REAL Income Property™ Standards

REAL Income Property™ Standards

Overview

Available properties are low in supply across the nation and sell very quickly. If you hope to acquire rentals you need to be able to move quickly. That said, it’s important to not make any mistakes in your haste. We created our REAL Income Property™ Standards to help you with this process.

 

Here’s what the REAL in REAL Income Property™ stands for:

R – Renovated (to REAL Income Property™ Standards)
E – Examined (through inspections)
A – Appraised (purchase price at or below market value)
L – Licensed property management

 

Please Note: If you’re working with a Property Team and are considering purchasing a property and that property does not meet the REAL Income Property™ Standards above, please contact your investment counselor.


R – Renovated

Roof Replace if less than 5 Years remaining life, approved per either Home Inspection or 4 Point Inspection.
Furnace Replaced with new or serviced with one year warranty certified by a HVAC Contractor
Boiler Replaced with new or serviced with one year warranty certified by a HVAC Contractor
A/C Replaced with new or serviced with one year warranty certified by a HVAC Contractor
Plumbing Home Inspection accepted by the buyer and updated Finish Plumbing.
Hot Water Tank Replaced with new or serviced with one year warranty certified by a HVAC Contractor
Foundation Home Inspection accepted by the buyer.
Electric Home Inspection accepted by the buyer.
Flooring Updated or functional; Approved through Home Inspection.
Kitchen Updated or functional; Approved through Home Inspection.
Bathroom Updated or functional; Approved through Home Inspection. property teams agree to ensure Bathroom/Flooring and Kitchen is at or above Neighborhood and Tenant Standard.
Interior Paint Freshly painted.
Exterior Paint Home Inspection accepted by the buyer. Additional cost if repainted requested.
Appliances Market Specific. Refer to your provider.

The following are the Property Management Standards Agreed Upon by the Property Teams:

  1. 1st Tenant = 80% of Monthly Rent (20% discount from National Standard)
  2. Lease renewal = 25% of Monthly Rent.
  3. Maintenance Warranty – 60 days maintenance warranty.
  4. There are no other additional vacancy and maintenance warranties.

Note: Please check with each Property Team; some are still in process of making these changes.


E – Examined through Inspections

Before purchasing a property, it’s essential to have an independent inspection completed. Property Teams will provide you with 3-5 licensed, local inspectors who understand rental property. The expectation should verify that the property meets or exceeds our REAL Standards.


 

A – Appraised Below Market Value

If you are getting traditional financing, you will receive a bank appraisal. If you are paying cash, we will recommend  you get a third-party home appraisal.


L – Licensed Property Management

As we all know, property management is the most important ingredient for success in long-term real estate investing.

Property managers within our Referral network are required to be properly insured and licensed according to their state laws. It’s also recommended that they have at least 2 years’ experience with a great track record, and use professional management software. 

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