Investing in real estate certainly deserves all the hypes it’s been getting. Everyone wants a slice of the pie and you should too. It’s a great way to pay for your startup, allowing you to focus on your dreams, however, you must look before you leap. Here’s a list of 4 secrets you must know before you jump in:
Crowdfunding for real estate has caught on quickly, and it’s an approach you might want to consider. Partnering with another company to set up a crowdfunding scheme allows you to use other people’s money to invest in real estate. Make sure you find a partner that is a professional in the field and knows the business of real estate investing well. If you would rather not go the way of crowdfunding, then find someone to invest in you. Make the connections you need and obtain mastery of joint ventures.
2. Invest in flatsIt doesn’t matter how many houses you have, millennials aren’t buying homes as much. The demand for multi-family units is at an all-time high and it’s not set to slow down anytime soon. You might have a hard time finding new tenants after the last tenant leaves your home, however, if you have a block of 8 flats, even if half the tenants move out, you’ll still have 4 occupied flats. Getting a down payment is no piece of cake, but once you make a down payment, it’s much easier to get a loan on a block of flats than a house. If you’re set up properly in terms of legal requirements such as landlord insurance, this will also add to your case.
It might be tempting to start investing in attractive properties in exotic or high-rise locations far away, but don’t do it. At least, not yet. You should mix with local investors and learn from them. Find out what informs their investment decisions and figure out ways to maximize returns on local property. Also, you could easily monitor property that’s close to you.
3. Start close to home
4. Look for potentialThis may require some serious digging, or sometimes, all you need is to take hints from other investors. You could consider refurbishing a place instead of going for that piece of real estate that seems like hot cake right now. A well finished building will likely get higher rent rates, but be careful to consider the location. Also, you’ll find that in areas where prices of homes have gone up, it’s because of better rail links, cutting down commute times. You can make sure that you stay ahead of the game by studying long-term transport plans and other such developments.
When we look at the property market, it is one of the best places to invest money due to the near constant demand that exists for housing. Though historically we have seen problems in the market, a lot of people have made a lot of money by putting their money into the property market and taking risks where the best opportunities lie.