Investment Property transactions can differ widely. When approaching the undertaking of such asset there are core areas which, given attention before involving professional experienced support, are mutual. It may assist in some small way, or to material effect, to consider these areas; whether using borrowings or not.
Ready a Business Plan that includes:
1) Personal Solvency: Tax status, Principal and other liabilities
2) Property Condition and Value
3) Property Contractual Arrangements
4) Property Legal Restrictions and Title
5) Other Considerations i.e. current use, insurance limitations, licencing
6) Third Party Involvement i.e. contractors if developing, tenants or landlords
7) Cost Projections
8) Servicing Borrowing
9) Exit Plan; end of borrowing Term
10) Subjective Appraisal
Plan for:
1) Verifications: To claims made or information stated i.e. Credit Checks
2) Specialist Reports, Advice or Quotes – asbestos, structural, damp, rot, etc.
3) Credentials: To verifiers
4) Impact: Proposals can be unfeasible
5) `Plan B’
When to Get It Together:
1) Tax and Financial Analysis – When a purchase is being considered, maintained updated ready for purchase being settled.
2) Structural Enquiries – Upon property enquiry, with more detailed reports progressing through process.
3) Legal Opinion – When a purchase has been negotiated (Heads of Terms), maintained to Completion.
4) Third Parties – In context of the purchase ASAP, so that restrictions are understood and gaps identified.
5) Personal Identity – Current from reliable sources, ready as required.
Bringing it All Together:
The Seasoned Cat Herder
Article credit: Copyright SUF © 2017