Please carefully consider investment objectives, risks, and associated costs or expenses before investing with MWR Lending . Real estate investments are not guaranteed or insured and past performance is not a guarantee of future performance. Please ask questions and ask for more information before you consider any investment.
Determine Your Investment Strategy and Timeframe – Many factors should be considered before you make any investment. Real estate investing requires a clear understanding of your risk tolerance. You should also determine if you will require periodic investment returns or if you can wait to gain a potentially greater return on investment by waiting for a property to sell. Go into this or any other investment with clarity and confidence, after asking questions and getting answers that deal with your personal investment goals.
Be Confident In Who You Work With – The old adage is true, trust but verify. Be sure that the company you entrust your real estate investment money to has a track record of success and living up to its claims. Remember that past performance is not a guarantee of future success. Your investment is not guaranteed and is not insured. A lack of past performance is also something to be concerned about. Remember that any investment is made up of risks and returns.
You Are Buying a Business – Investing in real estate carries with it a great potential for creating wealth and some risk factors. These include, but are not limited to, rising interest rates, increases in the costs of rehabbing properties, a softening in the real estate market, the failure of renters to pay rent on a timely basis, and other factors. Other risks, such as fire or title problems, can be insured against. If you wish to exit your investment early, you should be aware that a replacement investor will have to be found and the amount of time that will take may vary.
Invest with a Professional – The company you work with should know what they are doing and look under every rock! They should be hands-on and understand all the important aspects of finding, choosing, investing in, and selling real estate. Even the most professional company is run by humans and there may be mistakes made. Mistakes may increase costs and you should be prepared for this possibility. A track record of sound business judgment is something you should insist upon when you invest.
Failing to Have Adequate Insurance – Investment property brings liability. Adequate insurance coverage is an absolute must! Be sure that the company you invest with obtains adequate insurance for its investment properties.
Document Your Investment – Ask about what kind of documentation the company provides. Do they offer a promissory note that details the investment you are making with them? Do they offer you a first or second mortgage on a specific investment property? Do they file the transaction with the appropriate real estate registry? Do they make UCC filings to properly record the transaction?
These steps do not guarantee a profit, but they are all important in operating a successful real estate investment business. It’s all part of documenting who owns what and what everyone’s rights and responsibilities are. Investment property can be one of the most rewarding aspects of your financial portfolio.
Be certain to have all your ducks in a row before you invest. Do your homework and work with professionals upon whom you can rely.