Studies - The Real Estate Market Analysis
Getting involved in real estate investments means conducting a variety of studies. These studies are collectively known as real estate analysis or comparative market analysis.
The purpose behind the studies is to examine current property market values that are comparable to the property you’re interested in purchasing or selling. An analysis is a tool to help determine market value.
Although a comparative market analysis is subjective, it’s still essential to conduct the study to ensure fair costs and expectations. There is a lot involved in a real estate analysis, but with Relotz, you don’t have to lift a finger because we do it all for you.
The Steps We Follow
To begin the property analysis, we look at several factors like the area, neighborhood, square footage, lot/land size, bedrooms, bathrooms, and extra living spaces. Other significant aspects include available amenities, property location, and any improvements that have been made in addition to the age of construction.
We then study and compare recently sold properties within the area in question to let you know what the comparable property value is for the current market. As real estate professionals, we all know that sellers like to list properties for amounts higher than the actual market value.
It’s our job here at Relotz to ensure that any property you’re interested in is going to benefit everyone. If we see something that doesn’t quite seem to be priced right, we’ll let you know.
Potential Gross and Net Profits
Something else that needs to be studied is the overall cash flow you can expect with the investment property of your choice. The simple understanding is that you need to know how much you’re going to get back in your pockets.
With the no money down approach with Relotz, everything that comes back to you is going to be profit. We’ll help you get a better idea of what your potential gross and net profits can be once your property is selected and studied.
Cost of Financing
Typically, real estate investment requires significant financing. Needing that kind of capital upfront makes real estate revenue difficult for a lot of people because property isn’t cheap.
To make sure everyone profits on the backend, we do include the cost of financing in the studies, so everyone is on the same page about what to expect. You might see some numbers that make you stop for a minute, but we’re here to tell you when it’s okay.
Our real estate professionals handle your financing 100% with no money from you. Thanks to our tested and tried methods, we can ensure that you’re going to reap the benefits of property flipping without the financial headache.
Return on Investment
The goal of property investment is to have a return on investment, or ROI, that makes the risk worthwhile. With Relotz, your risk is minimized as we take it on and do the work from start to finish.
We take the time to use our tools that ensure whether a property will be profitable by checking on before repair and after repair values. Without these studies, a loss is more likely, which is what we want to avoid for everyone involved.
The process to complete the studies takes some time
The process to complete the studies takes some time, but it’s worth it in the end when you see your ROI. All you must do is standby and wait for your investment’s return. It is that simple.