An investment realtor is basically a professional who helps different investors to find suitable properties to invest their money into. Basically, it is not necessary for realtors to have a proper degree or formal education to do this work rather they just need to know their work properly. They are obliged to have a license for this work. We can make extra profit in real estate if we hire an intelligent realtor. Such realtors have great knowledge about finances, taxation, investment/ real estate laws etc.
Extra profit that we can make through a realtor:
It is very important to know that just investing in any property does not guarantee high profitmargins for us because there are a number of different factors that are involved in the ratio of profit coming out of an investment. Along with best marketing strategy and best possible prices, a good realtor is also important. A realtor knows which property is important yet can be bought on low prices and later it can be sold for high price keeping the maximum profit for the client.
Process of real estate investment:
When we hire an investment realtor, he does all the homework on properties. He tells us about different properties that are available for sale in the market and helps us to buy the one that is available at lowest possible rate yet has the capacity to become expensive in near future. The realtor then negotiates about the price with the seller and tries to convince them for selling the property at lowest possible rates. Once the property is bought by us via the realtor, the realtor takes his commission from us and sometimes from the seller as well because he has facilitated them as well.
Once we become the owner of a real estate property the realtor guides us to wait for certain time period mostly a year or more just so the prices go up and then after the specific time he tells us that we can get a certain amount of profit as compared to the price we paid. Then he tells us to sell the property at right time. Mostly, the profit level is somewhere between 25 to 35% in a time span of year. However the profit is not same all across the globe as real estate depends a lot on economy, peace, prosperity, foreign investment in the country and law developmental rates.
Profit in different types of real estate properties:
Now one thing needs to be clear while discussing real estate properties that they are of two main types:
- Commercial property: It is basically the property that is or can be used commercially or for making money out of it. You can also say that a property that can be used to start some sort of business or means of income is called commercial property. For example a plaza or shop or even a plot in a market or main road where such buildings can be made.
So the prices of commercial properties are quite high and once they are bought they have the tendency to grow a lot more expensive in short period of time.
- Residential property: It is the property that is used for residential purposes. Where people live their life. For example houses etc. These are relatively cheaper and the profit margin is relatively lower but not very low. They still are very good investment idea.
Impact of taking help of realtor: Thus, taking help of a professional realtor helps us to gain more extra profit from investment by lowering the buying price and increasing the selling price. The realtor usually takes 2% of our profit which is very less compared to our profit.