It's only fitting with the brokerage name Investment Realty, Inc. that we have extensive knowledge of investment properties. I have been approached by all types of investors, regarding real estate investment.
With the world of online information some folks become "experts" in investment properties overnight. Well, its not that simple. The first step to begin to approach this type of investment is surround yourself with knowledgeable people. You need a real estate expert that knows their market and this type of property. An attorney, tax manager, management professional, etc.
One of the worse scenarios I have seen, is when a man came into my office and wanted our firm to manage his property. Great...well maybe not. I visited his property and found it to be in good shape and had nice appeal. Location was good and other than a few safety items my analysis was complete. I gave him a range of fair market price, detailed our fees, and then it came to him. As I could see the gears in his mind churning the result was a look of panic. One of the most important factors this person overlooked was rent price! He greatly overvalued his property, with respect to the rent amount. He proceeded to tell me his bank note amount and I knew he was in deep trouble. He did not add, taxes, insurance, maintenance costs, management fees, or anything else.
All that this person saw was "wow that's a great price for this home" and that could be true had he moved in and intended to live there. It simply did not work as an investment.
If he consulted a real estate expert that knew his intent he would be a happy investor today.
There are so many factors to consider before the actual buying process, and this is where the value of a real estate expert shines through. An investor should also know what rates or return they expect. What capitalization rate are you happy with? Overall rate of return? Cash on cash? I can help. Head on over to my contact page and let me know how I can help you! -MLW
With the world of online information some folks become "experts" in investment properties overnight. Well, its not that simple. The first step to begin to approach this type of investment is surround yourself with knowledgeable people. You need a real estate expert that knows their market and this type of property. An attorney, tax manager, management professional, etc.
One of the worse scenarios I have seen, is when a man came into my office and wanted our firm to manage his property. Great...well maybe not. I visited his property and found it to be in good shape and had nice appeal. Location was good and other than a few safety items my analysis was complete. I gave him a range of fair market price, detailed our fees, and then it came to him. As I could see the gears in his mind churning the result was a look of panic. One of the most important factors this person overlooked was rent price! He greatly overvalued his property, with respect to the rent amount. He proceeded to tell me his bank note amount and I knew he was in deep trouble. He did not add, taxes, insurance, maintenance costs, management fees, or anything else.
All that this person saw was "wow that's a great price for this home" and that could be true had he moved in and intended to live there. It simply did not work as an investment.
If he consulted a real estate expert that knew his intent he would be a happy investor today.
There are so many factors to consider before the actual buying process, and this is where the value of a real estate expert shines through. An investor should also know what rates or return they expect. What capitalization rate are you happy with? Overall rate of return? Cash on cash? I can help. Head on over to my contact page and let me know how I can help you! -MLW
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