How To Find Best Investment Rating In Real Estate – by DC Fawcett

DC Fawcett Virtual Real Estate investing club

Real estate investment is one of the best ways to make money. However, it has always been a challenge to find the genuine real estate company.  The real estate investment rating measures the property’s risk-adjusted returns, compared to a risk-free property asset. A real estate rating is an important factor which can be used as a reference to decide about investing in a particular real estate company. DC Fawcett provides the tips to the investors to find the best investment rating in real estate.

How to find the best investment rating in real estate?

Though it has been a challenge to find the best investment rating in real estate, it is not impossible to find. When you think about investing in a real estate company, there will be certain hints which cannot be overlooked. You need to see how many stars it has got and read the reviews that the investors had given. Every company gets positive and negative feedback from the investors, depending on the services they got from those companies. The real estate companies may have a rating based on the number of stars they have. The star ratings are from 1 to 7 with 7 being the highest and 1 being the least. 1 star indicates poor service and 7 stars indicate best service. Here are the critical factors which help you to find the best investment rating in real estate.

  1. Project Developer Quality – It assesses the developer’s track records in estimating the stipulated timelines in the project they are currently handling. It determines the developer’s capacity to complete the project in a given organizational setup and the financial budget to fund the project till it is completed successfully.
  2. Project Construction Quality – It consists of the creative and innovative concepts that are to be used while constructing the building. Green building, amenities, recreational facilities, etc. are the examples of creativity that are used as a constructing a building. The factors involved in this concept are contractors track records, the developers have deployed, the technology used for construction, easy availability of raw materials and labor, which might lead to time overruns.
  3. Project Legal Quality – It refers to clear legal title to the land, government approval status, that includes a 7/12 extract required for the project, which includes land usage, clear environment, clearance certificate etc. for further proceedings. It also covers the sale deed evaluation to make sure that transactions are clear and transparent.
  4. Project Financial Quality – It mainly refers to project funding status, mix funding and the financial flexibility of the project.

Advantages

Investors

  • Investors can locate the best places to invest.
  • They can identify the property that is most beneficial to them.
  • The investors can provide objective criteria and the price range that fits their budget.
  • Can calculate the right and expected rent income.

Sellers and Agents

  • Are able to calculate the best price for quick sale.
  • Helps them to expand their property to national buyers’ pool.
  • Differentiate property values.
  • Build confidence in transaction value.

Lenders

  • Can determine the collateral value of present and future.
  • Evaluate possible loss during foreclosure.
  • Decision to foreclose or loan modification becomes easy.

Conclusion

It mainly depends on the investors to rate the real estate company depending on the services they give and the creativity they use to construct the building without compromising with the quality.

 

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