Property Investment – a Suggested Checklist for a Savvy Investment
Deciding to invest in property does not always come easily, especially if this is your first time.
As we are in the business of property investment with an accumulated knowledge of 70 years, we have decided to share with you some of the issues that our investors face and consider prior to deciding to invest together through iintoo. This list is, by no means, a conclusive list, nor should it replace consulting with an external professional or your own personal due diligence. However, it sums up the most common questions of our investors.
First, let’s start with a small celebration. Congratulations! You have decided to see to your future or simply to upgrade your financial condition. This means that you understand market forces and you know that it is best to invest what you have today, be it a small amount, so that it may grow larger in the future.
There are several preliminary matters that you may think about prior to considering property investment altogether. Here, we are simply raising some common questions you may ask yourself:
What is the amount of money that I can invest? What other forms of investments are available to me? Should I diversify and invest in several types of investments (such as real estate, stocks, technology and so forth)? What do I hope to gain in the future – what is my motivation? Am I interested in a short-term investment or a long-term one that will support my retirement plans? Is liquidity an issue– do I need the money soon or I do not mind it growing over the next ten years (long-term)? Do I like to manage the entire process on my own or do I like that a trusted firm will do this for me? Do I have the required information, know-how and access to good quality investments?
Once you have figured these questions out for yourself and you have decided that you do want to put your investment money in real estate, it is now time to decide what type of real estate investor you are. Some of the questions, as well as your personal answers, may overlap. The type of investor you are may depend on the amount of money you want to invest. It may also depend on whether you are looking for passive income in the form of current returns or if you prefer the upside of project returns. In essence, an ample variety of parameters may impact your decision to invest.
Our investors usually come with a small amount of investment capital and are looking for exit-oriented short- to medium-term investments. Here are some of the questions that our investors considered prior to making their decision to invest together through iintoo.
a) What type of property should I invest in? For instance, should I invest in a residential or commercial property? There are many differences between commercial and residential properties. The most obvious one is that commercial properties costs many times the price of residential properties. Plus, the lease between landlord and tenant varies significantly between the commercial and the residential markets. Also, the make-up of income is different for commercial and residential properties.
b) Do I want to be a landlord? The most common reason for real estate investment, be it residential or commercial property, is in order to rent it out. Apart from common ongoing costs such as insurance, taxes, maintenance and so forth, some manage their properties on their own while others use a property management company. While the former may take your time and may cause headaches, the latter may incur some expenses. Being a landlord requires making sure that the property is kept well. It also requires you to look for the right tenants, those that pay on time and that maintain your property in good condition. For some, it may be a hassle, while others may enjoy this type of engagement.
c) Location! Location! Location! Real estate investment is still about Location! Location! Location! It is very simple. When you buy a property in a prime location, it is usually a great investment. Good location is usually a popular one, with access to transportation or to the city center, shops or restaurants. But sometimes it requires some vision… some times you can buy a property at a less than perfect location, with the vision that it will turn itself upside down in the years to come. This may happen if the city plans to revive and upgrade a certain area, or when a younger population moves into an older neighborhood and “wakes it up” with more relevant and upbeat city services and facilities. In these two examples, you may foresee that investing now will be financially beneficial in the long term.
d) What is my exit strategy? Am I in it for the long or short term? Some like to put their money in long-term projects with the belief that it will yield better in the future. Others believe they will benefit more from short-term investments. No matter your needs, preferences or beliefs, there is one thing that we urge you to consider, and it is whether your exit strategy makes financial sense to you? This, of course, requires further investigation with respect to taxes, tax benefits if relevant, types of deals, expenses and so forth.
e) Do I understand the purchasing process and its implications? Investing in property on your own should not be taken lightly. It requires looking for a property to invest in and one that best fits your need and prospects. It also requires going through the work of assessing and inspecting the property, and making sure that it is well-documented, registered and has a clean property title. All this type of research and investigation requires knowledge, experience, and, sometimes, professional help. These processes cost money and take time but are very important to adhere to.
We are not sure that iintoo fits your property investment wish list, and that is fine. We strongly believe that iintoo is relevant to people that like to invest together, expand their property investment knowledge and learn from the best. iintoo lets you put your foot in the door and removes many of the barriers to entry, as well as some of the hassles associated with property investments.
For instance, investing through iintoo removes all of the hassles associated with researching, locating, performing due diligence, purchasing and managing property. Our investment process is very simple – once you are registered as an investor on our investment social network, you can view all of our available investment projects (with no obligation to invest). You may select a project from several quality real estate investment opportunities at strategic locations around the globe that we have handpicked over hundreds of other deals. They have all undergone a thorough due-diligence process. You then select your preferred type of investment: Producing current returns or exit returns, or even both, be it multi-family, hospitality, development, mixed-use and other types of investments. In addition, you do not need deep pockets to join – our minimum investment amount is $25,000.
Investing through iintoo enables you to match your appetite for risk and return and lets you pick the type of property investment that best fits your situation and investment strategy. It also lets you benefit from a projected annual returns of 15-20%, managed risk, and the knowledge that your investment is managed by a trusted investment team with years of experience, a superb reputation and a track record of accomplishment.