Investing in Real Estate

Tips For Investing In Real Estate Right Now 

Now that the Covid-19 pandemic is beginning to slow down a little, many are beginning to take on new business endeavors. Real Estate investments have been on the rise within the past year, especially among first-time investors. So what should you know as you enter into your investments in 2021?

Many experts believe that first-timers should always find a mentor who they can trust to guide them in their initial investments.  Realty ONE’s CEO Kuba Jewgieniew, explained how now that more individuals are opting to stay home for work, looking at trends in the market has never been more important. 

“With fewer people returning to a physical office and many more people reevaluating their life choices, we’re seeing a resurgence in cities like Phoenix, Arizona, our headquarters’ home of Las Vegas, Nevada, and even once-less-popular markets like Boise, Idaho,” Jewgieniew explained. 

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“As more people move to these metros but also out to the suburbs to get a bigger space for less money, we’ll see even these areas become more popular, driving home prices higher.”

“An area with higher property values has the potential the yield a more lucrative real estate investment. So pay attention to on-the-rise hotspots—that can be a certain city or even a specific neighborhood—when deciding where to invest,” Jewgieniew explained.

Apartment buildings and boutique hotels have been predicted to receive a slew of investments in the coming fiscal year as well, which Jewgieniew thinks will lead to a larger presence of tech giants in our communities:

“I anticipate that retailers like Amazon will buy up these malls and convert them into distribution centers, creating jobs near the former malls. I believe that a lot of these apartments near the malls are going to get converted into condos to accommodate the workforce.”

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Jewgieniew explained that it’s important to build an organized business plan before making any official decisions as well.

“It’s not just about how much money you have and what income the building creates; you’ll need to factor external factors such as interest rates, vacancy rates, and occupancy rates into the equation too.”

Finally, Jewgieniew urged first-time investors especially to not get too excited by the thrill of investing in a new property, and take their time when it comes to reading all the fine lines. 

“A year ago, I would have said something different, but do not try to get in and get out quickly. Buy it, hold it long term, and focus on cash flow. Competition for these properties is intense right now, so you may have to pay a little more than you should to acquire one—and since construction materials are also extra expensive, it’ll be harder to turn a profit.”

Overall, just be smart with your money and make sure you’re making investments that will benefit you in the future. “If you’ve got a business plan in place and have a network of resources, like a knowledgeable real estate pro, then now could be a good time to invest in a flip property.”