Know and Reduce your Financial Risks when Investing in Real Estate

Savvy investors assess the risk of their investments and take proactive steps to reduce the likelihood and impact of such risk. Risk of fire, water damage, or natural disasters are a few reasons why landlords turn to Steadily for coverage. Understanding a rental’s financials and protecting against the downside is another way to protect your investment. As the adage goes, “know before you buy”, understanding the financials of an investment property is a critical step that investors take prior to acquiring an investment.

Padvest is an online platform that helps real estate investors and landlords assess the financials of their properties and, coming soon, providing ways to co-invest in rentals with partners. Padvest can help you estimate the financials of a rental prior to buying it by providing you with rich data about each property.

Do your financial due diligence before buying

Before buying a rental, you’ll want to understand its income potential, expected expenses, initial repairs, and ongoing maintenance costs. It's smart to gather as much information as you can to make sure you’re making a good decision before you put money on the line. Generally, rental passive income comes from short-term or long-term rent payments. Expenses usually cover things like property taxes, insurance, and property management fees.

These details are used to estimate the cash flow potential of the rental property, its future appreciation potential, and determine any risks that might cause you to lose money on the deal. Most investors make their decisions based on one or multiple of these essential financial metrics about that property.  

Padvest and Steadily

The details might seem daunting. But don't fret, Padvest can help you get this full picture in a matter of seconds. You simply type the address of the property, fill in or customize a few assumptions, and get a detailed financial report. You can even change your assumptions to model best-case and worst-case scenarios or to know how much you should keep in reserves, in case of a large, unexpected repair.

By partnering with Steadily, Padvest now estimates insurance costs for your investment properties using its details such as address, bedrooms, square footage, and more. This seamlessly provides you with an estimate of insurance which is one of the most common property expenses.

And best of all, Padvest is currently free to use, so sign up today and evaluate your investment properties.