When buying an investment property, you have to know what strategy is best to use in order to grow your business. There are investors who like to do it all by themselves, while others like to hire a real estate company to take over the daily grind. There is no wrong answer when figuring out property management, it all depends on your style and personal preference. If profit is the most important factor when investing in real estate, maybe self management is the way to go. However, if you value your time more, it would be wise to consider property investment companies.
Property investment companies are great for any real estate investor who has a full-time job and does not want to be bothered with the daily stress that comes with owning a rental property. Property investment companies essentially make you a full-time real estate investor with a part-time work load. Although this is not the most cost effective form of investing, it is the more time freeing. Property investment companies buy houses, prepare them as rental income properties, and allow real estate investors to buy these investment properties. In exchange, they will manage the rental income on your behalf for a percentage of the rental income.
Property investment companies afford you the opportunity to become a real estate investor. Why is this a good idea? You are paying more money on the property, and in exchange they are taking a pay cut from your monthly profit. The main benefits of having a investment property management is time freedom. Here are 5 reasons why property investment companies are the way to go in real estate investing:
Related: Why Invest with Property Investment Companies?
Daily Grind
Whether you are a beginner real estate investor or have been in the business for a long time now, it is no secret that buying an investment property is very time consuming and requires a lot of effort. The stress of closing a deal on a property, preparing it for rent, hiring professionals to repair, and inspecting the investment property is daunting. When going with a property investment company, these real estate professionals will do all the tedious tasks that the average investor with a full-time job does not have time for.
Connections
Full-time real estate investors know that problems always arise when owning a rental income. The water heater breaks, the roof needs replacing, the tenant broke the door… Whatever the case may be, an issue arising is inevitable. There is a high chance that, especially when beginning, you do not have the right contacts for these problems. Luckily, these companies also act like a investment property management group. There is a manager who will take care of your specific rental income, and chances are he/she has the right connections for any problem that may arise. A good manager who has been in the business for a long time will be able to find the quickest and best solution to your problem.
Related: What Are the Most Important Aspects of Real Estate Investment Management?
Experience
Another major challenge that is experienced with owning a rental income is finding and dealing with tenants. By going through property investment companies, they will locate the best tenants. There is nothing more unsettling than having a destructive tenant. If you choose to go with these companies, they will use their years of experience to do all the screening process in order to find the best tenant. No company is perfect, and a bad tenant may find his/her way in your property. Property investment companies are able to go through the eviction process in the quickest and most cost effective manner, causing little to zero stress for the real estate investor.
Real estate investing is much easier when there is a company helping you find the most profitable investments. These professionals can always inform you of the best deals, or give a real estate investor input on how to value a real estate property.
Out-of-State Investing
You never know where a good business opportunity can come from next. The property that you are looking at can be half way across the country, forcing most real estate investors to pass on the opportunity. However, when dealing with a real estate management group, it is able to manage any real estate property without the investor physically being there. Property investment companies can be the bridge between expanding your brand over out of state and limiting it to one location.
Freedom to Grow Your Brand
The property investment company running the everyday daily operations for your rental income gives you more time to focus on growing your real estate investing business. No millionaire got to his/her position by spending all the time and effort on one cause. Successful real estate investors all learned that they need their time to figure out ways of increasing their money. The best way to free your time in order to make money is by hiring others to do the tedious tasks that get in the way.
Related: Investment Management in Real Estate Investing
Every successful business individual has a team that he/she can confide in to help make business decisions. This is not always an easy group to find, as people may have different agendas or bad knowledge of the situation. However, property investment companies have the same interest as the real estate investor. They only succeed when the investor succeeds. As a real estate investor, it is wise to take advantage of their immense knowledge. They are already being paid, so they might as well pick their brain to help your out for the future.
When looking to get into real estate investing, it is of utmost importance to develop a strong investing strategy. Know that it will take a lot of work for any real estate investor to manage any income property. If this is your only job, it is probably best to tackle this head on by yourself as it is the most cost effective option. However, this is not the case for the majority of real estate investors. If you want to get into real estate investing but have many commitments, consider hiring property investment companies. This will create a passive income without the headache. For more on property investment companies or any real estate related needs, visit Mashvisor: Your one stop shop for all things real estate!