Who Should You Trust When Making Real Estate Investment?

1. Who Should You Trust When Making Real Estate Investment Decisions?

2. This is a Unique Historical Moment For Investing in U.S. Real Estate • Economic factors in the U.S. housing market are creating an optimal opportunity to purchase investment property. • Home prices are soaring as part of an aggressive recovery from Great Recession lows. • Simultaneously the foreclosure crisis and other economic factors have created a growing rental market with increasing demand for quality rental properties. • All of which creates a perfect storm for real estate investors. • BUT......

3. Who Can You Trust? • Falling victim to either an unscrupulous real estate investment firm on the one hand or a well-meaning amateur who provide ill-informed advice on the other hand are common traps that investors fall into, both of which can result in bad investment decisions and major losses down the road.

4. What to Look Out For • It should immediately raise a red flag if anyone says they “have already done the due diligence” on the property you are looking to purchase or if someone promises to handle due diligence on your behalf prior to closing. • As a buyer, you need to have a due diligence regiment that you alone conduct. Property inspectors, for example, should be hired directly by you, the buyer, so that it is clear they are working for you alone, operating in your interest (NOT the seller’s) and will be reporting directly to you. Similarly, ensure you get an independent appraisal or at least verify closed comparable sales in the area to substantiate value.

5. Even if you’ve done business with a seller or real estate investment company before, ensure that you conduct your own due diligence regiment on every property, every time. This should be the same whether you are buying in your home town or if you are buying out of state or out of the country. This means you are objectively evaluating every property so you don’t have to rely on trusting a particular person or real estate investment firm. • How To Avoid Falling Into a “Trust Trap”

6. Go over every agreement you sign carefully. Make sure you understand all the terms and don’t hesitate to question those you find confusing or unreasonable. It is usually a good idea to consult your relevant advisors as well, such as tax professionals and lawyers. dr • Read the Fine Print

7. Ensure You Understand the Real Estate Market • Always understand the fundamentals of the real estate macro-market, including home price trends, job and population trends, etc. • Also, be sure to understand the micro-market trends where your property is located, such as market rents, localized vacancy rates, etc.

8. Independently Confirm ALL Costs Associated With the Investment Property • Make sure you understand and have independently confirmed all the itemized expenses you’ll incur on an ongoing basis when you purchase your property. Know how much you’ll have to pay in property taxes, insurance, home owner’s association fees if any, property management, mortgage payment if any, etc. • Also be sure to factor in a reasonable estimate for vacancy and repairs when calculating your cash flow analysis. Sellers often conveniently exclude these two variables when calculating “Cap Rates” and other investment return formulas. Always do your own calculations.

9. Check and Check Again • Remember: • Verify each and every expense independently. • Get a professional appraisal or at least verify closed comps to substantiative value. • Get a professional home inspection, and ensure YOU hire the inspector. • Verify economic indicators & macro-market trends such as job and population growth • Verify market rents as well as localized vacancy rates • By meticulously executing your own due diligence regiment every time, • you can objectively evaluate properties based on standardized criteria..... • so your need to “trust” others (and the associated vulnerabilities) diminish drastically.

10. About Maverick Investor Group • Maverick Investor Group is run by investment property specialists and serves individual real estate investors exclusively. Our vision is to radically improve peoples’ lives through real estate. We do this by helping both domestic and foreign investors buy cash-flowing portfolios of turn-key real estate in investor-advantaged markets. • Visit us today athttp://www.maverickinvestorgroup.com/