When you invest in something, you want to know that it’s worth your while. Regarding real estate, we live in a culture that romanticizes the idea of flipping. Turn to any home improvement channel and you’ll find shows all about sprucing up and reselling homes. On the screen, it looks easy. The idea of making tens of thousands of dollars on a flip just seems like a no-brainer.
But in today’s real estate climate, is doing it yourself really the way to financial freedom? There are better investment strategies out there.
Remember — your investment is far more than the money you put in. It’s your time, energy (both mental and emotional), as well as your assets.
So how do you make the most of your investment efforts in real estate?
3 Pointers for Getting the Most Out of Real Estate Investment
Select your market carefully.
When investing in real estate, understand that not every market is going to be a worthwhile place for you to invest. Even markets that have a lot of buzz and promises of great returns are not necessarily for you. Why is that?
Every investor has a different level of risk tolerance and a different level of available resources to invest. Local economies can vary wildly. Someone who lives in Alabama, where the cost of living is low, is less likely to be able to break into a pricey west coast market. However, they could reasonably invest in a smaller midwest or another southern market.
Pay attention not to the hype surrounding an investment market, but its worthiness in direct relation to where you are and what your market is like.
In this same way, it may be much more lucrative for an investor in an expensive market to invest in a less expensive market — stretching your dollar further. Pay attention to the local economic climate, cost of living, and how it compares to where you are.
That isn’t even to mention things like a local market’s projected real estate price growth! There are many factors that should go into your selection of an investment market — not just what’s “hot.”
Be sure to check out: Determining the Right Investment Market: A Guide for Investors
Automate what you can.
Your investment is more than the money you put in. We’ve covered that. For a real estate investor to be efficient and to maximize returns, you must minimize the time and energy you must devote. This is where turnkey real estate comes in. While appearing more costly upfront, turnkey real estate is the best way to maximize your returns.
Don’t underestimate the value in avoiding headaches and hassles! Not only does turnkey real estate allow you to more easily and simply grow a portfolio, but with teams of experts and a personal adviser on your side, you are more equipped to make wise and informed investment decisions.
Because your turnkey team takes care of the day-to-day operations, you are able to focus on the big picture. Starting with a team of experts also reduces your chances of making costly mistakes as you start out.
In general, a turnkey investor has far less to worry about — and far less to decide — than other, more hands-on investors. Automation isn’t just about payments, notifications, and rent collection. It’s about minimizing your need to direct every detail.
Don’t rely on the now.
Lastly, maximizing your ROI demands patience. Few investors can rely on the fix-and-flip method without a lot of trial and error. Not only that, but your profits are at the mercy of the market at the time!
When it comes to real estate investment, you get the most out of it when you are not beholden to the current market climate. What does that mean? Smart investors are buy and hold. They know that even if conditions now aren’t stellar, they have the future to look forward to. They are patient.
They recognize that the more time you give a buy-and-hold property, the more equity you can build. Not only can your property appreciate over time, but there is growth in rent prices and the value you inject into your property through renovations.
Remove one more factor that can stand in your way of a great investment: time. While timing does matter, what matters more is giving yourself time. Time to invest, to grow, to expand, and to see the fruits of your labor.
Ready to take the plunge? Start investing in turnkey real estate today.