It is important to find a business partner that can help you turn a profit when it comes to real estate investing. While the properties you choose are important, it is just as essential to look for a real estate investing company that can function as your partner and property manager.
What to Look For
When you choose a turnkey real estate investment company, there are a few critical items to consider.
1) Check References: Hiring a turnkey real estate investment company is no different than hiring an employee. It is important to check references. A reputable company will provide you with plenty of references, including past and present partners. Hi Anthony, I’m not certain if you actually do this or not. Let me know exactly how you show clients past success and we’ll edit this accordingly.
2) Verify Successes: You want to make sure that your potential partner can back up their claimed successes. Ask to review their maintenance costs, occupancy rates and other expenses in order to determine if the company is a good fit. Make sure the company properly maintains and repairs their properties, and make sure those properties are generating profits.
It’s also a good idea to check local records in order to check their tax status, costs and sales history. The registrar of deeds will reveal the sales prices of any properties the real estate investment company has to offer. You also want to make sure the company doesn’t have any tax liabilities or encumbrances that would make partnering with them a bad idea.
3) Test Market Knowledge: When you invest in turnkey real estate, you are often investing in a market you aren’t familiar with. The turnkey real estate investment firm will be the experts in the markets they serve and should be able to give you current and historical data about those markets. They can provide you with demographics, zoning laws, marketing trends and more. If you know more about the market than your possible partner, keep looking!
4) After-Sales Support: After you choose your property investment company, you need to find out just how much support they provide after a sale. The best choice will be a company that offers property management services performed by licensed, experienced property managers. They should work with vendors who perform the maintenance you need at a reasonable price. Their property management service should also provide account management services, ensuring you turn a profit each month.
At Crecco Companies we provide our investors with an opportunity to diversify their portfolio via income producing real estate and strive to maximize their returns and to protect their investments.
We’ve created relationships in strategic markets with local bankers, lawyers, brokers, and property managers and construction professionals in an effort to have a complete local team in place to assist in transaction analysis and execution pre and post closing. With more than 60 years experience in the field of real estate, you can be sure your investment will be in the right hands with us!
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