A full-service real estate firm, Dynamic Star, is headquartered in Miami and has a development department led by Brad Zackson. Unfortunately, some investments are the result of ill-informed decisions. An investor must always research the market and approach property evaluation objectively when investing in property, even when the investment does not pan out for reasons beyond one’s control. When selecting a property, Brad Zackson emphasizes how important it is to know how it will be managed.
Become familiar with the market.
Multifamily real estate is a great investment because it provides reliable cash flow from rental income says Brad Zackson. A single-family home only has one tenant or group of tenants, whereas a multifamily property has several tenants. You’ll still have cash flow on other units, even if one is vacant. However, you should do your due diligence and formulate an investment strategy before investing in multifamily properties.
Investing in real estate requires narrowing an investor’s focus and understanding the property’s location as much as possible. In doing so, the investor will know the true value of a property. Furthermore, the vacancy rate and the rental price will be reflected more accurately. In addition, it will be easier to avoid surprises by keeping market research focused. Investing in a property in a significant development area is wise since future developments might majorly impact the property.
Management of property
Managing real estate is more than just keeping tenants happier; it is also about ensuring the property always performs properly. According to Zackson, “Transportation of tenants’ daily needs is one of the most critical elements of long-term value creation.” Property managers typically set and collect rent, handle maintenance requests, fill vacant units, and set the property’s budget. If it is well managed, turnover and vacancies in a rental property can positively affect cash flow.