Are you a property investor, thinking of becoming an investor, or even a property manager? Welcome! You have come across the right blog for you. We know there is a lot of thought that goes into buying property or even deciding which type of property is right for you. Like any business there are so many important steps that need to be taken into consideration when taking the plunge. We hope that these recommendations will come in handy for you and perhaps put a few things into perspective for you while you are doing your research. Not only will it fuel you with some additional information, this list is also going to help you stay on top of your game and make sure that you’re making the appropriate decisions for yourself and your business at the end of the day.
We are going to talk about the top 5 things you should really think about and know in your industry.
Let’s get started!
- Keep up with the real estate trends
What is it that catches your eye? What would you like to invest your money and your time in? Or what you like to manage?
Some options for investment:
- Vacant land: We all know this is no easy task. Sometimes buying land could end up being more difficult due to zoning restrictions or environmental conditions. Make sure to do your research and hire a real estate agent to help you collect all of the facts.
- Multi family property management: One of the most important aspects of multifamily property management is being able to find the right multifamily properties to manage. This involves carefully assessing a property and making sure it’s the right fit for you.
- Office spaces: WeWork, Sola Salon Suites, Phoenix Suites, etc.
- Industrial or warehouse property: always wanted to own a brewery or winery? This would be your chance! Even CrossFit gyms which are very popular right now- to oil refineries and shipment yards. There’s a wide variety of possibilities for this one.
- Investment property: Airbnb is all the rage right now and investing in a nice home and renting it out would be a great idea. As well as a cabin, or even a traditional rental home.
- Retail space: clothing stores, coffee shops, restaurants, etc.
- Hire a commercial real estate agent
Not only will you be saving time because the agent will be taking care of the lease listing and sales aspects. You will also save money since agents work on commission but not only that, they work their hardest to barter the best deals they possibly can for you. Deals you most likely would not get on your own. Agents will also have listing access and market knowledge that you will definitely need during this process.
- Insure your investment
We all know insurance should be one of your top priorities when you’re looking into any of these options.
For example: Industrial or warehouse property is going to require Lessor Risk Coverage or otherwise known as landlords insurance. If you have questions on this please check out our previous blog that addresses the ins and outs of landlord insurance.
Additional example, for an AirBnB most homeowners insurance exclude short term rentals. Although AirBnB does offer liability coverage it’s best to call us so we can talk about your options and if you would need business insurance or simply landlord insurance.
- Hire a good CPA
You need to be able to communicate openly with your CPA and make sure they completely understand your business. Even if they are only doing the taxes portion of your business. It’s good to do your research and find a CPA that works frequently with your business type.
You might be thinking that handling your accounting and finances yourself will save your business money, when in fact it could do just the opposite. Do yourself a favor and consider hiring some help. You don’t need to be taking the time to learn certain accounting software and data entry when you have bigger fish to fry and focusing on the bigger picture: your business.
Make sure to take a step back and ask yourself what exactly it is that you want from your accountant. Are you looking for someone to process your accounts payable and sales invoices? Or do you need someone to create your budgets and financial statements? It’s good to know exactly what it is you need when going into the research and hiring process. Just to make sure you’re both on the same page.
- Be patient
Entrepreneurs tend to be an impatient bunch and in our society now, we all want instant gratification. However, anything of value takes time, whether it’s building a relationship, building a skill, or launching a business.
Rome wasn’t built in a day.
We would love to have you call us (909)757-1311 or visit us at monrealinsurance.com and talk to us about any questions that you may have on these topics, or even others!