How to Determine if Buying an Investment Property is Good for You.
Whether you are new to real estate investing or you are a veteran investor, sometimes real estate deals are just not as cut-and-dried as you would hope. You find a property on the MLS; it looks like a great deal, but you’re not entirely certain. You research the area, and you can see that it’s in a growth cycle and that it has a number of amenities nearby. You research the property itself and find that it’s set at a fair market price, but it’s been sitting on the market for some time. And when you look closer at the area, you see that there are still a large number of vacant properties in the neighborhood. Should you buy?
On the one hand, if your research is correct and the area is growing, you will likely see increased rental rates in the coming months and years. If the property is in good shape, you shouldn’t have to sink too much capital into repairs and renovations, and you should begin to see a return on your investment fairly quickly.
On the other hand, though, if there are still a lot of vacancies in the area, you may have a significant amount of competition for tenants, especially in the first few months. You could have a difficult time finding people to live there, which could wreak havoc on your plans, at least for the short term. Then is where it pays to hire an expert for property consulting.
What Does a Property Consultant Do?
When you enlist expert property consulting assistance, your specialist will put their knowledge and industry skills to work for you to determine whether a particular investment property is right for you. They will look at the market in the area, conduct a full inspection of the property, research comps (comparably priced properties), look at market trends, and assess secure property management costs, as well.
When they finish with their assessment, your consultant will assist you in determining your investment goals because your goals have a lot of bearing on whether or not you should buy the property. For example, if you plan on flipping the property as quickly as possible, you’ll have very different investment goals for it than if you intend to use it as a long-term rental property. Understanding your intentions for the property and for your investment portfolio will help your consultant come to an informed decision about the property.
Why Not Just Ask the Selling Agent?
When you’re looking at a property for sale in your area, you’ll no doubt have plenty of time to chat with the seller’s real estate agent. This person will likely have a good working knowledge of the market, the area, and the property itself, but they’re not the best choice for advice on how much the property can rent or sell for. While realtors are generally honest people with good intentions, they also have a vested interest in the sale of their properties. An independent consultant or one who works for a real estate investment group has a stake in helping you purchase a property that will work for you, your needs, and your goals.
Assistance Finding the Right Properties for You
Furthermore, many reputable, secure asset management firms offer assistance with finding the best properties for their clients and members, including consulting services like these. These experts will not only assist you with houses and other properties that you’ve found yourself, but they may also be able to help you by scouting out potential investment properties in the area that match your goals.
If you want a fair, honest, and expert answer on whether or not you should buy a particular property, or if you want help finding the right property for your investment needs, talk with my real estate investment firm. Enlist our help with property consultations and advice, and you’ll be making a good decision.