The market for value add real estate is hot and returns on invested money are low. So , how do you navigate these waters to find the right property. Here are some tips.
- Use a broker. I know it sounds so self serving. The reality is:
- we do this every day.
- We are in contact with all other brokers so we know what new deals are coming to the market before they do.
- We have reviewed a lot of these properties so we know the pitfalls.
- Get and read the whole package. It is important to understand what is being offered. leases could have flat rent for 10 years. Understand how many options to renew.
- When in contract, get the lease and read it. Brokers can miss important information.
- Plan out what you want to do. What is your long term plan? choosing the right investment is key to make your money work for you.
- Do not forget, you can do a reverse exchange.
Just in case you missed it you are reading this blog on a real estate companies web site. We want your business. If you are looking into investment properties or are in a 1031 exchange, we can help!