There’s certainly money to be made in real estate, and it offers much more upside than many other types of investments. Unfortunately, there are far too many “experts” who are prepared to convince you that it’s easy to “flip” properties or buy real estate for little or no money down. Ferstl Valuation Services has been providing trusted property appraisals in Little Rock since 1967, and we also offer real estate consulting services to help you determine whether the home, land, or commercial property you’re considering is the right fit for your personal needs and investment objectives!
There’s a lot at stake each time you buy or sell a property, and a professional consultation ensures that every decision you make is based on accurate, up-to-date market research. Our real estate consulting services include, but are not limited to, market studies, marketability studies, feasibility analysis, and highest and best use analysis. We’ll take the time to learn about you and your unique situation and give you the information you need to make a well-informed decision.
For starters, you’ll want to determine if the property is fairly priced. The sale price of recent “comps” is a great place to start, and you should also look at how long those properties stayed on the market. Property values typically outpace inflation, which is good news for investors who are interested in preserving their long-term wealth. Flipping distressed properties can be a highly profitable venture for individuals with the cash and know-how to complete the necessary renovations, but it’s also very risky; it’s always challenging to accurately estimate repair costs, and you can’t always count on finding a buyer when you need one!
Finally, and perhaps most importantly, it’s never a good idea to tie up all your available cash in real estate. One of the greatest benefits of owning commercial properties is receiving a steady cash income from your tenants, but you’ll still be responsible for making the mortgage payments when your properties aren’t fully leased. You’ll also need to keep enough cash on hand to cover ongoing preventive maintenance costs and other expensive repairs that inevitably occur when you least expect them!
To learn more about real estate appraisal services in Little Rock or schedule a no-obligation consultation, contact us online or at 501-375-1439.
