Whether you’re considering investing in real estate as an investment property or you’ve already taken steps to seek out the right turnkey investment property for you, following these strategies will maximize your profits and minimize your stress.
Get Your Finances in Order
Like with any large purchase, you’ll want to make sure your finances are in order before moving forward with the financing stage of your investment purchase. There are a few dos and don’ts to keep in mind during the weeks and months leading up to your investment purchase.
Don’t Apply For New Credit
Applying for new credit shortly before applying for a large loan on an investment property or other large purchase can raise red flags for lenders who may see you as a risk. In order to maintain your credibility as an investor, be sure to avoid applying for new credit cards, buying new houses or cars, or making large purchases beforehand.
Check Your Credit Score
With free resources like Credit Karma, it’s never been easier to see your credit score. Keeping track of your credit score will allow you to understand how your overall finance record will appear to lenders who will be checking this information before approving or denying a loan.
Opening new accounts, missing payments, and utilizing the maximum amount of credit on an account will have a negative impact on your credit score, while making regular payments and being responsible with loans and credit cards can increase your score. Here’s a breakdown of what your credit score means:
750 and Above: Excellent
700 - 749: Good
650 - 699: Fair
550 - 649: Poor
550 and Below: Bad
Since many lenders will not offer loans to anyone with a credit score below 600, including the spouse of anyone with a credit score below 600, it’s important to make sure your finances, and those of your spouse or anyone else you have financial ties with, are in order.
On the same note, consumers with credit scores above 750 can often qualify for lower interest rates and incentives not available to those with lower credit scores. Take advantage of services like Credit Karma credit score monitoring and Discover’s free member FICO report to understand how your credit score will affect your lending opportunities.
READ MORE: Steps to Get Started in Real Estate Investment
Protect Yourself From Identity Theft
Since lenders not only look at your credit score but also your name, credit history, and close financial connections (co-signers, co-lenders, etc.), protecting yourself and your loved ones from identity thieves has never been more important. Even if you make responsible financial decisions, a stolen identity can be the difference between being approved for or denied for a loan.
There are a variety of free and paid services that monitor your identity and alert you to new accounts, credit card and social security number use, and more. Just a few of the most well-known services include:
Work With A Real Estate Investment Company
Owning an investment property can be a great experience if you decide to work with a real estate investment company. Working with a turnkey investment company like Memphis CashFlow can make the process much more enjoyable and profitable.
From helping you locate the perfect investment property to handling day to day tasks on your behalf, we can protect your investment and your property so you can avoid the hassle and expense of overseeing your properties. Without the partnership of an investment company, you are required to fill the role of owner and landlord. This includes a variety of duties, including:
Paying mortgages, utility bills, and property taxes
Handling complaints and maintenance requests
Collecting rent and overdue payments
Supervising properties and tenants
Working with a Memphis real estate investment property to manage your cash flow real estate allows us to take care of the daily maintenance and finance tasks so you can sit back and enjoy the benefits of your investment. Just a few of the ways we’ll assist you in the beginning stages of the process include:
Providing growth estimates for local markets
Helping you find the right property in the right location
Taking care of any necessary renovations or construction needed
Setting up utilities and other accounts
Handling real estate investment trusts (REITs)
READ MORE: How Real Estate Investment Works
Consider Your Options
Working with a real estate investment company will certainly provide you with far more opportunities and options than would be available to you if you purchased a rental home on your own. From consulting to helping investors make sense of local economic growth patterns, real estate investment groups, and real estate investment trusts, we’re here to help you succeed in every way possible.
Turnkey is a common term used in the real estate investment world. What exactly is a turnkey property? A turnkey property is an investment property that has already undergone any necessary renovations and is ready for an investor to purchase. If you’re an investor looking for out-of-state properties, chances are you won’t want the added time and expense of purchasing a property that needs extensive renovations.
READ MORE: What Are Turnkey Investment Properties?
The benefit of working with a real estate investment company with experience locating and selling turnkey properties is that you as an investor only have to provide the initial investment in order to enjoy the benefits of regular cash flow. We take care of everything else.
Memphis Real Estate Investment Properties
Are you ready to take the next step and begin the process of finding your investment property? We’ll walk you through the process from start to finish and help you make the most of your real estate investment in the Memphis real estate market.