Residential Investment Property
Often, people and companies that sell rehabilitated real estate buy a dilapidated property, put a lot of money and sweat equity into it to make it attractive to a buyer, and then reap the reward when the property is sold for much more than the original buyer paid for it. There’s nothing wrong with this; on the contrary, it makes more housing available at a time when it’s in demand, and it’s often a good investment choice for the eventual buyer.
Before you invest in a rehabilitated property, you should obtain a professional appraisal from an independent appraiser. Normally, an appraisal will need to be performed on behalf of the lender by an appraiser working closely with sellers, brokers, and agents. Too often, homes are “flipped” for considerably more than they were recently purchased without any substantial improvements to justify the higher price. Let us help you ensure your money is being invested wisely.
It’s easy to protect yourself. Hire a professional appraiser to ensure the property has been updated or remodeled in a way that justifies the asking (or agreed-upon) purchase price. If you’re buying more than one property from the same seller, it’s even more important to have them appraised by a professional working for you instead of a professional who is working for the seller.
There are cost-effective ways to protect yourself when investing in a portfolio or multiple investment. We perform “drive-by” appraisals (sanctioned by housing giant Fannie Mae), which can be more economical than a full appraisal with an interior inspection. When this approach is combined with the expertise of a licensed home inspector, you should be able to buy with confidence that everything is as represented by the seller.
It’s smart to always have an inspection done before purchasing a property. It’s equally important to obtain an opinion of value from an appraiser. An inspector will tell you if everything present in the structure is functioning properly, which repairs still need to be completed, and whether there are any safety or soundness issues with the property. An appraiser can translate remaining repairs into dollars. Is the property worth what it’s selling for? If something unexpected happened and you needed to sell right away, would you be able to recoup your investment?
As an investor, you need and deserve to know. Protect your interests with the help of a professional appraiser.
If owning multi-unit income properties is your focus, you will want a professional appraiser with access to both local and regional sales data. As an investor in multi-unit properties, you require regional data to understand how the local market is competing. Our national database of sales and knowledge of the local multi-unit residential environment equips us with the information and experience needed to help you navigate purchasing and funding decisions related to your investment.