Purchasing a Residential Income
or Commercial Investment with Hpremiere
It is vital that the purchase of your income investment property be profitable, comfortable, solid, and secure. Hpremiere can offer you this peace of mind.
Having successfully closed many residential income and commercial escrows representing buyers and sellers, and with our fantastic relationships with the various mainstream commercial brokerages throughout Southern California, we are well in-tune with the needs of investors and the opportunities out there in today’s market.
Our clients appreciate our understanding not just of the numbers and data, but of the subtle creative nuances of each individual deal. We tailor our strategies, therefore, based on the needs of our specific clients, the investments they seek to make, and their goals.
Here’s a very brief step-by-step of the process of purchasing an investment property through Hpremiere, and we are happy to go into detail with you further:
1. Let’s get you pre-approved with a lender
Having a lender pre-approval will accomplish a few things right at the start:
We’ll have an exact price range you are comfortable with for your purchase, based on your qualifications.
Our search process will be much more efficient, ensuring we are only identifying eligible properties within that comfort range.
Since listing agents will expect to see a lender pre-approval letter with our offer package, having this in place will have us ready to submit an offer at a moment’s notice as soon as we see an opportunity you’d like to quickly pursue.
We have fantastic contacts with major retail direct lenders, including Bank of America, Chase, and Wells Fargo. If you bank with a particular institution, this may be the best route for you.
We also have wonderful relationships with independent mortgage entities, with a variety of different loan programs available for our clients, depending on their particular needs.
Please let us know your goals so that we can refer you to the financing professionals that are best suited for you.
2. Covering the broad spectrum of commercial real estate search engines
Hpremiere leaves no stone unturned, and utilizes the following commercial real estate solutions to seek out the best investments for you:
• Multiple Listing Service (MLS), as a member of the Pacific West Association of Realtors®
• Xceligent CDX Commercial Real Estate Research through AIR Commercial Real Estate Association
• LoopNet
In addition, Hpremiere has direct relationships with several nationwide commercial real estate brokerages, and local independent brokerages, with insider access to off-market listings and non-publicized opportunities.
If it’s out there, we’ll find it for you.
3. A different approach with viewing income properties
With residential income properties, it is common for interior showings to be allowed only with an accepted offer. The reason for this is to respect the privacy of the tenants until the right buyer comes along.
When this is the case, we make sure you have the proper safeguards in place in our purchase contracts, allowing us to conduct all proper investigations once in escrow, and giving us the ability to cancel and have you receive a refund of your initial deposit should we discover something undesirable about the property.
It’s an extra layer of protection that gives our investors excellent peace of mind through every step of the process.
4. Evaluating the Property
Hpremiere agents are qualified to help you evaluate the overall integrity of the property.
• With you, we will take a look at the income and expenses of the building, as well as the occupancy and vacancy rate, to see if the numbers make sense on paper.
• In conjunction with all the right inspectors, we’ll take a look at the overall condition of the property itself, identify any potential deferred maintenance or safety hazards, and make sure everything is up to proper code.
We want you completely comfortable with this investment before we move forward.
5. The Gross Rent Multiplier (GRM)
The Gross Rent Multiplier is a key tool investors use to determine the profitability potential of an income property at a first glance. This is integral with our initial evaluation of the profitability potential of the property.
The GRM is a simple calculation:
Asking Price / Annual Gross Income = Gross Rent Multiplier
Example:
Asking Price $1,250,000 / Annual Gross Income $110,000 = GRM 11.36
The lower the GRM, the better the profitability. The lower the GRM, the faster the property tends to receive offers once listed.
This will be useful information for us as we determine if a particular investment is sound for you, or not worthwhile.
6. The Offer Submission Process
Hpremiere agents are trained to put together the most professional offer packages in our industry today.
We feel it’s not just how well you qualify that matters, but it’s also the professionalism of the agent and the integrity of the brokerage that helps earn the confidence of the seller and the listing agent.
Our offer packages are not simply the “nuts and bolts.” We want the seller to feel the commitment you have for the property, and the energy and professionalism of the agent representing you.
We feel this is what sets Hpremiere apart from the rest, and can make a huge difference in obtaining an acceptance for you.
With income properties, it isn’t simply the acceptance that matters. It’s being able to close escrow and have your investment instantly deliver results. We have an absolutely incredible success rate, not only with happy escrow closings, but with investments performing as promised after the close.
Please let us know if we can help brainstorm with you on a potential investment purchase.