Property Acquisition and Disposition

Property Acquisition and Disposition Can Be Profitable If Handled Correctly

Investors are always looking to increase their returns on the capital that they have and one popular method of doing this is to put the money in real estate for property acquisition and disposition. The concept of buying property and leasing it out, or looking at opportunities to dispose of the same property after enhancing its value is widespread and can bring substantial returns if proper attention is paid to both aspects.

Things to consider for Property Acquisition

  • When you go in for property acquisition, you must do so after considering a number of factors that will allow you to get real value for the money invested. Acquire property that is highly accessible, as this then gives your property an advantage over others that may not be so fortunately situated. Your property needs to be close to city centers, near places of public transport and must have adequate parking space. If you are planning to lease or sell the property at a later date, you must ensure that it is a size and area that people are looking for in that particular neighborhood. Large houses in neighborhoods that have otherwise small homes may not sell easily. Nor will small homes in an area that is more luxurious and upmarket. A property that can be expanded at a later date by the buyer is always easier to sell and can fetch better prices.
  • Any property that is acquired must be in a fairly good condition and it is always suggested that you buy properties that have been properly inspected by experts right from foundation to roof, and the inspector’s report also includes things like pest control. Astute investors do not mind picking up properties that are run down and neglected, as long as the inspector gives them an assurance of soundness, and they see that there is a scope for improving the property before leasing it or selling it again. In fact, they have a definite advantage in being able to acquire such properties at lower prices. Investors also look for properties that have been foreclosed, and where the previous owners have not been able to keep up with mortgage payments.
  • Acquire properties that have distinct features that allow them to stand out, and you have then made an acquisition that will appreciate in value. Investors also need to keep the overall economic scenario in mind and be sure that they are buying at a time when property prices are on the ascendance if they are considering selling them after a while. You must also make sure that the property you buy is of a value that suits the market in that area, and will be able to fetch a better price at a later date.
  • All property acquisition and disposition requires a lot of legal formalities and documentation and you will do well to appoint a proper solicitor for all the deals that you are planning to make. These legal eagles must be involved right from the beginning and must be able to guide you in every aspect of the matter, right from scrutinizing land and property records, examining liens and any encumbrances and giving you the right advice before you make the investment. If you are planning disposition of the property at a later date, these same lawyers can ensure that all documents of ownership are legal and binding.
Property Acquisition and Disposition

Property Acquisition and Disposition as an Investment

It can also be of help if as an investor you are planning property acquisition and disposition as an investment strategy, to be allied with a good estate agent. It can also help in the leasing of property if you pick up the services of an efficient property manager. These are professionals who are in the real estate field and will be aware of all its various permutations, combinations and will often have a readymade available list of possible homes for acquiring and other people who are interested in buying or leasing property. You may have to pay for such services, but it does free you of a lot of tensions and can, in the long run, be a useful association. It can also help you as an investor if you can find the proper means to finance your investments like angel investors and others.

Disposition of property also needs the services of other experts like people who can prepare a home for viewing, arrange building inspections, set up meeting with buyers and even help in negotiating the right price. Selling a home becomes that much easier if you can understand what the market requires, and ensure that your property fits into that niche correctly.

It is important that you be fully aware of all the laws and other regulations that govern property acquisition and disposition in the area where you are operating. It can vary from state to state, and awareness of the laws can make your investment decisions profitable.

If you are interested in Commercial Real estate financing , retail, leasing or any property related matters, feel free to contact us.

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