Buyers If you’re a buyer, we can provide everything you need to make a smart, well-informed purchase of your next property whether residential or commercial. If you are looking to purchase a second or third home, that could qualify you for being an investor. With multiple properties you need to think as an investor would think. As a new investor we can help you structure your real estate business in a way that makes managing your properties easier. Likewise, we can help you build your portfolio to a size that gives you the passive income you need. Now is the time to buy regardless of whatever phase the market is in because it’s a numbers game and as long as you “buy right”, you won’t lose. Please contact us and we’ll help get you to where you want to be. Some things we can do for you as a Buyer are: Investor Agent Representation Your first consult with us will allow us to collect the information needed to purchase your first piece of investment real estate, whether for your occupancy or as a first rental. If you are in an area where we have licensed agents, we will represent you directly. We are also affiliated with several agents and agencies in every state that know how to help you find what you’re looking for in your next investment. An agent is an important consideration when buying a property because not all agents are created equal. Yes they all have basically the same resources but not all of them know how to work with buyers of different types and especially investors. We match you with an agent that can best represent your needs and can understand your specific circumstances. All Real Estate agents within a state can operate anywhere within that state (a big area) but nearly all agents specialize in certain areas for which they are mostly familiar. Only 2% of all real estate agents are truly successful from a wealth perspective, 18% do well enough to supplement their income and 80% fail completely. 90% concentrate on SFH or fee-based property management with the rest concentrating on commercial or have some type of specialty. So contacting an agent, any agent or brokerage, for your search for a property is a big mistake if you don’t ask the right questions and get the right answers. Likewise, as a buyer you should consider the practical experience level of an agent for the specific type of property or properties being considered. Years of experience is meaningless if the agent does not derive their primary source of personal income from activities in real estate or has significant personal holdings. An agent that sells mostly Single-Family Homes is not likely to make the best choice for a Commercial property. An agent who has years of experience but no personal wealth derived from the business means that agent may not have the qualifications to speak with you as a savvy investor. Most real estate agents derive their income from the commissions of private sellers or owner-occupant buyers and that’s all. Basically there are two types of buyers: Owner-OccupantInvestor Owner-Occupant buyers are people who will live or abide in the property they purchase on a day-to-day basis. These are your typical homeowners or commercial/multi-family operators who live in one unit while renting the others. This type of buyer has a set of priorities different from an investor buyer. For example, a home buyer will want a place that meets their needs from the perspective of number of bedrooms and bathrooms and overall appeal of the property. Owner-Occupants are looking at ‘livability’ because they are going to live in the property. Price is a close second in that they want a place they can afford. A commercial buyer will want a property that meets all the space and resource requirements with location possibly being key to their decision-making process. Again, price is secondary to the primary purpose of the particular type of real estate being considered. Of course, there are other considerations but this gives you an idea. Owner-occupant buyers are first interested in whether or not a particular property meets their needs for living comfortably over anything else. It is also not uncommon for an owner-occupant to purchase a property at near retail or market rate prices to achieve their livability goals. Investor buyers are totally different. An investor, such as us, will look at the financials first above anything else. Investors want to know how well a particular property “cash flows” and whether it has a sufficient Return on Investment (ROI) among other financial considerations. Investors usually purchase either for what is called “Buy-N-Hold” or for “Equity”. The difference is too involved to discuss here but essentially, Buy-N-Hold is exactly what it sounds like and the investor is looking to purchase the property for a periodic (usually monthly) “cash flow” purposes whereas an “Equity” purchase is buying sufficiently under market value to make necessary repairs and resell the property for a profit. Some call this flipping and it happens every day. Second to this an investor will be interested in whether or not the property is located in a place where tenancy can be adequately maintained such as with apartment buildings, condo/townhomes, office space or mixed-use (property that has both a commercial and residential). Most investors never buy at retail unlike an owner-occupant who might since their priorities and concerns are different. Financing Financing for buyers are different depending on if it is a personal loan or a commercial loan. Personal or ‘residential’ loans are typically for single-family houses, condominium or townhome and multi-unit properties up to 4-units. Local zoning will largely determine whether a property is classified as Residential, Commercial or Mixed and the type of financing available. Personal financing is heavily dependent upon the creditworthiness of the principle buyer(s). Commercial financing is more dependent upon the quality of the deal e.g. its ability to service the debt and is less dependent on the principals credit. In either case, having decent credit is important and all of this depends on the requirements of the institution underwriting the loan. Property Inspections Our specialized property inspections are in conformance to InterNACHI standards and are available for any buyer, seller or investor for which we are doing business. We perform property inspections for everyone from homeowners to financial institutions.We provide Showcase Services to bring out the best in property listed for sale.We can deliver fully qualified reports detailing all financial aspects of a properties market position. Property inspections are an important part of the buying process and should always be considered. You can inspect it yourself if you feel qualified but I wouldn’t recommend doing it yourself. For a few hundred dollars you can have someone go through a property top to bottom and find most things wrong with it, both major and minor issues, before making an offer. This is a no-brainer for a new buyer/investor or if you don’t know ‘how houses are supposed to work’. We can perform a thorough Property Inspection that meets or exceeds InterNACHI standards. Our property inspectors are capable of evaluating every aspect of a property from foundation to roof. We also have specialized inspections that can give you a deeper view of a particular aspect of a property to include plumbing, HVAC, electrical and more. We recommend that every buyer have a professional property inspection done before committing to a deal. Buyer approval of the results of property inspections are often a contingency in the Real Estate contract and can be a smart move. Intelligent Property Improvements Increase Value Of course the basics have to be in good working order, plumbing, electrical, foundation, etc. but some improvements can increase value such as adding a bath or converting space into livable space. We are also a home improvement specialist registered with the State of PA. Our partnerships and in-house expertise can bring higher value solutions to any property on-time and within budget targets. We talk to investors all the time who ask about whether they should pursue certain upgrades and our answer always begins with a question of ‘why’ and ‘How will it make you more money?’ Property Improvement Recommendations We give you the recommendations that will maximize the value of your investment for equity, refinance and appraisal purposes. Improving your property in the right places requires an understanding of what is best for the property, the local market and whatever the exit strategy calls for in your area. Contact us and lets get the conversation started!