Important Tips When Considering Multiple REI’s
Are you looking to start investing in rental properties? Real estate is a great investment that can adapt to your goals and resources.
Type of Property There are several types of properties you can choose from when looking to invest. From single family to commercial real estate, you will have to do your research on which is more appealing to your needs and wants as an investor.
Local or Long-Distance Investing You can either invest in property that is local or invest in the best real estate markets that are long distance. Being a local investor means that you can check on your properties easily, which makes it easier to self-manage or oversee a property manager. Being a long-distance investor allows you to invest your money in a market that makes the most sense for cashflow.
Management You will have to decide if you want to self-manage your property or hire someone to manage it for you. If you do not want to manage the property day to day, it is important to hire someone that you trust to oversee the tenants and property.
Demographics It is important to match up the demographics with your price point. Think about the location of the property – is it a good neighborhood? How are the schools? Consider the potential tenants – are they young couples with no kids? Are they large families? What kind of business? These are some factors to think about when proposing a rental price. You want to match up the price point with the target demographic you will be working with.
Location The key to a successful rental investment is one that rents quickly. Typically, a property will rent quickly in an excellent location and will attract tenants that pay their rent on time. Think about what type of house or property you want to invest in. For example, if you are investing in single family rental properties, a potential tenant will be looking for a great school to enroll their children in and a safe neighborhood.
Maintenance Budget Always make sure to verify your numbers. It is smart to have extra funds set aside for any potential repairs. Expenses can be underestimated, so try to be prepared for the unexpected.
Explicit Lease You can never be too prepared. Having a clearly defined contract with stated requirements and terms is key to easily understanding what you are getting yourself into. Having an explicit lease is better reference and protection for you. Take the time to write everything down in case an issue comes up with any property you are renting out.
The Bottom Line Investing in rental properties is a great way to build additional wealth. Whether it is a commercial property or a single-family home, it will be an unpredictable but worthwhile adventure.
About Peak Commercial Peak Commercial provides unparalleled access to conventional debt financing, joint venture equity, mezzanine and bridge financing, and structured debt. We are able to secure the best terms available in the marketplace and offer timely council for individuals seeking loan modification and restructuring. By drawing on the power of the Peak Corporate Network and its inclusive range of services, our clients save time and maximize the value of their assets. Contact us today for a consultation or questions regarding investing in rental properties at (818)-591-3300.