Most frequent questions and answers
The answer to this question really depends on the investment you are looking for, your level of risk, budget, expected return etc.
For example: Are you investing in real estate for the quick flip? 5-7 year turn around? Or a 20 year income? We work with all types of investors, level of risk and budget and will be happy to offer you our services!
In general, single-family real estate performs fairly well across all market cycles.
Single family usually considered as a relatively lower risk than multi-family or commercial real estate investment.
In general, there is less risk because there are more rules and therefore easier to perform
In a growing economy with good employment, the property’s value tend to increase do well which would raise the value of your investment.
Rising employment creates more households that help both home buying and renting. If prices go up rapidly then you will make less money from cash flow and more from appreciation.
Rents go up in inflationary times and act as an inflation hedge. In a soft economy more people tend to rent rather than buy and there is a softening of home price growth- in this scenario, you will see more cash flow and less appreciation.
As with all investments, there is some inherent risk. Just as with investing in the stock market, there are no guarantees. The major risk elements are vacancy, maintenance expenses and trying to sell in a down real estate market. In general, real estate has less volatility than the stock market.
It is always difficult to predict the future. At Victory Real Estate we use a proprietary forecasting model that looks at employment, historical appreciation, new construction starts and a number of other factors that are neighborhood specific to come up with a Home Appreciation Forecast and only recommend properties in markets where we expect to see solid appreciation numbers. In general, the best cash flow investment locations are the ones that do not have great swings with economic cycles.
At Victory Real Estate we go through a rigorous due diligence and certification process to find the investment properties we recommend. We analyze large criteria when selecting an investment location- such as crime, schools, employers, median income, rent to price ratio; availability of local resources for management and more.
The properties we recommend tend to be in good middle-class neighborhoods. High-end neighborhoods do not provide as good of cash flow as home values are generally high compared to rents. A lower price neighborhood may produce good cash flow but will not have tenant stability, as lower income earners are the first to be affected in any local downturn. Therefore, we usually source properties that provide the maximum return on your investment, which means properties with high purchase-to-rental ratios in areas that are economically viable and will continue to be for the foreseeable future.
At Victory Real Estate we first try to understand your financial goals, investment method, risk tolerance and any other preferences that you may have by asking you a few simple questions. We use the answers you provide to create a personalized investment portfolio that fits your needs using our proprietary real estate investment algorithms. We are solutions and will work with you every step of the way to select final properties. We deliver a hands-free investment experience for our investors.
While investors may utilize other property managers, Victory Real Estate is a one-stop shop and is capable of managing all aspects of the property for our investors. We have all the knowledge and tools to ensure that our investors have the most consistent experience across all their properties and markets.
At the Victory Real Estate we look at rent comps in the neighborhood for similar houses to determine the rents. We have an extensive experience managing many homes in similar neighborhoods so we have good local rental data for comparison. We make sure rents are set competitively to attract the best tenants.
If you use our property management services, we take responsibility for all management aspects. If the tenant leaves, the property is refreshed and any damage comes out of the tenant’s deposit. The property is marketed to get another tenant.
We pick locations based on good employment and neighborhoods that renters like to live in, so that vacancies can be minimized. Fifteen to forty-five days are normal although it may vary by location and the state of the local economy.
There is no one else today that offers a hands- free fully managed service with the geographic diversity that we provide our investors. At Victory Real Estate we take the complexity out of investing in real estate so that many more people can participate. We combine the power of technology with the experience of on the ground management to make the investing experience simple and transparent.
Here at the Victory Real Estate we fully manage and oversee all investment properties – We ensure that properties are rehabbed and brought up to standards so that repairs and maintenance are minimized over the life of the investment.
In addition, we enforce best practices on tenant recruitment and screening.
We monitor the health of the property throughout the investment period. We drive standards and economies of scale for purchasing and cost efficiencies. Comprehensive asset protection – Warranty on all major appliances in the home. The investor has minimum out of pocket expenses for maintenance visits. All else is covered as part of the Asset Management agreement. Routine property inspections to ensure proper upkeep of the property. Early detection of tenant misuse is a big loss prevention measure.
Portfolio Reporting and Accounting – Monthly reporting on the performance of your real estate investments. Key information on markets where you have investment properties.
Insider ‘first look’ at new opportunities and markets.