Ask Your Property Investment Consultants These Questions If You Want to Succeed
Many investors in the stock market are taking large losses in recent years, and many have somehow lost their faith in their financial advisors. Some are planning to leave their advisors altogether in order to find someone else who can help them move their stock investment into an asset with high safety net, such as real estate.
Now the question is, how does wary investor find a property consultant that is reliable, experienced and knowledgeable in what he is doing?
The answer is simple: ask the right questions.
The following are five questions property investors should be asking their prospective consultants in order to ensure success in their next investment endeavour.
1. How long have you been in the industry?
Wine gets better with time. The same can be said for property investment consultants. Generally speaking, the more years an advisor has in the field, the more clients he has worked with, and the wider the range of investment properties he has handled, the more he is able to give you better advice. Off course, that's not to say consultants with only a few years of experience can't give you good advice. What we're trying to say is, experience does make a big difference.
2. Do you have specialised knowledge in the kind of investment I am planning to make?
Property investment consultants are generally well rounded. However, if you are looking to buy a certain type of property, such as overseas property or fractional ownership share, you would want a consultant with experience in this specific field. Even better if the consultant has invested in the same kind of asset you are planning to purchase.
3. How are his previous clients performing? Past performance is a reliable indicator of future success. So, if possible ask his previous clients on how his investment advice has helped them so far. Don't also forget to ask him how he made recommendations during boom periods as well as during difficult market situations.
4. Do you conduct due diligence? While property consultants are considered experts in their field, there have been a few cases where the experts themselves have fallen victim to a dishonest scheme due to failure in conducting due diligence. So, during your initial meet up, don't hesitate to ask your consultant about the steps he takes in verifying the existence and availability of property and is checking the protection of bank accounts to which money is deposited.
5. What is your commission structure? Now, this is very important because if the consultant receives higher percentage of commission from a certain developer, he may limit your investment choices towards that developer's projects. This will prevent you from finding a property that best matches your investment profile. So, make it a point to ask about his commission structure and if he can recommend you to developers that are not within his package.
For more practical tips and advice on real estate investing, check out BAP property investment consultants now and sign up to receive our free e-book.
Now the question is, how does wary investor find a property consultant that is reliable, experienced and knowledgeable in what he is doing?
The answer is simple: ask the right questions.
The following are five questions property investors should be asking their prospective consultants in order to ensure success in their next investment endeavour.
1. How long have you been in the industry?
Wine gets better with time. The same can be said for property investment consultants. Generally speaking, the more years an advisor has in the field, the more clients he has worked with, and the wider the range of investment properties he has handled, the more he is able to give you better advice. Off course, that's not to say consultants with only a few years of experience can't give you good advice. What we're trying to say is, experience does make a big difference.
2. Do you have specialised knowledge in the kind of investment I am planning to make?
Property investment consultants are generally well rounded. However, if you are looking to buy a certain type of property, such as overseas property or fractional ownership share, you would want a consultant with experience in this specific field. Even better if the consultant has invested in the same kind of asset you are planning to purchase.
3. How are his previous clients performing? Past performance is a reliable indicator of future success. So, if possible ask his previous clients on how his investment advice has helped them so far. Don't also forget to ask him how he made recommendations during boom periods as well as during difficult market situations.
4. Do you conduct due diligence? While property consultants are considered experts in their field, there have been a few cases where the experts themselves have fallen victim to a dishonest scheme due to failure in conducting due diligence. So, during your initial meet up, don't hesitate to ask your consultant about the steps he takes in verifying the existence and availability of property and is checking the protection of bank accounts to which money is deposited.
5. What is your commission structure? Now, this is very important because if the consultant receives higher percentage of commission from a certain developer, he may limit your investment choices towards that developer's projects. This will prevent you from finding a property that best matches your investment profile. So, make it a point to ask about his commission structure and if he can recommend you to developers that are not within his package.
For more practical tips and advice on real estate investing, check out BAP property investment consultants now and sign up to receive our free e-book.
