Given enough time, real estate investing has the potential to produce wealth, but even with plenty of research, knowledge, and sound decisions, it remains something of a gamble. It really all boils down to picking the right property at the right price. A good agent can help you select the right property and greatly increase your odds of winning the investment game. So let’s investigate how an agent will help you buy investment property in Chicago.
Access to More Properties
When you have access to more properties, you’re likelier to find one that meets your investment needs and that will produce a profit. An investor-friendly agent will have access to a multitude of properties, many of them not even on the market yet. And those off-market deals can be some of the best when you want to buy investment property in Chicago.
A good agent will also work with wholesalers and even do some leg work and door knocking to find owners who want to sell for cash. To discover more about the many properties a Chicago agent will have access to, just call 773.233.8180.
Identifying Profitable Properties
When you buy investment property in Chicago, you want to do everything possible to ensure it will be profitable. Your agent will not only have access to many potential properties but will also know how to analyze the data in order to accurately assess profitability.
Here are some important profitability considerations your Chicago agent can help you with…
This is an important consideration for flippers who buy investment property in Chicago. After-repair value involves looking at such factors as potential property appreciation and trending upgrades, among many others. The main point, though, is that an agent can analyze the market and after-repair value to help you avoid being over-leveraged.
CURRENT RENT TRENDS
Buy-and-hold investors need to know the trends in the cost of rent in the local market when they buy an investment property. Again, an agent can analyze the data to determine if you can charge enough rent in order to have a positive cash flow.
TRADITIONAL BUYER COMPETITION
With current market conditions of low inventory and high demand and competition, you also need to need to know who your competitors are when you buy investment property in Chicago. And the competitors of most concern are traditional buyers who want to purchase a property as a primary residence and are willing to pay more. This is another important area where your agent can provide valuable assistance in the purchasing of investment property.
Calculating Potential ROI
When you buy investment property in Chicago or anywhere else your only goal is to make money. So you have to calculate the potential ROI on a property before purchasing. And that’s another critical thing your agent can assist you with.
Take flipping, for example. If everything goes right, you should shoot for an ROI of at least 20%. But things seldom go right – most properties have hidden problems. That’s why industry pros recommend purchasing properties with the promise of an ROI of 30%. With the pertinent data, your agent can help you calculate the potential ROI so that you can make a prudent purchasing decision.
Negotiating Better Deals
Maybe the most important way an agent will help you buy investment property in Chicago is in the negotiations. Simply put, an agent can help negotiate a better deal than you probably could on your own.
An agent with top-notch negotiation skills can get you a lower purchase price and better conditions in the contract, as well as keeping you from falling victim to fraud. The ultimate outcome, then, is more money in your investor pockets.
When you buy an investment property, you’re never doing it alone. It requires the services of a host of professionals such as inspectors, appraisers, real estate attorneys, and mortgage experts. A good agent will have many professional connections and a broad network to pull from to connect you with the professionals you need to ensure you make the most of your investment. As an investor, you need the best information and guidance you can get to make wise investment decisions.
Buy Investment Property with a Chicago Agent
In short, most investors need an investor-friendly agent who thoroughly understands real estate investing. So when you want to buy investment property in Chicago and get the help you need to ensure profitability, contact us today at 773.233.8180.