Real Estate Investment
Financial independence is achieved when your monthly income from assets exceeds your monthly expenses. One of the most common ways to earn financial independence is investment in real estate. There are a number of differences involved in certain types of income-producing properties.
Single family properties have different disclosure requirements and loan requirements than multifamily units. Finding a REALTOR with the experience necessary to lead a person to the right property is essential when choosing an agent. Call Prestige Properties in order to obtain more advice on investing or selling multifamily properties.
Multifamily buildings contain tenants. This observation may seem obvious, but buyers sometimes fail to give this adequate consideration. Existing tenants should be evaluated on the basis of their longevity in the building and rent payment history. Failure to properly screen potential tenants may lead to a situation that leaves a poor taste in ones' mouth.
Multifamily buildings are bought for investment purposes. There are several methods used to determine the value of the complex. Please call us to further learn how to navigate this important step.
Multifamily buildings, like other housing, have competition. We are able to run comparisons on the properties in the area to help determine if rents and vacancy rates are within similar limits. Other market factors affecting multifamily properties are: new construction, employment levels, and rent control restrictions.
Multifamily mortgages are underwritten differently than 1-4 unit residences. Financing on multifamily income-producing property depends more on the ability of the subject property to generate a positive income than the buyer’s personal credit. It is extremely important to take into consideration all expenses involved in keeping the property, such as management, utilities, vacancy rates, and deferred maintenance. If the property is not able to generate a positive cash flow, then acquiring a loan may be virtually impossible. Prestige Properties is trained to detect these red flags and help you make a more informed decision. Contact us for more details.
Capitalization rate is the most-used calculation in determining what the property is worth to you. The higher the cap rate required, the lower the price of the property. There is no" magic bullet" to determine whether investing in a particular property will be a success. It may be a difference between being a true investor and someone who is stuck with a miserable, regretful, experience.
Prestige Properties would like to share our expertise and knowledge with you. For an in-depth consultation, please call and schedule an appointment with us. We have a variety of resources available to find that perfect income-property for you, or help you sell your current investment property.