What Do They Know That Other Agents Don’t?
When it comes to real estate, many people assume that all agents are the same. While it is true that many real estate agents have similar characteristics, there is a big difference between a real estate agent and an investor friendly agent.
An investor friendly agent understands all aspects of investing in real estate. They are knowledgeable in investor tax benefits, calculating your return on investment (ROI), and most importantly finding the right investment property that meets your needs.
Identify Profitable Properties Based on Data
All real estate agents have access to the Multiple Listing Service (MLS), but an investor friendly agent can help you find a profitable purchase because they know what to look for. They are familiar with analyzing trends and key factors in properties that are important to investors.
- Current Trends In Rent
Investor friendly agents follow both trends in the home sale market and in the rental market. They know what other owners are charging in monthly rent for properties similar to what you’re looking to purchase. This will help you calculate how much you can afford in a mortgage payment so that the rent you charge will cover that as well as provide you with cash flow.
- After Repair Value
If you are interested in flipping a home, knowing the after repair value (ARV) couldn’t be more important. The ARV is the average sales price of nearby homes that were recently upgraded and refurbished before being sold. The ARV will allow you to project how much you’ll be able to sell your flip for after it is updated. This tells you how much you should pay for the property and repairs to ensure you are making a return on your investment.
- Give You Access To More Properties
An investor friendly agent is often in a better position to bring you homes or properties that are not yet listed due to their relationships with other investors. This insider data is beneficial for the buyer. If you are only looking at properties once they are on the market, you may find yourself a step behind others that are in the know!
Assist You in Calculating Your ROI
An investor friendly agent understands how to calculate your return on investment (ROI). Rental properties and flipping homes have very different calculations. Your agent will know the difference and calculate your ROI for your specific investment. For example, in rental ROI calculations, your agent will factor in things like the monthly income you’ll have in rent, equity build up, investor tax breaks, and property appreciation. This will give you a projected ROI over the course of several years.
Understands the Market for Flipping vs. Rental Investments
Have you got your mind set on flipping houses? Perhaps you’re aiming to build up a portfolio of rental properties. Investor friendly agents know to run the numbers for both scenarios so the data can tell which option may suit you best.
Offer Advice on Investor Tax Benefits
Personal income taxes can already be confusing, but adding an investment property into the mix can further complicate matters. That is why an experienced investor friendly agent is beneficial. They can identify tax breaks, explain depreciation, and capital gains. They will also be familiar with the 1031 exchange. A 1031 exchange allows you to avoid paying capital gains taxes when you sell an investment property and reinvest the proceeds from the sale.
May Have First Hand Experience in Investment Properties
Many investor friendly agents are investors themselves. This gives the agent first hand experience with investment properties. This will lead to fewer mistakes, less guessing, and more trust in your agent.
Consider Hiring A Property Management Company
Property management companies are multifaceted in their approach to the sale and purchase of a property. Property managers at Oak City Properties are familiar with every facet and role of the real estate industry, including investment properties.
At Oak City Properties, we have been helping those in the Raleigh area purchase and sell homes for years! Whether you are a family trying to sell your home or a landlord wanting to downsize your rental portfolio, our full-service property management company is here to help.
If you are interested in learning more about our services or speak to our listing agents, give us a call at 919-232-9222 or send us a message.
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