Finding the Right Agent
Gain leverage over the other bidders by offering to move at once. Agents and vendors usually prefer to sell properties at once since a property that stays in the market for quite some time could be less appealing.
• Low but not ridiculous
Making your initial low but not ridiculous will show the vendor of your serious interest in the property.
• Cash at hand
With your pre-approved loan and a deposit ready at hand, agents will see you as a serious buyer. This will put you in a solid bargaining position compared to others who still need to organize their finances.
• Be critical
Keeping a list of defects of the property, even minute ones, can be used to negotiate a lower price.
All property investments involve transactions with real estate agents. It would be to your advantage if you could negotiate with an agent and arrive at a price of the property which fits your budget. Consider these tips in dealing with an agent:
The most important tip here is to always bear in mind that the real estate agent represents the seller and not the buyer.
Finders and Keepers; Finding Good Tenants
One element of property investing that is often overlooked is the importance of finding a good tenant. This is especially important when your investment is focused on generating cash flow which stems from rental income. Whether you opt to find a tenant by yourself or hire an agent to do the task for you, it would be wise to find out the following:
• Number of dependents, if any
• Rental background or history
• Financial stability of the tenant
• Lifestyle and occupation
• Contactable references
Watch out for signs such as when the tenant negotiates for the bond as this may signify problems in meeting their rental obligations in the future. Of course, when you do find good tenants, you must also find ways to keep them for as long as possible. The most important way is to offer a fair price for the rent from the start. Be prepared with your area’s rental values as your prospect would definitely be in the know. Another way to keep your tenants is by fixing the problems in the property as soon as they are made known. Respect to the tenant’s privacy is also valuable so establish your inspection schedule or at least give ample notice. A little appreciation goes a long way. Remembering to send them a little something on holidays can help in retaining good rapport with your tenants.