Choosing a property

Mortgage brokers who work with property-investors must gain insights about the aforementioned items to help clients secure the proper financing, a pivotal decision in leveraged investing. Choosing a property can be equally challenging.

Investors will typically use a real estate agent in their property search, but knowing some general tips can help you advise clients, as well. When offering insights — without crossing the line of dispensing financial advice — consider the following:

• Neighborhood selection: Investors should choose an area with a relatively stable economic environment or one predicted to become stable soon. They should research local unemployment rates and current and future job opportunities. Areas poised to rebound — or already in recovery — likely will offer better appreciation and higher returns on investment.
• Property diversification: Investors should avoid putting all their money into one property type. When possible, their property portfolios should include a mix of higher-end, midrange and lower-end properties. Longer-term security comes through investment diversity.
• Geographical spread: If possible, property-buyers should make investments with national considerations. Many areas in the U.S. provide stable REO investments. By casting a wide net, investors create greater potential for higher returns overall.

As property-investors look to tap today's distressed-property and REO markets, mortgage brokers can position themselves to help.

By studying the variables involved in investment purchases, brokers can help investor clients find the right financing and make smart purchases that yield short- and long-term success. Striking the right balance between market conditions, financing options and inventory selection requires delicacy and dedication.

If managed correctly, however, the rewards can be phenomenal — for property-investors and for those who help them secure the leveraged purchasing power they seek.

Denia Graham, chief operating officer at TenantAccess, has more than 29 years' experience in residential and commercial real estate and property management, including REO asset management, rehabilitation, remodeling and closings. Graham has served previously as senior vice president of client operations for Field Asset Services, where she oversaw more than 25,000 REO assets, and as a management and marketing contractor for the U.S. Department of Housing and Urban Development. Contact her at (800) 785-9617 or info@tenantaccess.com.

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