When you decide to begin working as a real estate investor and own income rental properties, there are a few team members you may want to work with you to help you complete the process successfully. Here are details about three of the most important team members who can help you through this process and what you can expect from them.
Real Estate Agent or Broker
As you begin to look into buying a residential property you can turn into a rental unit, you can benefit from the services of a licensed real estate agent or broker. Whether they are an agent or a broker depends on their experience and how long they have been working for their real estate broker company. As a buyer, you don't necessarily have to pay the commission for their services, as that fee will often be paid by the seller of the property you end up purchasing.
Your real estate agent or broker will help you search for properties that fit the criteria you are looking for. For example, if you want to search for single family homes that have at least three bedrooms and two bathrooms that have been built after 1990, they can enter the search parameters into the listing service database to pull up specific homes that fit this criteria. They can also do searches for duplexes, triplexes and 4-plexes that would serve as potential income properties.
Look for an agent who you feel comfortable working with, who is knowledgeable about negotiating and completing the purchase contract, and who has a good attention to detail. All these skills can make the difference for you to get a good deal on a property.
Real Estate Investment Consultant
Along with a real estate agent, you can hire the services of a real estate investment consultant to help you analyze specific properties for their investment potential. An investment consultant will typically charge for their services based on the number of hours they work for you, and they will get paid when you close on the property. An average investment consultant will charge anywhere from $75 to $150 per hour for their services and may work from 20 to 30 hours for your investment transaction.
Your real estate consult will do research for you to determine a property's investment potential. They can research, analyze, and report to you calculations to determine the profitability of a rental property and its potential for cash flow and return on investment or ROI. They can research to tell you how much a property's income potential is and list all the rental fees associated with taking it on as a rental asset. Then, you can use the information they collect and analyze to help you decide on a property to purchase.
Property Management Company
Once you select an investment property to purchase, you will need a property management company to manage it for you as a rental. Some rental property investors may choose to manage their rental properties on their own and act as the landlord, but ultimately they usually decide to hire a property manager so they can devote as much of their time to acquiring new investment rental properties and fill the role as an investor. Hiring a property management company will also make it easier to own a rental property in another area or state.
A property manager will handle all the day-to-day activities related to rental properties, including collecting rent, handling maintenance and repairs, showing the property, and screening new tenants. A property management company will charge you a fee of anywhere from four to ten percent of the rental on the property, depending on the type of property and how many units it has. Then, they will usually charge a tenant placement fee when they screen and find a new tenant for the property.
Contact a company like brown real estate consultants to learn more about investing in real estate.Share
12 July 2017
Waterfront properties are beautiful most of the year. Waking up each morning to the serene view is one of the most pleasant parts of my day, but there have been several issues that have come up over the years because of the location of my home. This blog is all about waterfront homes. You will learn tips for choosing the one that you buy, maintaining it over the years and signs that you shouldn't purchase the home that you are considering. These and many more tips are found right here to help you get through the selection process and know if you are up to owning a waterfront home.