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Make the Most of Your Real Estate Investment With These 4 Tips

You might’ve faced some real estate investment problems in the past that made you feel discouraged. It can be due to the lack of help and time or a strategy that didn’t work. The question is, “Are you stuck in a decision now on whether you should continue investing or not?”

If you are, here are new investment methods with elaborate details that you should consider to avoid future losses. You’ll also find #3 as an important tip on managing your time and energy efficiently.

1.  Ignite your real estate passion and creativity

A lot of real estate investors buy properties and sell them because they love the profit it brings. Sometimes they have a buyer in mind and plan to invest due to the beauty of the house’s architecture. Others use the Buy, Rehab, Rent, Refinance, Repeat Method (BRRRR).

But here’s one real estate investment that others tend to ignore - building a new home with the home seller’s specifications and design. It might not attract market pools such as rushing homebuyers, but you still have a high chance of success due to the limited supply of new homes.

If you’re resourceful and creative, you can find a lot in a nice neighborhood and create a house design that a buyer is sure to love. Also, existing homes aren’t as appealing as new ones. There are plenty of homebuyers looking for new housing concepts.

Some of these new homebuyers are willing to pay for something that gives them exactly what they want. So, consider these new housing elements:

  • Energy codes.
  • Standards for heating ventilation, cooling, plus insulation, and air filtration.
  • Green appliances/Energy Star-rated appliances.
  • Efficient toilets.
  • Plumbing fixtures.
  • Electrical fixtures.
  • Home automation.
  • Modern exterior design.
  • Solar panels.

These elements are a game-changer in the real estate industry. After all, a slightly-expensive yet energy-efficient house is better than an affordable one with high maintenance costs in the long term.

2.  Turn your property into a passive cash generator

We all love a little extra cash in our pockets every month. If the buy and sell housing market isn’t in your favor, then rent your property out. There are no limits here. The more people your property can shelter, the better. Don’t be afraid to get more opportunistic and settle for more than the local pricing for rentals.

Here are some useful tips to pricer higher: Do a little renovation, add security, and some other improvements. During this period, you can wait patiently as your property’s market value increases while increasing rent per lease as well. And if you desire to do so, sell your property at the right time for more profit.

3.  Involve your family

Owning a rental property or being in the buy and sell market has its own perks especially for investors with families. For rental properties, you can teach your kids or share the property maintenance responsibilities with your wife.

By doing so, you’ll be saving a lot of time and energy for your day job or for new ventures. You’re also teaching your children the value of hard work, how to create monetary value in properties, and management skills.

The point here is, you’re learning new real estate strategies while teaching valuable lessons to the ones you trust and getting all the help you can get.

4.  Go for “Best in Class” not “The Best”

A common real estate investment mistake is developing a property and trying to be the best in the area. This applies to home flippers and BRRRR investors. The mistake here is that they spend too much on repairing and beautifying a home while the home is located in a working-class neighborhood.

Remember, it’s the local market that determines the property’s value, not the cost. No matter how much you spend to turn the property into a luxury home, it will still be listed on a price similar to the neighboring houses.

When I said “Best in Class,” I meant to fix everything that is broken first. Don’t change what’s perfectly fine.

Then, make little changes that stand out in the area but don’t cost much. One example is to repaint the house’s single color paint job into a two-toned one. Other examples are adding convenient soap dispensers or trash receptacles. Skip the expensive redecorating.

Remember that real estate investment is a versatile business venture. It can either be high-risk or low risk. If you go for the buy and sell model, that’s high-risk. If you go for the rental model, it can be low-risk. The profits are dictated by how well you play the cards you’re dealt with.