How to Select the Right Property Investment Company | 4 Factors

10 Feb 2021
#UK

If you are considering investing in property, a typically resource-heavy asset class, working with a property investment company can save you many headaches while still allowing you to maximize profits and diversify your portfolio. Whether you are a new investor looking for guidance and a secure way of entering the market, or you are an experienced investor looking for a hands-off investment opportunity, property investment companies offer a range of advantages for all types and profiles of investors.

Unfortunately, though, not all property investment companies have the same experience or can guarantee the returns they claim to. Many lack experience, have market presence in a limited number of locations, or don’t have strong track records.

To find the best property investment company for you, it’s vital to make sure that they are worth your time and your money. To do so, ask yourself the following 4 questions before sealing the deal. If you can confidently answer yes for all, you’re likely on the right track.

  1.  Do they have an international presence?
  2.  Do they have a successful track record of completed projects?
  3.  How transparent are they and do they achieve their yield and rental estimates?
  4.  Are they well-established?

1. Do they have an international presence?

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A property investment company’s single most important goal is to create wealth for a client through property. The property’s purpose is merely to act as an investment vehicle for steady rental income and strong capital appreciation.

Choosing a property investment company with an international presence means they will have access to the most promising opportunities across the globe and not be hampered by the confines of one region or country. Take IP Global for example, we have brought to market 5,500 units across more than 45 cities across the globe.

Finding a company that deals with properties in different markets around the world also means that if you decide to invest in other emerging markets, you can stay within the auspices of the same company – one that you have already built trust and a relationship with.

2. Do they have a successful track record of completed projects?

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The reality is that property investment is not simple, and the construction process can be complex, particularly when investing in a foreign country.

Look back at previous projects undertaken by the property investment company and ask: were they completed? When bottlenecks occurred, did the company try everything to protect their clients’ investments?

If the company can show you plenty of examples of properties that they have invested in, and -more importantly- that when things went wrong, they persevered, this is a good sign. You’re not investing a small amount; you need to be certain that you’re putting your equity in responsible hands. One sign to look out for is if the company has any tangible stake in the investment too, that way you can be assured they will do their best to ensure its success.

Furthermore, your chosen property investment company should have a good track record when it comes to vacancies. Smaller companies or those with less experience sometimes struggle to find tenants for all the properties they’re managing – which results in potential lost income and other complications for your investment down the line.

3. How transparent are they and do they achieve their yield and rental estimates?

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Some newer property investment companies will often lure in potential investors by near-unbelievable yields and rental prices that they claim they can achieve. This is all meaningless unless they have evidence to back their claims.

Always ask your property provider for proof, and client testimonials, to back up the claims they’ve made of their investment outcomes. This not only provides peace of mind but shows you that the company is transparent. At IP Global, we are happy to say that to-date we have achieved 105% of our rental estimates, we always err on the side of caution with our projections.

Your property investment provider should also be fully transparent with the investment journey and offer educational resources like research reports, guides, and advice on exit strategy, empowering you to make smarter decisions. In this regard the company should employ a strong investment and client services team for the company’s financial success to truly depend on yours. Reach out to the company or see if you can find these resources online before falling in love with a particular property.

4. Are they well-established?

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Lastly, you should always consider if the company is well-established and experienced in the market they’re operating in. How many years have they been active? How much experience have their consultants got? It’s important that they have a diverse and solid skillset that enables them to navigate the complicated real estate industry and deliver strong returns.

These questions need answers before you sign a contract and put your hard-earned capital into their hands. When investing in property, particularly if buying off-plan, the more time a company has been around the better. Be sure to check how experienced the team is in your particular market too. For example, a company well-versed in UK property might have only just expanded into Portugal – meaning their experience in that market is likely very limited.

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Finding a good property investment company can make your investments a much more worry-free venture and provide further financial security for your future. As with all industries, there are good businesses and not-so-good ones – it’s just a matter of knowing how to choose the best one for you.

Ask the company you are considering these 4 questions to better determine whether they have what it takes to handle your money properly, help you make sound investments, and deliver solid returns.

To find out how IP Global delivers on these values of experience, reach, responsibility and transparency, read on.

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WRITTEN BY IP GLOBAL

IP Global’s full-service approach is built on extensive market research and analysis combined with a significant financial commitment to every investment we offer. We are able to manage the entire investment process end-to-end, from sourcing, financing, and management to those all important exit strategies, making investment in real estate as straightforward as investing in more traditional asset classes. Our expertise, experience and strong record have produced over USD2.8 billion in international real estate investments in over 30 markets worldwide.