2011 was a turbulent year for the real estate investment market. But a positive trend in the labor and housing market has led many to seek investment opportunities in the domestic real estate market. A positive attribute of the real estate market is that is remains fairly consistent and provides opportunities for regular income and capital growth. But your returns are directly proportional to your choice of a real estate investment broker. Here are a few reasons why a real estate professional can help you:
Offer Advice: Professional brokers are up to date on the latest changes in the market and are capable of foreseeing changes. They thus offer advisory services in return for a fixed fee from investors.
Limited banking services: Large established brokers can provide banking features like interest-bearing accounts and check writing.
Miscellaneous services: Large scale real estate investment brokers work in tandem with developers and coordinate the entire property development project from start to end. Thus, each and every project is assigned to a team of dedicated support staff who help in the asset management and creation, property management, and relationship management including marketing. They also help in commercial real estate investment.
They make their income through various fees including:
Brokerage Commissions: This is the usual brokerage commission that is paid when buying and selling properties
Interest Charges: This is paid by investors for borrowing from their brokerage account for investment.
Service Charges: Administrative fees, maintenance fee for IRA accounts, etc also form a part of their income.
Without help from a professional broker it is indeed difficult to find a good property that is just right for you. Some brokers specialize in finding deals that are off market as there are higher returns of these properties. They also have a well established relationship with the sellers and hence contacted where there is a need for free cash.
More often than not, houses need to undergo minor or major facelifts before they can be brought to the market to appeal to a prospective buyer. These real estate investment brokers can suggest ideas that are affordable, but can change the appearance of your house.
But remember to choose the broker with care. The broker that you deal with should be certified by the Financial Industry Regulation Authority and the Securities and Exchange Commission. The broker should also be a member of the Securities Investors Protection Corporation.
Author Resource:- A real estate investment broker helps with real estate investments including commercial real estate investment. The author of this article reviews the different real estate entities.