Finding properties is one of the biggest challenges that investors face. After all, the market value of an area is not set it stone. In order to understand if something will pay you back, you need to know the area.
You can now know about an area and what kind of demographics it has easier than before. First of all, with online maps, you can scout it on your laptop. Secondly, people on the ground can be hired to walk around and film with a drone to capture video so you can really get the feel for the location.
You can look into the local economies of locations that you are considering. See how their local businesses have been doing in recent months with sales. In addition, find out the employment rates to make sure there is an economy that is healthy enough to support the investment you are looking to make before just jumping in without the information.
The Need for Capital
You might have the best information in the world, but you still need funding to get that property. Therefore, raising capital has always been a burden to investors. Thanks to technology, there are new options, however.
Using public sites you can raise funds from investors, large and small, all around the world. This lets you act quickly on properties without breaking the bank. In addition, you might find properties that you didn’t otherwise think you could afford.
When it comes to real estate investing, it can be one of the most lucrative opportunities in the world. However, to make money with real estate, you need to find the property first. Then, you need to get the funding to purchase it. Technology has made these two things much easier than they ever were in the past. Therefore, you should look to utilize this technology in your own career to leverage the benefits contained.
“In this current climate” is a cliché lately – but it is a valid cliché. However, in this current climate, some people might just not be able to afford a house. Or conversely, a homeowner finds that the value of their home is at an all-time high and wants to cash in. There are plenty of reasons why renting is a beneficial option for buying, especially in certain markets.
- Renting allows for major life flexibility. In major markets, younger people are renting over buying, and this seems to be an extremely popular choice. Due to unsustainable raises in the housing market buying a house may not be an option, therefore renting is the best option. By renting, renters allow themselves the greatest flexibility if a good opportunity presents itself, or if they are not happy with their current situation, or if they want to move to another place quickly. Renting keeps the lease down to one of two years, allowing for life improvements and possible pivots in the future.
- Renting does not lock your life down into debt for 30 years. If not subscribing to the typical white picket fence dream, the prospect of facing paying a mortgage for 30 years may not be the best life choice. The stress of having to maintain a payment for so long locks people down into lifestyle choices – possibly a job they may not like, or circumstances they may change, or unforeseen debts that may occur. There are also studies that show a person having a debt hanging over their heads is clearly detrimental to life.
- Investing instead of paying may lead to bigger monetary gain. The math seems to be there. There are some bets unconsciously made when buying – the result of investments, the real estate market prices (after all, the recession did a number on many people), the pace of inflation, property taxes, paying interest. These calculations have renters winning out in the long run, however, the numbers may be variable.
No matter how many facts and numbers are thrown around, it is ultimately down to the individual needs and desires of the person making the choice. Behavior is behavior, and people tend to seek out facts that support what they feel. Good luck!
We all remember scanning the newspaper when we were kids and seeing local real estate agents advertising alongside family-owned restaurants and used car dealerships. At the top of these old ads, you probably remember seeing a head-shot of a smiling real estate agent, inviting you to look at the homes they were listing. Below this picture, there’d be small thumb-sized photos of ranches, bungalows, and mansions with pricing information and listing details printed out in minuscule font under each picture.
You probably didn’t think about it then – because who knew any better at the time – but what an impersonal and ineffective way to sell homes! Would you feel comfortable finding a good home for yourself if all you had was that small picture and those limited details to go on?
It’s no surprise, then, that social media platforms and home buying websites have transformed the real estate industry over the past few years.
Real estate agents who are interested in building a customer base with millennial home buyers have begun utilizing YouTube and Instagram to appeal to young families and upwardly mobile professionals.
For example, innovative real estate agents have begun posting entire photo albums of glamorous hi-res photos of the various homes they have available on their personally branded Instagram account. These real estate agents use things like hashtags to target Instagram users who want to move to a particular neighborhood.
Another huge benefit of using a social media network like Instagram to advertise homes is that people from all over the world are using Instagram. It’s never been easier to sell to buyers outside of a real estate agent’s particular area.
YouTube has also become a hotspot for real estate agents looking to add another visual dimension to their listings. The agents who are most effectively using YouTube are doing virtual house tours where they walk through a home with a video camera and a tripod. A video works well because it shows off the size of rooms and bathrooms much more effectively than traditional photographs do.
Another intriguing way that sellers are showing off homes to buyers is that they are using hand-held drones to take aerial footage of how a property looks from above. These aerial videos are so much more captivating than the thumbnail photos real estate agents used to rely on to make a purchase.
With more and more people flocking to popular towns and cities, combined with the increase of all things digital, Airbnb is a company that couldn’t have arrived at a better time in the digital age. In fact, there really wasn’t another time where Airbnb could have thrived in the way it does now. And while it has helped countless people make their vacations more affordable, as well as benefit those renting out their own properties, is it possible that this app has also brought some trouble to the real estate market along the way?
Property Owners are Catching On
Property owners are concentrated on buying properties in cities that draw large crowds of tourists. You may be wondering where Airbnb ties into this statement, but this is where it gets interesting. Current property owners and people looking to purchase property to rent out have grown keen to the fact that Airbnb can be a helpful indicator of places that are seeing a booming influx of visitors, which in turn signals to property owners that their city may very well be a hot commodity for all things hipsterdom and tourism
So, what has happened as a result is that many property owners are beginning to raise the prices of their rental properties in an attempt to capitalize on a bustling metropolitan area. Also, current property owners in cities where this is occurring are also optimistic as it provides them with a chance to sell for a much higher price than they bought.
Airbnb rental properties can be money-making machines. If you operate an Airbnb in a sought-after travel destination, you are likely to acquire a continual, large-sum of revenue each year. With this in mind, property owners have opted for renting their spaces out short-term for the whole year as opposed to on a long-term basis (short-term means more money). Now, since long-term rentals are becoming increasingly less available, this has pushed property owners into a heightened sense of competition, which in turn causes prices to go up due to demand.
Airbnb is a great tool for people looking for places to stay while vacationing and for people looking to make some extra profit. But if the invisible hand of Airbnb continues to increase the prices of the housing market, we may be headed for a destination that no one wants. The conversation on how to create and maintain sustainable housing costs while allowing people to continue their ventures on Airbnb is a dialogue that is certainly worth having, both for the tourists, locals, and property owners.
House-flipping has become a trendy and exciting career for many hungry professionals looking to establish themselves in the housing/real estate market. But in an attempt to chase after a truly promising career, far too many people repeat the same mistakes.
To help remedy the recurring problems that come along with house-flipping, below are two all too common pitfalls that seem to perpetually plague real estate moguls longing to turn a passion into a paid project.
What is Flipping?
First, we need to establish what constitutes “house-flipping” in the first place. “Flipping” is a type of real estate strategy in which the buyer purchases a house for the sole purpose of renovating and selling the property. The way that profit is made in this business is by purchasing low and selling high.
For instance, investors who flip properties might buy a property in an especially “hot” market, renovate it, and then sell it at a price that makes sense with its newly added, state-of-the-art upgrades. This is also where the true work comes in, too. House-flipping doesn’t just require smart investment purchases, it also requires home renovation and remodeling skill.
Mistake #1: Poor Time-Management
Renovating and flipping can often be a time-consuming business. Not only do you need to find a property, but you have to have enough time built into your project to account for inspections. After that, of course, you need to play the waiting game that comes along with listing. It takes a lot of confidence in your skill to be patient through this whole process, especially if your goal is to make enough money to at least break even.
Mistake #2: Not Enough Skills
House-flipping isn’t easy, and the competition is certainly present. Many skilled plumbers and carpenters often flip houses as a side project. If you desire to excel in the industry, there’s a lot more to it than buying low, taking a sledgehammer to the bathroom, and listing it on the market. Like it or not, the real money in the house-flipping industry comes from what the professionals call sweat equity. If you’re comfortable (and skilled) with a hammer, hanging drywall, and laying a carpet, then you just may have what it takes to make it in the house-flipping industry.
In the end, patience and hard-work are equally as important as any other skill in the house-flipping industry. If house-flipping is a passion of yours, then going into the industry with research and guidance is imperative. It won’t be easy, but with the dedication needed to accomplish the task at hand, house-flipping and renovation can be a great career full of excitement and fulfillment.