Picking the right investment market can be tricky. There are tons of factors that contribute to an area’s potential…or downfall. Real estate investors know the power of location – but picking the right places to own property isn’t always easy. Sometimes, seemingly beneficial qualities, like rapid property appreciation, can backfire when the market becomes untenable to buyers and renters. 

We’ve all heard, “Cash is king.” The phrase was coined in 1980 by author George N. McLean as a business maxim: “Avoid credit, remembering that cash is king, credit is a slave.” The phrase reemerged and grew in popularity with the 1987 stock market crash. We’ve seen plenty of professionals and investors hold to this philosophy since.

Insurance is one of society’s necessary evils. So many times, paying our premiums seems like a waste…until we have to make a claim, that is! Whether we like it or not, property insurance is an unavoidable expense in real estate investing. And with insurance premiums set to hit a record high in 2024, investors are feeling the cash flow squeeze.

New construction is divisive in the world of real estate, whether you’re an investor or a traditional homebuyer. Some are attracted to the totally turnkey nature of new builds. Others are skeptical of the quality of modern construction and developing markets.

Every investor benefits from the counsel of a financial advisor. Ideally, your advisor knows you, what you want and need, and the essential aspects of your investment strategies. Their perspective and know-how help construct effective action plans and mitigate risk along the way.

But advisors aren’t just there for big-picture talk. Before you move forward with a property acquisition, consult your advisor to ensure you’re making the best decisions possible for the health of your investment portfolio.

As a passive real estate investor, here are some key topics to cover:

If you were to ask a room of SFR investors what the most crucial factor in success was, you would get a whole array of answers: the location, the property itself, the property management, accurate number-crunching…the list goes on!

What’s the best way to buy an investment property? Just as there are many investment strategies, various financing options are at your disposal, each with drawbacks and benefits. While we certainly have avenues we recommend more than others, every investor should be well-informed about every option.

Real estate investment is an enormously varied industry. Different types of properties, countless markets, real estate classes, and strategies are involved. On one hand, this is beneficial because just about anyone can find an approach that works with their financial goals. On the other hand, so much variety can be daunting!

Imagine this: you’re a new real estate investor. You want passive income. So you set your sights on a turnkey property requiring no renovations or lead time before you find a resident and start earning sweet, sweet cash flow. Only one problem: you decided not to use a property manager.

You may think to yourself – is that really a big deal? People landlord for their properties all the time! How hard can it be?

While taking on landlord responsibilities is something people do, you must be sure it fits into your vision of investing in real estate. Going in unprepared is a recipe for failure. You can have a pristine, beautiful turnkey property, but without proper management, it can all be a big waste of time and money.

Millennials are a diverse demographic. Today, they’re between the ages of 27 and 42, between young adulthood and nearly middle-aged. Trust us; we’ve heard plenty of discourse about millennials and the housing market over the years.