A property investment business can be a very rewarding venture. It’s a great investment strategy for building net worth quickly. You can even get monthly cash flow out of it if you configure it correctly.
With investment properties, you can make money no matter what the environment is like. No matter how bad the real estate industry is doing, people still have to live somewhere. If you want in, here is the general process that you will take.
Buying Investment Properties
There are many places to find real estate. It’ll be a little different if you’re looking to do residential property investment or commercial. With residential homes, they are everywhere.
You can either hire a real estate agent to look for you, go to the newspapers or go to real estate auctions. These are all good options.
In climate where there are a lot of foreclosures, auctions are a great place to find deals. They are usually held by banks or mortgage lenders and they are motivated to get rid of their inventory. They didn’t want it to begin with.
Property Investment Management
This is the part that tends to be a little labor intensive. First you have to fix up the place to make it livable. You, as the landlord, have certain legal responsibilities for maintenance and upkeep.
Then you have to find tenants. You can list your property in your local rental publications, post it on Craigslist or do it by word of mouth and tell your friends about it.
Once you find a group of potential tenants, you need to go through an application process to make sure they will be good tenants. This includes them filling out an application with employment information and references.
You want to make sure they are employed, otherwise you won’t get rent. You also want to make sure they are good people in general. If you get bad tenants who have a history of partying all of the time, wrecking the place and not paying rent on time, you will have a huge headache on your hands.
Property Investment Management Company
If you don’t want to deal with all of the headaches of property management, then you can hire a contractor to do this for you. You can find another property investor who will just add your properties to manage on top of their’s for a fee.
You can also go with a property management company that does this exclusively. You may have to pay a hefty fee, but it might be well worth it if you don’t have to do all this yourself.
Plus, these companies know what they are doing. They are professionals. They will know how to get good tenants, take care of all of the legal stuff, keep the property up with any necessary maintenance and evict your tenants if they need to.