The real estate investments have been and remain one of the alternatives most common in several countries, to invest and profit from our savings. Investing in real estate is a great alternative to diversify portfolios.

Advising small real estate investments is not difficult, you just need to know how to reach them with your personal branding, offer them good investment alternatives in your area and show them how you will get a return on your investment.

Investment Property. How to Negotiate the Purchase.

Your client has found the type of real estate investment that best suits their needs and profile. After visiting some properties with you, he has decided where to invest and in what type of property to invest.

It is the moment of negotiation with the promoter or owner and of obtaining the best possible purchase conditions for your client and for you.

From a real estate agent, you go on to become a real estate buyer, which is not bad at all. Now you can experience what it feels like when the buyer's "chip" is worn and corroborate what are the true needs, concerns and desires of a person who seeks to obtain the best property on the market at the best price.

First you make the recognition and agree the sales commission with the promoter or with the owner of the property, you check all the documentation and then you and your client go on to inspect the property, the documentation and your client signs the purchase.

In real estate investment, things work like this: the investor makes money when he buys; you maximize your profit when you manage the property and collect the profits when you sell.

In real estate consulting, when buying not only must you negotiate the price and the sales commission as a real estate agent, but also other factors such as the payment of certain expenses, taxes and who does what. Tajarat properties not only negotiate the prices and sales but also other factors including payment schedule.

For example, in new real estate, you must negotiate who pays the capital gain, and who pays the mortgage subrogation expenses, if any.

"In second-occupancy properties, you must negotiate with the seller the date on which he will occupy the property and what furniture and property items will be sold together with the property."

Remember that the owner must provide the property title free of charges or claim of other parties against his new home. Claims made by third parties against your home are known as "liens." In case there are, as may be the case of having the property a mortgage, you must negotiate who pays what.

The sale agreement should stipulate the refund of your deposit in the event that the sale must be cancelled due to failure to obtain a mortgage loan. For example, the sales agreement should allow for the cancellation of the sale if the seller is unable to obtain mortgage financing at an interest rate equal to or less than an index specified in the agreement.

You should also negotiate to do an inspection of the property before you buy it. An inspection determines the condition of the electrical, plumbing, heating and cooling systems.

The structure should also be examined to ensure its soundness and determine the condition of the roof, siding, windows and doors. The lot must be arranged in such a way that the water does not drain into the house and enter the basement.

We recommend that the real estate investor be responsible for the cost of these inspections, so that the inspector works for him and not for the seller.

Include in your purchase agreement the right to cancel the sale if you are not satisfied with the results of the inspection. In that case, you may want to renegotiate at a lower selling price or require the seller to make repairs.

It is necessary to agree with the owner how expenses related to the property, such as taxes, costs for drinking water and sewage services, community expenses and utility bills, will be divided at the closing date.

Unless otherwise agreed, you should only be responsible for the portion of these expenses that is due after the sale date.

Remember that as a buyer of a property you have the option of choosing the notary and the lawyer.

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Investment Property. The documentation.

Once you have negotiated and agreed on all the terms of the sale with the owner or the developer, it is time to show your client the importance of documentation and purchase, rental or purchase option contracts.

Of course, the real estate investor knows that the documentation is important, but he does not know the time that you must invest in ensuring that the documentation and the written contracts are correct. Get your client to value your work.

Likewise, it is time to also demonstrate to your client how the legal procedure of buying and selling is simple, no matter how much some lawyers try to mystify it.

The purchase agreement, together with the rental agreement, are the most important documents in the entire investment process.

The sale contract establishes all the details of the sale, not only the price, but also the causes for which the contract ceases to have value, the form of payment, the causes for which the owner must reduce the price of sale, the option to check the property within a specified period, etc.

Informing your client about the content of the contract, the taxes to be paid, the additional expenses and the process to follow to register the property, in addition to being your obligation as a real estate seller, allows you to show your professionalism once again to the client and solve any problem for you.

"Some real estate agents at this stage, let all this documentation be processed by a lawyer and it is this who informs the client about taxes, additional purchase expenses and mortgage processing. This cannot happen when you work in the real estate investment area".

Remember that you are helping the client to make a real estate investment and you must accompany him throughout the process.

Sales contracts should be supervised by a competent lawyer, but they should be written simply and in easy-to-understand language.

When there is an economic transaction between two parties, the good will and willingness shown by both parties to comply with the terms of the transaction is more important than the contract that is signed for this purpose. In other words, if you don't trust the seller's good will, your client better invests elsewhere.

Having to prosecute a developer or owner for breach of contract is, on many occasions, an arduous, slow and unsatisfactory task, even if in the end you are right.

The content of a sales contract, a deposit, purchase option or reservation contract can be very varied and there is no single formula for each situation. Each property is unique, so the content of each contract must also be unique, particularly when you are investing a significant capital.

We do not want to extend ourselves in dealing here with the content of the sales contracts; We only want to indicate that every sales contract must include 2 clauses that are often deliberately or not forgotten by the selling party:

1.- A time of inspection of the property to make sure that everything is correct and where the buyer has the right to compensation if not; Y,

2.- Inclusion as an annex to the contract of the Quality Report or technical data of the property where it is ensured that the property is built with the materials described.

Other documents that are part of the sale purchase and that must be reviewed by you and your client, are the documentation or copy of the legally required authorizations for the construction of a property and the Urban Development Certificate or certification accrediting the urban circumstances of the land.

If your client decides to invest in a new home, requires the developer to provide the "Certificate of Habitability" or "First Occupancy License". This license is an administrative document issued by the General Directorate of Housing in which it is stated that the property is suitable for its destination, that is, the home.

In real estate investments, another of the contracts that is quite important when investing in a property is the lease. A lease, to be effective, must take into consideration the interests of the tenant as well as those of your client.

A lease agreement that includes only the rights of the owner with slightly abusive clauses to guarantee the perfect maintenance of the property and the collection of rent does not help to find the right tenant.

In most cases the problems that arise between tenant and landlord are due to poorly written leases.

All the rights and obligations that may derive from a rental contract are regulated in most countries by the Urban Leasing Law. The lease does not necessarily have to follow a specific pattern; it is enough for both parties to state in writing the agreements they reach in this regard.

The contract can also be made in a public deed executed before a Notary Public and be registered in the Property Registry.

Investment Property. The founder ships.

In real estate investments there are several ways to finance the purchase of a property. As with credit capacity, with which your client has more capital available to invest than he originally thought.

Your client also has the possibility of embarking on a real estate investment project even greater than that provided by his credit capacity, if he seeks the support of other people in the same situation.

Therefore, the first thing you must solve to advise him on the financing of his investment is to know if your client prefers to invest him / her alone or accompanied by other investors in the same situation.

From experience we know that the client prefers to invest accompanied by other people in the same situation; however, in most cases, they end up investing just because they can't find a partner or partners with a profile like theirs.

If your client prefers to invest alone, the only thing you can recommend is that they calculate the cost of the entire operation before applying for the mortgage loan, so that they can have a small financial reserve to cover unforeseen expenses.

The real estate investor earns a monthly rent of € 6,560; a capital that allows you to pay the monthly instalment of the mortgage of the 4 villas, the maintenance costs of the villas, administrative expenses and taxes.

In addition, there is the increase in value of the 4 villas and offices that for 5 years, the maturing period, will have exceeded 60% of the target set.

Investing alone is more a matter of personal attitude than profitability; Although it is still true that investing in a group gives access, in certain cases, to real estate opportunities that would be impossible to consider with a small capital.

A different way to invest in real estate alone is by partnering with a property developer to build a group of properties or restore a property. In addition to the obvious benefit of risk sharing, having a promoting partner is both practical and convenient.

Having a partner with experience in the real estate sector brings more security to the project; Just as a capitalist partner contributes to the promoter savings in bank expenses or the initiation of a larger project.

Being a partner of a real estate developer can be a good idea, but if the investor's capital does not exceed $ 800,000, it is more profitable to invest in finished properties.

Investing in a group has several advantages; In addition to saving on administrative and legal expenses, getting better advice and minimizing risk, it is more fun and enjoyable than investing alone.

The best way to invest in a group is to create a company whose activity is exclusively real estate investment.

In real estate investments you have to know how to create several companies of this type and the ones that work best are those in which the partners can contribute their professional knowledge to the management of the company, and where an action plan is designed with specific objectives.

We remember that every real estate investment objective must have a defined beginning, an execution period where the investment matures and a completion date where the objective is reached, the property is sold and part of the profits is invested in other properties, or not.

What maintains companies of this type is their purchasing power, their sales capacity and their ability to distribute profits to their partners at least once a year. Profits can be distributed if a property is bought and sold every year.

The ideal number of partners in these companies tends to be 4 to 6 people and the more capital they can contribute to the investment, the greater the benefits. Suppose that a minimum capital contribution to the partners of at least $ 400,000 is established.

There should be no limitation to the maximum contribution. Minimum contribution that must include the credit capacity provided by the partner.

If you have a real estate investor who would like to invest in blue world city Islamabad in order to access a business opportunity where he / she needs more capital than he / she can contribute, help him find those other investors who would be willing to invest in the same circumstances.

In Real Estate investments, the expectation of advising a group of investors that has been created with your help should motivate you to present an action plan to your investor client to find at least 3 partners willing to invest in this sector and create a company for this finish.

Creating an investment company is as easy and fast as creating a limited company. The priority is to find the investors who accompany your client in the investment. With the appropriate public relations strategy in 2 or 3 weeks you will be able to attract and select the investors that your client needs.