Hi. Welcome back with Sunny of Synergy Real Estate and Property Management.
Today we’re actually getting into investment criteria, so finding, figuring out how, what it is that you want in your property and how to make that happen. So as first-time investors come into our business here, some problems that we normally find that they have is “Ok, we want to have an investment property.” Right…so well that’s great but you know, you’re also..so is–where do you want this investment property…what type of investment property do you like? You know and a lot of times, there are really not a lot of answers to that question. So what we’re looking at is first off, we want to find location. Right, so…
The location is specifically for us in Bakersfield, California or if you are looking out of state, a lot of people are looking into Indiana, Minnesota, Alabama, and trying to find out of state areas where they can invest in your dollar with all of it further so that’s something we can also hope facilitated at if you’re interested in. But you gotta know exactly where you want to invest. So the second question is gonna be why. Why do you want to invest in, you know? A lot of people I know have come to us and said, “Oh I have purchased in X city or X state and we want there because there’s tons of great cash flow. And that’s great but when you go sell your property or lose money on the property, not necessarily the best thing, depending on how much cash flow you have or what your property value was when you sold or how much you lost when you sold them. So definitely something to look at here, why are we investing here specifically in Bakersfield? I would say you want to invest because things like the pandemic just happen and we’re still kind of actually in it here and we’re seeing that a lot of people from the higher-priced markets in California are coming to Bakersfield and want to purchase a property out here and are realizing that “oh ok I don’t need to work from home, I don’t need to spend all this money to a tiny little place. I could have, you know, spend a lot less money, with a lot more security, a lot happier with the life that I have so I’ll keep the job that I currently have as well. And so why are we, you know, investing in a place.
The next thing would be to know the type of asset. Right? You don’t want to necessarily come into investing and being investing in different types of asset classes: multi-family, commercial and you know, in commercial, is it office base, is it multi-family, is it warehouse base or things like that. So definitely know what kind of asset you want to be investing in.
And then from there, you also want to know what type of asset classes you want to be investing in. So let’s say, multi-family is the property class you want to invest in. Are you okay with the B-class property? Are you okay with the C-class property?
You know, B-class property means a better area, theoretically better tenants, theoretically higher rents. C-class areas mean not as good of an area but cash flow would be much better. The rents will be a little bit lower but you’ll have more stability in the vacancy most likely. But then your maintenance can go up. Right? Because in the C properties, people may actually start causing damage to these units and more damage units you see than they would in the B class. So something to think about, you know, when you’re moving forward.
When you have all of these small criteria, you know, obviously we want to have a pricing criterion and generally, that’s given to us by a pre-qual. A pre-qual is done through a lender for your investment loan. So if you are looking for an investment loan vendor(s) basically or lenders, we can go ahead and help you with that as well if that’s something you’re interested in.
So crossing all these criteria is kind of gonna help you clean up what exactly are you looking for, what exactly do you want to get into, what exactly do you need and how, we, as your real estate brokers will be able to best help you.
So if you have any questions, please feel free to contact us. We do look forward to come seeing you next time. Hope that you enjoyed this video. If you see something that you like, or if you have any other questions, please comment below and we always kind of make another video to go ahead and answer that if possible.
Alright. Thank you. Take care.
Watch it on YouTube: https://youtu.be/b5Gx99LzBRU
Sanjeev (Sunny) Advani
Office Lic 02012941