continues to live on the property with the landlord’s permission.

","

A financial advisor can help landlords and tenants alike manage their investments and make important financial decisions.

","

Tenancy-at-Will Definition

","

Tenancy-at-will is an informal rental arrangement where a tenant lives in a property with the landlord’s approval but without a written lease agreement. Unlike a traditional lease, tenancy-at-will does not specify an end date, and either party can terminate the arrangement, usually with proper notice based on state laws.

","

For example, imagine a tenant whose one-year lease expires on a rental home in Florida. Both the tenant and landlord are content with the tenant staying, but they do not sign a new lease. Instead, the tenant simply continues paying rent on a month-to-month basis. In this situation, the tenant is in a tenancy-at-will agreement.

","

If the landlord decides they want to end the arrangement, they must provide legal notice – which can vary from state to state – before the next rent due date, allowing the tenant time to vacate. Similarly, the tenant can end the tenancy by giving the same notice.

","

Tenancy-at-will offers flexibility for both parties, especially when they prefer a short-term arrangement without long-term commitments, but it still requires adherence to state-specific notice periods and regulations.

","

How Tenancy-at-Will Works in Florida

","

The tenancy-at-will Florida has in place allows tenants to remain in a property with their landlord’s consent, but without an official lease. This can happen under the following circumstances.

","

No written lease agreement: Tenancy at-will is established when a tenant moves into a rental property with the landlord’s consent but without signing a lease agreement.
Lease expiration without renewal: A tenancy-at-will is created if a tenant’s fixed-term lease expires but the landlord allows the tenant to remain on the property without signing a new lease. The tenant continues paying rent, often on a month-to-month basis, with both parties operating without a formal contract.

","

Termination Timeframes in Florida

","

In Florida, the termination of a tenancy-at-will depends on the frequency of the rent payments. The notice period required for either the landlord or tenant to terminate the agreement is based on how often rent is paid.

","

Type of Tenancy	Minimum Timeframe for Terminating a Tenancy-at-Will
Month-to-month	15 days before next rent due date
Week-to-week	7 days before next rent due date
Quarterly	30 days before next rent due date
Year-to-year	60 days before next rent due date

","

How Tenancy-at-Will Differs from Other Tenancies

","

","

There are several ways that tenancy-at-will stands out from other types of rental agreements in Florida, particularly due to its informal structure and flexibility.

","

Tenancy-at-Sufferance vs. Tenancy-at-Will

","

Tenancy-at-sufferance occurs when a tenant remains on the property without the landlord’s consent after a lease has expired. Unlike tenancy-at-will, where the landlord consents to the arrangement, tenancy at sufferance often leads to eviction if not addressed.

","

Tenancy for Years vs. Tenancy-at-Will

","

Tenancy for years is a fixed-term lease with a specific duration, typically a year or longer. It cannot be terminated before the end date without mutual agreement or breach of contract. Tenancy-at-will, on the other hand, can be ended at any time with appropriate notice.

","

Periodic Tenancy vs. Tenancy-at-Will

","

Similar to tenancy-at-will, periodic tenancy also operates on a recurring basis (such as month-to-month), but it is typically based on a written agreement, whereas tenancy-at-will often lacks a formal contract.

","

What Rights Does a Tenant-at-Will Have in Florida?

","

Tenants-at-will in Florida have several protections, even without a formal lease.

","

They have the right to live in the property as long as they pay rent and follow the terms agreed upon with the landlord.
Tenants also have the right to receive proper notice before the landlord can terminate the arrangement, such as 15 days for month-to-month agreements or seven days for weekly payments.
Tenants are entitled to safe and habitable living conditions, meaning the landlord must handle necessary repairs and maintenance.
Florida law also protects tenants from wrongful eviction, requiring the landlord to follow legal procedures if they wish to evict the tenant.

","

What Rights Does a Landlord Have in Florida?

","

Just as renters have rights, so do landlords.

","

Landlords in a tenancy-at-will arrangement maintain the right to terminate the agreement with appropriate notice.
They are entitled to collect rent regularly and may take legal action if rent goes unpaid.
Landlords have the right to expect the tenant to care for the property and follow any agreed-upon rules.

","

If the tenant violates these terms, the landlord can pursue eviction through legal channels. Additionally, landlords can still impose security deposits and maintain the property, ensuring compliance with Florida’s landlord-tenant laws.

","

Bottom Line

","

","

Tenancy-at-will in Florida provides a flexible arrangement for both tenants and landlords, allowing for continued occupancy without the constraints of a fixed-term lease. Whether established through an expired lease, informal agreement or holdover situation, this type of tenancy operates under clear legal guidelines, particularly regarding notice periods for termination. Both tenants and landlords have rights and responsibilities, including the right to proper notice before ending the tenancy and required adherence to Florida’s landlord-tenant laws.

","

While informal, tenancy-at-will offers an adaptable solution for those who prefer short-term living arrangements, while still ensuring legal protections for both parties involved.

","

Tips for Real Estate Investors

","$44","

Photo credit: ©iStock.com/andresr, ©iStock.com/MTStock Studio, ©iStock.com/designer491

"],"experts":null,"link":"/real-estate-investing/tenancy-at-will-florida","published":{"datetime":"2024-10-23","readable":"October 23, 2024"},"shareInfo":{"title":"How Tenancy-at-Will Works in Florida","origin":"/mortgage/tenancy-at-will-florida"},"isNewsArticle":true},{"id":"cG9zdDoyNTg4MzU=","databaseId":258835,"postId":258835,"author":{"node":{"id":"dXNlcjoz","databaseId":3,"userId":3,"avatar":{"url":"https://secure.gravatar.com/avatar/47938df052bf0a5283bd6b77ab786737?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. Some staff members also hold the Certified Educator in Personal Finance (CEPF®) designation from the Institute for Financial Literacy.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Michael","fullName":"SmartAsset Team","lastName":"Carvin","name":"SmartAsset Team","postCount":{"pageInfo":{"offsetPagination":{"total":1417,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"mcarvin","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybToxOTkwNA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":19904,"categoryId":19904,"link":"https://smartasset.com/real-estate-investing/articles","name":"Real Estate Investing","postCount":{"pageInfo":{"offsetPagination":{"total":61,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"real-estate-investing","ancestors":{"nodes":[{"name":"Mortgage","slug":"mortgage","__typename":"Category"}],"__typename":"CategoryToAncestorsCategoryConnection"},"parent":{"node":{"name":"Mortgage","id":"dGVybTo4Ng==","slug":"mortgage","__typename":"Category"},"__typename":"CategoryToParentCategoryConnectionEdge"},"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$45","date":"2024-08-15T16:18:59","excerpt":"

\n","featuredImage":{"id":"cG9zdDoyNTg5MDA=","databaseId":258900,"altText":"A real estate wholesaler shakes hands with an investor after assigning a contract to them.","date":"2024-08-15T12:27:12","fileSize":32613,"mimeType":"image/jpeg","modified":"2024-08-15T12:27:49","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2024/08/iStock-1127717245-modified-277dad33-d5fd-4a5a-8c9b-ac5b47d51500.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-8-15","readable":"August 15, 2024"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjoxMjA=","databaseId":120,"userId":120,"avatar":{"url":"https://secure.gravatar.com/avatar/9be66d92947dd5b190bf90987b5e85f2?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Patrick Villanova is an editor for SmartAsset, producing comprehensive personal finance content to help consumers make better decisions with their money. His particular areas of focus include retirement, financial planning and investing. Patrick studied English at the University of New Hampshire and currently holds the Certified Educator in Personal Finance (CEPF) designation. \r\n\r\nPrior to joining SmartAsset, Patrick was a senior writer at MagnifyMoney, where he covered investing. His career began in journalism and included 11+ years at The Jersey Journal, where he covered sports and news as an editor. His work has appeared on Yahoo Finance, MSN, NJ.com, and The Star-Ledger. He lives in Portland, Oregon.","additionalMeta":{"expertise":"Retirement Planning, Social Security, Estate Planning, Taxes","__typename":"User_Additionalmeta"},"email":null,"firstName":"Patrick","fullName":"Patrick Villanova, CEPF®","lastName":"Villanova, CEPF®","name":"Patrick Villanova, CEPF®","postCount":{"pageInfo":{"offsetPagination":{"total":307,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"pvillanova","__typename":"User"},"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":true,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/mortgage/how-to-find-wholesale-real-estate-deals","metaDesc":"Learning how to find wholesale real estate deals involves several methods, from exploring neighborhoods to searching public records.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":6,"title":"6 Ways to Find Wholesale Real Estate Deals","__typename":"PostTypeSEO"},"slug":"how-to-find-wholesale-real-estate-deals","status":"publish","title":"6 Ways to Find Wholesale Real Estate Deals","uri":"/mortgage/how-to-find-wholesale-real-estate-deals","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":null,"editedBy":{"id":"dXNlcjoxMjA=","databaseId":120,"userId":120,"avatar":"$46","description":"Patrick Villanova is an editor for SmartAsset, producing comprehensive personal finance content to help consumers make better decisions with their money. His particular areas of focus include retirement, financial planning and investing. Patrick studied English at the University of New Hampshire and currently holds the Certified Educator in Personal Finance (CEPF) designation. \r\n\r\nPrior to joining SmartAsset, Patrick was a senior writer at MagnifyMoney, where he covered investing. His career began in journalism and included 11+ years at The Jersey Journal, where he covered sports and news as an editor. His work has appeared on Yahoo Finance, MSN, NJ.com, and The Star-Ledger. He lives in Portland, Oregon.","additionalMeta":"$47","email":null,"firstName":"Patrick","fullName":"Patrick Villanova, CEPF®","lastName":"Villanova, CEPF®","name":"Patrick Villanova, CEPF®","postCount":"$48","slug":"patrick-villanova-cepf","__typename":"User"},"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybToxOTkwNA==","children":"$4b","databaseId":19904,"categoryId":19904,"link":"https://smartasset.com/real-estate-investing/articles","name":"Real Estate Investing","postCount":61,"slug":"real-estate-investing","ancestors":"$4d","parent":"$50","__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

Real estate wholesaling can be a lucrative strategy for purchasing properties below market value and turning a quick profit on them. Learning how to find wholesale real estate deals involves several methods, from exploring neighborhoods for distressed properties to searching public records for foreclosures. Networking with real estate professionals can also open doors to exclusive opportunities, while online real estate platforms provide a broad range of listings. These strategies and others can enhance your ability to find wholesale real estate deals and maximize investment potential.

","

Whether you’re a wholesaler or rental property investor, a financial advisor can help you plan and save for different opportunities. Connect with an advisor who serves your area.

","

What Is Wholesale Real Estate?

","

Wholesaling real estate is a popular investment strategy involving an individual, known as a wholesaler, who acts as a middleman between a property seller and a potential buyer. The wholesaler secures a contract on a property, often at a discounted price, and then assigns that contract to an end buyer for a higher price. The difference between the contract price with the seller and the sale price to the buyer is the wholesaler’s profit, known as a wholesale fee.

","

This approach requires minimal upfront investment compared to traditional real estate investments since the wholesaler does not typically take ownership of the property. Instead, they focus on finding motivated sellers and matching them with buyers looking for a good deal.

","

Wholesale real estate deals often involve distressed properties, foreclosures or homes that require significant repairs, making them attractive to investors who specialize in renovations and resale.

","

How to Find Wholesale Real Estate Deals

","

","

While wholesale real estate can be lucrative, it requires strong negotiation skills, a deep understanding of the local market and the ability to quickly assess property values. It also demands building a network of reliable buyers and sellers, as well as knowledge of legal contracts and real estate regulations.

","

Investors can unearth wholesale real estate deals that might not be readily visible to the general market by employing the following strategies:

","

1. Driving for Dollars

","

“Driving for dollars” in wholesale real estate is a strategy where an investor or wholesaler physically drives through neighborhoods looking for distressed or potentially undervalued properties. These properties might show signs of neglect, such as overgrown lawns, peeling paint or boarded-up windows, indicating that the owners might be motivated to sell at a lower price. This method is popular because it allows wholesalers to find off-market deals that aren’t listed publicly.

","

2. Searching Public Records

","

Public records can be a treasure trove for real estate investors. By examining tax delinquency lists, foreclosure notices and probate records, investors can identify properties that might be available at a discount.

","

These records are often available at local courthouses or online, providing insights into potential wholesale deals that others may overlook. Using those records, you can then design a direct-mail campaign to get in touch with those homeowners and potentially work toward a deal.

","

3. Networking

","

Building a strong network is key to finding wholesale real estate deals. Connecting with other wholesale real estate investors, attending local real estate meetups and joining investment groups can lead to insider tips on upcoming deals. Networking with contractors, appraisers and property managers can also yield valuable information about properties that may be available for wholesale.

","

4. Working with an Investor-Friendly Real Estate Agent

","

Partnering with a real estate agent who understands the investment market can be highly beneficial. These agents have access to the Multiple Listing Service (MLS) and can alert investors to properties that fit wholesale criteria. They can also help navigate negotiations and paperwork, making the process smoother for both seasoned and novice investors.

","

5. Finding a Wholesaling Partner

","

Collaborating with a wholesaling partner can also expand an investor’s reach and resources. A partner with expertise in the local market can provide access to a wider range of properties and contacts. This partnership allows for shared knowledge and skills, increasing the chances of securing profitable wholesale deals.

","

6. Using Online Real Estate Platforms

","

Online real estate platforms are valuable tools for finding wholesale deals. Websites like Zillow, Redfin, and Realtor.com offer listings that can be filtered for distressed properties. Specialized platforms like BiggerPockets and Connected Investors focus on the investment community, providing forums, property listings and networking opportunities tailored to wholesale real estate.

","

Tips for Closing Wholesale Deals

","

","

Setting up and closing wholesale real estate deals requires attention to detail and strategic planning. Here are some tips to guide you through the process:

","$52","

Bottom Line

","

Wholesale real estate is a compelling investment strategy that offers significant profit potential with minimal upfront costs. By mastering various techniques such as driving for dollars, leveraging public records and networking effectively, investors can uncover hidden opportunities in the market.

","

Working with investor-friendly agents and utilizing online platforms can further enhance the search for valuable deals. Success in wholesaling requires strategic planning, a strong understanding of the market and transparent communication with all parties involved.

","

Tips for Investing in Real Estate

","$53","

"],"experts":null,"link":"/real-estate-investing/how-to-find-wholesale-real-estate-deals","published":{"datetime":"2024-8-15","readable":"August 15, 2024"},"shareInfo":{"title":"6 Ways to Find Wholesale Real Estate Deals","origin":"/mortgage/how-to-find-wholesale-real-estate-deals"},"isNewsArticle":false},{"id":"cG9zdDoyNjE5NDc=","databaseId":261947,"postId":261947,"author":{"node":{"id":"dXNlcjoz","databaseId":3,"userId":3,"avatar":{"url":"https://secure.gravatar.com/avatar/47938df052bf0a5283bd6b77ab786737?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. Some staff members also hold the Certified Educator in Personal Finance (CEPF®) designation from the Institute for Financial Literacy.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Michael","fullName":"SmartAsset Team","lastName":"Carvin","name":"SmartAsset Team","postCount":{"pageInfo":{"offsetPagination":{"total":1417,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"mcarvin","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybToxOTkwNA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":19904,"categoryId":19904,"link":"https://smartasset.com/real-estate-investing/articles","name":"Real Estate Investing","postCount":{"pageInfo":{"offsetPagination":{"total":61,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"real-estate-investing","ancestors":{"nodes":[{"name":"Mortgage","slug":"mortgage","__typename":"Category"}],"__typename":"CategoryToAncestorsCategoryConnection"},"parent":{"node":{"name":"Mortgage","id":"dGVybTo4Ng==","slug":"mortgage","__typename":"Category"},"__typename":"CategoryToParentCategoryConnectionEdge"},"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$54","date":"2024-09-13T19:25:05","excerpt":"

\n","featuredImage":{"id":"cG9zdDoyNjE5NTY=","databaseId":261956,"altText":"","date":"2024-09-13T19:21:34","fileSize":37277,"mimeType":"image/jpeg","modified":"2024-09-13T19:22:27","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2024/09/iStock-1220595235-modified-27a1ac93-6841-4562-a398-837cdb3a582e.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-9-13","readable":"September 13, 2024"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjoxMjA=","databaseId":120,"userId":120,"avatar":{"url":"https://secure.gravatar.com/avatar/9be66d92947dd5b190bf90987b5e85f2?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Patrick Villanova is an editor for SmartAsset, producing comprehensive personal finance content to help consumers make better decisions with their money. His particular areas of focus include retirement, financial planning and investing. Patrick studied English at the University of New Hampshire and currently holds the Certified Educator in Personal Finance (CEPF) designation. \r\n\r\nPrior to joining SmartAsset, Patrick was a senior writer at MagnifyMoney, where he covered investing. His career began in journalism and included 11+ years at The Jersey Journal, where he covered sports and news as an editor. His work has appeared on Yahoo Finance, MSN, NJ.com, and The Star-Ledger. He lives in Portland, Oregon.","additionalMeta":{"expertise":"Retirement Planning, Social Security, Estate Planning, Taxes","__typename":"User_Additionalmeta"},"email":null,"firstName":"Patrick","fullName":"Patrick Villanova, CEPF®","lastName":"Villanova, CEPF®","name":"Patrick Villanova, CEPF®","postCount":{"pageInfo":{"offsetPagination":{"total":307,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"pvillanova","__typename":"User"},"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":true,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/mortgage/real-estate-crowdfunding-platform-options","metaDesc":"Today’s market of real estate crowdfunding platforms includes companies like Fundrise and CrowdStreet, among others.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":6,"title":"Real Estate Crowdfunding Platform Options","__typename":"PostTypeSEO"},"slug":"real-estate-crowdfunding-platform-options","status":"publish","title":"Real Estate Crowdfunding Platform Options","uri":"/mortgage/real-estate-crowdfunding-platform-options","tags":{"nodes":[{"name":"news-sitemap","__typename":"Tag"}],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":null,"editedBy":{"id":"dXNlcjoxMjA=","databaseId":120,"userId":120,"avatar":"$55","description":"Patrick Villanova is an editor for SmartAsset, producing comprehensive personal finance content to help consumers make better decisions with their money. His particular areas of focus include retirement, financial planning and investing. Patrick studied English at the University of New Hampshire and currently holds the Certified Educator in Personal Finance (CEPF) designation. \r\n\r\nPrior to joining SmartAsset, Patrick was a senior writer at MagnifyMoney, where he covered investing. His career began in journalism and included 11+ years at The Jersey Journal, where he covered sports and news as an editor. His work has appeared on Yahoo Finance, MSN, NJ.com, and The Star-Ledger. He lives in Portland, Oregon.","additionalMeta":"$56","email":null,"firstName":"Patrick","fullName":"Patrick Villanova, CEPF®","lastName":"Villanova, CEPF®","name":"Patrick Villanova, CEPF®","postCount":"$57","slug":"patrick-villanova-cepf","__typename":"User"},"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybToxOTkwNA==","children":"$5a","databaseId":19904,"categoryId":19904,"link":"https://smartasset.com/real-estate-investing/articles","name":"Real Estate Investing","postCount":61,"slug":"real-estate-investing","ancestors":"$5c","parent":"$5f","__typename":"Category"},"isModifiedBeforePublished":true,"contentBlocks":["

Real estate crowdfunding platforms have become a popular way for everyday investors to gain exposure to real estate. This type of investment doesn’t require the capital and know-how needed to purchase entire properties, making it a potentially simpler avenue for diversifying your portfolio. These platforms allow individuals to pool their funds with other investors to back various real estate projects, from residential developments to commercial ventures. Today’s market of real estate crowdfunding platforms includes companies like Fundrise and CrowdStreet, each with their own focuses, investment requirements and fees.

","

You can also consider working with a financial advisor to explore additional ways to invest in real estate and other assets.

","

What Is Real Estate Crowdfunding?

","

Real estate crowdfunding is a method of raising capital for real estate projects. Individual investors contribute small amounts of money toward a common goal, enabling them to participate in real estate opportunities that might otherwise be out of reach due to high costs or exclusive access.

","

The process works similarly to other forms of crowdfunding, but instead of supporting a product or cause, investors are backing a tangible asset: real estate. Through online real estate crowdfunding platforms, investors can browse and choose real estate projects that align with their financial goals, whether they’re looking for short-term returns through fix-and-flip properties or long-term gains through rental income and property appreciation.

","

Most platforms offer two types of investments: equity-based and debt-based. With equity-based investments, investors own a share of the property and earn a portion of the rental income or profits when the property is sold. Debt-based investments involve lending money to the property developer, with returns generated through interest payments.

","

Real estate crowdfunding allows investors to diversify their portfolios across multiple properties and locations, reducing their reliance on any single property. But like any investment, real estate crowdfunding comes with risks, including the potential for market fluctuations, delays in project completion or loss of capital if a project underperforms.

","

Real Estate Crowdfunding Platforms

","

When choosing a real estate crowdfunding platform, consider factors such as minimum investment requirements, fees and the types of projects offered. Here are some popular real estate crowdfunding platforms to explore and compare:

","

Fundrise

","

Fundrise is one of the most well-known real estate crowdfunding platforms and is accessible to users who are over the age of 18, have a permanent U.S. residency, a valid US tax ID and file taxes in the U.S. The platform offers a range of real estate investment options, including residential and commercial properties, and provides access to diversified portfolios through its eREITs (electronic real estate investment trusts).

","

The minimum investment on Fundrise can be as low as $10, making it an attractive option for new investors. One downside, however, is that liquidity can be limited, as funds are intended to be a long-term investment.

","

RealtyMogul

","

While RealtyMogul offers opportunities to both unaccredited and accredited investors, certain opportunities are only available to the former. The platform has investment opportunities in both commercial and residential real estate. The platform focuses on larger, institutional-grade properties, and investors can choose from debt or equity investments. Investment minimums typically range from $25,000 to $35,000.

","

One unique feature of RealtyMogul is its option to invest in REITs, which provide a diversified portfolio of properties.While the opportunities can yield attractive returns, RealtyMogul may be better suited for more experienced investors with more capital or a higher risk tolerance.

","

CrowdStreet

","

CrowdStreet is a real estate crowdfunding platform that specializes in commercial real estate projects. The platform is open to accredited investors and offers direct access to a variety of real estate deals. Investors can choose from single-property offerings or invest in diversified funds. The platform also provides in-depth information about each project, allowing investors to conduct thorough due diligence before committing. The minimum investment is typically $25,000, making CrowdStreet more suitable for investors with significant capital.

","

PeerStreet

","

PeerStreet focuses on real estate debt investments, offering investors the opportunity to fund real estate loans and earn interest payments. The platform is open to accredited investors and requires a minimum investment of $1,000. PeerStreet allows investors to customize their portfolios by choosing loans that match their risk tolerance and financial goals. One advantage of PeerStreet is its relatively short investment terms, which range from one to 36 months. However, since the investments are debt-based, returns are limited to interest payments rather than property appreciation.

","

Groundfloor

","

Groundfloor is a unique platform open to accredited and non-accredited investors, with a focus on short-term real estate loans. Investors can get started with as little as $10, making it one of the most accessible platforms in the real estate crowdfunding space. While the platform’s low minimum investment is appealing, it’s important to note that the projects tend to carry higher risk, as they are typically tied to short-term renovations and sales.

","

Frequently Asked Questions About Real Estate Crowdfunding

","

What Is the Minimum Investment for Real Estate Crowdfunding?

","

The minimum investment varies by platform. Some platforms, like Fundrise and Groundfloor, allow investments as low as $10, while others, like RealtyMogul and CrowdStreet, may require a minimum of $25,000 or more. Investors should choose a platform that aligns with their available capital and financial goals.

","

Do I Need to Be an Accredited Investor to Participate?

","

Not all real estate crowdfunding platforms require accreditation. Platforms like Fundrise and Groundfloor are open to non-accredited investors, while others, like CrowdStreet and PeerStreet, are limited to accredited investors who meet specific income and net worth requirements.

","

How Long Will My Money Be Tied Up in a Crowdfunding Investment?

","

Investment timelines vary depending on the platform and the specific project. Some platforms, like PeerStreet, offer short-term investments with durations of one to 36 months, while others, like Fundrise, may require longer commitments of several years.

","

Is Real Estate Crowdfunding Safe?

","

As with any investment, real estate crowdfunding carries risks. While it offers the potential for attractive returns, there’s also the possibility of losing your investment if a project fails. Investors should conduct thorough research, diversify their investments and only invest funds they can afford to lose.

","

Bottom Line

","

Real estate crowdfunding platforms provide an accessible way for investors to diversify their portfolios and participate in the real estate market without owning entire properties. While this investment avenue offers lots of opportunity, don’t overlook the risks involved. If you’re interested in real estate crowdfunding as an investment opportunity, there are several platforms that can help you get started. The right one for you depends on your financial goals, risk tolerance and available capital.

","

Tips for Investing in Real Estate

","$61","

"],"experts":null,"link":"/real-estate-investing/real-estate-crowdfunding-platform-options","published":{"datetime":"2024-9-13","readable":"September 13, 2024"},"shareInfo":{"title":"Real Estate Crowdfunding Platform Options","origin":"/mortgage/real-estate-crowdfunding-platform-options"},"isNewsArticle":true}]}]