Real estate is real! The best way to invest your money is to put it intangible assets. Private offerings, bonds, and even stock can cause you trouble and headaches. Mainly because you have no control over the mechanisms that define the market. The only option you get with stock, for example, is to buy or sell it, nervously following the economic news. The real estate market gives you more possibilities. You can become a landlord and rent your property, or try real estate trading. You might consider joining an investment group or trusts known as REITs (Real Estate Investment Trusts).
2020 US real estate market projection predicts a very good year for commercial offers. Low-interest rates, together with strong property fundamentals, make real estate one of the best asset classes. The problem is that many potential investors know nothing about the market and the necessary steps they need to take when buying new property. Here are some tips on investing in US real estate.
But before we start, there`s one important aspect to consider. Are you a US citizen or a foreigner? The good news is that foreign investors can buy US properties, but they do need to make some additional arrangements. First of all, set up a US entity and a bank account, then choose the financing option. Traditional mortgages are not available for non-US citizens. The rest is pretty much the same.
Ten Tips on Investing in Real Estate in 2020
1. Analyze the market. Look at it in detail. Look at the problems to avoid future risks. Study successful examples of investment and borrow some of their ideas. Detect new tendencies and buying trends, and try to predict possible financial troubles. Visualize your future customers. Who are they? What is their average income? Pinpoint your target. Learn more about your main competitors and determine your advantages. Research. The more you know about the market, the better decisions you make. If you are a student, a good decision would be to buy essay online cheap.
2. Make a plan. Determine the purpose of your investment and create a profile. Document all aspects of your future purchase and adapt it to your customers or needs. Consider talking to an investment specialist at this stage. Building your real estate strategy might need professional expertise. There are many secrets to learn and mistakes to avoid.
3. Learn everything you can about real estate financing. Consider investment property mortgages, government-backed loans, a home equity loan or a home equity line of credit, commercial, residential real estate loans, portfolio loans, peer-to-peer lending, etc.
4. Rent out a room. You can start with something simple, like renting that unused room in your basement. This is a good way to help meet your mortgage payment each month and, at the same time, invest in your future. Lots of now millionaires started this way. Plus, you will get the landlord`s experience, which is invaluable for your next and bigger projects.
5. Check online real estate investing platforms. Recent advancements in online technologies led to the development of high-quality crowdfunding platforms. Raising your capital became easier. The funds are operated by professional managers, who guarantee greater growth and stability of your income. Minimal investment starts at just $500. New online platforms offer dozens of trustworthy projects. On the Internet, you can find lots of information about this simple and modern investment method.
6. Consider REITs (Real Estate Investment Trusts). This is a good choice, too. REITs have been popular since their creation in 1960. They raise money from a collection of investors and provide them access to real estate. These trusts distribute more than 90% of their taxable income back to the financiers. REIT advantages include guaranteed dividends, hassle-free investing, low minimums, liquidity, and more freedom from the stock markets.
7. If you are ready to work and risk more – consider flipping houses. First, you buy a house, typically at the auction, then renovate it, and resell it for profit. House flipping is very popular now, yet the average return is lower than in previous years. Successful flippers spend a lot of time choosing a property and examining potential risks. They are ready to spend their time and money on anything a house needs.
8. Hire a professional accountant. Successful investors understand all the risks and predict them. A professional accountant will help you with budgeting, planning, and reporting. An expert in this kind of work can also prepare financial reports and records for all real estate transactions like renting, property sales, and leases.
9. Make connections. If you want to develop your venture, try visiting various real estate conferences and other gatherings. Getting to know people and talking to professionals can help you build a network of useful contacts. Social media is a powerful tool to learn more about real estate investments. It can also help you advertise your services or find new interesting offers.
10. Diversify. As your business grows, do not limit your investment choices. In 2020, the US market boasts plenty of interesting offers in various states and cities. Sure, you feel safer buying a house on the street where you live. But property in different parts of the US protects you against the local market dangers. Plus, you can learn more about the pros and cons of real estate investments around the country, and choose more interesting and profitable deals.
Regardless of the possible economic crash due to coronavirus, real estate is an excellent long-term investment. It offers reliable cash flow and provides higher returns. Most importantly, real estate is a self-sustaining asset. You can even start investing in it with no money at all – rent out a room in your apartment, and see how it feels being a landlord. And yes, one day you can become a millionaire. Lots of investment reports state that over the last two centuries, about 90% of the world`s millionaires have come from real estate investing. Why not give it a try?