Hello, I’m Jarrett Lau, the founder of Profitable Properties Boston, and I’m not just a real estate agent—I’m a landlord myself. I believe in walking the walk when it comes to real estate investment, and it’s important for my clients to understand what I look for in an investment property.
Today, I’ll take you through my process and share some insights that have helped me and my clients build wealth through strategic property investments.
1. Know the Market Inside Out
The first step in my process is understanding the market dynamics. I meticulously track daily property listings, sales, and agreements in Greater Boston. By maintaining detailed spreadsheets, I can identify trends, track price fluctuations, and determine whether the market is favoring buyers or sellers.
This knowledge is invaluable when it comes to negotiating the best possible purchase price for myself and my clients.
2. Understand Rental Prices
In addition to market trends, rental prices play a crucial role in evaluating investment properties. With hundreds of units under management, we have access to rental databases across Greater Boston.
Analyzing rental data allows me to gauge whether landlords are adjusting prices, offering concessions, or paying fees. This information, coupled with property prices, helps me calculate potential returns and determine if a property aligns with our investment criteria.
3. Crunching the Numbers: Ratios and Equations
Once we identify potential properties, it’s time to crunch the numbers. We use ratios such as cap rate (net operating income divided by the purchase price) or cash on cash (considering mortgage and other expenses) to evaluate the potential profitability.
It’s not just about buying a property; it’s about ensuring it’s profitable from day one. My goal is to help clients build generational wealth, and that starts with making sound financial decisions.
4. Making Offers and Negotiating
Armed with a solid understanding of the market and property values, we move to the negotiation phase. I’m committed to sticking to pre-determined budgets and preventing emotional decisions from impacting the process.
There’s always another deal, and I pride myself on being patient to find the right one for my clients.
5. Expertise in Property Evaluation
As a general contractor, I bring a unique advantage to property evaluation. Whether through on-site walkthroughs or advanced 3D tours, I can identify necessary repairs or renovations that can maximize rental income.
This insight is shared with clients before making an offer, ensuring transparency and informed decision-making.
6. Controlling Timelines and Minimizing Vacancy
Being a general contractor also allows me to control timelines, minimizing vacancy periods for investors.
Whether by adjusting closing dates or employing creative marketing strategies like 3D tours and video layouts, we strive to get units rented faster than the competition, ensuring a steady income stream for our clients.
Conclusion
if you’re in search of a real estate agent specializing in investment properties, look no further than Profitable Properties Boston.
We’re not just here to help you buy a property; we’re here to guide you from one property to wealthy, with expertise, dedication, and a commitment to your financial success.
