Recently, my team and I sat down with an investor and another agent we work with. He's a recent transplant to Charlottesville, Virginia and he wants to start investing in Real Estate in his new town. Specifically he wants to buy and rehab homes for re-sale. He's a savvy businessman so we went right to work on the details and numbers. In the end we decided to work together, and as we were talking I thought it would be a good idea to share a few things with you in case this is something you're considering.
5 Questions to Ask About Investing in Real Estate
1) How involved do I want to be?
This one is important. There are a few ways I can help and the level of return on investment can depend on how you choose to be involved. I can offer turn-key solutions for you or simply facilitate finding, purchasing, and selling properties.
In the turn-key scenario, I can find you properties, present numbers, choose the best option, find a general contractor, work with them on the design, oversee the project, and then list and sell your property. This is quite the undertaking, but I believe you can still outperform many other investment opportunities doing this. Your involvement could be limited to choosing the property, providing the money for purchase and remodeling, and signing papers for the sell. I work for commission on purchase and sale, and receive a percentage of the profits.
2) Am I comfortable making quick decisions?
Good investment properties that come to market don't last long. When I find one and show it to you, we need to be ready to pull the trigger quickly. This is why trust is so important in these partnerships.
3) Am I ready to take a risk?
This question makes my stomach tighten up a bit! The reality is, I will do everything in my power to set you up for investment success. And my own financial success depends on you succeeding. If I do a good job for you and you are happy with the results, you will likely invest again. But REALTORS don't have a crystal ball, and we lack the x-ray vision necessary to see everything a property will need. Even though I've spent years in remodeling, there can always be surprises. I will budget as best as possible so that even in the worst case scenario, we all profit, but I can't make 100% guarantees.
4) Would I enjoy this?
This process can be fun! Remodeling your own home can be a big headache. You're either living there or are waiting to move in. It gets stressful. However, remodeling an investment can be a blast! You get to make smart design choices, help a struggling house live up to its best potential, and still sleep in your own quiet home. As I said, you can be totally hands-off but if this sounds like fun, I can help make this process a great learning experience for you as you help manage the project and learn the ins and outs of remodeling.
5) What's keeping me from investing in real estate?
Do you find yourself returning to this idea and never pursuing it? Do you get excited when you watch the home remodeling shows on HGTV? Do you peruse the local MLS and dream of fixing up some of the properties you see? If so, let me help! I would love to get coffee with you sometime and go into more depth about the process of buying homes for remodel and re-sale. Sure, the days of the easy flip are gone, but with the right research and smart decisions along the way, it is still a great way to invest your money.
I hope you found this helpful. If you want to know more, give me a call or shoot me an email. In the meantime, start your search on www.thebeckhamteam.com!
