New Year’s Resolutions for Real Estate Investors in 2020

New Year’s Resolutions for Real Estate Investors in 2020

When the new year rolls around, everyone start to make resolutions. Whether it is to loose weight, find a new job, or even buy their very first investment property. However, after a week or so, people often throw their resolutions to the wayside. In 2020, don’t let this happen! As a real estate investor, here are a few new year’s resolutions you can make for the upcoming year.

Examine Your Short and Long Term Goals

The beginning of a new year is the perfect time to look at your goals. If last year you got off track, this is the time to plan how you are going to achieve those short term goals. Something that is beneficial to do at the beginning of the year is to meet up with a financial advisor. Sometimes after investing for a few years, you find that your long term goals have evolved. A financial advisor will be helpful in discovering what new long term goals you want to achieve in 2020.

Refine Your Investment Portfolio

This year, is the year, that you get the perfect portfolio. Last year you may have found your niche, so it’s time to look at properties that just don’t fit anymore. Or maybe this year, you want to diversify your portfolio, and that’s okay too! Start off 2020 planning how you portfolio will change and evolve throughout the upcoming year.

Develop Your Network

When hearing the word networking, many professionals groan. Yes, it may be a chore for some, but it is vital for any business, especially in real estate. If you think you have let a few relationships fall through the cracks, spend 2020 reconnecting. You never know who you can help or who will be able to help you reach your goals if you don’t reach out more.

Expand Your Knowledge

Throughout the year, it can be easy to get wrapped up into your own investments. It’s important to step back once and while and take in the world. In 2020, learn something new about the real estate market. There is always something new to learn, from strategies to new trends. By expanding your knowledge you are sure to experience new things, whether they are successes or failures.

Be More Disciplined

You last New Year’s Resolution should be the promise to be more disciplined with your real estate investments. In 2020, be more organized and communicative. Be open with your team, and be sure that they know the ins and outs of your vision. Try looking at where you can make improvements. An improvement doesn’t have to be big to be impactful, you can get a new planner, or you can go big and rearrange your approach entirely.

3 of the Best Places to Invest in Real Estate in 2020

3 of the Best Places to Invest in Real Estate in 2020

The new year is almost here, so it’s time to start thinking about where your next investment property will be. For real estate investors there is a rising risk for recession and economic growth may start to slow. Even with these possibilities at hand, the US housing market for 2020 is still quite favorable. Today we will look at what cities are taking the top five spots for real estate investment in 2020.

#1: Austin, TX

Looking back at 2019, Austin took 6th place, but now this city has risen to the top. Austin is a sought-after city due to its unique lifestyle as well as its promise for business and real estate expansion. The city has quite a strong economy, and many of its residents pick up high-paying tech jobs with companies like Google and Apple. It is projected that Austin will have the highest population growth rate in the United States for the next five years.

#2. Raleigh-Durham, NC

Next on the list is Raleigh-Durham. In the past year, the Raleigh-Durham market has had quite the impressive real estate investment performance. One of the most profitable sectors has been in multi-family real estate. In the first half of the year, Raleigh-Durham had reached $385 million in investment activity.

Part of why Raleigh-Durham is such a desirable place to be is due to their fine educational institutions such as the University of North Carolina, North Carolina State University, Duke University. The city is also known  for its availability in tech jobs. Ranking 3rd, behind Silicon Valley and San Francisco, Raleigh-Durham has a thriving tech industry and offers more than 89,000 jobs. A diverse economy such as this, is a strong market fundamental that real estate investors are sure to get a great return rate on.

#3. Nashville, TN

For quite some time, the Nashville real estate market has been an attractive location for investors. Nashville moved up from 5th to 3rd place this year, and it’s expected that the demand won’t go away any time soon. Nashville has one of the lowest unemployment rates, 2.6%, out of the other large metropolitan cities in the United States. The economy is both diverse and fast-growing which makes it attractive for commercial and residential real estate.

 

 

3 Holiday Real Estate Investing Tips

3 Holiday Real Estate Investing Tips

The Christmas season is upon on, and although your focus may be on holiday dinners, visiting family, and buying the perfect gift, in the back of your mind, you can’t help to think about getting back to real estate investing.

There are so many helpful real estate investing tips out in the world, but many of them are for real estate market during the non-holiday season. Your real estate investing efforts don’t need to stop just because of the holiday. You can use this time to get ahead of your competition and plan for future deals in the new year. Below are just a few real estate investing tips that will give your business an extra boost during the holiday season.

Tip #1: Don’t Stop Making Deals

Although it’s the holidays, don’t stop making deals. Throughout the month of December a lot of investors take time off. This is your time to swoop in on some great deals. You will find that during the holiday season, there is far less competition than any other time of the year.

Tip #2: Generate Leads No Matter What 

Take the holidays to generate a few leads. Of course don’t let it get involved in family time, but by generating a few leads you will feel much more prepared as you enter the new year. A few great lead-generation strategies you can lean on this holiday season is creating holiday-themed direct mail and throwing holiday-themes wholesaler parties. Staying with a holiday theme in your strategies not only helps spread holiday cheer, but help you start a conversation with people and form connections.

Tip #3: Asses and Plan Out Your Year

As 2019 comes to an end, take a step back and reflect on the good and bad of the year. Be sure to ask yourself a few important questions:

Ask yourself, “What went right?”

Over the past year look at your wins. This is a great way to examine what stratergies worked well. It is also a great way to boost your confidence!

Ask yourself, “What didn’t go according to plan?”

Sometimes we don’t always succeed, and that’s okay. You can’t beat yourself up over it. Think of it as a learning experience. You will be less likely to make the same mistake again.

Ask yourself, “What are your plans for next year?”

One you have looked back at the year, start to think of goals for the future. These goals should be both concrete and tangible. Be sure to be as specific as possible and lay out what actions you are going to take.

The Future of Real Estate Investing

The Future of Real Estate Investing

Digital trading is the fastest growing trend in real estate investment. The frontrunner of virtual trading is Blockchain, a form of technology that maintains time-stamped records in the form of interconnected “blocks” of data. Each block is connected to one another through cryptography, creating a “chain” that results in data that belongs to no singular person.

Blockchain real estate investment will make buying and selling in-demand real estate faster and more lucrative than ever.

The Basics of Blockchain Investment

Blockchain builds trust through the use of Distributed Ledger Technology (DLT). With DLT, transactions are shared in real-time, which reduces the risk of cyber-security attacks and creates viable records of data for both institutions and individuals.

Decentralized, cryptographically-protected ledgers will make real estate investment safer, faster and more economical in the long run. Updating to a Multiple Listing Service (MLS), brokers and real estate agents will be able to access the entire history of a property in seconds.

Virtual Payment

Cryptocurrency was once regarded as a strange, off-the-wall notion that would never take off. Now, people are making millions and buying properties with it. Bitcoin real estate investment started in 2018, thanks to the company Prime Trust.

Property investment done virtually limits the potential for fraud or fallout. When transactions are conducted online, third-party risks are rendered obsolete, and both buyers and sellers are held more accountable.

Greater Security

As blockchain becomes integrated into more economic industries, real estate investors will receive greater protection. Information will be handled swiftly, sent and received almost instantaneously and all parties’ best interests will be at the forefront of operations.

The digital age of real estate investment is going to explode, so all professionals are being encouraged to educate themselves and jump onto the bandwagon as soon as possible.

Without proper investment knowledge, it’s likely that agents will find themselves being passed over for more independent and fair trading options. The argument that traditional business will always reign supreme is quickly disintegrating in an era of personalized digital services; people no longer feel like they’re missing out when they turn to technology. Instead, they see greater potential as technology can provide them with customized feedback and a catalog of choices ripe for the picking.

What is an Illiquid Investment?

What is an Illiquid Investment?

The liquid rate that an asset is converted into cash determines how easy you can enter or exit an investment. Time is a central factor when investing, and liquidity determines how much time it takes to get your money once an asset matures. Liquidity even helps when taking money out as the market shifts against you. As long as you decide on the liquidity of your investment assets, you can exit your positions according to a strategy that fits you.

When Market Assets are Liquid

Liquid assets are investment instruments that convert into cash with relative ease. The quality of the asset isn’t determined by its liquidity, however. A liquid investment can still present unsatisfying returns, though, it’s easy to get in and out of. Here are some factors that determine the liquidity of an investment:

- Market Participants:
The more people that are involved in buying and selling, the more likely it is that you can close a transaction when you need to.

- Transaction Size:
Large-buy orders, for example, can help clearing agencies, for the bulk of orders can accommodate the market’s sellers.

- Daily Turnover:
The number of transactions play a role, for even when the participants are few, the constant trade orders sustain opportunities for entering and exiting.

- Economic News:
Positive and negative news influences the liquidity of an asset. Positive news can lead investors to flood a market and make buying difficult. Sellers can, likewise, enter the market to make buying easy.

Factors that Establish Illiquid Conditions

An illiquid asset is one that you can buy or sell but with a longer timeframe needed to complete an order. Factors that lower liquidity are determined when you buy or sell.

- Long Term Investments:
The timeframe that someone holds an investment within dictates how long the market takes to acquire or sell an asset.

- Market Prices:
The higher that prices are, the fewer the buyers will be. Prices that go lower allow more participants to get involved and actively trade.

- Market Closures and News:
Bad news, for example, when a company goes bankrupt, can force you to hold an asset longer that you intend to.

How to Calculate the ROI on a Rental Property

How to Calculate the ROI on a Rental Property

Rental properties can be a great asset to investment portfolios, particularly if they are successfully managed. There are many different types of real properties that can be converted into rentals. Commercial properties, when fully occupied, generally pay higher dividends for investors. Residential rental properties are said to be an addictive habit because investors purchase additional rentals consistently over time. Whether an investor chooses to select commercial, residential, or other property as a rental, there are some considerations that should be carefully weighed.

The return on investment (ROI) will be greatly impacted based on a number of different factors. Investors cannot simply calculate the purchase price of the real property and the average monthly lease income for the property. Many other conditions exist and must be factored into an accurate ROI on rental property.

Taxes and Insurance

The overall ROI depends in part on the geographical location of a particular property. There are various local and state ordinances that require lot rent, property tax, school tax, and other fees to be paid by the land or property owner. These may seem minute, but they will impact the overall return on investment. This calculation can be simplified by the net income gain of the property divided by the cost of the property. Net income gain is basically the income generated minus the cost of the property. These calculations can be based on monthly or annual figures and the end result will be the same.

Maintenance and Utilities

One major area that many landowners and property managers fail to consider when calculating rental income are the essential costs associated with the building or property. Commercial properties of course entail much higher overhead costs than residential properties, but these elemental items should be considered for all types of real property. Second to required insurance, routine maintenance and repairs are among the highest expenses that property owners incur.

Maintenance and repairs on a commercial building may require certified repairs that are filed with a city or county records office. Monthly utilities such as gas, electric, water, sewer, and trash pick up are generally required whether the property is currently being rented or not. Unless these are passed along to tenants, the property owner must deduct these monthly expenses from their net return on investment.