Real Estate Investment Companies

Written by Shirley Parker
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Real estate investment covers a wide range of properties. Knowledgeable investment companies will recommend the best, strategic sites for new construction. If feasible, they will also suggest buildings that can be remodeled for the most reasonable cost under any given circumstance. On occasion, however, they find themselves in the middle of extremely strong resistance by environmental groups and existing communities, who do not want further encroachment on their region.

Real estate investment companies are fully acquainted with zoning laws and the fact that current environmental studies must be made before permits are granted for any large undertaking. Maintaining an actual inventory of land is not uncommon. These properties are then marketed to suitable buyers, either for lease or purchase.

One great concern for a business is accessibility. Can customers or clients get to the location without a long drive from an airport? Is there a pool of workers nearby? Will they need to relocate all existing employees or just key managers? What if no one wants to relocate?

The Individual Home Seller and Investment Companies

The doings of real estate investment companies can affect the individual homeowner, too. Some companies now purchase a residence directly from a homeowner wanting to sell. The investment company claims they'll pay off the mortgage (if it isn't paid off already), and gives excess funds directly to the seller. This frees the seller to move quickly. The company later sells the home to a buyer--hopefully, at a profit.

Before entering into any transaction with a real estate investment company, do the research! Find out what registration the investment company displays. Have they bounced any checks to sellers? What happens if they don't pay off the mortgage in a timely fashion, or don't make the payments on it while waiting to sell? Is the company "flipping" homes? That's a profit tactic that is either regarded as illegal, or frowned on at best.


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