Pittsburgh Real Estate Investment Counsel

Real estate has long been considered one of the soundest ventures in which to invest one’s money. People are always going to need a place to live and businesses are always going to need a place to operate. However, knowing what properties to invest in can be more complicated than it seems. It is important for an investor to do  homework and seek the advice of an experienced consultant before making any major decisions.

Getting Started in Real Estate Investment

Everyone knows that location is an important thing when investing in real estate. It may seem like the most lucrative structures would be in the wealthiest neighborhoods. This is not necessarily true. A successful investor will find property that attracts the kind of renters with whom they are looking to do business.

It is important to understand the initial expenses involved in any new investment. When investing in real estate, one must take the cost of renovations into consideration. Commercial real estate requires a much larger down payment than buying a private home, and you should be prepared to pay at least 20 percent up front. Having a great credit score is essential to getting a business loan and a potential investor should clean up their credit before applying for a loan. It can never hurt to have a successful friend write a letter of reference to a bank.

What to Look for in a Property

Research is extremely important when you are considering buying commercial real estate. A property is not necessarily a bad investment if it needs a lot of fixing up. A person who owns a run-down apartment building can turn that building into affordable housing and receive government assistance for remodeling. If an investor owns a warehouse in a disadvantaged neighborhood, they can rent it to a business that will bring jobs to the area.   

Knowing When to Invest

Commercial property investment includes a wide range of options including rental properties, storage warehouses, and agricultural land. An investor may think that a down payment is all that they need to have in order to start renting out apartments. A warehouse owner may be tempted to taking bids from companies as soon as possible. The situation is more complex than meets the eye. An apartment building in a wealthy neighborhood may need costly renovations, a warehouse may need to meet a certain set of safety standards and agricultural land may come with a sizable tax obligation. It is important to subtract all the expenses associated with a commercial property before investing in it and this is why hiring an investment counselor is so critical.

Why Hire an Investment Counselor

A good Investment counselor in Pittsburgh will know exactly what questions to ask a seller. An experienced counselor may save an investor time and money by researching every minute detail of a property. Planning and research can save first-time investors stress and money.