Where to Find Investment Property For Sale
Finding a good quality investment property for sale is not easy. In the aftermath of the recent economic hardships, investors are more cautious than ever. This is understandable given the depth of the problems that have arisen over the last 12 months. Investors should quite rightly look into every aspect of a potential investment, leaving no stone unturned in the process. In this article we'll look at the various ways one can find investment property for sale.
There a great number of companies that specialise in finding this kind of investment opportunity, but choosing the right one for your needs is not always straight forward. If you have a particular kind of investment in mind, then it is a good idea to find an agency that has a special knowledge of that area. There may be a great deal of investment property for sale - especially now - which is all the more reason to be careful when choosing an opportunity.
What seemed like a good investment opportunity 3 years ago, might well be far more suspect, in light of the fact that so many investments ostensibly failed. The companies that pair up those seeking investment with those who are looking to invest have a very important role as a middleman to perform. It is often the case that investment properties are displayed on a company's website, and they control how the various parties interact with each other. It is crucial that they take the responsibility of the role seriously, and they respect the wishes of everyone involved.
When it comes to finding investment property for sale, it is very important to use a company that vets all the investment opportunities as far as possible. Of course, it is not always possible to look at every aspect in detail, but a good company will satisfy the basic requirements in terms of identifying the general outlook on property proposition.
A good company or agency of this kind will insist on the best behaviour of its clients at all times.
It is true, perhaps, to say that the green shoots of recovery will offer up some good investment property for sale, and with the possibility of making some real economic gains. While opportunities are undoubtedly out there - it is crucial to do your homework and source opportunities from the most reliable agencies around, whatever your specialty investment field is. Caution is more important than ever, and you should find advice and associates that reflect this.
Gino Hitshopi is highly experienced in the realm of investment property for sale, having worked in the property industry for many years. For more information please visit: http://www.millionaire-investments.com.
Article Source: http://EzineArticles.com/?expert=Gino_Hitshopi
Monday, December 7, 2009
Thursday, December 3, 2009
Rental Property Valuation - Analyzing an Investment Property
Rental Property Valuation - Analyzing an Investment Property
Despite the sluggish market, it is still complicated to find a "steal" in this day and age. A good starting point for negotiations is often 20% below the list price, with a target purchase price of 10-15% below market value.
But even after your proposal is accepted and the property is under agreement, the property value still may be reduced via the appraisal and/or the home inspection.
For example, if the appraised value comes in too low, you may have to ask the seller to fiddle with the purchase price or make some other arrangement. Similarly, a deficient inspection report may force the seller to either make repairs or correct the price.
GENERAL PROPERTY VALUATION GUIDELINES
Rental property estimation is primarily determined by rental revenue, location, and condition.
bigger units with more bedrooms charge higher rent. So all else being equal, you'll choose properties with multi-bedroom units. An added advantage is that 2-3 bedroom units have a tendency to have a more settled tenancy. Conversely, 1-bedroom apartments tend to draw more of a transient population, which means the turnover is typically greater.
From a location standpoint, multifamily rental properties in older, lower-middle income neighborhoods mostly offer the greatest bang for your buck. Plus, your tenant universe is typically larger in these areas. Avoid densely urban or very low income areas.
In terms of condition, the standard target property will be older (50 years or more) and will have cosmetic deficiencies or simply look "worn-out." These properties can offer great value for your money. Conceptually, it's sort of the opposite of curb appeal.
COSMETIC VS. STRUCTURAL
General property valuation rule: cosmetic problems = good, structural problems = bad!
By "cosmetic," I'm referring to things like:
- Peeling or old paint
- Ancient carpet
- Wrecked light fixtures
- Scratched kitchen cabinets
- Torn vinyl flooring
- Accumulated junk or clutter
- An messy lawn
- Unkempt shrubbery
- Filthy siding
- Old appliances
- Weak bathroom fixtures & towel racks
- Old doorknobs
- Old outlet & switch plate covers
- Dented mini-blinds
- Broken windows
- Any other "quick fix" you can think of
Structural issues, or issues where you must proceed with extreme caution, include:
- A severely cracked foundation or walls
- Galvanized piping
- Leaning chimney
- Outdated electric (i.e., knob & tube wiring)
- Severely sloping, cracked or warped floors
- Pervasive asbestos
- Rotting wood in the frame
- Lead paint
- A long-running leaky roof
- Buried underground oil tanks
- HVAC problems
- Mold
Note that I am not saying to keep away from all of these issues at all cost. Run the numbers to ascertain feasibility. If you can acquire a multifamily rental property on the cheap, then perhaps you'll be able to meet the expense of a new roof, an electric upgrade, or even mold remediation and still come out ahead.
It all depends on the buy price, your property valuation conclusion, your level of experience, and the strength of your stomach. Use my free inspection checklist to help show the way (note: I'll post it on my website).
PROPERTY VALUATION "SQUEEZERS" TO AVOID
And finally, here's a list of things that'll kill property value...avoid them!
- Properties with serious structural issues or that are poorly constructed.
- Properties where all units are of the single-bedroom variety.
- Properties that show "economic obsolescence," such as those with very short ceilings, or those with many bedrooms, but only 1 bathroom for example.
- Twins, condos, row homes, etc. These types of structures usually do not appreciate as much as detached structures.
- Properties with wells and septic systems. These systems could create a lot of problems and added expense down the road.
- Properties that do not have separate utilities. I've literally seen tenants crank the heat up to 90 degrees F in the winter but leave the windows wide open. The only utilities you as a landlord should be paying are water and sewer.
Stay tuned for more info.
Al-Yassa Al-Mahi
Article Source: http://EzineArticles.com/?expert=Al-Yassa_Al-Mahi
Al-Yassa Al-Mahi - EzineArticles Expert Author
Despite the sluggish market, it is still complicated to find a "steal" in this day and age. A good starting point for negotiations is often 20% below the list price, with a target purchase price of 10-15% below market value.
But even after your proposal is accepted and the property is under agreement, the property value still may be reduced via the appraisal and/or the home inspection.
For example, if the appraised value comes in too low, you may have to ask the seller to fiddle with the purchase price or make some other arrangement. Similarly, a deficient inspection report may force the seller to either make repairs or correct the price.
GENERAL PROPERTY VALUATION GUIDELINES
Rental property estimation is primarily determined by rental revenue, location, and condition.
bigger units with more bedrooms charge higher rent. So all else being equal, you'll choose properties with multi-bedroom units. An added advantage is that 2-3 bedroom units have a tendency to have a more settled tenancy. Conversely, 1-bedroom apartments tend to draw more of a transient population, which means the turnover is typically greater.
From a location standpoint, multifamily rental properties in older, lower-middle income neighborhoods mostly offer the greatest bang for your buck. Plus, your tenant universe is typically larger in these areas. Avoid densely urban or very low income areas.
In terms of condition, the standard target property will be older (50 years or more) and will have cosmetic deficiencies or simply look "worn-out." These properties can offer great value for your money. Conceptually, it's sort of the opposite of curb appeal.
COSMETIC VS. STRUCTURAL
General property valuation rule: cosmetic problems = good, structural problems = bad!
By "cosmetic," I'm referring to things like:
- Peeling or old paint
- Ancient carpet
- Wrecked light fixtures
- Scratched kitchen cabinets
- Torn vinyl flooring
- Accumulated junk or clutter
- An messy lawn
- Unkempt shrubbery
- Filthy siding
- Old appliances
- Weak bathroom fixtures & towel racks
- Old doorknobs
- Old outlet & switch plate covers
- Dented mini-blinds
- Broken windows
- Any other "quick fix" you can think of
Structural issues, or issues where you must proceed with extreme caution, include:
- A severely cracked foundation or walls
- Galvanized piping
- Leaning chimney
- Outdated electric (i.e., knob & tube wiring)
- Severely sloping, cracked or warped floors
- Pervasive asbestos
- Rotting wood in the frame
- Lead paint
- A long-running leaky roof
- Buried underground oil tanks
- HVAC problems
- Mold
Note that I am not saying to keep away from all of these issues at all cost. Run the numbers to ascertain feasibility. If you can acquire a multifamily rental property on the cheap, then perhaps you'll be able to meet the expense of a new roof, an electric upgrade, or even mold remediation and still come out ahead.
It all depends on the buy price, your property valuation conclusion, your level of experience, and the strength of your stomach. Use my free inspection checklist to help show the way (note: I'll post it on my website).
PROPERTY VALUATION "SQUEEZERS" TO AVOID
And finally, here's a list of things that'll kill property value...avoid them!
- Properties with serious structural issues or that are poorly constructed.
- Properties where all units are of the single-bedroom variety.
- Properties that show "economic obsolescence," such as those with very short ceilings, or those with many bedrooms, but only 1 bathroom for example.
- Twins, condos, row homes, etc. These types of structures usually do not appreciate as much as detached structures.
- Properties with wells and septic systems. These systems could create a lot of problems and added expense down the road.
- Properties that do not have separate utilities. I've literally seen tenants crank the heat up to 90 degrees F in the winter but leave the windows wide open. The only utilities you as a landlord should be paying are water and sewer.
Stay tuned for more info.
Al-Yassa Al-Mahi
Article Source: http://EzineArticles.com/?expert=Al-Yassa_Al-Mahi
Al-Yassa Al-Mahi - EzineArticles Expert Author
Wednesday, December 2, 2009
How Essential Property Management is in Apartment Investing Success
How Essential Property Management is in Apartment Investing Success
The belief that in 2009 the apartment investor can literally get away with murder by either not having a professional property management person on site or in some way is negligent on the property management spectrum. The stark reality is that next to the rents, the property management aspect is top of the list for essentials in the apartment investing market. The average apartment complex has a few hundred units and at the very least, 40 hours of daily work tasks. These tasks need to be done on the occupants schedule not the schedule of the management. This creates a very interesting dilemma for any of the property investors that feel a 40 hour employee on site is either unnecessary or unwarranted. In both aspects this is incorrect. A simple table will demonstrate why this is a reality and a reason to employ a property manager on site, at least part -time.
Four Reasons to hire a Great Property Manager on Site
· Professional Presence: Many Residents Prefer and Expect a Person On Site
· Customer Service Advocate: Professional Approach
· Maintenance Issues: If There is no Dedicated Maintenance Person On Site the Professional Property Manager Will Know Who to Call or Do it Themselves
· Collection: Collector of the Rental Units Dues Very Important
These issues listed above are very important and that list is just a microcosm of the reasons that can be formulated in the realm of property management for apartment investing success. Many other reasons are commonsense related and need no further defining and if they did then possibly there are other investment alternatives in the horizon. The apartment investor realizes all too well that the risk of failure in the business of renting units to strangers is relatively high. The nature of the business screams for the property to be adequately protected with a professional on site during the working hours of early morning to late afternoon. This is just how it is so when the check is being written, for the purchase of the apartment complex, make certain that an additional $40,000 is weaved into the final amount. This will make it that much easier to hire the property manager off of monster or CareerBuilder as the salary will be set in place long before Mrs. Mary Taylor Watkins comes strolling in for her 12 o'clock.
Are There Reasons to Not Employ an On Site Property Manager?
Basically, yes. The size of the apartment complex may be small enough to get away with a part-time, paid, off-site property manager, possibly. The tasks are so monumentally challenging to own and operate an apartment investment that the reasons for not employing a trained professional are almost not there. The apartment investor that is serious about maintaining the integrity of both the rental units and their clients will think very seriously about the hiring of an on-site property manager.
David Lindahl, also known as the "Apartment King" has been successfully investing in single family homes and apartments for the last 14 years and currently owns over 7,000 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! For two FREE copies of his highly recognized newsletter Real Estate Insights, please go to http://www.davesoffer.com/ezine
Article Source: http://EzineArticles.com/?expert=Dave_Lindahl
Dave Lindahl - EzineArticles Expert Author
The belief that in 2009 the apartment investor can literally get away with murder by either not having a professional property management person on site or in some way is negligent on the property management spectrum. The stark reality is that next to the rents, the property management aspect is top of the list for essentials in the apartment investing market. The average apartment complex has a few hundred units and at the very least, 40 hours of daily work tasks. These tasks need to be done on the occupants schedule not the schedule of the management. This creates a very interesting dilemma for any of the property investors that feel a 40 hour employee on site is either unnecessary or unwarranted. In both aspects this is incorrect. A simple table will demonstrate why this is a reality and a reason to employ a property manager on site, at least part -time.
Four Reasons to hire a Great Property Manager on Site
· Professional Presence: Many Residents Prefer and Expect a Person On Site
· Customer Service Advocate: Professional Approach
· Maintenance Issues: If There is no Dedicated Maintenance Person On Site the Professional Property Manager Will Know Who to Call or Do it Themselves
· Collection: Collector of the Rental Units Dues Very Important
These issues listed above are very important and that list is just a microcosm of the reasons that can be formulated in the realm of property management for apartment investing success. Many other reasons are commonsense related and need no further defining and if they did then possibly there are other investment alternatives in the horizon. The apartment investor realizes all too well that the risk of failure in the business of renting units to strangers is relatively high. The nature of the business screams for the property to be adequately protected with a professional on site during the working hours of early morning to late afternoon. This is just how it is so when the check is being written, for the purchase of the apartment complex, make certain that an additional $40,000 is weaved into the final amount. This will make it that much easier to hire the property manager off of monster or CareerBuilder as the salary will be set in place long before Mrs. Mary Taylor Watkins comes strolling in for her 12 o'clock.
Are There Reasons to Not Employ an On Site Property Manager?
Basically, yes. The size of the apartment complex may be small enough to get away with a part-time, paid, off-site property manager, possibly. The tasks are so monumentally challenging to own and operate an apartment investment that the reasons for not employing a trained professional are almost not there. The apartment investor that is serious about maintaining the integrity of both the rental units and their clients will think very seriously about the hiring of an on-site property manager.
David Lindahl, also known as the "Apartment King" has been successfully investing in single family homes and apartments for the last 14 years and currently owns over 7,000 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! For two FREE copies of his highly recognized newsletter Real Estate Insights, please go to http://www.davesoffer.com/ezine
Article Source: http://EzineArticles.com/?expert=Dave_Lindahl
Dave Lindahl - EzineArticles Expert Author
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