Knowledge To Help You Protect Your Assets When Investing In Real Estate For The First Time
While most of us are executives or entrepreneurs, real estate may be an entirely new ballgame. Today, we take a look at a few things you should know before you put your money to work in the real estate market.
Today’s tips are brought to you by Investment Capital Growth.
Vacation Rentals Are A Dual-Purpose Option
When you think of real estate investments, you might think of real estate development or repairing rundown homes to sell for profit. However, there’s another option. If you have a passion for traveling to distant destinations, you may also consider investing in vacation rentals. This type of investment offers you the chance to own one or more properties in desired locations, which you can rent out for short stays (similar to Airbnb or VRBO) for a nightly fee. You can reserve times for your personal use, giving you a customized vacation home to enjoy.
Timing Is Everything
Timing is crucial in both real estate and business. As you develop the skills to identify market trends and seize opportunities in under-serviced areas, it’s equally important to know how to recognize when real estate is in a downturn. Homelight blog contributing author Christine Bartsch explains that a slowing real estate market will have a higher inventory or show greater price movements. Buy the dips, and you’ll gain home equity alongside your rental income once the market picks up.
You Might Not Be The Best Manager
No matter how successful you’ve been in business so far, real estate has many subtle nuances, laws, and moving parts that you may simply not fully understand. If you plan to invest in multiple properties, especially, having a property management firm on the payroll is a smart move that can help you avoid issues with discrimination or landlord-tenant laws and stay compliant with local housing regulations.
Be The Best In Class, Not Necessarily The Best
According to Neighborhoods.com, there are several different types of residential neighborhoods. These include master-planned communities, urban areas, suburban, “pocket” neighborhoods, historic, and active adult communities. When you’re looking to invest in real estate, try to be the best in whichever neighborhood type you’re choosing, not necessarily the best in an area. Remember, there are many different factors that go into what you can lease a property for (or how much it will sell for). You may find that you get a greater return in a lower-value area if these properties sell or rent quicker.
Your Realtor Is Your Partner
Choosing the right investment partners is key anytime money is concerned. When you’re looking at real estate, your realtor is your best partner. These individuals are not only masters of the buying process, they can also point you in the right direction of neighborhoods that may be positioned for growth in the future. They’ll have a network and, importantly, access to listings that haven’t quite made it to the market.
Maximizing your return on investment is key. Real estate can offer multiple streams of income, but starting a vacation rental business requires careful attention to detail. From understanding different types of communities to working with a knowledgeable realtor who can secure top properties within them, these tips can help safeguard your investment as you embark on a career as a real estate investor.
Whether you are an entrepreneur or leader of a Fortune 500 business, Investment Capital Growth’s personalized approach can help you make the most of your professional investments.
Transform Your Business into a Profitable Exit
I’ve co-founded the Merger and Acquisition Hyper Accelerator Program. Learn more about preparing to sell your business and get top dollar, and ensure you’re not leaving millions of dollars on the table. Learn more and let’s talk: http://bit.ly/3FZIvM3
Contributor: Cliff Locks, CEO | COO | Executive Strategy Consultant and Coach | Board of Directors | Governance | Private Equity Podcast Host | Reverse Logistics | Supply Chain | Advisory Board | SaaS | Clean Tech | Med Tech | Metaverse | AI | Thoughtful ESG & DEI Email me: at [email protected], Schedule a call: Cliff Locks, or fill in the below form to start a conversation.
Recent Blog Post: Your Next Steps for Business Growth
#WSJ #privateequity #boardmembers #corporateleadership #IBD #CEO #CFO #COO #BoD #CXO #management #privateequity #PE #hedgefund #limitedpartners #LP #venutrecapital #VC #ethicalbusiness #directors #corporategovernance #accountability #integrity #ethics #corporateleadership #leadership #nonexecutivedirector #nonexec #boarddevelopment #leadershipfirst #mentoring #thoughtleadership #managementdevelopent #mentorship #leanmanagement #leadershipdevelopment #business #leanstartups #businessstrategy #InvestmentCapitalGrowth
[gravityform id=”1″ title=”true” description=”true”]