Investment Blog

Favorable New Tax Rules for 2014

From Inman News

The final regulations, which take effect Jan. 1, 2014, contain several pleasant surprises for small-business owners, including owners of rental properties. One of these is the “safe harbor for small taxpayers."

See more at: 

http://www.inman.com/2013/09/30/good-news-for-owners-of-smaller-residential-rental-properties/


Finding the Right Agent for Real Estate Investing

By Kevin Schill

The right real estate agent plays a big role in real estate investing, that roll starts with finding the right property for each individual investors needs, but it doesn't end there.  He/she will needs to write up an offer that will have a chance at acceptance in an often competitive environment, negotiate for the investors best interests and get the deal closed.

Here are some tips for finding that perfect agent.

REFERRALS
The best solution is to become a real estate agent, who could possibly know your investment needs better, right?  Well, not everyone has the time for a second career.  If this is not an option for you, the first step would be to get referrals from colleagues, friends, family etc.  When ever I need a good plumber or roofing company I will first ask the other agents in my office who they can recommend, if I start to see the same name pop up more than once we might have a winner.

WORK ETHIC
The first task in screening a real estate agent is determining their level of communication. When you give them a call and if they don't pick up the phone or return your call within a few hours, move on.  One of the most valuable assets to any investor is speed of response, sometimes you only have a few hours to get that offer submitted.

DETERMINING THEIR LEVEL OF COMPETENCE
Once you find an agent that is responsive, it's now time to determine if they know what they are doing.  Time to test their investment knowledge on the types of properties you are looking to buy.

1-What are the communities, towns, cities you are knowledgable in?
2-What are the market rents in these areas?
3-What are the going Capitalization Rates in these areas?
4-Can you do a before and after tax investment analysis on the properties I am interested in?  Including Cap Rate, and term based Internal Rate of Return?
5-Have you sold REO(bank owned) properties? 
6-Have you sold HUD homes?
7-Can you explain short sale opportunities and have you sold these?
8-When selling my properties, what marketing strategies would you implement?
9-Are you a CCIM (Certified Commercial Investment Member) Designee or Candidate?
10-Can you tell me about 1031 Tax Deferred Exchanges and do you know a reputable 1031 Intermediary?

The key here is to know the answers before you ask them, and determining how confident they are about their answers.

Finally ask them for the contact info for several past or current investment clients, give them a call see what they have to say about their experience with this agent.

It may take awhile to find the right real estate agent, but when you take these steps you will be on your way to starting a solid professional relationship.

I work exclusively in Boulder County Colorado and can help you with your investment goals in this area.  If you are outside Boulder County I can help you find qualified prospective agents in your area of interest.

© Kevin Schill 2018