Neil Shekhter - Real Estate Agents for Property Investors

LOS ANGELES, CA / ACCESSWIRE / December 22, 2017 / For Los Angeles property investors, a relationship with a good real estate agent is imperative. You want to find an agent you can continue to work with in the future as you grow your portfolio of investment properties. A good agent will also be important in getting you started. They will help identify and purchase good investment properties for the best prices. The factors you should consider when hiring an investment real estate agent will be outlined in this article.

Experience

Per Neil Shekhter not every real estate agent is familiar with buying and selling investment properties. Investment real estate requires a specific set of skills and knowledge that not all agents have. Most real estate agents are in the business of assisting clients who want to buy a property as a permanent residence. Investment, on the other hand, is focused on turning a profit from the property, and you want a real estate agent who will look at the purchase in that way. An agent who has experience in working with property investors is preferable. An agent who has personal investing experience is an even better find.

Any Specializations

It is also important to consider the type of investment properties you are interested in. This will be an important element of your branding as an investor. A Los Angeles real estate agent experienced in buying and selling the type of properties you want to acquire then must be found. For example, buying apartments or other multifamily types of housing is vastly different than buying a single-family home. There are different sets of state and federal laws to take into account as well as other complicating factors, such as governing documents.

Reputation

Such as when searching for a real estate agent normally, you want to ask for recommendations and referrals. An agent with a good reputation is more likely to perform their role well. There are a number of ways to research different agents. Online reviews and testimonials are helpful. Contact other investors or speak to them at events to get recommendations and ask about the agents they work with. However, also understand that an investor might lose money on a property for reasons beyond their agent's control. Because of this, they may be inclined to say negative things about an agent even though the failure could be due to a great deal of other factors. Due to the nature of real estate investing, this should be taken into account.

Willingness To Make Offers

An investment real estate agent must be comfortable making offers. Real estate investment entails buying properties for the lowest possible price in order to get the most return. When buying the property, this often means making offers until an acceptable price is agreed upon. Agents who are not good at haggling will likely not be a good match for property investors.

Local

You want a real estate in Los Angeles agent who is local and familiar with the areas in which you wish to invest. As widely known by all real estate professionals, location is one of the most important factors in buying and selling properties. Agents should understand the different neighborhoods, especially in big cities, and be able to determine which neighborhoods are best for investment. For example, in Los Angeles, communities like Santa Monica are desirable and can be excellent holding investments. If you plan to own properties in different areas with vastly different real estate markets, it might be advisable to find a different agent to work with in each location. A local agent will be constantly aware of properties that come up for sale you might be interested in, giving you the first chance to make an offer on a property.

Understanding Of Cap Rates and Cash Flow

You want an agent who can accurately determine the cap rates and cash flows of different properties. This will help you determine whether buying the property is a smart investment or not. The cap rate is how the profitability of an investment property is measured and usually shown as a percentage. It can also be used as a metric for how risky the investment is. The cap rate is determined by simply dividing the net operating income (which takes into account revenue and expenses such as rent and utilities) by the purchase price. Cash flow must be determined to come up with those numbers. Look for an agent who can not only give you the numbers but also offer suggestions on renovations and repairs to any property you are considering.

Can You Work With Them?

Selecting a real estate agent for investment properties is a major decision. You must find an agent you can trust, who will be your partner in acquiring and selling these properties, and who will tell the reality of it to you straight. While you can always switch agents if your first choice does not work out, endeavor to make the best choice possible, to begin with for the best chances of success. An agent who has worked with you for a significant amount of time will know what properties you are interested in buying and which ones will best fit into your portfolio. This will result in investors being able to grow their portfolios faster with the right properties at the right prices.

Neil Shekhter is the CEO of NMS Properties, a privately owned real estate management firm that specializes in multi-family and mixed-use properties in the Greater Los Angeles Area and in Santa Monica. Founded by Neil Shekhter in 1988, NMS currently manages more than 70 properties.

Apartments For Rent In Los Angeles And More - NMS residential: http://www.nmsresidential.com/