Important Basics : In the passage below you will find a piece of useful info about 6 requirements when choosing a turn-key property provider.
Important Basics : It is necessary to purchase directly from the seller As a matter of fact it is common in real estate investment issues for investors to wholesale other people's properties.
Of course, there are some exceptions, for example, in the case the seller who is in California selling a property in Ohio. The problem with this is that the wholesaler doesn't really know about the property and the property can sometimes easily become misrepresented.
That is the reason why you should always ask whether the seller actually owns the given property. In addition it is also very important to inform the seller that you would like to discuss the property with the person or company who originally acquired it and performed the renovations. It should be also pointed out that even if purchasing from a broker, you should sign an agency disclosure agreement and still insist on speaking with the owner. It will be useful for you to take into consideration that when speaking with the owner, it is vital to interview him/her on the renovations that took place. • You should pay for a property inspection It is always a wise decision to make to pay for a 3rd party inspection in order to confirm the property is fully renovated.
There is no need to be worry in the case the inspection has a few minor items, as all reports do. An inspector must justify his cost. The main thing to be pointed out is that the seller quickly takes care of all issues. • You should make sure the renovation is 100% done Keep in mind that you should never purchase a property at a wholesale price where the rehab isn't already 100% complete as some property providers sell the property and then do the repairs. In other case you as an investor will have to purchase the property and then wait for the renovations to be completed, delaying time to begin renting and realizing a return on investment. • You should know the financials The seller should provide a financial analysis showing all the expenses, cash flow, cash on cash return, cap rate and other key financial ratios. One item often misrepresented is the property taxes. It is important for you to make sure that stated taxes are based on non-homestead rates even if the property currently is assessed with homestead taxes. Remember that sooner or later, the adjustment will come and non-homestead taxes are much higher. • Property Manager/Rents The other valuable thing for you to consider that you need to be sure to interview the property manager and, in addition, you should make sure that you are clear on your targets, objectives, and expectations. It is vital to work with a company that has a proven track record Speaking about real estate investment, there are lots of new or beginning investors. In order you can reach success in real estate investment you need to be sure to use a company that is established and has a strong track record. Therefore you should look at previously sold properties and testimonials and ask for referrals. In addition it is recommended to find out how long they have been in business.