Whats Does “Effort Level” Mean?
We’ve developed a scale that serves as a common language to help investors better understand the level of effort required to own a specific property. This scale considers both the effort needed to make the property rent-ready and the ongoing demands of ownership. While it’s a useful guide, it’s subjective and should not be viewed as a perfect representation, as each investor’s experience and perception of ownership challenges can vary.
What Does Each Item Mean?
Flip: When an investor purchases a house to hold a house for a short-term period with the intention of reselling quickly and making a profit. Typically, some cosmetic upgrades take place to increase the resale value before it it put back on the market.
Self Managed: When an investor decides to forego any property management services and opts to manage the property themselves, this is referred to as “self managed”. This option would add the responsibilities normally taken care of by a property management team to be taken care of by the investor, including being responsible for maintenance items, leasing the unit, and all financial reporting.
Extensive Renovations: This is when an investor purchases a house in need of extensive upgrades/repairs/renovations. This transaction typically allows an investor to purchase the house at a discount providing instant equity for the investors’ portfolio.
Self Managed with myRESI: myRESI is Simply Do It’s an online property management eco-system that allows the owners to manage their portfolio without using a property manager. From leasing, to repairs and maintenance, collect rents, financial documents, property reports, and more. This saves on expenses and friction associated with working with traditional property managers and offers an alternative method to managing your properties.
TurnAround Program: Social Impact Opportunity: A beginner investor is paired to work with an experienced SDI investor to purchase a home and, in turn, helps both parties in different ways. The experienced investor profit-shares during the sale of the home without having to manage the day-to-day responsibilities and eases the typical time commitment associated with managing a rental property. The beginner investor is provided financing options and a lower down payment to get started in real estate investing sooner than without this program as well as access to a mentor for any guidance needed along their investing journey.
Hybrid Rental Program: Otherwise known as a mid-term rental, the Hybrid Rental Program positions a property targeted for individuals and families looking for monthly furnished rentals. These types of investments fill the need for families displaced due to an insurance claim or home repairs, families for hospital patients, military families, etc.
Traditional Rental: An Investor purchases a house using the standard SDI method, completes any necessary make-ready improvements and rents the property to a long term tenant. This is the traditional buy & hold investing model where the investor is building equity and potentially earning some monthly cash flow.
Co-Ownership Program: A small group of investors pool together and purchase a property with the collective assets of the group. A 3rd party is contracted to manage the affairs and make some decisions regarding the property and the gains are split amongst the group. Once the initial purchase is made, this is more of a “set it and forget it” type of real estate investment.
Zero Investing: When no investing efforts are made.