Are you considering a real estate investment? If so, you will need a professional on your side. Fortunately, there are many consultants out there that can help. The real estate investment market can be confusing, especially to new investors, so it will undoubtedly be in your best interest to choose an Investment Consultant in San Antonio, TX, to help you make decisions. Real estate can be an excellent investment opportunity, but one wrong move and you can lose it all.
Working with a Credible Company
One of the things that you want to be sure of when looking for a new consultant is that they work for a credible company. Ask a consultant how they can prove their standing and credibility, research using organizations like the Better Business Bureau, or find an office in your area and see how they are rated. A great place to start is to contact your local property management companies; these companies manage properties for real estate investors and are not only familiar with income properties, but are excellent resources. Let them know that you are a real estate investor looking for a property management company and their services, then ask them for references and a list of other real estate investment companies who use them. Also, ask what makes them stand out against their competition.
Working with an Experienced Consultant
Even if you find a credible company, you will certainly want to make sure that you are working with an experienced consultant. You may find that there are consultants at a company that has a few month’s experience and some that have decades of experience. You will want to work with the most knowledgeable and experienced person available for the best results.
Types of Real Estate Investment companies and advisors
Real-estate investment companies and their consultants fall into two categories; the equity speculators and the investment income investors. One is not better than the other, but they will evaluate real-estate investment in different ways.
The equity speculators will look for distress properties, undervalued properties, or properties with high equity growth probabilities. They can flip properties in months or hold onto them for years. However, their primary goal is to generate their gains from appreciation. Gains can be huge, but they also take on considerable risks that include liquidity and sometimes hefty upfront cost to build, fix, or update properties to ready them for sale.
The income investors are usually looking for multi-unit dwellings, office buildings, duplexes, and apartments. They value these properties based on yield, how much money they can get from renting out the property versus their investment. They are in the investment for the long haul and base their investments on rates of return. They use fixed income financial products as comparable, like treasury bonds or current interest rates. These types of investors are more akin to bond investors in the market. They usually will never see significant gains, but rely on a steady stream of income, the upfront costs are usually lower because they don’t’ have the added costs to build, fix, or update properties.
Choose a Consultant You Can Trust
Finally, you will want to make sure that you are working with a consultant you can trust. Trust will be critical in this type of situation because you will be relying on this person to make decisions with your money. Try to establish a relationship with this person, and use your instinct on whether or not you can trust them with your money. If you are looking to add a valuable, trusted consultant to your investment team and want creative solutions to expand your opportunities, contact Ulrich Investment Consultants. For more information, visit today.
