4 Ways to Maximise Real Estate Investing
What do your investor friends talk about all the time? What investment vehicles do they discuss, and what sectors dominate the conversations? Chances are that real estate investments are a major part of every conversation. People are drawn to real estate investments for a number of reasons: Having a real-life asset that you can touch, or amicable tax incentives are among many reasons why real estate is a popular investment niche. If this is something that you’re interested in, be sure to check out Brooklyn, NY property management.
But beyond the water-cooler conversation, how can you get the most out of your real estate investments? What do you need to do to maximize their potential, and what tips or tricks should you keep in the back of your mind for future deals? In this article, we’ll look at four possible ways to maximize your real estate investments.
Look Global
Global real estate investments have never been more accessible for investors large and small. New investment vehicles, accessible online, allow a small investor in Florida, USA and a large investor from Saudi Arabia to invest in the same properties. One of the most common vehicles is the US-based Real Estate Investment Trusts or REITs. A REIT is a company that owns, operates, or invests in revenue-producing real estate. REITs function as intermediaries, allowing investors to see profits and revenue without direct ownership or property management.
REITs began in the United States, but have now spread around the world; in the US, various kinds of REITs account for nearly $3 trillion in gross assets. There’s a wide range of flexibility within the world of REITs; a REIT can invest in any form of real estate, although most specialize in a particular niche. Hotels, multifamily, offices, senior housing – all are legitimate sectors for REIT investments.
Go Mobile
It’s the age of apps, and real estate investment is definitely in on the trend. There are apps to help locate investment opportunities like Property Fixer, apps that provide networking and education resources like BiggerPockets, and even apps that allow direct investment into REITs. In the last category, known as eREITs, you can find highly successful apps like Fundrise, which have taken the expanded reach of REITs and put them onto everyone’s phone. The world of real estate investment has even produced entire suites of software designed to streamline communications between investors and operators. These suites, known as Customer Relationship Management (CRM) software like the one from Groundbreaker.co, are all aimed to boost your real estate investments to their maximum potential while giving you more access to your portfolio from anywhere at anytime.
Get Expansive
Today is not the day to think small. Whatever your budget, there are more opportunities than ever before, from traditional house-flipping to building a portfolio of REITs that focuses on specific niches you find attractive. There are new investment niches, such as green real estate or the growing student housing market, and new ways to research those areas. Think big, look beyond local markets only, and network with other investors to find and fund new real estate opportunities.
Shrink Your Vision
Now for the opposite advice: don’t forget the small-scale stuff either! There are lots of opportunities still available close to home. Some long-standing investment models are receiving fresh attention and interest. Delaware Statutory Trusts fall into this category, an older, well-established model of investment trust which has recently emerged as an attractive vehicle that facilitates participation in tax-deferment programs for real estate investments. While you are pursuing and researching the latest and best eREITs and investment apps, don’t forget to perform due diligence on some of the tried-and-true methods right in front of you.
Conclusion
From new apps with a global reach to long-standing legal entities designed to protect your investments, these are four ways to maximize your real estate investing and give your portfolio new life.
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