Getting the right people around you

Having the right people around you can make or break you. Their are good and bad people in every business. You need to make sure that your dealing with the good ones.

In this article we'll be talking about real estate investment. When you talk to a wholesaler,realtor,seller etc there are a few things you need to ask about so you know who your dealing with.

If your buying a flip home(your buying it then selling it) then you need the following key issues addressed. 1. Get a CMA(a report that shows what homes around the one your looking at are selling for). Be sure to review this before you decide.
2.Your construction is the next issue. How will that be done, and how much is that going to cost you? How long will that take? 3 How will you sell the property? This needs to be selected before you start so you know the total cost of selling your property.

All these numbers need to be at your fingertips before you make a decision on a property. People always blirt out numbers and they may or may not know what they're talking about. Always have all those numbers in writing and all your sales reports that show you what your property will sell for. The right people can give you all this information.

The next type of property is a rental. You want to do all the same things you do in a flip with some additional information needed. You need to have property management service. I know some people run their own rentals and that's fine, I'm just addressing people that don't. Good property management is very hard to find in most cases. I like for a property management to have a full time maintenance staff, this usually is a lot less expensive in the long run. Also I would call a few of their clients to see what they think of the service. One last thing to verify rents run a fake craigslist ad. This will tell you how much rent you can expect.

The other item to check on rentals is the yearly tax rate. That is a fixed cost that you need to look at to verify your cash flow. I was talking to a potential client last week and he informed that he had got a great deal on some duplex's in a certain area. I ask him if he had looked at the taxes in that area. He said no. I informed him that my duplex's had around $1800 a year in taxes in an area right outside his. His area avg $5200 a year in taxes. The Gross rents on mine is approx $200 less a month income. His taxes are $450 more a month . So he's losing $250 a month on those so called good deals. Plus they cost about $10K more to buy and fix up.

As you can see their is a lot of information you need to make an educated decision on an investment property. When you spending your hard earned money make sure you have all the information you need to make a sound decision.

As you can see getting the right people around you will maximize your profit on each investment property. Brett Young Valley Realty