How to Build Your Real Estate Investor Network With Social Media

How to Build Your Real Estate Investor Network With Social Media

Social media is a powerful tool that many real estate investors use to build their professional networks. Whether you like social media or not, it is changing the way people in all industries market their services and build relationships. If you want to build a real estate investor network using the internet and technology, you should embrace social media as a business tool rather than looking at it as just a place to connect with friends.

Delivering High-Quality Content

If you want to establish yourself as a real estate pro, you must show people you are a leader in the industry. You can accomplish this by delivering high-quality content related to real estate investing using social media. If you have unique ideas and concepts you want to share with professionals in real estate, you can produce and promote those ideas in the form of content on social media.

You can post blogs on LinkedIn, post pictures related to what you do on Instagram or post real estate updates on Facebook. Another great idea is creating short informational videos that are eye-catching. Visual based content is a great way to attract audiences.

The possibilities are endless regarding how you can deliver content on social media to establish yourself as a thought leader. However, the content must be unique, and it must be your own. Recycling bland and cookie-cutter content that is plastered all over the internet is a sure-fire way to lose any credibility you have established. Take the time and create something new and original, it may take time but it will be worth it.

Connecting With Other Real Estate Pros

It is in your best interest to connect with as many real estate professionals as possible. Social media platforms, if you use them correctly, are a powerful tool to connect with others in the industry. LinkedIn is a social media platform specifically for business professionals, and it is popular among real estate investors. If you can learn to how to navigate LinkedIn, you will attract the attention of those who matter in the industry.

The idea behind using social media as a real estate investing tool is to communicate and engage anyone who might become a partner or a client. Social media is also a great way to promote what you offer as a real estate investor. However, avoid using sales pitches to promote yourself, especially on LinkedIn. You want to provide value to anyone who reads what you have to say on social media

Millennials and Real Estate Investing

Millennials and Real Estate Investing

For many Americans, owning a home has long been the way to accumulate wealth. Over the years a home will appreciate in value, or so people assume. Investing in the stock market, for those who have the means, is also an effective way to build wealth over the years.

A decade ago, when the housing market crashed in the Great Recession, the idea of building wealth through real estate was shattered. People saw how real estate values can fluctuate. Still, many millennials who witnessed the housing crash, are eager to invest in real estate. In fact, a recent real estate investment report delivered survey results showing that 55 percent of millennials are interested in real estate investing. Here are three reasons that millennials are interested in real estate investing.

Growth Over Time

The subprime mortgage crisis sounded the beginning of the Great Recession back in 2008. The bubble in the real estate market burst and housing prices plummeted. The real estate market has had a long climb back over the past several years. The point that millennials see though, is that the market did come back. The millennial generation did not rush into home buying, but now are moving into the home buying phase. They are the largest generation of Americans and will have a profound affect on the housing market.

Stock Market Skepticism

Anyone who has taken even a slight interest in the stock market knows that stocks go up and down. However, the millennial generation had a harsh, real-life lesson in this aspect of the market. Many millennials graduated into the Great Recession and the daily headline news about Wall Street crashing and people losing retirement savings. A large portion of millennials believe that real estate outperformed the stock market since 2000, and they are correct. Their witnessing of the Great Recession may make the millennial generation more likely to be skeptical of the stock market.

Real Assets

In this age of information it is easy to gather data about investing. The methods of investing in real estate are available to any millennial who wants to do some research. There is a tangible element to real estate investing that may appeal to the millennials sense of self-image and desire for uniqueness. In fact, findings show that 85 percent of millennials think real estate is a good investment.

Older generations may be interested in downsizing at this point, but millennials are starting families and advancing their careers. These facts, along with the great potential for positive returns, make buying a home and investing in real estate an appealing next step for millennials

Real Estate Startups That Are Changing the Industry

Real Estate Startups That Are Changing the Industry

With the digital era making almost anything available through a smartphone or computer, several startup companies recognized that buying and selling homes should be no different. Digital real estate companies are starting to flood the market and in the process changing the face of the real estate industry. Will real estate agents become non-existent in a few years? The answer is most likey going to be a no. However, if these three companies have their way, it will be sooner rather than later.

Roofstock

Founded in 2014, Roofstock is an Oakland-based company that provides a marketplace for single-family rental units. The company offers leasing for single-family homes and made them available outside of the multiple listing service. Using machine learning and AI, rental property owners can market their properties to investors who want to forgo the hassle of managing the day-to-day operations. Roofstock eliminates the need for real estate agents in the rental investment property space.

Fundrise

Founded in 2010, Fundrise combined crowdfunding with real estate to eliminate the perception that real estate investing was exclusively for the rich. Entry-level investors can put up as little as $500 to participate in real estate investments. Small investors can invest in rental properties, commercial properties or eREITs (electronic real estate investment funds). Fundrise’s business model treats real estate investing more like stock investing by paying dividends and earning money from asset value increases.

Opendoor

Opendoor is a company looking to change the way people buy and sell real estate. Founded in 2013, this Phoenix-based real estate company allows homebuyers to list their homes without the assistance of a real estate agent. Home sellers can fix their places up, list them with Opendoor and sell them quickly, according to the company. Opendoor’s goal is to simplify the entire real estate transaction.

Homebuyers can browse listings and schedule a self-guided tour if they find something that interests them. However, buyers must either put in an all-cash offer or get financing from a lender before they can put in an offer. Opendoor offers a 1 percent rebate to homebuyers to help cover closing costs.

With a few taps of a smartphone or laptop keyboard, people can buy or sell their homes in a manner of a few days. Although many of these companies and the technology they use are in their infancy, it may not be long before nearly every homebuyer or seller completes the entire process online.

Common Mistakes Made in Commercial Real Estate Investing

Common Mistakes Made in Commercial Real Estate Investing

The commercial real estate industry is a lucrative investment option that is highly dynamic that can easily propel an aspiring investor to success. Much due diligence before investing in commercial real estate is necessary. Among the areas that an aspiring entrepreneur should focus on before establishing a business include understanding the common mistakes that are often committed when investing in commercial real estate.

Inaccurate property valuation

In the commercial real estate industry, property valuation is a crucial entity that should be mastered with great precision and accuracy. Sometimes, aspiring real estate investors make the mistake of underestimating or overestimating the net worth of a property. Failure to accurately consider all the variances that determine a property’s net worth in a market makes such an investor to invest more than necessary. Generating a profit from such investment becomes an uphill task.

Inaccurate sources of information

Investors In the real estate industry should rely on a great wealth of accurate and reliable sources of information when making decisions. Quite often, ambitious real estate investors fail to exercise the necessary due diligence when sourcing information to advise their decisions. Focusing on opinionated publications and failing to benchmark information may lead to wrong and costly decisions.

Taking too much risk

Risk-taking in the real estate industry is considered as a norm. As an investor, it is important to consider weighing each risk to ensure that it is manageable. Some of the common risks that investors have to bear include taking loans to finance investments such as property acquisitions. As part of the due diligence, the investor should consider aspects such as loan-to-value and the debt coverage ratio to ensure that they are within manageable limits.

Improper timing of decisions

Decision making in real estate investments should be precise and well researched. As an ambitious investor, it is quite common to make rushed decisions, such as acquiring large properties at times when the market is not favorable. Poor timing may cost the investor capital as they will have to wait for the market to stabilize before making sales and profits.

Choosing the wrong market

The choice of investing in the real estate industry should be precise and well-researched. Sometimes, investors fail to consider the numerous factors at play when choosing the right market and location to base their operations in. Poor choices, in this regard, may stagnate the business at a later stage as moving products in the market will be substantially tough.

7 of the Best Real Estate Investing Podcasts

7 of the Best Real Estate Investing Podcasts

For anyone interested in learning the art of real estate investing, education is the key to success. But in our busy lives, it can be difficult to carve out time to read a book or do research on the Internet. Thanks to the rise of the podcast, you can educate yourself on the go whether you are in your car, on the train, or even on a plane. When you get the chance, try out one of the seven podcasts. They will help teach you the ins and outs of real estate investing without taking too much of your time.

1. The Real Estate Guys Radio Show

The Real Estate Guys have been broadcasting on traditional radio since 1997. Now their show is available on demand. The podcast is loaded with solid information on investing in real estate. Hosts Robert Helms, professional investor, and Russel Gray, financial strategist, educate and entertain in this fun podcast.

2. Real Estate Investing for Cash Flow

Kevin Bupp, the host of the Real Estate Investing for Cash Flow podcast, provides actionable tips to help increase cash flow when investing in rentals and multi-family homes. He features successful real estate investors who have been able to create passive income through real estate.

3. Real Estate Investing Mastery Podcast

Joe McCall reveals the secrets of investing in real estate so that his listeners can escape their day jobs. McCall teaches fast cash strategies and other investing tips to help investors obtain the freedom they dream about.

4. House Flipping HQ

Justin Williams interviews top real estate home flippers and professionals so that listeners can gain insights and strategies on how to get started and become successful in real estate investing. Williams provides actionable information that listeners can use today.

5. Let’s Talk Real Estate Investing

Sharon Vornholt brings decades of real estate investing experience to her podcast. She helps investors create a name for themselves and develop marketing plans that will take their businesses to new levels.

6. The Mobile Home Park Investing Podcast

Kevin Bupp and Charles DeHart teach how to build a steady stream of income by investing in the highly lucrative mobile home park market. Those who master these investing principles can bring superior returns over traditional real estate markets.

7. The Ultimate Real Estate Investing Podcast

Sean Terry claims investors can quit their day job in 19 weeks or less when they apply his principles of flipping properties in their spare time. He teaches the tips and techniques needed in today’s real estate market to make it happen.

Learn more about real estate investing podcasts here.

Starting a Real Estate Investment Group of Your Own

Starting a Real Estate Investment Group of Your Own

Real estate is one of the best investments anyone can make. As the old saying goes, God isn’t making any more land. Broadly speaking, real estate tends to not only hold its value, but to go up in value over time. It’s a great way to build wealth to pass on to children, too.

However, it can be difficult to learn the ropes of real estate investment. First-time landlords may not know how to vet tenants effectively. They can often lose months of rent due to cleaning up messes or waiting to evict non-paying tenants. Cheap properties available to young investors can also be problematic. Properties bought at auction, for example, may be tied up in legal proceedings.

Forming an investment club can be a great alternative. When people pool their money and experiences, they’re able to make better decisions for the long term. With a larger pool of money, it’s possible to take on some fringe or difficult properties, along with more desirable ones.

Real estate clubs also benefit from the experience of all their members. Clubs may include professionals like lawyers, accountants and salespeople, who each bring different skills to the table. Before the internet, when real estate clubs operated on a face to face basis, assembling a good roster could be difficult. Now, thanks to the internet, forming an investment club is much easier. There are crowdfunding options, and options like REIT funds. The crowdfunding platform stREITwise is revolutionizing the way investors get into REITs.

Finally, a real estate investment club can be organized along a variety of different lines. People can pool their money to buy rental properties. They can pick funds or REITs to put money into. Most real estate investment groups do charge fees, but starting one of your own can eliminate or mitigate those costs.

Real estate is one of the most sound investments anyone can make, but going it alone can still be a bumpy ride. Forming a real estate group means minimizing exposure to risk, and benefitting from the experience of others in the group. There’s always demand for real estate on both the residential and commercial side. It’s a strong, stable field and one where even modest investments can really pay off.

Hospitality REITs for this Summer

Hospitality REITs for this Summer

REITs, or real estate income trusts, are a great starting point for anyone who has an interest in jumping into the world of real estate investing. Unlike other investments, REITs have a tendency to be very stable, and they also pay dividends. These days, many stocks don’t pay regular dividends. REITs are a great choice for people who are on fixed incomes and seek to generate regular dividend income.

REITs exist for a number of different types of properties. There are residential, medical, and retail REITs, to name just a few varieties. One particularly good bet for the summer months are REITs in the hospitality space. Some hotel and resort REITs have had returns of up to 18% for investors this year.

Hotel and resort REITs have some advantages compared to other types. These include the benefit of predictability. Hotels and resorts track their occupancy rates. These are often very stable. Hotels and resorts also respond to the market very quickly, adjusting their rates from night to night.

Although the hotel industry has faced challenges from competitors like AirBnB, several REITs are still posting incredible returns. In fact, many REITs are still acquiring new properties and posting returns of 18 to 20%. Some of the hottest investments of the summer are hospitality REITs.

The Chesapeake Lodging Trust (CHSP) is one such investment. This REIT holds mostly upscale properties in its portfolio. Recently, this REIT was acquired by Parks Hotels and Resorts. Together, they will become the second largest REIT in their category. This is an exciting time to invest in CHSP.

Summit Hotel Properties (INN) is, by contrast, invested in very mainstream hotel properties. Some Hyatt, Hilton and Marriott International properties are included within this REIT. INN earns returns of about 6%. This is great for the category. Its return is over 20%.

Pebblebrook Hotel Trust (PEB) invests mostly in urban hotel properties. In 2018, they merged with LaSalle Hotel Properties. So far for the year, Pebblebrook has returned about 7.5%. The Pebblebrook dividend has been at 3.5%.

Finally, the smaller Xenia Hotels & Resorts (XHR) is also a great option. XHR’s return for the year is 29.6%, and the yield is almost 5%. Based in Orlando, Xenia owns just 40 properties across 17 states. Xenia has outperformed expectations in recent quarters.

If you decide to make this summer, the summer of your first investment, investing in a Hospitality REITs, like the Chesapeake Lodging Trust Pebblebrook Hotel Trust, Pebblebrook Hotel Trust, or Summit Hotel Properties, is a great way to start.
3 Ways Blockchain Will Change The Future Of Real Estate

3 Ways Blockchain Will Change The Future Of Real Estate

There is no doubt that technology is completely changing the landscape of real estate. From online listings to virtual tours to even online mortgage tools, technology is making it easier than ever to buy and sell a property. One technology, in particular, that is poised to completely revolutionize real estate is an emerging technology known as blockchain. Most people are familiar with blockchain due to its role in regulating cryptocurrencies, but the potential applications for blockchain are almost limitless. From reducing costs to creating faster transactions blockchain can impact the real estate industry positively in a number of ways. Keep on reading to find out how blockchain will change the future of real estate.

1. Significantly reduce closing costs and associated fees

At the moment, a significant number of expenses are incurred any time a property changes hands. Closing costs on just a single residential property can run up to five percent of the purchase price and commercial closing costs go even higher. While real estate overall tends to appreciate over time, it takes some time to appreciate beyond the costs lost just by the transfer of ownership. Blockchain technology has the capacity to administer smart contracts, which will cut out a number of parties currently involved in the contractual transfer of ownership, which will also cut down significantly on expenses.

2. Conditional transactions

Not only are the contracts produced by the blockchain, but they are also administered by the blockchain. This means that smart contracts can also include the conditional release of funds. For instance, a smart contract can be entered into in which the purchasing party has a certain amount of time to ensure the property is in satisfactory condition before funds are released to the buyer. Since the contract is administered by blockchain, any disputes are also settled by the blockchain itself in a thoroughly democratic matter.

3. Swift transactions

On average, it takes roughly 50 days to close on a house. This is in part due to all of the many checks that need to take place before a mortgage can be fully approved, including inspection, appraisal and reviewing the property title. Not only can smart contracts reduce the costs associated with a change in ownership, but they can also significantly reduce the time it takes as well. This means that the time may not be far off when individuals can buy and sell a home as quickly, cheaply and conveniently as they can rent an apartment.

Follow These Rules When Investing In Overseas Real Estate

Follow These Rules When Investing In Overseas Real Estate

Why Invest In Overseas Real Estate?

Overseas real estate investments can provide you with additional opportunities besides the ones in your home country. They can also offer handsome returns and let you diversify your investment portfolio. As with all investments, foreign real estate investment does have its risks. You can minimize these risks by following the following rules.

The Rules to Follow when Investing in Overseas Real Estate

One can be overwhelmed quite easily by a foreign culture. Don’t get culture shock by studying the place you want to invest in ahead of time. Find out about the local culture, the way business is done, and the lifestyle of the area you want to invest in. This will help you make a smarter and less risky investment.

The laws of the foreign country you want to invest in may differ from the laws of your home country. Make sure you know what the rules for foreign investment in property are. You should also make sure that you follow all the rules and regulations in that country. Otherwise, you may find yourself facing legal battles or lose your investment altogether.

Foreign investments may be extremely attractive to investors. That attraction may come with considerable risk. High returns usually entail high risk, so you don’t want to invest all of your money into foreign real estate. It is wise to start small at first and then increase investments if they are successful.

A certain area may look extremely appealing to you as an investor. You may want to invest only in that area. This will leave you vulnerable to a downturn or disaster in that area. You don’t want to concentrate all of your investments into one location or basket. Spread the foreign real estate investment around to minimize risk.

Financing for an overseas real estate investment can get complicated. It can also get expensive. Be sure to look at all your options. The best way to avoid expensive financing and loads of paperwork is to pay with cash.

Finally, you should not attempt the investment alone. Enlist the help of local experts and professionals such as accountants, real estate agents, and attorneys. They can help you locate the ideal foreign real estate investment for you. Be sure you consider liquidity needs as well and the tax impact the investment will have. Taking this into consideration can help you pay fewer taxes and have more cash readily at hand when needed.

How Climate Change Can Affect Real Estate Investment

How Climate Change Can Affect Real Estate Investment

Climate change is a huge concern in our time. It has become such an evident issue that even governments and other stakeholders across the globe boost their concerted efforts of responsible use of the environment. Effects of climate change, such as adverse and rare, weather elements, flooding, hurricanes, extremely high and low temperatures, among others are already having a major impact on various industries including real estate. Here is an overview, according to experts, on how climate change is, directly and indirectly, affecting real estate.

  • Accumulating losses of real estate property

Adverse weather conditions, especially extremely high precipitation and hurricanes, have a huge impact on the structural integrity of real estate properties. Buildings in the path of major hurricanes in the United States suffer partial or total destruction. In the state of California alone, for instance, rising sea levels, extreme weather elements, coastal erosion, extreme floods, and wildfires cause an average of $3.9 billion worth of damage annually.

  • Reduced property demand in some areas

Properties located in states that experience extreme weather elements, especially hurricanes and high rainfall, have been determined to suffer low demand. This is even as anticipating property owners shy of purchasing properties from those areas for fear of suffering losses. States such as those located along the East Coast, including Florida, are particularly affected by annual hurricanes.

The reduced property demand in some areas is accompanied by hiked prices of properties located in states where the weather is favorable. This is because more anticipating homeowners choose to purchase property in those areas, thereby leading to increased demand.

In addition, real estate engineers are expected to up their game as far as design and construction of homes and properties are concerned. Buildings are expected to be constructed with reinforcements in order to withstand the extreme forces of weather such as hurricanes.

  • Increased property insurance

Property insurance companies have also been largely affected by extreme weather conditions brought by climate change. The increased risk of homes being exposed to adverse weather conditions and thereby suffering destruction has led to insurance companies to rethink the factors to consider in risk calculation. The cost of insuring a property located in an area that is highly prone to adverse climate change is exponentially high. Homeowners are there for paying the cost to secure homes in such areas.

Losing real estate property, reducing the demand, and increased property insurance are only a few effects of climate change. As the situation worsens as will the real estate industry.