Due Diligence

Before making any investment decision, you should educate yourself as much as possible on the details and nuances of that investment IE: Due Diligence.
Real estate investing can be the foundation to true security with careful and thoughtful planning. How best to navigate your journey of real estate investing? What to look for in your investment provider and property management firm?
USA Prime Properties suggest an overview of how to shop for a turnkey investment property and provider. You can avoid the pitfalls by asking this series of questions and you will be will on your way to a secure future of buying USA investment properties.

Download Questions

    1. Do you own the property management firm that will be managing the property you are selling?
      The answer must be yes and if not keep searching for one that does. The quality of management is the number one aspect as to how your investment will perform. USA Prime Properties owns and manages it’s property management firm for the benefit of our investors. We have a strong financial interest in the success of your investment in the long term. Our maintenance crews are the same that performed the renovation so they are familiar with the property that will save you money on repairs.

 

    1. Ask the investment provided if they own rental property?
      It’s important that the investment provider also own rental property and
      not just sell them because you want them to believe in the long term
      benefits of passive investing.

 

    1. How long have them been in business?
      The longer a firm has been in business the more experience and higher level
      of expertise they can provide. The firm must be able to guide you from start
      to finish without any hassles. They can only do this if they operate as a full
      time turnkey investment provider.

 

    1. What types of neighborhoods are your properties located?
      Investment properties are found in one of 3 areas, (1) war zones, (2) high
      priced homes showing negative cash flow (3) homes located within the
      $50,000 to $85,000 price range that show positive cash flow and better than
      average ROI’s.

 

    1. What is the property management companies’ vacancy rate?
      You want to see something under 90%

 

    1. Does the property management company allow pets?
      Make sure there policy includes all pets. Large dogs are best left outside while
      small breeds may be allowed if tenant placed a pet deposit plus obtains
      liability insurance.

 

    1. When you buy a property make sure if it is occupied or empty?
      It could cost you quite a bit of money getting out a non paying tenant or even
      the original home owner. When buying turnkey investment property the
      tenant should already be in place prior to close. The provider should be able
      to provide you with a copy of lease at time of close as to verify tenant is in
      place and the rental amount is what was disclosed to you.

 

    1. Does the property management firm allow access to your property information at any time?
      Having up to date information is important in making decisions on your
      property.

 

    1. Will the property management firm assist or pay on your behalf the mortgage, insurance, real estate taxes?
      Locating a management firm that can provide you a complete turnkey
      solution will allow you both the freedom and security that all items to your
      property investment is being taken care of.

 

    1. Asking the property management firm how they will maximize and secure your returns?
      When buying “TurnKey Property” you should be getting a property that has
      been fully renovated plus the provider should give you a 12 month guarantee on
      maintenance. While the property has been renovated to like new condition, the
      property management firm should be able to get market rents plus the ability to
      secure the tenant for the long term.

 

    1. Will the property management firm assist you with insurance?
      Your property management firm should have the ability to secure both
      property and liability insurance on your behalf.

 

    1. Does the turnkey provider give any renovation and maintenance guarantees?
      Any turnkey provider that does quality renovations should provide you with
      a guarantee for up to 12 months.

 

    1. Does your turnkey provider assist with financing?
      Most turnkey provider will assist in funding your investment property.

 

When you have secured your due diligence questions and you are comfortable
with them, then you should be ready to proceed with purchasing. Good Luck!