In this episode of Agent 251, Jason speaks to Hunter Harrelson of Beachball Properties about investment in rental properties on Alabama’s beautiful white sand beaches. Hunter points out that prudent investment in rental properties comes down to the proper application of mathematics.
Jason and Hunter discuss the pitfalls of owner management and the benefits to be gained from allowing professionals to eliminate the headaches associated with management of rental properties. Hunter claims that rental property investment can rival and surpass the returns of any of the more common investment schemes that we regularly hear about.
Hunter talks about the importance of giving his customers a fair deal. He prefers not to nickel and dime. He talks about the principles of good business dealings, and how they pay off for provider and client alike, in the long run.
> A six to eight percent return on investment is a routine product of beach property rental.
> Hunter can evaluate which properties are turning the greatest profit relative to cost. Sometimes the most exclusive units are not the most profitable. It comes down to which units are renting at what frequency, and at what price, and selling at what cost.
> Even if the owner lives nearby, it is usually preferable to contract out property management to someone who has the contacts, and the experience to handle routine maintenance.
“I’ve got a ten percent rule. If (the condo) is not going to gross ten percent, I tell you to nix the idea.” – Hunter Harrelson
“The math is magical in the way that it always works out at ten percent. If it will gross ten percent, we can cover your mortgage payments.” – Hunter Harrelson
“I’m always a proponent of leveraging other people’s money.” – Hunter Harrelson
“Where you really make money is on the back end, ten years from now, when you go sell that thing.” – Hunter Harrelson
“One thing a lot of people struggle with in the summertime is finding good contractors.” – Hunter Harrelson
“The path is math. The numbers don’t lie.” – Jason Will
“The secret is October at the beach. It’s quieter, the weather has cooled down, but you can still get in the water. That what I tell all my owners. Come in October.” – Hunter Harrelson
“If you can afford it, the best return on investment is a house; a three to five-bedroom house.” – Hunter Harrelson
“Those west beach houses print money.” – Hunter Harrelson
“Make money. Save money.” – Jason Will
We would like to know what you think about the Agent 251 podcast, especially this episode. Do you agree with Jason? Did any of these ideas help you? Do you disagree with any? Let us know by contacting Jason at firstname.lastname@example.org.
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Agent 251 is recorded and produced at Deep Fried Studios. Producer: Johnny Gwin