Understanding how to approach the real estate investment industry is not only tricky but an ever-changing skill set. Knowing what trends are popular with potential renters and buyers, how to use free property management software for managing everyday tasks, and understanding the psyche of the locations you’re investing in, are sure to make your properties stand out.
To help you make massive returns on your next real estate investment, here are five tips for real estate investors in 2022:
1. Go Bigger
Bigger is not always better, but in the real estate game, it often is. With larger investments, you can often secure lower interest rates and put yourself on the right path for scoring huge in the real estate game. There are plenty of excellent services that can help you finance loans for large-scale investments, allowing you to jump right in alongside the big players even if you’re fairly new to the scene.
Larger investments can help you catch the attention of locals looking to rent or buy properties. When looking at apartment or multi-family home real estate investments especially, you should always consider going bigger. The Sun Belt has seen a particularly noticeable increase in buyers and renters interested in multifamily homes and communities.
2. Invest in Single-Family Homes
Although multi-family homes and complexes are a great investment, single-family homes have been a long-time sweet spot in the real estate investment scene. Readers who have already begun their investment portfolios will benefit massively by adding single-family rental properties (also known as SFRs) to their portfolios.
Last year alone, investors saw an entire 18% of single-family home sales. By following that trend in how you set up future rental property investments, you can cash in on this shift in the real estate market. Be sure to keep your eyes peeled for any SFRs in your area that is in your budgetary range, as these properties are flying off the marketplace at an insanely quick rate post-2020. Keep in mind that if you’re looking to invest in a single-family home for the purposes of renting out the house it is important to have a legal rental agreement form on file.
3. Hire an Investment Advisor
Especially when it comes to newbies in the real estate field, the sheer amount of important details involved with a real estate investment can be overwhelming. Avoid feeling more stressed out by hiring an investment adviser to help you smooth out the details on any hot new properties you have your eye on.
In addition to helping you focus on the details of your potential real estate investment, investment advisers are fantastic at helping you secure more funds for your endeavors. Whether you’re setting up a new retirement account, building a stock portfolio, or reworking your 401k, these professionals can help find solutions to your investment obstacles in no time.
4. Check Out Local Crime Rates
Even if a property is beautiful, filled with valuable amenities, and listed for a stellar price, there is one quality associated with real estate investment properties that is sure to lessen your chances of making a profit: high crime rates. With rising crime rates being more frequently on the mind of renters in the past two years, low-crime areas have begun to see a drastic increase in their value.
When you find that perfect spot to invest in, simply look into local crime records using online databases, and compare those crime rates to surrounding areas. Finding that perfect sweet spot between affordability and safety will boost your investment game in a major way.
5. Don’t Rule Out Shared Work Spaces
One of the biggest lifestyle changes the United States has seen during the last two years is a major increase in people working from home. With more people opting to work from home, real estate properties that offer both comfortable living conditions, and perk-packed workspaces, have become a major commodity. After all, going to stuffy, packed and rule-heavy workplaces only adds unnecessary stress to many employees’ plates.
However, another option has become a popular bridge between the traditional office space, and remote, home-based working spaces: shared offices. Individuals who have kept themselves away from traditional office environments still often find that they have a hard time keeping focused and productive if they are working from the same location they live in. Due to this, spaces that can be easily outfitted to provide many separate, community-based workspaces are becoming a must in many real estate investors’ portfolios.
Let 2022 Be Your Year
With the rules of the marketplace and workplace changing so rapidly, getting ahead of competitors is key to investing successfully. Using these five tips, you can begin investing in properties that are tailor-fit to 2022-renters’ needs, and which will help you boost your profits in ways you’ve been dreaming of for years.
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