If you consider different types of investment, you will likely agree that real estate assets are one of the oldest and most lasting global investment tools. In recent times many people have invested in so many uncertain projects which include cryptocurrencies, startups, futures, indices and so on. Compared to these, real estate is still considered a valuable choice for both experienced and new investors. However, both groups of investors often have the same question: how can they get as much revenue as possible from their real estate project? The answer is simple: always optimize your investment. Here are our tips:
- Rentals. Make sure that the property you invest into earns you a rental revenue. It`s all very good to profit from the possible rise of the HPI in a country and when overall economic situation positively boosts the real estate market. However, it is even more important to have a stable monthly revenue you may depend on. Of course, there are certain problems related to this such as finding the tenants, solving any maintenance and renovation issues, managing the property and so on. However, it is possible to leave arranging this to a responsible third party. The only thing left then is to receive the anticipated revenue.
- Return on Investment or ROI. Always check for the expected rate of return on investment when you pick a new real estate project for your property portfolio. You need to make sure that you can receive growth in the value of your investment in the long term. For this, you need to know the approximate amount of profit you may expect to get in one, two or three years. However, do not expect to receive revenue very quickly, for example, in a matter of one month, because that is simply unrealistic.
- Flipping and Renovating for Profit. You also need to be sure that the property you invest in has several sources of revenue. It can be a good idea to invest in a project that needs to be renovated as you will be able to sell it later on for a much higher price than the original purchase cost. Moreover, flipping for profit is one of the fastest and easiest ways to earn revenue from a real estate asset without having to wait a long time.
- Diversify and Reduce Risks. It is always better to invest in several projects so that you receive certain protection against possible changes in the economic situation of any countries you invest into, the real estate markets and their HPI, which shows average real estate prices. Also, investment in different projects gives you more chances of receiving the expected profit from several sources, such as rentals, HPI, and flipping. As a result, investment in groups of properties may be a solution for diversification of your property portfolio.
These tips may sound very complicated and expensive, especially if you are new to real estate investments. You may ask: is there a way where all these tips could be used together, but without spending huge amounts of money and time? Yes, there is. Property crowdfunding is a solution. It combines all of the above-mentioned tips. Property crowdfunding gives investors an opportunity to invest small amounts in different projects that can have rental, flipping and HPI sources of revenue, and also receive a hassle-free experience. As a result, it is a good tool for investors who want to optimize their investments.