Perhaps the most important part in identifying the right real estate investment opportunity is learning how to effectively value available properties.
If you don’t do your homework and want to flip the property as soon as possible or get it ready for renters, there’s a very good chance you will lose money.
In this issue, the expert hard money lenders at PB Financial Group will share some tips on how to properly identify and value a potential investment property.
Remember, among the numerous advantages of having a hard money lender on your side – besides getting your investment money far quicker than a traditional bank – is that you have experts guidance throughout the process.
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Location
Few things are more important to the value of your investment property than its location. Consider if the property is close to good schools, shopping centers, etc.
If the surrounding neighborhood is comprised mainly of young and single people, the chances are that a school district is somewhat less important.
If, on the other hand, you anticipate renting or selling to a young couple with children, the rating of the closest school is highly important.
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Sold Properties
Ignore properties that are still on the market as there’s no guarantee they will sell at the advertised price.
Focus your search on similar properties within a one-mile radius of the one in which you’re interested. Limit your search to properties that have roughly the same square footage and same number of bedrooms and baths as the property you’ve identified.
Base your offer on the lowest price of the three comparable properties that have sold.
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Tax Rates
Familiarize yourself with the tax rates in the neighborhood. Remember, different towns can have vastly different tax rates.
Knowing how to properly value a property is an art form that can help you become ROI positive.
That’s just one of the areas of expertise the highly reputable hard money lenders in Los Angeles at PB Financial Group can offer.
If you’re looking for an investment that can provide you with a higher yield than what you would find in money markets, hard money realty loans could be the right ticket for your financial security.
For further information or to schedule an appointment please call PB Financial Group at 877.700.3703 or complete our easy online form.
PB Financial NMLS #357614/CalBre #01522495
