Investment property specialists play an important role in helping investors purchase, manage and sell investment properties profitably. As the real estate market becomes more competitive, working with the right specialist can give investors key advantages in finding and securing attractive investment deals. However, not all specialists are created equal. It is important for investors to do their due diligence in finding specialists with the right expertise, resources and track record to meet their investment goals. This article provides useful tips for investors to evaluate and select the ideal investment property specialist.
Examine Their Experience and Track Record with Specific Property Types
One of the most important factors is the specialist’s proven experience and success with the type of investment property you plan to acquire – whether it is residential rentals, commercial properties, raw land or other real estate assets. Look for specialists that have established long track records in buying/selling and managing the specific property types you are interested in. Review their case studies and client testimonials to verify they have extensive hands-on expertise that translates into consistent high returns for their clients.
Evaluate Their Access to Off-Market Property Deals
The best specialists have networks and proprietary access to ‘off-market’ real estate deals that aren’t widely marketed. This enables them to find undervalued or distressed properties before they hit the masses. They leverage direct relationships with brokers, developers, landlords/owners and other contacts to source exclusive deal flow. Vet their ability to identify and secure off-market deals that align with your investing criteria.
Assess Their Knowledge of Local Market Conditions and Trends
A specialist who thoroughly understands local market supply/demand dynamics, pricing trends, tenant profiles and growth projections will have superior insight into which neighborhoods and properties offer the best investment potential. They can also accurately forecast risks associated with different submarkets. Look for specialists who are deeply interconnected with all facets of their local market.
Verify Their Resources for Property Management
If you plan to hold rental properties or commercial assets, the specialist should have the systems, processes, contractors and expertise to effectively oversee day-to-day management. This includes tenant screening/selection, rent collection, maintenance/repairs, accounting, lease administration and compliance issues. Review their property management capabilities to ensure they have resources to maximize returns and minimize headaches.
Choose Specialists Committed to Investor Success
The ideal specialists view themselves as partners fully committed to their clients’ success. They invest time upfront to understand each investor’s objectives, risk tolerance and criteria. Ongoing, they provide market updates, education and insightful advice to help investors make informed decisions. Their motivation is based on developing win-win long-term investor relationships, not quick scores. Opt for specialists who demonstrate genuine commitment to your real estate investing success.
Choosing the right real estate investment property specialist is one of the most important decisions an investor can make. Following these five tips will help investors thoroughly vet specialists to find those best equipped with the experience, expertise and resources to meet their specific investing goals and generate lasting success.