Investment property services can be a great asset to an investor that wants to be more hands off and is willing to give up a small portion of the profits in order to do more properties. That’s one of the best things about companies that offer these services. They allow you to rehab more properties in a given amount of time than you could do by yourself.
Not all investment property companies that offer land contract services are the same, and if you aren’t careful you could hire one that is all talk and doesn’t have the skills required to properly rehab and flip a home.
- Reputation – The first thing I would check out when researching any company is to check what kind of reputation they have in the investment community. Ask other investors in the area if they’ve had any experience with the company you are thinking about using. You’ll most likely get an answer that is one extreme or the other. Investors will either rave about how good they are or warn you to stay away at all costs. If they tell you to stay away, they’ll be able to offer up some alternative companies that can do good work.
- Track Record – If the investment company has a good reputation the next thing to check is if they have a good track record. Any legitimate company should be able to provide you with a list of properties they’ve successfully rehabbed and flipped. The list should have the address, purchase price, repair costs, along with the profit that each property produced. That way you have real world proof and not just talk that a company can rehab a house. I would spot check a few of the properties on the list to see if they have actually been flipped. I know I sound a bit overly paranoid, but I’ve seen people get stuck working with companies that didn’t know what they were doing and the results were horrible.
- References – The third thing you can check just as a quick final reassurance is references. The investment property service should be able to give you a list with the last 5 people they’ve worked with along with contact info so you can call and see what their experience is.
It’s not enough to just have a good feeling about a company. If you are going to trust them with your money you should do your homework and make sure the company you choose is a good fit for you.