Buying rental property with a property investment company can be the right choice if you’re a new real estate investor.
These real estate investment companies can be a kind of stepping stone to learning all about real estate investing. With a property investment company, you could avoid making mistakes when buying investment property and at the same time, learn how to invest in real estate. Alternatively, if you wish to have someone else choose and manage your real estate investments, a property investment company can do just that.
Because you are putting your trust (and a large cash investment) in the hands of a property investment company, you have to know how to choose the right one. Here is what to look for to ensure you choose the best one for you.
Is The Property Investment Company Experienced?
New real estate investment companies are started every day. Your best bet would be to go with one that has been in business for a longer time. After all, investing with a company that is prone to making mistakes or has no real experience with the real estate market would make the whole endeavor somewhat pointless.
Not only should you inquire about how many years the company has been practicing, but also the experience of the team. The team of real estate agents and experts should know what they’re doing and have the track record to prove it.
Be sure that their experience in the specific real estate market is also vast. The company should be able to provide you with information about economic and job trends, anything that would affect the performance of an investment property in the real estate market.
Do The Investment Properties Meet Your Goals?
Even if you wish to rely fully on the property investment company for your real estate investing needs, you still should know what your basic goals are. What do you wish to achieve and what investment properties can get you to your goals? Residential real estate investment properties? Or maybe commercial real estate investment properties? Decide what works best for you and choose a property investment company, which not only offers these but has experience investing in them.
How Does the Company Choose Investment Properties?
Even if you’re a beginner real estate investor, it’s important that the property investment company walk you through how they choose investment properties. Due diligence is key when buying investment property. Of course, an experienced company will know how crucial real estate investment analysis is in real estate investing. Still, it’s a good idea to make sure it is all in line with your goals.
Related: 5 Ways to Find an Investment Property
How Much Are The Property Investment Company Fees?
Different property investment companies have different kinds of fees. This can vary depending on the type of investment properties or the size of the team involved. How much will it affect the kind of return on investment you will get? It’s okay to shop around for less expensive fees, but be sure you’re not choosing a property investment company purely because of the lower fees. If a certain property investment company offers lower fees but has no experience, then it can end up costing you a lot of money.
Related: The Best Real Estate Investing Tips For Cutting Down On Your Expenses
Do They Offer Rental Property Management?
Many real estate investment companies offer rental property management. This comes down to a real estate investor’s preference and real estate investing goals. Of course, if you’re a new real estate investor, it might be much easier if the company offers professional property management.
If the property investment company does offer professional property management, it’s a good idea to investigate how previous investment properties have been managed. Does the company have a team large enough to handle and delegate responsibilities of multiple investment properties?
With multifamily real estate or even residential real estate, you could go a step further and ask for references from previous tenants. Make sure the rental property management services offered are going to ensure your investment property is a success.
Can They Provide References?
References from other real estate investors can really provide insight on the abilities of a property investment company. It’s important to ask about the return on investment, success, and what the property investment company was able to achieve for the real estate investor. Did the company help the real estate investor achieve his/her goals?
Consider doing an online search as well. You may be able to find reviews online or comments from real estate investors to get even more insight about the property investment company.
Can You Learn From The Property Investment Company?
One of the most important things you should look for in a property investment company as a beginner real estate investor is if the company is willing to teach you all about real estate investing. Many real estate investment companies pride themselves on teaching new real estate investors how to find and analyze investment properties. Some real estate investors may choose to stay with the company, while others use the knowledge and are able to start investing in real estate on their own.
Want to learn about real estate investing in an alternative way? Sign up to Mashvisor and use our platform to find and analyze investment properties. It’s easy even for a beginner real estate investor!
Related: Learn How to Invest in Multifamily Homes for Sale
Is The Property Investment Company Transparent?
Transparency and communication can be two of the best traits of a property investment company. You need to inquire about how the company plans on reporting back to you on the progress of real estate investments. If a property company goes as far as to show you the progress and success of past and current real estate investments, consider this transparency as a great thing.
Communication is also key. Not only should the company be open with you, but their communication skills should put you at ease. Do they respond to you in a timely manner? Are they clear and direct when answering your questions? Make note of all of your initial communication with the property investment company to ensure things will always run smoothly in the future.
Choosing a property investment company can be a bit difficult because there are so many choices. Just be sure to take your time and don’t rush the choice. Inquire about all of the things on this list and you should end up with the right property investment company for you.
Alternatively, consider investing in real estate on your own. Click here to easily find and analyze investment properties.