Small investors, investing partnerships, investment clubs are ill prepared for investing in residential property. Considering buying rental homes, condominiums, or apartment complexes as investments is non-trivial for small investors because of guarantees, cash out lays, debt financing needs, legal needs, market information requirements and other considerations. Add to this the fact that smaller investors rarely enjoy the opportunity to solely focus on the success of these investments and the choice can be daunting. Investors need information for all of the areas described earlier to successfully navigate the problem.
What sorts of information are needed:
- Market studies describing the economic, demographic, educational, tax, tenant rights, and rental competitors are a first element;
- Market trend information for debt, equity, services, and products;
- Broader investment news on current trends for the financial markets with additional information describing what this means to the investor;
- Advisory information laying out common considerations for the investment process including:
- Legal,
- Management,
- Organizational,
- Equity,
- Selling brokerage services,
- Lending brokerage services,
- Debt financing,
- Due diligence,
- Business plans,
- Financial plans
- A “consumer reports” type set of info of best / preferred sources for key services and supplies
Given time, the list could be made much larger, but this touches some of the high points.
This information needs to be available via downloadable copies, audio, and video format. Investors need to be able to easily determine which item they would like to see, hear, or read to satisfy the particular issue they are facing at the time.
Providing this information is unlikely to be effectively met by a for profit organization because of the competing sources of information that will best satisfy the investors. Instead, the best means to provide this information is likely through a non-profit association that can singularly focus on investor needs while providing a venue for the various profit seeking entities to reach target customers.