What Millennial Real Estate Investors Should Know

What Millennial Real Estate Investors Should Know

For any Millenials considering or even beginning to scope the real estate world, you’re on the right track. Real estate investing is one of the smartest moves anyone could make, considering the versatility and potential returns. Investing in property comes with neat benefits like passive income, tax benefits, and full control over not only the property and your investment strategy but also your profits.

That being said, deciding to invest in property can be super daunting. Where do you start? What do you do with the property?

To nudge you in the right direction, here are some essential things that Millenial real estate investors should know before jumping in. 

  1. Know your budget and credit score

    While it’s not necessary to be wealthy to invest in real estate, having some savings will help buffer any risks from investing or at least reduce the uncertainty. 

  2. Establish a financial goal and investment strategy

    Know your goals and the best plan to get there. Generally, most investors don’t need to pay for an entire, say $250,000 property. This is for the Millenials who are still struggling to pay off school debt: don’t worry, you can invest as well. The cool thing about real estate investing is you can purchase most properties with a down payment, which tends to about 20% of the total price. Options like getting a bank loan or lending from a trusted partner are also helpful for millennial real estate investors with limited cash at their disposal.

  3. Scope the market

    Knowing where to look for viable property options requires looking at patterns like population growth, rental demand, and job availability.

  4. Consider the type of property.

     Here, you have a few choices at your disposal. The top types of real estate include single or multi-family properties, syndications, or buy & hold turnkey funds. Single or multi-family properties are in high demand and involves a short-term strategy. Syndications are larger, commercial properties with a group of investors, resulting in less risk. Turnkey real estate funds are longer-term investments that offer immediate passive income from tenants already living there. 

  5. Research locations

    When you know the type of property you’re looking for, it’s time to take a look at locations you’ve identified based on the real estate market. With your budget in mind, figure out if you want to flip a house or if you’d rather be a long-distance landlord for a turnkey property.

 Above all, millennial real estate investors must continue learning and growing. While the first step is to try it out without hesitation, further education will make Millenials savvier in their real estate journey.

Finding a Good Multifamily Investment Property

Finding a Good Multifamily Investment Property

The most popular choice among real estate investors, the single-family house, is well understood and profitable. Even in a market prone to recession, many people prefer single-family homes over condominiums, duplexes, or triplexes when it comes to investing. However, not everyone is delighted at the idea and wants to follow that route. Some investors may consider investing in multi-family units. And multi-family dwellings, especially with fewer units, tend to increase the value that matches closely with single-family homes, and their cash flow is a lot better compared to single-tenant dwellings. 

This information talks about the details of finding a multi-family property and offers insight on why it can be a pleasing alternative. 

Location, Location, Location

Location is of absolute importance in determining the value of a multi-family property. When the neighborhood has well-maintained lawns, quality homes, clean sidewalks, and proper signaling at intersections, it’s easier to find tenants. If there is construction activity in the neighborhood, it’s a sign of growing demand. On the flip side, if crime is on the rise in a particular area, people want to move away, reducing the neighborhood’s overall value. A change in zoning from residential to mixed-commercial use can result in a significant price reduction.

What is Inside Matters

The physical condition of the property, age, and structural stability have a noticeable effect on property value. The choice of paint color, cabinets, countertops, and flooring material matters too. The more bizarre the upgrades, the more likely that it’ll lose its market value. Likewise, the quality of craft, both in terms of original construction and recent upgrades, should be considered before purchasing a multi-family property

Hiring a Real Estate Agent

A real estate agent can help find a multi-family property unless you insist on doing it yourself. With an agent’s assistance, you can easily wade through many unique situations, questions, and doubts that are usually not encountered in a typical single-family home buying. For example, your loan interest rate and type of purchase ( residential or commercial ) will depend on whether you are buying a duplex or an apartment with five or more units. Should you hire an accountant as well? Probably yes, if the number of units and complexity of your overall tax situation increase. 

How To Get Your Real Estate Listing Noticed

How To Get Your Real Estate Listing Noticed

Homeowners often buy and sell their property. The most important aspect of a house listing is to be seen by as many people as possible to increase a sale’s chances. Despite a general market saturation in the housing sector, it is possible to achieve a higher listing and to reach a wider audience with a few tips and tricks as outlined below.

Invest in SEO Marketing

Search Engine Optimization is a tool that, when used properly, gives homeowners a competitive edge when it comes to online searches increasing home showings. The house listing is prioritized through specific keyword searches. It is advisable to have several long keyword phrases that include the general scenery where the house is located.

Make use of a Lockbox.

A lockbox is becoming one of the avenues that are giving homeowners a competitive edge. It allows the agent to show the house to house hunting individuals even when you are not home. It should ideally be located close to the house so that the agent can have easy access to it while you are away.

Host an Open House Event

One way to pull in the masses to a house showing is to host an open house event. Employing channels such as social media, the local newspaper, and website listings will attract many interested buyers locally. During the event, it is crucial to keep the guests entertained by serving snacks, having brightly lit balloons and banners, and having a magician or clown entertain them.

Offer Time-bound Deals

Proposing a good deal that runs out in a limited time is another way to get people looking into the property. Scarcity induces demand. Since everybody wants a good deal, they will be more motivated to purchase soon if the offer is only on for a limited time.

Competitive Pricing

Any homeowner’s goal is to make the most amount of money they can from selling the property. However, sometimes pricing it at the higher points doesn’t work in favor of the home seller. Having a competitively priced house allows buyers to get it at the listing type’s estimated market value.

A combination of the above tips gives a home seller a competitive advantage, and the client handling the sale of the house can have a much smoother time as they coordinate the sale on behalf of the homeowner.

4 Real Estate Trends in 2021

4 Real Estate Trends in 2021

In 2020, the housing market experienced record sales due to extremely low mortgage rates and the new flexibility that comes with working from home. In addition, home prices have remained competitive as demand continues to increase. But what will the housing market look like in 2021? Take a look at what experts predict the trends will be this year.

  1. Low Inventory

    The number of homes on the market has been pretty low. It has been relatively easy for sellers to sell their homes but not as easy for buyers to purchase. Supply and demand will likely continue and increase home prices by quite a bit during the first half of 2021. But during the second half of the year, economic headwinds may start to cause prices to decrease slightly and the number of homes on the market to increase.

 

  1. Rising Home Prices

    Given the pressure to buy quickly because of low inventory, home prices should continue to increase, and there won’t be much room or time for negotiation. While this is great for sellers who stand to make a substantial profit on their home, it’s not the best news for buyers. If you’re looking to purchase a home in 2021, you must go into the process knowing what your max budget is. You need to be ready to walk away from home despite pressure to act quickly and spend more than you can afford.

 

  1. Incredibly Low Interest Rates

    Mortgage interest rates dropped to an all-time low in 2020, and this trend is expected to continue into 2021. Many economists expect interest rates to hover around 3 percent in 2021, increasing compared to 2020 rates but still incredibly low. Low interest rates are good news for both buyers and sellers because they help reduce overall mortgage costs and make buyers more motivated.

 

  1. More Online Services

    More virtual tools, such as online selling and buying, virtual real estate agents, online closings, and more have become quite favorable during the COVID-19 pandemic. As the virus continues to surge, these are expected to continue to be prominent in 2021 as well.

 

Buying and selling a home can be a stressful task. While the real estate market has faced many unprecedented challenges recently, there are some significant benefits to buying and selling homes right now. These positive trends are expected to continue into 2021, so be sure to consult with a real estate agent as soon as possible if you’re considering listing or purchasing a home this year.             

The Pros and Cons of an Off-Market Property Investment

The Pros and Cons of an Off-Market Property Investment

As the real estate market continues to grow, so does the competition for investment properties. A low inventory of homes and high demand for buyers and investors makes the competition fierce. A hidden gem in the real estate world that can often help investors avoid some of the competitors is the world of off-market property listings. However, like anything else, off-market property listings can come with their risks. If you’re a real estate investor looking into what your options are, here are some pros and cons to considering off-market property investments.

Pros

Less Competition

A significant benefit of working with off-market property listings is less competition for investors. When you’re looking into properties that are listed on the MLS, you’re essentially competing with both residential buyers looking for a home and investors with similar goals to your own. With off-market property listings, you’re decreasing your competition to a much smaller number. According to Mashvisor contributor, Sylvia Shalhout, “With an off-market investment property, there is likely to be only one or two other real estate investors putting up offers, if any at all. This means you have the advantage of getting good deals as no one else is making any offers to compete with yours.”

Longer Cycles 

Off-market property sales tend to take longer, which essentially gives the investor more time to do their diligent research. Whenever you’re investing in real estate market analysis is essential, even when working with off-market properties. Since the sale is longer and finding the right information for your analysis may take more time, take advantage of the longer sales cycle.

Cons

Inaccurate Market Values 

When properties are listed on the market, it helps determine their market value. One of the most significant issues with buying an off-market property is the inability to determine accurate market value. While it’s still beneficial to perform a market analysis for an estimate, without the property being officially listed on the market, the accurate selling value will be unknown.