Investing Tips

Looking to invest in buying a house? You may not have thought of property auctions. It’s one of the fastest and easiest channels to acquire a property, but also comes with higher risks. That said, with a good auction strategy, you can get the best deal for your dream home or investment portfolio. If you’re like most beginner investors, you’re intimidated by the entire auction process. In this guide, we share the basics of house auctions. We tell you: How buying a property at an auction works Whether it’s a good idea to buy a house at an auction, and The best tips to help you buy a house at auction. Ready? Let’s begin! What Is a Real Estate Auction? Real estate auction refers to the public sale of a property to bidders at a forum conducted by a licensed auctioneer. The property can be sold by a homeowner, government, […]

There’s no doubt that real estate investing is a lucrative industry. As this Gallup survey found, real estate (at 35 percent) still ranks top as the most favored investment by Americans. That puts it ahead of stocks and mutual funds. Investing in real estate is one of the best ways to earn passive income and build wealth. However, if you’ve just set foot in the world of real estate investing or have little experience, you need to look beyond an attractive building or projected income from the property. Read the article to learn about eight major risks of real estate investing and the best ways to avoid them. 8 Types of Real Estate Investment Risk 1. General Market Risk The market in which an investment property is located can affect the supply and demand of the property. Market developments like interest rates, a slowing economy, a boom in new developments […]

As we head into our golden years, retirement looms large. If we want to maintain our current and future level of living, we’ll need to do some careful planning, management, and investment of our resources while we’re still working or running a business. Planning for retirement should begin early, when a person has a high-risk tolerance and can invest in risky assets like stock markets, hedge funds, and private equity, before shifting to safer investments like money market accounts, government bonds, and real estate as they get older. What is retirement income planning? Preparing for the change from earned income to retirement income is called retirement income planning. Social Security, part-time work, investments, annuities, and pensions are just a few available income replacement options. Most Americans’ retirement savings depend heavily on Social Security. Roughly half of all retirees in the United States rely on Social Security for at least half […]

Any successful real estate investor knows that key performance indicators are the real measure of business performance. These investment metrics are useful when evaluating potential real estate investment, instead of being guided by emotions in your decision-making. Considering the global commercial real estate industry is worth around $34 trillion, understanding these metrics can protect you from a bad deal and help you maximize your investments. In this guide, we briefly discuss these metrics and how they impact the financial performance of your investment properties. Essential Real Estate Investment Metrics The metrics below are particular to income-generating properties, such as tenant-occupied residential estate and commercial real estate. 1. Net Operating Income (NOI) The Net Operating Income (NOI) metric paints a clear picture of how much money you will earn from a given investment property. It measures the total amount of money the property makes, after all, operating expenses – except the […]

Investing in real estate is a good idea for most people. On the other hand, rental properties aren’t a good fit for all investors. By introducing this idea, people now have access to a plethora of investment opportunities in which they do not have to handle property management but still share in the profits. Real estate investment trusts (REITs) and real estate crowdfunding, a relative novelty, are two of the most popular methods. Read the article to learn more! What is real estate crowdfunding? Real estate crowdfunding, like regular crowdfunding, is a method of supporting the development or renovation of real estate. Many small investors combine their funds to make larger real estate purchases. Crowdfunding sites like Crowdbase make it simple for anybody to discover and put money into promising real estate projects without considering such factors as the size of their initial investment, the cost of repairs, or the […]

Learning about portfolio diversification is good if you work in finance or investments. Investors use diversification as a tool to lower their exposure to potential losses. You can make better financial decisions if you take the time to learn about the different kinds of portfolio diversification and their advantages. In this article, we’ll go over why it’s essential to do so, what portfolio diversification is, how it works, what parts go into different types of portfolios, and what advantages you can expect to reap as a result. What is diversification? Diversification is a strategy for lowering investment risk by spreading capital among several distinct asset classes, business sectors, or other broad investment buckets. Its goal is to spread investment risk among several regions that might have diverse responses to a given incident. Diversification is seen as the most important way to reach long-term financial goals with the least amount of […]

People of various economic backgrounds can benefit from real estate investing. As we’ll see, apartment complexes have provided financial security and autonomy for many people who have invested in real estate. Indeed, due to the consistent monthly income and historical appreciation, property owners can often increase their net worth and income. It is common knowledge that apartment buildings are a good bet for real estate investors. While single-family homes are less complicated to acquire, they present certain disadvantages. For example, if a tenant vacates the property, you will no longer receive rent but will still be responsible for all the associated costs. When it comes to apartment buildings, it’s possible that you won’t ever have 100% occupancy, but it doesn’t mean you’ll ever have 0%, either. That means a more stable, reliable, and wealth-creating source of funds. Why invest in apartment buildings Below are a few reasons why investing in […]

Putting money into real estate usually means parting with a sizable portion of one’s liquid assets. However, what if you cannot invest a large number or only intend to invest a small amount in the market? Property ownership is not a prerequisite for making investments in real estate. In reality, numerous options exist through which investors can profit from rising property values without taking on the recurring costs associated with upkeep. Those who wish to diversify their portfolios beyond the narrow confines of the conventional financial markets may purchase properties in various markets, sizes, and real estate categories. Investments like these can be stepping stones to property ownership, but the returns may be attractive enough that you decide against buying a house. 6 ways to invest in real estate without buying property 1. Construction companies Low interest and mortgage rates, combined with an improving housing market, have made investments in […]