Residential Property Investment Companies
When you are looking to become a real estate investor and buy your first property, there are always shows and exhibitions to visit where there are a plethora of companies willing to help you spend your money on one or more of their deals.
Each show I visit, and I still visit regularly, seems to have more and more with overseas investment stands doubling each time.
I have researched a number of these property investment companies UK based only and believe there to be merit in some of them.
I was hoping to find an easier way of building my portfolio without having to do the hard work myself.
Overall though, I believe you will end up paying too much for the property purchased.
Let me qualify that though! The value shown for the property, with the discount being offered, is usually at current market levels or below.
The way that the costs increase, in my opinion, is with the fees added into the deal by, and for, the company.
These companies usually offer a turnkey solution so you have no choice but to use their solicitor, their mortgage broker and their mortgage provider.
This is not to say that these charges are excessive, but that they are not open to negotiation or variance.
I have actually been quoted figures of up to £9000 just to do one deal with no discount if buying more than one property.
In my opinion, you are best served in doing the deals by yourself unless you have so much spare cash that costs are not an option? By finding and doing the deal yourself, you: -Learn so much that you can take on top your next and future deals -Develop a better understanding of the whole property market and how it all works -Build your own team of experts who work for you and not for the investment company -Get more satisfaction by growing your OWN portfolio There are also a number of good property sourcers around the country who can help you find suitable additions for your portfolio and these charge acceptable fees for their work.
If you need assistance, look for one of these especially at the start of your career as a real estate property investor.
Attending a local property networking event or club meeting is a good place to start as asking here for advice will soon turn up one or two and with personal recommendations, always a good thing! I am not saying that residential real estate companies should be avoided, that is a matter of personal choice, but that they are one of the possible sources for property acquisition.
To build up a good income from real estate investment of time is as important as an investment of money.
Dave P Thomas
Each show I visit, and I still visit regularly, seems to have more and more with overseas investment stands doubling each time.
I have researched a number of these property investment companies UK based only and believe there to be merit in some of them.
I was hoping to find an easier way of building my portfolio without having to do the hard work myself.
Overall though, I believe you will end up paying too much for the property purchased.
Let me qualify that though! The value shown for the property, with the discount being offered, is usually at current market levels or below.
The way that the costs increase, in my opinion, is with the fees added into the deal by, and for, the company.
These companies usually offer a turnkey solution so you have no choice but to use their solicitor, their mortgage broker and their mortgage provider.
This is not to say that these charges are excessive, but that they are not open to negotiation or variance.
I have actually been quoted figures of up to £9000 just to do one deal with no discount if buying more than one property.
In my opinion, you are best served in doing the deals by yourself unless you have so much spare cash that costs are not an option? By finding and doing the deal yourself, you: -Learn so much that you can take on top your next and future deals -Develop a better understanding of the whole property market and how it all works -Build your own team of experts who work for you and not for the investment company -Get more satisfaction by growing your OWN portfolio There are also a number of good property sourcers around the country who can help you find suitable additions for your portfolio and these charge acceptable fees for their work.
If you need assistance, look for one of these especially at the start of your career as a real estate property investor.
Attending a local property networking event or club meeting is a good place to start as asking here for advice will soon turn up one or two and with personal recommendations, always a good thing! I am not saying that residential real estate companies should be avoided, that is a matter of personal choice, but that they are one of the possible sources for property acquisition.
To build up a good income from real estate investment of time is as important as an investment of money.
Dave P Thomas
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