4 Important Questions To Ask Your Property Investment Advisor

4 Important Questions To Ask Your Property Investment Advisor

Purchasing a property is already difficult enough, and working with disreputable property investment advisors doesn’t make things any easier. While it’s only natural to seek out help when you’re undergoing a process as complicated as buying a piece of real estate; it’s an unfortunate reality that not all self-proclaimed “advisors” can offer the trustworthy advice you need. 

Though there are plenty of bad actors in the field; it’s still possible to find a property investment consultant you can trust. It’s all a matter of asking the right questions. With that in mind, be sure to ask these four questions to help you weed out shady advisors and make the most out of your meetings. 4 Important questions to ask your property investment advisor.

1. Are You Licensed and Qualified?

This query might sound obvious, but sometimes the simplest questions are the easiest to forget. Just about anyone can set up a shiny new website, make up some credentials, and advertise themselves as a reputable property advisor. It’s much more difficult to fake official licensing and qualifications. 

When you’re working with a new advisor, make sure that you ask whether they’re really qualified to provide advice if you ever have any doubts at all about their aptitude. If they seem to have any trouble providing an answer, chances are that you should take your business elsewhere.

2. How Do You Assess Risk?

Risk is one of the most important factors to consider regarding property investments, yet it can also be one of the most challenging elements to quantify. The best advisors use a holistic scale to consider factors such as the client’s expected income levels, the property’s scheduled maintenance and upkeep needs, and the property’s local surroundings. For the sake of transparency, your advisor should be able to show you exactly how they determine risk and walk you through the process.

3. How Do You Do Your Research?

Remember all those lessons in school where your teacher scolded you to use reputable sources in your papers? It turns out that they might have had a point. Your property investment advisor should always perform thorough research in their chosen niche, using only the most accurate and up-to-date sources. 

Your advisor should also be happy to share their information sources with you, which will help you be a more active and informed participant in the investment process. If your advisor attempts to remain secretive with their information, then you may need to look for help elsewhere. 

4. What Makes You Recommend This Property?

Receiving a property recommendation should be an exciting part of your investment journey. However, it’s essential to determine why your advisor might be making this recommendation. Not all advisors refer you to properties because they think they’re the best fit. Sometimes, they’re in it for the commission or connections that might be involved with certain property developers or other stakeholders. Sadly, your personal and financial wellbeing are secondary considerations for such investment advisors. 

You can mitigate such risks by asking your advisor to explain, clearly and coherently, why they’re making the recommendation in the first place. If the proposal is legitimate, then you’ll be a more informed buyer. If not, then you’ll have avoided a sticky situation.

Property investment isn’t easy, but when you do it right, it can be financially and personally rewarding for years to come. That’s why it’s so important to have the right help to guide you along the way. Whenever you’re working with an advisor, make sure you keep these four questions in mind to enjoy peace of mind that you’ve got a genuine expert on your side.