Who Should You Trust When Making Real Estate Investment Decisions?

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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......

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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 sellers) 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.

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• How To Avoid Falling Into a Trust Trap

Even if youve 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 dont have to
rely on trusting a particular person or real
estate investment firm.
6
dr

• Read the Fine Print

Go over every agreement you sign carefully. Make
sure you understand all the terms and dont
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.
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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.

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Independently Confirm ALL Costs Associated With
the Investment Property

• Make sure you understand and have independently
  confirmed all the itemized expenses youll incur
  on an ongoing basis when you purchase your
  property. Know how much youll have to pay in
  property taxes, insurance, home owners
  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.

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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.

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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 at http//www.maverickinvestorgroup
  .com/