Evaluate a Real Estate Investment Business

Investing in real estate can be an excellent way to monetize capital, but it is essential to analyze each opportunity well before moving forward. Here are five essential aspects to check if we are facing a good real estate investment deal.

1. Owner Motivation

Understanding the reason for the sale can be an advantage in negotiating. Does the owner need to sell quickly for financial reasons? Or do you have time to wait for a higher bid? Urgency can directly influence the price and conditions of the purchase.

2. Time of Ownership of the Property

If the owner has recently purchased the property, they may not have had enough time to appreciate it. In these cases, the sale can mean a loss for him, making the negotiation more difficult. Ideally, the property should have been in the owner's possession long enough to ensure a margin of appreciation.

3. Upside Potential

Analyze the area where the property is located. Is there a growing demand? Are there any planned urban developments that can add value to the site? In addition, evaluate whether small works or improvements can increase the value of the property and make the investment even more attractive.

4. Value per Square Meter

Search for prices in the area on various real estate portals. Comparing the value per square meter of similar properties helps to understand if the asking price is adjusted to the market and if there is room for negotiation.

5. Profitability Calculation

Before closing the deal, it is essential to define the investment strategy and calculate the expected return. Whether for resale or lease, the numbers should make sense and ensure a good return on investment.

If all these aspects are aligned, it's time to make a proposal, negotiate and move forward!

Do you have questions or want to know more about real estate investment? Schedule a meeting with us to find out how we can help you.