5 Easy Ways To Find The High-Profit Property Investment
Property Investment Consulting
Many folks think that property investment is simple. You find an underdeveloped area that’s hot and attracting both retailers and renters, do some research, buy the property, and take it easy. Property values climb, and that’s the end of it…right?
Wrong. Property investment must be done correctly even in a flourishing market – or even because of one. It’s more science than art, and facts and analysis are more important than intuitive instinct. That’s where Pearl Lemon Consulting’s property investment consulting team comes in.
Experienced, knowledgeable, profitable, and successful. These are the characteristics you need in a property investment consultant. Pearl Lemon Consulting possesses all of them, as well as a few more. Our team is made up of seasoned real estate investors that know what to look for. They know how to notice the subtle differences between one property and another that make one a home run and the other a miss. They know when to bargain and when to walk away from a situation. They know when it’s better to invest jointly and when it’s best to go it alone.
The property investment consulting services by Pearl Lemon Consulting are some of the most comprehensive on the market. We take into account everything that could affect your investment, from hyperlocal to national market developments, to ensure that your portfolio is as solid as possible.
You’ve probably heard and read a lot about the value of accumulating wealth. And, in light of the financial turbulence produced by the COVID-19 crisis, many people are understanding that having revenue streams that are not exclusively based on the salary you are paid from your employment is more crucial than ever.
Real estate investment is one of the more exciting and lucrative ways to generate income. Property flipping and rental ownership are two of the most common and established strategies for doing so.
Rental properties demand a long-term commitment and varied degrees of reinvestment, whereas flipping is a short-term, labor-intensive investment. Both entail the purchase of real estate for the sake of profit, but that’s where the parallels end.
If you’re thinking about getting into real estate investing, which option is best for you? That answer will vary greatly from investor to investor – and a property investment consultant is a perfect person to help you determine which might be right for you – but here are some of the basic considerations:
Property Investment: Rent or Flip?
Which option you chose is determined by a variety of criteria, the most important of which are your existing cash flow levels, your long-term aims, and the markets you are considering investing in.
Some real estate investors follow the rule of thumb that flipped homes make a quicker profit than rental units. Others would rather have a slower and more consistent income stream from rental units than a windfall to enable them to reach their financial goals in smaller steps.
Flipping Houses
Property flipping is the process of bringing a property up to market value and quickly selling it for a profit.
Property Flipping Advantages
- This is a fantastic strategy in a hot market or if you have – or have access to – exceptional building and design skills that will boost the property to a level that makes it worth far more than you paid for it. One of the (many) things that working with the property investment consultants at Pearl Lemon Consulting will give you is access to referrals to the best of these professionals, as well as experienced advice on keeping such projects under budget.
- It’s challenging to flip in a ‘hot’ market. Finding a house that can be greatly improved can be difficult, but the plus is that the actual flip – selling – should be rapid.
- Hold times are brief. The main benefit of flipping real estate is the short amount of time it takes to acquire, enhance, and sell it for a profit.
Property Flipping Disadvantages
- The selling price. Fees and commissions will eat into your profit margins if you don’t handle the sale yourself. Self-sale is a convoluted minefield that most people wisely avoid, as the success rate of FSBO homes is extremely low, and most individuals who try it wind up going to a real estate agency anyhow, after wasting both time and money trying to sell their property on their own.
- Working with property investment consultants can help minimize those fees, however, as we can refer you to people who can help you navigate FSBO challenges, or to real estate agents willing to negotiate on commission rates.
- Repairs and upgrades can be quite expensive. It will be difficult to manage the improvement process unless you have a thorough understanding of house construction and renovation, especially when sorting through contractor estimates. Again, having a property investment consultant on your side will be a big plus, as we can help you find and connect with the professionals you need to help you navigate these challenges.
Owning a Rental Property
Although some people believe flipping houses to be an excellent way to start developing their portfolios, others choose to start with a rental property.
Rental Property Advantages
- Positive Cashflow. As long as rental properties remain rented, they provide a steady source of revenue. Monthly rents in many areas are sufficient to cover PITI (principal, interest, taxes, and insurance) payments as well as maintenance costs. That is absolutely the case in many real estate markets at the moment.
- Long-term wealth creation. Historically, properties have appreciated in value, with the exception of highly rare circumstances. The higher the returns, the longer they are held. The returns do of course vary from area to area, but working with a property investment consulting team will help you determine where to invest to get the best ROI.
Rental Property Investment Disadvantages
- Lack of area knowledge. Rental properties necessitate a deeper understanding of the local market. You’ll need to consider the property’s appeal from the perspective of both a renter and a buyer. However, if you work with an experienced property investment consultant this is no longer an issue because they can provide you with the crucial insight you require.
- Cashflow ebbs. When a property is vacant, there is no income source. You’ll have to pay the PITI, as well as any homeowner association fees and basic utilities, on a monthly basis. Furthermore, if you need to sell your rental property immediately, it is not a liquid asset.
- Repairs and maintenance. Being a landlord is not easy, and can become a full-time job you never expected to have to undertake. Working with a property investment consulting expert can prevent this. We can help you make a plan to maintain your properties efficiently with minimal effort, often via the services of a trusted property management company.
Residential or commercial property investment is a practical and proven path to wealth growth, whether you choose to flip homes or invest for the long term. Which option is ideal for you is determined by your financial resources, time, interests, and preferences. Working with the experts on the Pearl Lemon Consulting property investment consulting team will help you get the most out of any project. Contact us today to learn more.
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FAQs
What do you mean by property investment consulting?
Property investment consulting is a service that assists people and organisations in making the right choices concerning acquiring and managing real estate properties for investment reasons.
How do I select a good property investment consultant?
It’s crucial to consider a property investment consultant’s credentials, track record, and experience before hiring them. Additionally, you should look for a consultant that focuses on the kind of real estate you want to buy.
What advantages come with hiring a real estate investment consultant?
Utilising a property investment consultant includes advantages such as gaining access to professional knowledge and market insights, locating and assessing viable properties, and helping with the acquisition and management processes.