Choosing the right Real Estate Investment Company

For first time investors, the process of investing may seem like a daunting process. But your choice of real estate investment company may be even more important than the investment. 

In this article, we will talk about what a real estate investment company does and how to choose the right one for you.
We will discuss what to look for and common pitfalls newbie investors make so settle in and be prepared to take some notes! 

What does a Real Estate Investment company do

Firstly, let's discuss what exactly a real estate investment company does. 
If you manage your real estate investment well, you will be able to earn passive income and have more time enjoy other things. There are investors who invest in real estate for their retirement fund. 
That is where Real Estate Investment companies come in. 
Real estate companies have a wide range of business practices, as well as many qualifications and permits required for business. 
There are many different real estate companies with various specialties such as rental properties, property purchasing, and house and condominium sales.
In addition to the above, there are real estate agencies who also do property management. These types of companies tend to be large companies with different divisions and areas of expertise. However, most companies tend to specialize in one main area. 
Among the many real estate companies, those that are strong in selling investment real estate are called real estate investment companies. It is a company that handles profitable properties and has a track record of transactions. 

Most real estate investment companies conduct the following: 
 
●Introduce investors to investment properties
●Create investment balance sheets
●Support with various procedures

As mentioned above, the main role of real estate investment companies is to make proposals when purchasing properties and to support the buyer in the purchasing process. 
Most investors have investment companies conduct property searches and advise on property management. 
Real estate investors buy properties and make a profit, but the reality is that it is quite difficult to find an investment property on your own. 
Without experience, it is difficult to make a success out of the venture. 
Furthermore, it is very important to have a financial plan which includes your current income, savings, investment goals, etc. 
An investment company's role is to provide consultation and advice on what kind of property to buy, what kind of yields to expect and if the property can expect any capital gains in the future. 
When the property to be purchased is decided, documentary such as concluding a real estate sales contract and applying for a loan are required. 
The real estate investment company can provide support with these kinds of procedures. 
Moreover, if the investor decides to outsource the property management, the investment company can advertise for tenants, collect rent, maintain and clean the property, and deal with tenant complaints and vacancies. 

How to choose the real estate investment company for you？

They say that the keys to real estate investment success is in choosing the right investment company. 
Among the many investment products out there, real estate investing requires a large investment amount and a long investment period.
For real estate investors, real estate investment companies are partners in steering the investment process along the desired path. 
From here, let's introduce the points about how to choose a real estate investment company.

The size of the company

When investing in real estate, you may be worried if the management of your partner real estate investment company is too small. When choosing a company to partner with, be aware of its size and the number of transactions it has completed. 

They give advice on both the merits and demerits

Real estate investing comes with big merits, but it has its demerits and risks as well. It is best to be wary of real estate investment companies who focus only on the merits and don't give proper advice on the demerits and risks of a certain investment. 

Customer-oriented company

It is important to choose a real estate investment company who will recommend properties based on the client/investors needs and desires. 
A good investment company will take into consideration a client's income, assets and investment goals and recommend an investment property accordingly. 
Many companies will choose to prioritize profits over the investment goals of their clients so it is best to steer clear of those types of companies. 

Continues support after purchase

Once an investor decides to purchase, it is not the end of the process. 
An investment property needs to be managed for a long time, so choose a company that will explain in detail the after-sales service after purchase.
The management of a purchase will vary greatly depending on whether or not there is after-sales follow-up such as tenant management and property maintenance.
It would be even better if the company offers advice on resetting rent and selling.
Some companies only mediate selling investment properties and have no after-sales follow-up.
Make sure that the company you choose can continue to manage, or if it specializes in brokerage only, that it can introduce a good management company after purchase.

Trustworthy advisor

Just as it is important to trust the scope, services and reputation of the investment company you choose, it is just as important to trust your individual advisor. 
Be wary of the following types:
●They give vague answers to your questions 
●They are not speedy with their replies （they are days late in replying）

Common pitfalls to avoid 

Lastly, let's discuss what to be careful of when choosing a real estate investment company. 

They only discuss the merits

This was discussed earlier, but it bears repeating because it is a very important point. 
Be careful of companies who only discuss the merits of an investment.
When you start investing, if you don't understand the risks and precautions, you are more likely to lose money.
Real estate is a long term investment, so it is necessary to make a 10 or 20 year forecast and base your decision on the merits as well as the risks. 

They use decoy ads (misleading advertising)

Decoy ads are ads in which the listed property is already sold, has false prices, incorrect address and even doesn't exist at all. 
When an potential buyer makes inquiries about the property, the company will say that it has already sold or will try to push a different property. 
Even if the property has already sold, at the very least it means that they aren't on top of their listings and one has to question their management style. 

Forceful sales tactics

Be wary of companies which don't give you time to make a decision or are unnecessarily pushy in their sales tactics. 
For example, when they say something like, "This type of property doesn't come on the market that often so you should hurry and scoop it up while you can". 

Sales tactics like that are often used in rental brokerage sales, where rental property turnover is fast, and if you do not contract early for a good property, you will lose out to other applicants. 
However, compared with renting a property and purchasing a property, the investment amount is large and the risks are high. Be careful of companies that use forceful sales tactics. 

Bad reputation

In the internet age, it is easy to look for information about a company online. While it is not always wise to believe everything you read and hear online, if there are overwhelming negative reviews, then it is best to steer clear. 

In Conclusion

In this article, we talked about the role of a real estate investment company, and how to choose the right one for you. 
Real estate investing is one of the largest investments there is, so beginners will have a lot of anxiety.
So choosing the right investment company for you is one of the keys to success.
For those of you wishing to start real estate investing, please feel free to consult with us.