Is it a worthwhile investment?
At Cousins Estate Agents we pride ourselves at offering an all-round service, which is why we have joined forces with local developers and property investors, with the aim of offering the best product targeted at the right customer.
When it comes to property investment, the most important factor that you must always keep in mind is that – Time Is Money! Many investors, actually work in other fields & look to property as a long-term investment. This invariably means 'Property' analysis time is valuable & short in supply.
Valuing your time and knowing how to maximise your day to your benefit means that it is important to learn how to quickly assess whether you should invest your funds in a property deal or not. Here are 8 questions to ask that can be covered in 5 minutes:
- What terms are they proposing for the deal?
- Do they need capital investment alone or is it a partnership – will you receive a percentage interest on your funds (private investment) or a profit share?
- How much capital is needed to complete the deal?
- Are you the sole funds provider or will other private investors be involved.
- How long will the funds be required for?
- How long is the project expected to take and has extra time been included for potential delays.
- Exit strategy – are they selling or retaining – how will they release your funds to return them to you?
- Due diligence – have they done theirs?
- Demand, saleability – is the end product (design and finish) appropriate for the location, population & demographic, have they obtained comparable evidence or do they have local experience to support their back-end property values?
- How soon do they need the funds?
- Security – what security are they offering in return for your funds?
- Legal contract – what written agreement will be in place
You might be thinking that you need to know the details of the property in question such as type, number of bedrooms, overall square footage, location, supply & demand but the above questions are most important for quickly assessing if a deal is right for you. The property specifics form part of the second stage of assessment – your Due Diligence!
If in doubt we're here to offer a listening ear. Just call and ask for Aron!
