Who is a Real Estate Investor?
A real estate investor is someone that buys and sells properties for profit. He or she may also hold properties to rent to others. In most cases they are residential properties, either single-family homes or multi-unit homes. In our experience, an individual real estate investor looking for multi-family residences is purchasing multi-unit properties with four “doors” (apartments) or less. Five or more units in a single building is considered commercial, and has a slightly different set of rules.
Some real estate investors are purchasing with the intention of repairing (rehabbing) the property, then re-selling it onto the regular market. This has come to be known as “flipping” houses. Other real estate investors are looking for properties that they can purchase at a good price, optionally repair them, and then keep those buildings as rental properties. This practice is also known as “buy-and-hold” or, less commonly, “landlording”.
In general, people who do these kind of activities are collectively known as Real Estate Investors. Still, there are dozens of other types of activities that people can take on under the umbrella of being a real estate investor; the above is not an exhaustive list.
What is an Investment Property?
Just like regular home buyers, each real estate investor will have different criteria that they are looking for when they purchase a property as an investment. In our experience, investors tend to favor so-called “distressed” properties. This is simply because for an investor, the purchase price sets the basis for the profitability of the investment, and distressed properties often sell at a discount.
Sometimes a “distressed property” has little to do with the building itself and more to do with the owner. Various life events can conspire to make home ownership unaffordable or undesirable, and the owner (or heirs) just want or need to sell the property as quickly as possible, without spending any money. Similarly, when a property itself is in disrepair, the owner (or heirs) may find themselves in a distressed situation and needing to let go of the property, again as quickly as possible.
On the rental side, some landlord-owners may find that they don’t have the wherewithal to continue operating as a landlord, and want or need to move on. The property may be experiencing deferred maintenance issues, have tenant problems, or any number of things. Whatever the concerns, the owner simply wants out. Again, this is a situation in which the owner is distressed.
Whatever your needs as an investor, we have the experience to handle your transaction and help you achieve your investment goals.
What We Do on the Buy Side
Because we are tapped in to the real estate community in and around Madison, we often find out about properties that may be suitable for real estate investors before they are publicized on the MLS. We can help you identify those properties and help you in the purchase process as well.
Some properties are also offered by HUD or other government agencies that have foreclosed on non-performing loans. In the case of HUD, for example, you need to be represented by a registered HUD agent to make an offer on a property for sale. We are registered with HUD for this purpose, so we can handle these types of transactions.
What We Do on the Sell Side
When you’ve completed a rehab as a real estate investor, you want to get the property sold, and fast. We know how to market this new property and quickly answer questions and respond to objections that arise from the property’s history. We’ll work with you every step of the way to a successful sale.