For most people getting into real estate investing, using a good agent is a good idea. An agent can help you find good deals on investment properties, bring critical negotiation skills to the table, provide assistance with contracts and other legal intricacies, and much more. Many investors just don realize how much an agent can do for them. Let’s take a closer look, then, at how a Newark, Irvington, Orange, and East Orange real estate agent can help you invest, examining exactly what an agent provides.
Experience and Expertise in the Local Market
First, your Newark, Irvington, Orange, and East Orange real estate agent will be knowledgeable about the community and surrounding area. “A good investment real estate agent is an absolute expert in the community they serve. They know all the neighborhoods and they’re knowledgeable about upcoming developments and changes. They know everything there is to know about local schools, amenities, and attractions, too.”
Because your agent will also “have a finger on the pulse of the area’s rental market,” she can provide assistance in evaluating potential properties and setting rents. To find out more about how a local agent can assist you in this respect, just call 201-341-6590.
Fast Responsiveness and Communication
In real estate investing, you sometimes have to move fast, finding and jumping on a good deal before the competition does. And, typically, this involves lightning-fast communication on your agent’s part.
Here’s the pros explain regarding this aspect of how a Newark, Irvington, Orange, and East Orangereal estate agent can help you invest: “Because of this time-crunch, it’s imperative you pick an agent who’s responsive, attentive, and quick on the draw. They need to respond quickly when there’s a potential deal on the line and be willing to drop everything for a last-minute showing or to draw up a bid. A delay of just a few hours can mean a lost deal and thousands in profits gone.”
On your own, you may not be able to act quickly enough. A good agent, though, can help ensure that it happens.
Broad Network of Industry Connections
Most agents have a broad and well connected network of industry connections. And an agent with such a far-reaching network can find newly listed properties much faster, giving you access to more potential investment properties.
Your agent’s broad network and insider information will even give her access to properties that aren’t on the market yet. And such off-market deals can be a huge boon for investors. What this boils down to is that your investment purchases become more affordable because you won’t have to be bidding against numerous competitors.
Every agent, of course, has access to the MLS, but a Newark, Irvington, Orange, and East Orangereal estate agent (as we mentioned) can help you invest by going far beyond that. And that means your agent can also help you analyze the data to assess a property’s potential profitability before you buy. An agent does this by . . .
CALCULATING AFTER-REPAIR VALUE
This is applicable primarily to flippers who need to know whether they can make a profit after performing all the necessary repairs to a property. What your Newark, Irvington, Orange, and East Orange real estate agent can do is look at the current market analysis, especially the after-repair value (ARV), to make sure you don’t over-leverage yourself.
Much like a CMA, the ARV involves the average sales prices of recently sold nearby homes, but in particular the ones that were recently upgraded. The ARV (unlike a CMA) considers the sold data only for recently upgraded properties, not all the similar recently sold properties. What the ARV does for you, then, is allow you to calculate your potential return.
EXAMINING COST-OF-RENT TRENDS
A Newark, Irvington, Orange, and East Orange real estate agent can also be a valuable asset for buy-and-hold investors. Your agent will be conversant with both the sale markets and the rental markets in the area. So your agent will know what you can expect to pay for a property, as well as how much monthly rent you can expect to collect.
This data will allow you to calculate how much you can afford to pay in monthly mortgage payments for a property because you’ll know about what you can charge for rent. The upshot here is that you will be on track to maintain a positive cash flow.
Assistance Calculating Potential ROI
Perhaps most important, a Newark, Irvington, Orange, and East Orangereal estate agent can help you invest by assisting with calculating potential ROI. You simply have to know that a property is very likely to provide a return on the investment before laying down your hard-earned cash.
Your agent will have access to the data that will allow you to calculate the ROI. Then, you can select properties that promise a good return, thus drastically decreasing your chances of purchasing a money-loser.
Get the Right Newark, Irvington, Orange, and East Orange Real Estate Agent
There’s no doubt that a good agent who specializes can help you invest. But you do need to make sure your agent has experience in this area and knows her way around investment financing as well as the various kinds of real estate investing. You could spend days or weeks researching agents – or you could just give us a call today. If you’re ready to have an investment-experienced Newark, Irvington, Orange, and East Orange real estate agent help you invest, then contact us at 201-341-6590.