The mention of the word budgeting can dry up any conversation in record time. But hey! Finance is important, especially to real estate investors. Budgeting is one of those things we all have to do, no matter how tedious it can be. A solid budget and a close, attentive grasp on your finances is key to success as a real estate investor, after all!

When it comes to money management, there’s no room for cutting corners. In the real estate investment game, no matter what kind of investor you are, the unexpected can throw a wrench in your plans. Anticipating those moments with smart money management and budgeting means that you’ll be able to handle anything that gets thrown your way. As the year winds down, there’s never been a better time to start thinking ahead.

So you want to get started in those whole real estate investment thing: but you’re a little worried about cash. Maybe you’re young and kind of broke. Maybe you just haven’t had the savings rate you would like. You don’t see how you can possibly save the capital you need to get started in the foreseeable future. It’s overwhelming and maybe you just don’t know where the begin!

But hey—there's good news! Many now-successful real estate investors were once in that same boat.

There are savings strategies that yes, demand work and sacrifice, but they will help you build up your capital so you can start investing sooner rather than later.

By Jennifer Riner of Trulia

While buying is largely considered financially savvier than renting on a national level due to almost historically low interest rates and increasing rents in major metros, loan restrictions and struggling to save for a down payment while renting delays homeownership dreams. According to a recent Trulia survey, 42 percent of renters say saving for a down payment is the biggest obstacle in buying a home. Poor credit, according to 27 percent of respondents, is the next hindrance, followed by qualifying for a mortgage, according to 24 percent of renters.

Millennials tend to flock to cities where jobs are prevalent and quality of living is high, favoring metropolises with green initiatives, urban development, cultural flair and accessibility. Metros including San Francisco, Manhattan and Los Angeles rank top for Generation X, but remain out of range for the average leaseholders’ and buyers’ budgets. Cities like Chicago, Seattle and Austin are also popular, but still expensive depending on desired neighborhoods. Three cities gaining in popularity amongst the younger generation include Memphis, Dallas and Houston, partially due to fair housing prices and new developments.

Check out these three more moderately priced metros and their recent home values, rent prices and mortgage rate tipping points* to understand where buying beats renting for millennials.

Turnkey real estate is all the rage right now in the real estate world.  More and more investors are looking for a way to get started in passive investments and the Turnkey route often looks promising.  The reality is, like any investment, Turnkey real estate is not always the best option and will not work for everyone.   

However, if you’re in the market for a more hands-off approach to investing, turnkey real estate just might be right for you. So much of deciding what kind of investments to pursue just depends on what you as an individual enjoy and value. 

To help you decide, we’re digging deep into the red flags you should watch for within yourself!  We have to be honest with ourselves as real estate investors to ensure the best outcome for our financial future.

The real estate investment experience can be enormously rewarding; not just financially, but in personal enrichment. Investing teaches us a great many things about economics, customer service, and money management. It’s a wealth of information that we’ll likely be able to pass on to the next generation to help spark their success.

But really, when it comes down to it, most of us are in real estate investment for one primary, ultimate reason: financial freedom.

We want to not only eliminate debt, but have enough to retire comfortably — maybe with enough to check all of the items off of our bucket list. But really, it’s not that easy.

Because honestly—freedom can be scary. Finally quitting your job can be scary. It’s ingrained in us to earn and strive for more, more, more. Stopping can be a strange prospect, and you can only be content to lounge on the beach for so long. So what will you do with your financial freedom? What will you do when your day job is gone? You’ve got passive income coming in. You have a list of things you want to do. But then what? What will you do with all of you time, money, and energy?

Real estate investor’s aren’t always buying. Even as a buy-and-hold investor, sometimes, you want to sell. Maybe a property isn’t working out for you, maybe your goals are changing. Maybe you just want to streamline your portfolio. Either way, there will come times—especially with many markets seeing returning and accelerating home values, when it becomes tempting to sell. But should you?

Many of our investors are investing out-of-state. They don’t call Memphis home, but they know that this place has something great to offer. Before really drilling down into the other six incredible characteristics that make Memphis such a unique city, let me add one that rarely makes too many lists.

The Memphis Invest & Premier Property Management teams!

This is an extraordinary group of men and women who do an outstanding job every day managing an incredibly large portfolio.  They are a tremendous factor in the success of over 1,600 real estate investors investing their hard earned incomes and retirement accounts into investment real estate.  This team is second to none in the country and they are an extremely unique value for real estate investors and this city alike!

Now, onto the amazing things that Memphis has to offer.  And boy, does Memphis have some amazing things going for it! Every city has problems, sure: we’re not trying to romanticize. But at the end of the day, we can’t help but love Memphis.

If you’ve ever considered investing here, visiting, or even moving to Memphis, let us tell you a few of the things that make Memphis so incredible.

There are a lot of choices when it comes to investing in real estate. There’s always a decision to make, and one of the first you’ll encounter is simple where? Where should I invest? Most investors start out considering their local markets—because why wouldn’t you? Still, there are clear pros and cons to investing locally...and out-of-state, for that matter!

As a real estate investor, the most important thing if figuring out what kind of investments best suits your situation, goals, and personality. If you’re having trouble taking the next step with your investing future, look no further than this evaluation. We’re diving into the pros and cons of both investing locally and out-of-state!

We’re all about a continuing education. Now more than ever, there are new ways to learn about just about anything you can imagine. Between college courses, literary resources, blogs, and good old experience, learning comes in just about any format you’d ever want. With technology where it is today, podcasts are just one more great way to learn. Now replacing typical radio talk shows, podcasts lets you listen to experts in your field anywhere, anytime.

Since the holidays are a big time to travel, why not kill some long hours in transit learning something new? Before you get on that plane or start that big road trip, download some podcast episodes to take with you. These top not finance and real estate podcasts are a great place to get started.

It feels good to have a great tenant, doesn’t it? Even the most passive of real estate investors reap the benefits of a good tenant: they pay on time, take care of your investment property, and just make life a whole lot easier for everyone involved. When you manage to attract a stand-out tenant, you’ve got something special: period.

When you find something great, what do you do? You hold on to it, of course!

Remember: the vacancies between tenants are one of the most costly periods for real estate investors. So keeping those times down to a minimum with loyal, quality tenants is a strategy worth considering. Naturally, circumstances mean that you won’t always be able to hold on to a good tenant. People move for a lot of reasons that are beyond your control.

That said...from your end and through excellent property management, you can attract and keep quality tenants that will regret leaving and might just recommend your rental to someone else. But what are the best practices for getting great tenants to stick around anyway? These simple keys may help you better vet property management companies or improve on the systems you already have in place.