Four Considerations for first-time Multifamily Buyers
Are you considering making an investment in a rental property? Here are a few considerations to help you, whether you’re thinking of buying a Duplex, Triplex, Quad, or even something much larger as your first investment.
- Get good legal advice
- I can’t stress enough how important it is to find an attorney that you trust who has experience dealing with commercial real estate to advise you in legal matters related to your investments. Your attorney will advise you with questions relating to incorporation, review of purchase and sale agreements, they will close your transactions, and advise you if a lawsuit or issue arises with your rental properties.
- Hire a broker to help you evaluate your options
- For your first transaction, it is a good idea to find a broker you trust to help you find deals and run numbers for you. This is especially important in markets such as Augusta, where duplex deals don’t last very long on the market or trade off-market. Also, it’s important to have someone who can help you navigate the underwriting process.
- Hire a professional property manager
- It is definitely a good idea to hire a professional property manager to handle your first deal. This also means that likely you will need to add an additional expense to your budget that the seller didn’t have if the property wasn’t professionally managed. It is always a good idea to interview a few managers, and have a good understanding of how their fees work.
- Solid marketing and promotion to lease up your units
- Professional pictures, a floorplan, even a 3-d tour—these are things that help listings to stand out and move quickly. Ask your property manager about them, and you may even need to help them put the marketing package together. Look at your competition—what are other apartments doing to attract tenants?
If you’re looking to make an investment, what are questions that you have? If you’re a seasoned investor, what are things you wish someone had told you?
National Real Estate Investor Article: https://www.nreionline.com/multifamily/three-keys-avoiding-first-time-multifamily-investor-pitfalls-2019
Teresa Bradley-Banta’s Blog Article: https://theresabradleybanta.com/5-tips-for-first-time-multifamily-real-estate-investors/