I recently invested 30K in an investment property. I didn't invest a lot because I really wanted to learn as much I could and gain some knowledge in the midst of it. What are some questions I should ask my Real Estate Manager/Construction Manager in regards to the investment property?
Still missing the point Tracy. You invested/paid sombody 30k. What did they promise you in return for doing this? That is called the terms of your investment. Normally the terms might be x% return in y Months or the return of investment after the sale and Z% of the gains from the sale. Your statement I invested 30k in RE." doesn't give anyone a clue of what you are doing and therefore what you should ask whoever you gave your money to.
I don't want to sound too hard but, You should ask yourself why did I "invest" any money in this deal.
Real investment means you have looked at this deal and have concluded yourself that you are going to have a return on your investment. Don't expect someone else to do that work and certainly don't just depend on the who you gave your money to.
Perhaps I read your case incorrectly. Perhaps some more detail would help.
Thank you for responding. I just wanted to know what type of questions I should be asking that I might be missing regarding the status of the progress of the project. I’m not purchasing anything the property just investing to reinvest into a different property.
If you are investing money in this, you did purchase something. If no money invested then you are just studying and plan to invest.
If you have given money to someone connected to this land purchase/investment, then you should have some paper with the terms of your purchase. Still not sure of your status in this "investment."
Because you invested a sizable chunk of money into real estate, I'd assume you are in it for profit. Because you mentioned managers, I am assuming you didn't use a service like fundrise.
But, you can't estimate profit without estimating what your estimated revenue will be and subtracting all the costs.
I.e, how much longer does the roof have, what portion of the rent is being budgeted for future repairs, who covers the cost of repairs, how does the tenant request repairs, what are all the expected monthly expenses, how much is the management team charging you, how do you know the management team is doing their job, what are the names of the contracting companies they are using if they are constructing the property. The list goes on.
I would also do some homework on the surrounding area yourself. How much are nearby properties worth, what rent are they charging (check out rent estimators online like rentometer), do nearby landlords make tenants pay for utilities, etc.
Still missing the point Tracy. You invested/paid sombody 30k. What did they promise you in return for doing this? That is called the terms of your investment. Normally the terms might be x% return in y Months or the return of investment after the sale and Z% of the gains from the sale. Your statement I invested 30k in RE." doesn't give anyone a clue of what you are doing and therefore what you should ask whoever you gave your money to.
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