Four Investment Property Tips
While it is true that most of us would rather be the landlord then the tenant, it is hard work to take care of a commercial property. Beyond simply finding the right commercial property for sale when you want to buy, there are a number of things you may not have considered when looking at becoming a landlord. For anyone who is considering getting into an investment property, regardless of why, here are a few tips to help you navigate the unfamiliar waters of becoming a landlord.
Research is Key
Always take your time to check out and even do some real digging into the area you are looking at for an investment. What is the economic picture for this area? One great indicator that a neighborhood is on the way up is when big box stores like Wal-Mart or Home Depot have moved in recently. They have the bucks to do the research so why not follow on their coattails. Timing can be everything, especially if you are thinking of investing in an apartment building and want your investment to pay off.
Pick Your Real Estate Agent Well
Not every agent is created equal, so do some interviewing first. Make sure that the realtor you end up using has experience in commercial properties and knows just what is out there. The commercial property market is very different from the home buyers market, so make sure you have names of other investors they have helped and know how deep their support team is. You will need introductions to insurance brokers, mortgage brokers, accountants and of course probably a property manager. I explain why next.
Managing Your Property
If you are looking at apartment buildings with four or more units, invest in a good property manager. That way you are not the one getting that phone call at three in the morning, they are and they are paid for it. This will ensure that the building is well cared for and the tenants carefully chosen. Also, make sure to take time to find the right tenants. Filling a vacant unit just to fill it is a recipe for disaster. A good tenant, one that takes care of their unit, pays their rent on time and stays for years are worth their weight in gold.
Stay in for the Long Run
If you are taking the time and the money to find and buy a property as an investment, give it time to pay you back. By staying in the game for the long haul you not only make an income from the rentals but you will also have time to pay off that mortgage. This could be the best retirement investment you could make, so stick with it through tough times and good.
While buying into an investment property isn’t for everyone, it can be very rewarding. If you are having problems coming up with the cash, why not form a partnership with one or two others and from this create your own retirement plan? Just be sure to formalize the partnership and clearly state everyone’s share of responsibilities as well as their share in the profits.