Investing in residential property?
When considering investing in small residential income properties, it is important to make sure the quality of your aquisition will lead to a successful experience in multi-family market ownership.
Often, people and companies that sell rehabilitated real estate, buy a property in need of repairs. Their goal is to make it attractive to a buyer, and then reap the reward generated by selling the property for a more than they originally paid for it. There's nothing wrong with this if the repairing and renovating are done up to the standards expected. Renovating makes more housing available at a time when it's in demand. And as noted, if properly performed, it's often a good investment choice for the eventual buyer.
Protect yourself against illegal "flipping"
Before you invest in a rehabilitated property, you should obtain a professional appraisal, from an appraiser with your interests, and that of the lender, in mind. Unfortunately, at times, an appraisal will be performed on behalf of the lender, by an appraiser working closely with sellers, brokers and agents. This is not in the best interest of the lender as well as the buyer as it is not necessariy objective. Too often in the recent past, homes had been "flipped" for considerably more than they were recently purchased for, without any substantial improvements to justify the higher price. Dont be the one left holding the bag — have someone on your side making sure the value of the property is supported by a thorough examination of up to date market data. Protect your interests with the services of a professional real estate appraiser. 973.715.1700