Investing in real estate may pose both challenges and opportunities. Locating promising investments and sites, prospecting the best deals, and the like are certain thoughts investors should initially account for.
To face the daunting task of finding an investment property, you need an individual with a great deal of knowledge and experience in the market. Finding a real estate agent works the best among all other means of finding an investment property.
Here are some advantages to hiring a real estate agent to help you find the best market deal.
- Agents are knowledgeable about what to search for.
With that list securely tucked away in the back of your mind, you’ll undoubtedly feel at ease looking at houses for sale. However, there will always be homes in the neighborhood where you want to reside. Which of these properties, then, would best fit your wants and financial situation? Real estate agents can help you shorten the list of possibilities and opportunities for your prospective investment property.
- Agents have business networks.
Real estate agents are professional at networking. They are familiar with the pros and cons of home buying and selling operations. Many people will have a list of preferred service providers they have worked with in the past. To put it another way, it is quite advantageous, which is why real estate investors prefer to work with real estate agents.
Additionally, buyers must deal with experts such as inspectors, appraisers, attorneys, and the like. You can tap your real estate agent`s network instead of doing the task on your own.
- Agents are well-versed in the market.
The trends and conditions of the present market are greatly perceived by real estate agents. The best agents are knowledgeable about every aspect of the housing market and how related variables can affect the investment process. This intimate knowledge of the market explains why hiring a real estate agent is the best move in the investment transaction.
- Agents provide helpful price advice.
As a property owner, you believe that you are aware of your property’s value. However, things become more complicated when you have second thoughts about whether you’ve set a fair price for your investment property. Emotions sink in, and you may find yourself overestimating the cost of your investment. The real estate agent who simplifies things will present you with the appropriate price range and assist you in determining the best deal. Indeed, real estate agents know the best marketing techniques.
- Agents save time and resources
Real estate transactions can be a lengthy process to deal with. This includes tricky contract forms and other related documentation, which may put you in an exhausting situation. However, working with a real estate agent makes the process easier for you. As a buyer, your agent will shield you from seller marketing efforts and an onslaught of calls.
A real estate agent is a valuable resource when buying or selling a house. The advantages of having your best real estate agent guarantee your satisfaction and service beyond every investment deal. Undoubtedly, among the methods for locating investment properties, using a real estate agent tops the list.
Investors working with Marques Commercial Direct consider solutions and certainty to close as the key factors in getting an investment property loan.
To purchase an income-producing property, considering an investment property loan to obtain money to make the most of an investment opportunity is not a hindrance. On the other hand, investment property mortgage rates are usually higher than the rates offered in acquiring a primary residence. But many lenders offer a lot of mortgage options to people who aren’t financially ready to buy one. And it feels like there are so many to choose from because mortgage programs keep creating new methods to give assistance to all types of borrowers but interest rates may also vary significantly between companies. This is why investors working with Marques Commercial Direct view the interest rate as the most important factor.
Most investors want low interest rates but not everybody are eligible because more requirements are needed to comply if investors apply for low interest rates. To be able to obtain the loan and acquire the property, the choice is to pay for higher rates. This reason explains why certainty to close a loan is the next in line to think through among investors.
The Bottom Line
Investors don’t always get the low interest rate they ask for because it is not always applicable to all, especially for those who can’t comply with the strict borrowing requirements. The lower the interest rate, the more complex the requirements needed thus the less likely to close a loan. So if a higher interest rate will be offered, it is better to make sure in putting emphasis on the solution and certainty to close the loan to acquire the property.
Getting the wrong mortgage could cost lots of money and decades of debt, not to mention an investment failure. A great advantage on deciding on the precise mortgage for real estate investment objectives is having the knowledge and understanding of the ins and outs of investment property loan programs to maximize the chances not only of getting the very best deal for the business, but also exhausting the possibilities and be confident that the transaction is actually going to close. In comparing different borrowing options and deciding what to choose, it is always important to determine the key factors to consider and how each one can affect the investment’s ultimate outcome to come up with the right decision.
Searching for investment properties may be challenging. One must ensure that there are numerous options available so that one can pick and select the prospects that meet our investment strategy and goals. Knowing where to find these properties then is imperative.
Investors working with Marques Commercial Direct have identified a great go-to source for finding amazing investment properties- through real estate auctions and off-market. Though the majority of investors have identified real estate agents, listing sites, and Internet search engines as their preferred source for finding potential investment properties — investors working with Marques Commercial Direct have found a niche to quickly identify and capitalize on investment opportunities. They are likely to use real estate auctions twice more as the others.
Buying at an auction, off-market and as-is can be smart options to get a home for less than its market worth. Real estate auctions are efficient because instead of looking hard for properties, the properties are already available and all that must be done is to select which ones to consider. Auctions and as-is only may offer some risks like the properties needing significant amounts for repairs, but the advantages outweigh them. It is much quicker to acquire properties from auctions compared to doing so in other channels. Moreover, contracts are signed as soon as the auction is over thus time is not wasted and there will be no room for delays.
Besides auctions, investors working with Marques Commercial Direct have other several options or alternatives available- they connect with other investors and third party brokers as other potential sources for information on possible investments. Owing to its reliability as an information source, the investors working with Marques Commercial Direct are five times more likely to refer to other real estate investors and thrice as likely to consult mortgage brokers when it comes to finding the next opportunity where they can invest.
The Possible Effects
By accessing several tools and a variety of resources in identifying possible investment opportunities, investors working with Marques Commercial Direct have significantly acquired more properties compared to other investors- up to 4.6 single – family homes compared to only two for competitors. But this strategy proved successful not only in the purchase of homes but even of condominiums wherein investors working with Marques has led with 2.8 properties as opposed to only 1.6 for other investors.
This is a clear indication that it is not enough to rely only on the usual channels, to be at an advantage, one needs to be on the lookout to find more clients and not miss out on the chance of coming across worthwhile properties. As an adage states, no stone shall be left unturned in the quest for finding and cultivating leads.
Single-family home rentals are booming among the other property type investments. Data shows that 6 out of 10 investors own a single-family home investment (SFI) because of its impressive potential for long-term appreciation.
Data shows that single-family homes, apartments, townhomes, and condominiums are the most popular among real estate investors. While small commercial buildings were still up, it ranked next with around 11% of the investors owning this property type. Consequently, the multi-family and mixed-use property types which feature commercial buildings on the ground floor and residential units on top set the bottommost among them.
Apparently, single-family homes are at the peak of investors` preference over other property types. Here`s the edge of picking out SFIs as your investment property.
- Investing in SFIs saves your fund since it is economically affordable compared to other investment properties.
- Single-family properties provide higher appreciation rates and lower monthly rent plus a reduced vacancy rate; thus a perfect deal for the investment.
- Less trouble with tenant turnover- focusing only on one person and turnover is less frequent.
- Reduced maintenance cost. Focus only on the single scope of property to manage.
- Simpler to resell. Offers lower prices compared to other types of property investment. Hence, a smart investment type of property.
Single-Family Rentals As Investments
There are several things to consider prior to deploying your property-type investment. Purchasing single-family homes which can be rented out offers enormous market demand nowadays.
While some perceive that investment property mortgages are more complex than conventional house loans, they are not provided as much since an SFI is still a single-family residence. Business is still transacted in the same neighborhood The SFI residences shared the same appraised value in the same neighborhood. Hence, Marques Commercial Direct can still offer loans for investment properties using all of their skills and experience in handling house loans for consumers. The only difference is that the income paid for investment properties comes from the rent paid by tenants who rented the property rather than the borrower`s own income.