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When it comes to energy efficiency, look for smart features and expertise to help you save energy and money and add value to your home. 1. Begin with a Right-Sized Home. If the home you buy is simply too large for you or your family’s needs or plans, you stand a good chance of wasting energy ... Read moreView all news
Investment property is income producing real property which is held specifically as an investment. Real estate investments can serve as inflation hedges, offer portfolio diversification, provide income and capital appreciation. Like other investment vehicles, real estate can offer a complete spectrum of investment returns directly related to risk.
Many different types of real estate are held for investment. At one end of the investment spectrum is the "bond-equivalent" deal where a relatively large investment in real property involves a passive triple-net lease (the tenant pays taxes, insurance and all maintenance) of a property for 15-20 years by a national AAA credit tenant. At the other end of the investment property spectrum are more localized investments in property, which carry different levels of risk and management intensity.
Metts Company Realtors concentrates upon the investment analysis and risk probability analysis to evaluate the suitability of a property for each client.
Our first step is to fully understand the investment objectives of our investor in relation to the market dynamics associated with various types of investment properties. We focus upon the investors objectives regarding:
- Rate of return required
- Portfolio diversification
- Holding period
- Property management
- Risk tolerance
The next step is to identify available investment properties and to perform a thorough, comprehensive evaluation of each property based on their performance projections or financial remodeling based upon current and historical performance as well as a sensitivity analysis (factors such as purchase price, inflation rate, interest rates, etc.) and risk probability analysis.
Through our experience and contacts, we can also assist our clients in finding sources for financing the real estate transaction by identifying potential lenders and help develop the financial proforma projections to include in a detailed loan package presentation.