Dynamic Star co-founder Brad Zackson on What To Know Before Investing In Real Estate

Posted On Wednesday, 02 November 2022 15:38

Brad Zackson, co-founder and director of development for full-service real estate firm Dynamic Star, believes investing in real estate can be exciting and lucrative. Unfortunately, some investments are the result of ill-informed decisions. 

While sometimes a property investment does not pan out for reasons out of one’s control, to avoid an unsuccessful real estate, as much as one can, an investor must thoroughly research the market and approach property evaluation objectively. Zackson notes that knowing how the property will be managed is also a consequential factor in selecting the right property,

1.) Learning The Market

Every city is different, and areas within vary significantly. An investor should narrow the focus and learn as much as possible about the location of a property. In doing so, the investor will know the true value of a property. Additionally, vacancy rates and rental prices will be reflected more accurately. Keeping the research of the market focused will also help avoid surprises. For example, some areas have big-scale future developments, and it’s important to know what impact, if any, they might have on the investment property.

2.) Professional and Systematic

It’s challenging to expect a beginner investor to be a professional. According to Zackson, taking a systematic approach and devising criteria for evaluating properties will help investors make smarter investments. One of the risks for new investors is falling in love with a specific property and overlooking its faults. By applying this criteria to all potential properties, the investor will be positioned to make an objective decision. 

3.) Property Management

The way a property The goal of property management is to KEEP the occupant there! Tenant turnover kills cash flow. Keeping the property well-maintained is key to retaining tenants.There are two options for an investor regarding property management. The first option is that they can manage it themselves, and the second option is to hire a property management company. Knowing who will manage is extremely important because it will have a noticeable impact on the property. If the investor manages the property, they must be well-informed of what is required. If a property management company handles the property, the investor must know how much it will cost. The cost can be significant and decrease the investor’s profit, so it should be calculated when determining future investment income.

The real estate market undoubtedly has hidden gems. In fact, Brad Zackson targets undervalued assets with latent potential for redevelopment to higher and better uses. The path to making a wise investment begins with understanding the market. Once the market is understood thoroughly, the investor should then systematically scrutinize each property. Following these two steps and knowing who will manage the property will result in a worthwhile real estate investment.

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