Investment Properties

As property values dip, more and more consumers are turning back to renting as a way to save money until the markets stabilize. How can you cash in on this trend? Owning a rental property may be a smart way for clients to generate extra cash and for agents to establish a new niche market for themselves. Before you jump into an investment property, here are a few things to keep in mind.

• Get Set to Market
  Go through your client list and create segments for targeted marketing campaigns. According to National Association of REALTORS® (NAR) studies, 59 percent of investment buyers have no children under 18 living at home and 34 percent of buyers want to purchase near their primary residence.
   
• Know Your Buyers
  Are they willing to put in the time and elbow grease to maintain the property? If not, recommend a property management company. For a fee of usually up to 10 percent of the rent, the company will find tenants, collect rent and hire contractors for maintenance. Check out the National Association of Residential Property Managers at www.narpm.org to find a management company.
   
• Loan Programs
  You don’t have to be a pro on products with me at your side. I can provide expert home financing guidance, but you should know some basics. Many loan programs that you are already familiar with allow up to four units per property.

By educating yourself, you just may be able to help yourself  make the jump into investment properties.