Hello everyone!
I am new to property investment and have recently closed the deal for the purchase of my first two apartments.
However, a new offer came to my attention. An investment agency offers to be an intermediary between a buyer, seller and a bank and to manage the entire process, including finding the best deal for the customer, obtaining the credit in customers name and managing the property once it is rented. They ask for 1% of the property value as a commission and about 8% of the monthly rent for property management, which is optional, but since I am thinking of moving to another country I am seriously considering this option.
My questions are:
- Has anyone here dealt with such agencies and are they helpful or more trouble that they’re worth? I’m asking because I have never dealt with this kind of businesses before and I’m slightly suspicious, since some of their offers are for properties that have only reached the planning stage, but the upfront payment, even though it is divided by a number of months until the construction is done, begins immediately. This actually sounds nice, since it means that the downpayment can be collected in a more relaxed manner, but its also tricky for obvious reasons.
- Is 8% of the total monthly rent a lot? I looked at their proposals and found that it decreases my monthly cash flow from the investment quite considerably, so I’m trying to understand if its worth it or is it better to look for someone on the side to do the job for less.
Thank you!
Eduardo
