Investing in real estate is more attractive when compared to traditional sources of income return. Investment property is real property purchased with the intent to earn a return on investment. This can be done through rental income, future resale property, or both. Investments can be either long or short term. Research and analysis is necessary when investing, however the research is different. Short term investments usually involve remodel or renovate costs, followed by realtor fees and costs to re-sell the property. These costs incurred, plus legal and accounting fees, are balanced with surrounding comparables to approximate profitability on the resale. This is considered flipping. With long-term investing, research and analysis are different. Properties are bought for long-term profit usually held with the objective that the property will increase in value and/or the property is leased to pay toward the principal owing.
Long-term investors have the option to sell for profit or sell to upgrade utilizing the equity toward purchase.
Revenue on an investment can be gained through price appreciation resulting from thriving housing market, as well as renovations and capital improvements.
Investments can range from a rental property, commercial property, second home, and/or vacation home. In purchasing an investment, it is important to hire a trusted, experienced real estate adviser as there are many components involved. To know and understand the market from an economic standpoint is crucial since the overall objective is profitability.
Commercial real estate ranges from leisure, retail, office, and industrial properties. Multi-residential with 5+ units are considered commercial property as well. These can be investments or income property intended to generate profit from either lease income or capital gain. There are several components involved when purchasing commercial real estate such as conducting proper due diligence, as well as choosing the right lender options. It is important for the real estate acquisition team to investigate rent roll, vendor contracts, city permits, insurance policies, etc. The objective is to gather as much information for clients to make informed investment decision.
There is also a post-closing process. This involves notifying tenants of new ownership, changing vendor relationships, and providing relevant information to an asset management team.
Steve Davis has been handling both commercial and residential investments for over 30 years. His cliental range from experienced investor-developers to first-time investors. He has experienced all types of economic markets which has molded who he is today. Call today for an appointment to discuss your real estate investment goals. Steve and his team will help structure a plan to suit your investment needs.
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Steve Davis Estates is a licensed real estate broker (00986011)independently owned and operated in the State of California, and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed.
