Hello all, I made contact with a real estate agent who will show me some homes and tell me a bit about the area I wish to invest in. Which is the Bethlem/Allentown/Easton, Pennsylvania area. I was wondering what questions should I ask the agent when I am with him? What should I be looking for in the neighborhood and homes I am going to check out. I just want to know how to best be prepared. Thanks.
1. What is the difference between a wholesale and a retail property?
2. How many investors do you have in your network?
3. How often do you go to REIA meetings.
These are things I asked before I got licensed as an agent. You want to find someone who truly understands exactly what you want. You need to understand exactly what you want so you know what to walk away from.
I asked mine if he had ever worked with investors before or have personally invested themselves.. If the answer is no, it might be a tough road for you just starting out. I would need at least that. Describe what you want to be doing and if you get a lot of resistance, find someone else. FYI, don't sign anything committing to them before you feel comfortable with them. Good luck!
@Eric DeVito Congratulations on taking the first step!
I would ask the following questions:
1) Have you every worked with investors before and are you currently working with any?
2) Do you invest yourself and if so, what areas?
3) Where have you seen the most population and job growth in these areas?
4) Take a look at a map and ask which areas he/she would consider A/B/C/D areas.
5) What are the typical cap rates in the area (if you're looking for commercial)?
6) What are the typical rent-to-price (Monthly Rent/Purchase Price) ratios in the area?
Just to name a few good ones. Definitely sit down and try to think your way through purchasing an investment property and think of all the steps along the way. Then, try to think about some questions you'd be asking during each step. Good luck!
Hi @Eric DeVito,
Welcome to BP!
Owned and managed quite a bit of properties in the ABE area. Some things you want to keep in mind in that area.
Is the Real Estate Agent Transactional? Do they own and operate properties in the area.
Do they understand Section 8 Housing. A big item in that area.
Do they understand transportation and hot spots.
Do they have there own power team to work with and this relates back to being transactional - Contractor, Electrician, Plumber Etc.
I know some active investors rehabbing up there and handle there financing. Let me know if you would like a introduction.
@Joseph Scorese Thanks Joe. Yes a will need a team and introduction would be great.
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