Investing in real estate is an exciting prospect with the potential to totally transform your financial future. But it’s also intimidating for first-time investors, and understandably so! A significant amount of money is at stake, and there’s so much for new investors to learn.
As a result, many newcomers opt for a turnkey approach. That is, they purchase properties from an established turnkey provider that handles property acquisition, renovations, resident placement, and property management.
In today’s real estate landscape, the rules of the game are evolving. Investors are entering the space with high expectations—and sometimes without the preparation necessary to meet them. I’m seeing it in investor conversations, online forums, and in the hundreds of inquiries we receive each month at REI Nation.
If you’re investing in real estate for the first time, you probably have lots of questions. After all, there are so many options and strategies available. It can be overwhelming! But let’s focus on one of the bigger decisions investors must make: To invest in older properties that require renovation or opt for shiny, brand-new builds.
We’ve been in this business for a while now. It’s safe to say we’ve seen just about everything the market can throw at real estate investors, from housing market crashes to global pandemic panic. Good times and tougher ones, too.
We’ll let you in on a secret, though: your success in real estate investment rarely has to do with market conditions. It has everything to do with the things you can control. As a turnkey investor, you rely on a team to get the job done. Critical to that team is property management.
And what’s the most essential quality in your property manager? Proactive communication.
A survey shows that, aside from rent costs, the number one most cited reason for rental residents to forgo lease renewal was an unresponsive and ineffective property manager.
Further Reading: Crucial Questions New Investors MUST Ask a Property Management Company
Where should you invest in real estate? It’s the age-old question. We can make an excellent case for a few specific markets, but we want to speak more generally here. Real estate investment strategy is often about the slow zoom-in—focusing on general principles that grow in specificity as you move towards your personal pinpoint.
Early retirement. The prize many real estate investors have their eyes on. If they can generate enough passive income to make up for an active career, they’ve made it.
April 15th is creeping up on us. Many people procrastinate on tax filing (don’t worry, some of us are guilty, too!), but there’s little room for investors to make the same mistake. Dread and procrastination are holding you back in more ways than one.
When people seek a hassle-free, ready-to-move-in solution, they turn to new construction. The allure of pristine siding, spotless floors, and that unmistakable 'new house' scent is undeniable. Many are drawn to new construction not just for its contemporary aesthetics and conveniences, but also for the promise of being the first owner.
Investing in real estate comes with a dizzying number of options. Passive or active? Residential or commercial? Single-family or multifamily? Which market? While many decisions come down to personal preference or investment strategy, some are less subjective.
