How to Find a Real Estate Investment Company You Can Trust
Do you want to know how to find a real estate investment company? Be careful not to overlook the important factors. It’s important that you nail down the essential qualities. It’s even more important when you want to work with passive income properties. After all, the best real estate investment firm does two things. They help you identify properties to invest in. And they act as property manager for investments you don’t plan to flip.
How to Find A Real Estate Investment Company, A Really Trustworthy One
Don’t stop at asking, “What does a real estate investment firm do?” Here are a few more questions to help you discover a real estate investment company you can trust.
In this article, we’ll answer the following questions:
- Does the Company Know the Market?
- Are They into Flipping or Long-Term Investment?
- Are Their References Credible?
- What Are the Next Steps?
Does the Company Know the Market?
Partnering with a real estate investment company means trusting them with your money. This means they have to prove that they know the real estate market in the region.
Ask for their most recent data on the local market. Even if you’re new, you’ll know the difference between a comprehensive report and one that’s sloppily made.
Look for current and historical trends across a variety of real estate categories. You should be comfortable with your investments based on these. Ask about all important factors that will affect your decision. These include zoning ordinances, market trends, and current and projected demographics. Also, ask about the performance of different types of real estate investments.
Are They Into Flipping or Long-Term Investment?
Your real estate investing company should understand your investment goals. There’s no shame in property flipping. But it involves the immediate sale price and the cost of renovation. Buying fixer-uppers, in the hopes of realizing a post-renovation profit, is a bit risky. Your real estate investing firm should know how to handle these types of investments.
If you’re interested in long-term rental income but the company is nudging you toward “get rich quick” schemes, your relationship won’t be built on mutual trust.
Are Their References Credible?
If the company is dragging its feet when you ask for references, consider that a red flag. You need to get a feel for the company based on the references it provides. It should have more than a few references listed, of course. And it should be able to provide you with clients and partners that go several years back. Even if the firm is new, individual team members should be able to provide solid references. This should include current clients.
Contacting the references is a must. But a bit of detective work may also come in handy. Check the Better Business Bureau for complaints. Check with the local and state courthouses for lawsuits filed. And check the registrar of deeds for tax liabilities or other unpaid debt.
Make sure the company’s track record is trustworthy. Examine records related to their properties. This will help you see if they can keep properties well-maintained and if they can maximize potential profits.
What Are the Next Steps?
Some follow-up is helpful before you sign the dotted line. You’ll want to work with a firm that offers after-sale support. And make sure licensed, experienced people run the company. It’s best to work with firms that have good relationships with service providers. And you want to make sure you have an understanding of other services you might need, such as account management.
If you want to wise investments, you’ll have to partner with the best professionals around.
Have you considered tapping into real estate investment companies in your area? Let us know in the comments section below.