Categories
INVESTING

Are You Investing in Real Estate? Here’s Some Professional Advice

Are you looking to invest in real estate, but aren’t quite sure how to get started?

Investing in real estate can be very lucrative. But, if you don’t know what you’re doing, you could end up losing a lot of money and wasting a lot of time.

What do you need to know before you get started?

Check out this guide to learn the top tips for investing in real estate.

  1. Choose an Investment Strategy

There are a variety of different real estate investment strategies. While you may eventually choose to diversify your portfolio with more than one investment strategy, if you’re just getting started, it’s best to choose one strategy, master it, and then go from there.

Here are the main types of real estate investment strategies:

Fix and Flips: Fixing and flipping homes involves buying a home below market value, fixing it up, and then selling it for a higher price to make a profit. While this can be a very lucrative way to make money, it’s also time-consuming, and there are a lot of risks involved. The best way to make a generous profit from flipping is to buy a home upfront with cash, so you’ll need to start with a sizeable investment.

Long-Term Rental: This involves buying a property and then renting it out to tenants. You can act as the landlord for single or multi-family homes, apartment complexes, or mobile homes, or duplexes.

Owner-Occupied Rental: This is similar to a long-term rental, except you live on the property.

Vacation Rental: With this type of real estate investment, you rent out your property on Airbnb, TripAdvisor, Homeaway, or another popular vacation rental site.

Online Investment Platform: With this investment strategy, you pool money together with a group of people to buy and develop housing.

  1. Work on Your Credit Score

Once you’ve chosen your real estate investment strategy, it’s time to work on your credit score. Without a good credit score, your investment opportunities will be severely limited.

Typically, mortgage lenders will want you to have a credit score of at least 620. To get even better terms and interest rates, work on boosting your credit score to above 700.

  1. Do Your Research

No matter which investment strategy you decide to implement, it’s important that you do your research beforehand. The key to successful real estate investment is to find properties that are below market value. (You can click here to learn more about finding the right investment properties).

Oftentimes, it’s best to work with a real estate agent to help you find these hot ticket properties. In addition to researching the right property to buy, you’ll also need to bone up on capital gains taxes, property management, home repairs, and landlord-tenant laws.

Investing in Real Estate: Are You Ready to Invest?

Now that you’ve read this guide on investing in real estate, it’s time for you to figure out how you’re going to invest your money. Real estate investment can be very lucrative, just make sure you do your research before you dive in.

And, be sure to check back in with our blog for more real estate investment tips and tricks.

Categories
INVESTING

Are Lofts Good Investments? (The Answer Is Absolutely)

Are you considering investing in a loft space? If so, you’d be making a great investment decision. These spacious living spaces with unique architectural features can be an ideal place to call home — and because of their trendy locations, they may even grow in value.

Curious to learn more? Keep reading to learn why you should invest in a loft!

Expect a Good Location

When it comes to finding new digs in a hot location, you stand a better chance of landing in a trendy neighborhood with a loft. Many lofts are in repurposed warehouses or factories. And often these spaces sit in hip urban areas that are newly revitalized.

By investing in a loft, you’ll be close to great dining options, concert venues, and walkable areas. Lofts offer an opportunity to get away from it all while still being just steps from fun activities and great local parks.

And if you need to sell your loft down the road, you may be able to get a good return on your investment. Lofts are a great option if you’re looking for a living space with a unique vibe and access to amenities.

Decor Options are Endless

With soaring rooflines and big, open spaces, you’ll have no shortage of decorating options in a loft. You can embrace the openness or find ways to cordon of spaces and create more privacy. You can think of lofts as blank canvases that can become yours to personalize.

Consider putting up walls to set up a bedroom area or study. String up some lights to create the ultimate inside gathering point. Or invest in some stylish drapes if you’re craving a little more privacy.

You can find patterns and colors that complement the exposed brickwork or pipes that may be visible in your space. Go for an industrial look or find ways to carve out a homier ambiance. The options are endless!

Soak Up the Sunlight

Large windows are one of the big architectural benefits you’ll notice in a loft. After all, many lofts used to be factory spaces. When you’re living in a loft, you’ll have tall, spacious windows that will fill your space with light.

And since sunlight can help you feel happier, you’ll notice you’re feeling better, too, after living in a sun-soaked space. While you’ll have to reach a little higher to dust your light fixtures, the pros outweigh the cons with lofts.

The sun also will call attention to the unique architectural features, like molding, original flooring, and brickwork. Take advantage of the opportunity to nourish your health and get a great view with a loft apartment.

Change the Space When You Need To

Lofts offer a lot of flexibility, too. Whether you’ve just moved to a city or you’re ready for fewer square feet in your life, lofts are a good choice. You can make the loft space work for you.

As your family grows, you can get creative and use bookcases and moveable walls to create new living bedrooms or play spaces. Or if you’re looking to build more room for storage, you can rearrange your furniture to establish a designated area for your tools, cleaning equipment, and picture books.

Best of all, you won’t have to worry about bothering the neighbors when you’re making any adjustments. The thick walls and open spaces provide more of a sound barricade than what you’ll find in a traditional apartment. All you need to do is know what you want to get out of the space, and then you can do it.

No Need to Deal with Landscaping

A big advantage of investing in a loft apartment? You won’t have to deal with landscaping or yard upkeep!

Like studios and other communal living options, you avoid the responsibility of having to mow the lawn every weekend or trim the hedges. And you won’t need to spend money on lawn care equipment. This is time and money that you can reinvest in more enjoyable experiences.

Many lofts are in large industrial buildings that don’t have a lot of green space outside. While this may be a drawback for some, you might not be completely out of luck.

As a bonus, some loft spaces feature rooftop communal areas where you can enjoy breathtaking views. You might even be able to find a space for a community garden — and you’ll certainly have enough sunlight in your personal space to keep your plants happy indoors.

Lofts Provide a Downsizing Option

Are you a senior looking to downsize? Then you might want to consider lofts for rent in your area. Lofts mean that you’ll have less space to manage and more time to explore the area around you.

You won’t have to spend all of your time dusting. You’ll be able to carve out the storage space you need in a loft, but you’ll need to be more deliberate about what you take with you when moving in. For seniors eager to live more minimally, lofts are ideal.

You can enjoy panoramic views of the skyline around you and enjoy the open spaces within your loft. And being so close to downtown, you’ll be able to get in your steps as you head to the newest restaurants and shows.

Invest in a Loft

Lofts are a great investment option if you’re looking to land a great property with a lot of upside. Whether you’re looking to make a lifestyle change or just try a cool new architectural space, you can find what you’re looking for in a loft. Know that you’ll also gain a space that pays off in the long run as a profitable investment!

To find more information on properties and real estate, check back for more informative articles.

Categories
INVESTING

Real Estate Investing: How a Realtor Can Help

Everyone dreams of making the most out of their hard-earned money, and sometimes, that 9 to 5 job just wouldn’t cut it if you want to achieve your dreams of wealth and luxury, or maybe even if you just want a stable and financially secure life. If you have money to spare, you’ve probably thought about investing it on something so that your money can grow, and real estate is renowned one of the best and most consistent options out there.

Real estate investing offers a variety of options for newcomers and veteran investors alike, and if you truly want to make the most out of your real estate investment, working with a realtor could help you get to the next level.

But first, here are the various ways that you can put your money in real estate.

Ways to Invest in Real Estate

Rental Properties

If you want a consistent way to generate income and you have a considerable amount of money to spare, purchasing a property and putting it up for rent is a reliable way of investing in real estate.

House Flipping

You can engage in real estate and yield quick returns in your cash by house flipping. Simply put, house flipping is purchasing a property and making improvements or waiting for it to appreciate and then selling it at a higher price.

Real Estate Investment Groups (REIGs)

REIGs are similar to small mutual funds wherein the group invests in rental properties, such as apartment blocks or condos, with the goal of leasing these properties. REIGs are great for people who want to own rental real estate without burdening themselves with the task of running it.

Real Estate Investment Trusts (REITs)

Investing in REITs can be compared to investing in stocks, as the money you invest is used by a corporation to purchase and operate properties, then you get paid dividends for it.

Online Real Estate Platforms

Online platforms allow real estate investors to connect with other investors so that they can pool their funds and then invest these funds in a commercial or residential deal. It takes relatively less money than investing in a property by yourself outright.

Why Would I Need a Realtor?

Working with a realtor will be especially useful if you’re looking to invest in actual property such as rental property or property that you’re looking to flip for a profit. Realtors are best for investors who don’t have the time to work on the research and planning that real estate investing requires, as they do the handiwork for you to ensure that you have time for your other endeavors.

Having a reliable and skilled realtor at your side throughout your investing process will give you various benefits, all towards the ultimate goal of making the most money that you can out of your investments.

Benefits of Working with a Realtor

Quick Deals

Realtors dedicate their time to making sure that you make profits as soon as possible. There’s no need for you to tighten up your schedules to meet with potential buyers as your realtor does that job for you. Also, your realtor also helps you identify other great investment opportunities for you, so you wouldn’t have to take the time to research by yourself.

Market Knowledge

An experienced realtor knows the current state of the market and specific trends that are taking place in it. By working with a realtor, you’ll have access to insider knowledge that can help you find the best properties that you can invest on as well as aid you in strategically listing your properties. A knowledgeable agent may even help you improve your properties by suggesting what could make your property more valuable so that you could sell it or put it up for rent for a higher price than you initially thought of.

A Well-Connected Network and Referrals

Working as a realtor is bound to give a person multiple connections with a lot of people through former clients or former colleagues. The best realtors have a wide network of people that they’ve worked with or encountered throughout their years of experience, and this will serve you very well if you choose to work with one as you’ll be able to have a source of consistent referrals through your realtor. Whether you’re looking to buy or sell property, your realtor probably already has information on who’s selling and who’s looking to buy and will be able to connect you with these people and help you strike the best deals as quickly as possible.

Great Negotiation Skills

If you work with a realtor, you wouldn’t have to worry anymore about getting shortchanged when selling or unwittingly buying an overpriced property. Since your realtor does the negotiating for you, he’ll be able to get you the best rates both from sellers and buyers alike, and there would be no need for clueless haggling as your realtor has knowledge of the market at his or her disposal for you to take advantage of as an investor.

Categories
INVESTING

Rental Property Investment Information

If you think that purchasing a rental property and renting it out and collecting is just that easy you’re very wrong. If you look at it from the standpoint of it being a way to generate extra income then everything looks great because besides the income from the renters you may also profit from housing price increases that have been going up for quite a few years.

There are disadvantages of being a landlord of a rental property. Being a landlord is much more than just collecting the rent on the first of every month. There is actually real work involved along with high financial risks. Following are a few things to take into consideration before your make an investment in a rental property. Any rental property is unlike any primary residence, the rental property is a real financial investment. When you purchase a home it has more of an emotional aspect than a financial investment in a rental does.

You are an “investor” not just the owner of a property. This means that you have to change your way of thinking and look at this property in terms of profit and loss, risk and reward. There are two main factors that will either make or break you in this kind of investment, namely: 1) Cash Flow – you need to take into consideration how much rent you can collect for this property every month, and then what will be left over after the mortgage payment, maintenance costs and other varied expenses; 2) Appreciation – appreciation cannot be relied upon by owners of rental property to make their investments profitable.

A rental is really a business and is subject to the basics of supply and demand just like any other type of business. Therefore, you shouldn’t have any problems renting your rental if properties like yours are in short supply. It is true that vacancies are your worst enemy when you are trying to generate a positive cash flow from your rental property. Vacancies not only don’t generate any income they also cost you money. Before you invest in any rental property you should protect yourself by making an evaluation of the rental market.

Check the frequency of rental listings in your local paper and talk to all of the realtors and property managers in the area that you can. Rental properties in such certain neighborhoods near schools or universities have a higher demand for rentals than others. When you own a rental property you are in business, you are not just an investor. In order to run your business successfully you must be willing to commit enough of your time and resources that are necessary. It is imperative that you understand how much money and time you will have to spend before you make an investment in a rental property whether you are actively involved on a daily basis or you hire a manager to run the business for you.