Whether you’re a seasoned real estate investment pro or a first-time investor just starting out, understanding Edmonton’s real estate (investment) market is critical if you hope to secure the right property, at the right price, for a lucrative return.
And what better way to effectively navigate your first (or next) real estate investment than by partnering with a knowledgeable expert who knows both the market and the industry, inside and out?
What is a Real Estate Investment REALTOR®, Exactly?
For starters, a REALTOR® differs from an agent in that a REALTOR® is a licensed member of the Canadian Real Estate Association (CREA). As such, they are expected to uphold specific standards, as well as a particular code of ethics, and undergo regular, rigorous training.
A real estate investment REALTOR® isn’t just an expert in home buying and home selling; they also maintain a keen understanding of the investment process, including financing, accurately calculating ROI, tax implications and benefits and of course, aligning investors with the right property to meet their goals.
Here are seven things to look for when choosing the right REALTOR® for your unique real estate investment goals.
1. Expert Market Knowledge
As we mentioned above, a qualified real estate investment REALTOR® is an invaluable resource when it comes to navigating the Edmonton real estate market. Of course, they’ll demonstrate a comprehensive understanding of current market conditions and trends, but they’ll also help you identify a profitable investment based on specific neighbourhood demographics (i.e. home styles, amenities, crime rates, etc.) and comparable properties in the area.
Ultimately this will help you determine who will rent your property, how long it’s likely to stay occupied once you do find tenants and/or the property’s overall resale potential.
2. Ultra-Fast Communication
When it comes to securing the right property at the right time, you’ll need to act fast – as even the minutest of delays can result in the loss of a great deal. That’s why it’s important to partner with an investment REALTOR® who isn’t just incredibly responsive, but who is also willing to drop everything at a moment’s notice to help you obtain the ideal property.
3. Expert Negotiation Skills
Expert negotiation skills are imperative for any real estate transaction, but they’re especially important in an investment scenario where you’ll be up against not just the seller, but their agents and any other competing investors and/or traditional buyers who may be interested in the property (also represented by their own agents).
An experienced real estate investment REALTOR® understands that what you pay for a property will have a direct impact on your overall profit margin – for this reason, they will put their negotiation skills to work so you can procure a great property under market value.
4. A Well-Connected Network
In our previous post, 9 First-Time Real Estate Investment Mistakes to Avoid, we mentioned the importance of working with a “team” (vs. going it on your own) if you hope to make the right real estate investment decisions.
Here is yet another great perk of working with a REALTOR® – they come backed by a reliable network of experts, each of which will be integral to helping you along your real estate investment journey. These include:
- Mortgage brokers
- Real estate lawyers
- Home inspectors
- Property managers
- Other investors
5. Access to All the Best Properties
As someone who has their finger on the pulse of not just the Edmonton market but the micro-markets that make up Edmonton’s many fantastic neighbourhoods, a real estate investment REALTOR® often has access to the best properties – even ones that aren’t yet available. As part of their network, your REALTOR® will have forged strong relationships with other investors, wholesalers and individual homeowners preferring to skip the listing process.
6. A Great Eye For ROI
It’s your real estate investment REALTOR’s® primary job to find you a great deal on a great investment property. As such, they must have an acute understanding of ROI and what your profit will be, based on the overall cost of your investment. This is yet another great reason to partner with a REALTOR® as, with so many variables involved (i.e. paying cash vs. taking out a mortgage, after repair value, etc.), accurately calculating a property’s ROI can be extremely difficult.
7. They’re Investors Too
Last but not least, a good real estate investment REALTOR® is also an investor themselves. As with anything, someone with first-hand experience will be much better equipped to answer your questions and provide expert advice and guidance throughout the real estate investment process.
Should you flip, or should you rent? What do you need to know about investor tax benefits? How do you formulate a reliable business plan and exit strategy? Not only will a good real estate investment REALTOR® be able to answer these questions (and any others you may throw their way), but you’ll also spend less time second-guessing your decisions while making fewer mistakes.
Key Questions to Ask a Potential Real Estate Investment REALTOR®
Find the right real estate investment REALTOR® for your unique needs by asking the following questions:
- How much experience do you have working in the real estate investment industry?
- What were your profit margins on the last few property investments you assisted with?
- What is your process for finding the right investment properties?
- Are you also a real estate investor?
- Can you help me formulate the right investment strategy to meet my goals?
- How can I maximize my investment property profits?
- Do you have references I can contact?
Are you interested in learning more about investing in Edmonton’s lucrative real estate market?
The Terry Paranych Real Estate Group specializes in helping both beginners and seasoned investors realize their real estate dreams. Not only will we provide the expert investment-related advice and guidance you need to succeed, but we’ll also help you zero-in on the best properties, negotiate a better asking price, turn a healthier profit and much more.
Photo credits: shutterstock.comPosted by Terry Paranych on