Questions to consider before investing in Real Estate.
Happy Wednesday to all!
I wanted to get some feedback on questions other Real Estate professionals consider before each potential investment. I know for my firm our biggest one is, "LOW BASIS". Is the asset valued under market? This provides room for error and unexpected value-add expenses that may arise.
I listed 10 questions to get the discussion started. Please comment if you consider any of the same questions and talk about your process in doing so. Also feel free to input more questions that are important to you in your decision making process.
#1. Do you consider yourself to be a passive investor or an active investor?
#2. Whats your typical investment timeline? Whats your exit strategy?
#3. Do you consider the tax benefits?
#4. What makes a particular investment attractive to you?
#5. How do you determine your capital stack? More debt or equity?
#6. How did you decide on your asset class?
#7. What due diligence do you conduct to determine market feasibility?
#8. What makes you confident that you will qualify for a loan?
#9. Do you prepare a plan of action if we hit a downturn in the market?
#10. Have you ever considered crowd funding? If so, did it work?
Fletcher Clardy III, Clarity Equity Group, Kansas City, Missouri