The different actors of a real estate investment project

Your rental investment project is taking shape, but you still have trouble identifying the different players to call upon in your project and what their roles are. There are many different professions in the real estate industry, so who are the players involved in your project and what do they do?

The buyer

You are the number one actor in your project. Once your investor profile has been established and your project well definedthe type of property you are looking for (new or old, apartment or building...), the budget you can invest (depending on your borrowing capacity) and the geographical areayou can start looking for the ideal property.

The investment advisor

a. Role

The selection of properties can be quite complicated due to the quantity and diversity of properties available on the market. This is where the investment advisor. Contact him who, after an initial meeting to identify your profile and your expectations, will propose a selection of properties corresponding to you. Following this selection, he will accompany you on visits, guide you in your choice, in the drafting of a possible purchase offer... The investment consultant will accompany you throughout your project.

b. Cost

You may be reluctant to involve an additional player in your search, for fear of the cost that this may represent. Rest assured, the fees of an investment advisor are, like real estate agents, capped and announced upstream. If you mandate Raizers Transactions for the acquisition of your property, you will have to add between 2 and 5% (depending on the amount of the purchase) (depending on the amount of the purchase) to the acquisition price including all taxes. Please note that these fees are totally spread out in your bank loan and should not be added to the real estate agency fees.

The seller

He is the second actor in your project. He is the one who has the property in his hands and who will agree or not to sell it to you. It can be a professional (developer or real estate agent) or an individual who sells his property. It is important to have a healthy relationship with the seller, to make sure that he is transparent and does not hide any existing defect on the property that could cost you unforeseen expenses or an impossibility to rent your property for a certain period of time, and thus cause a loss of profitability on your investment.

To avoid unpleasant surprises as much as possible, it is essential to check these points before committing yourself:

• The state of the electrical installations, plumbing, possible work to be done...
• The diagnosis of energy performance
• The surface certificate (Carrez law)
• The state of technological and natural risks
• The amount of condominium fees
• The minutes of the last 3 General Assemblies
• The last property tax notice

The broker or the bank

Once the verifications have been made and the sales agreement signed, you must start looking for financing. You can contact your bank if it offers good conditions. You can also send your request to several banks in order to compare the offers.

a. Role

To save time, you can also use a mortgage broker. He will play the competition and maximize your chances to obtain the best conditions for your loan.

b. Cost

Like the investment advisor, the broker's fee is capped at 1% of the amount of the loan, and will only be invoiced to you in case of success . Note that you can integrate this amount into your bank loan and that in the case of a rental investment, these fees are tax deductible from the rental income.

The rental manager

The property belongs to you now, it is time to put it in rent so that it generates the expected incomes. For this, two solutions, you have time and you live in the same geographical area, you decide to take care of it by yourself. Second solution, you delegate to a rental management agency.

a. Role

Notifying existing tenants, if any, of the change of ownership, providing them with your RIB to transfer their rent, checking the viability of their home insurance, taking pictures of the property, searching for and selecting new tenants, drafting and signing leases, etc... are all things that can be done by yourself or by the rental manager.

b. Cost

Just like soliciting an investment advisor or a broker for your loan, going through a rental management agency is a personal choice that is up to you. Note that the agency will charge you between 7 and 8% of the rent (including tax) for long term residential, and more (around 20%) for tourist rentals (which involves more turnover and therefore more management).

Getting started with a rental investment may seem difficult, but once you've identified the right players and defined their roles, all you have to do is choose the combination that suits you best and wait for your investment to generate the expected income.

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