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10 Reasons NOW is a Great Time to Invest in Real Estate


Investing in Real estate

If you are looking for an investment option that allows you to passively make an active income, Congratulations you have come to the right place.

Real Estate Investing can be incredibly lucrative during optimal market periods. If you know what you're doing you will be successful regardless of the market, but if you are just getting started, it would be best to start NOW!

The days of working 40 years at your job and having a hefty pension and reliable investments is over. In 2018 and beyond we need to start thinking more creatively about how we invest our hard earned cash.

We are in the age of making your money work for you through passive income, and Real Estate is still in the drivers seat. Here's 10 reasons why you need to seriously consider diving into Real Estate Investing.

 
low interest rates

1. Historically Low Interest Rates

Low Interest Rates are good for investors because you don't have to tie up too much money by purchasing the property outright, and the low rates will result in low monthly payments.

I'm sure I don't have to tell you the benefits of low monthly payments. This also makes it so easy for newbies to get in, finance an investment property, and pay it off by flipping or renting it.

These rates are only going to continue to increase over the next couple decades so get in while you can!

 

2. Housing Prices are Still Low

Although property values have been slowly rising since 2011 you can still find some really great deals.

If your target market is along the "Rust Belt" or the Midwest, the foreclosure rate is much higher and the rental inventory is tight, so this market is definitely worth your time.

BiggerPockets has a complete guide on how to purchase a Foreclosure, you can get that here:

 

3. Financing is Getting Easier

As the economy continues to recover, banks and lending institutions are loosening the reins on their standards.

According to The Washington Post, 12% of mortgage loan applications result in a rejection. We aren't quite out of the water yet, it still helps tremendously to have a good credit score and at least 20% down on your loan.

Although it can still be difficult to get a mortgage, it's not impossible like it was 6 years ago.

Focus on reducing your total outstanding debt, make your monthly payments on time, and acquire so assets to put up as collateral. (if necessary) If you do these things you should have no problem getting financed in 2018.

 

4. Investing & Entrepreneurship is "Back In Style"

With the growing popularity of people leaving the 9-5 to pursue full-time entrepreneurship; creating a business from Real Estate Investing has never been easier.

There are so many options for a beginner to dive right in and with the right training, make a full-time income right off the bat.

Beginner Methods:

- Wholesaling

This is basically locating a property and purchasing it with the intention of immediately re-selling it to an eager investor.

- Hard Money Lending

High interest rate loans for people with bad credit. This method can be risky, but if you know what you're doing you can make this work in the beginning.

- Manual Outreach

With the internet anyone is a quick keystroke away.

 

5. Technology is Improving how we Invest

The Internet has really changed the game for Real Estate. Your ability to manage your time and make every phone call, every showing, and every email matter has never been easier.

There are so many outlets for you to advertise your properties:

- Craigslist

- Zillow

- Trulia

- Apartments.com

- Realtor

With the development of a buyer/renter accessible MLS it has also never been easier to get valuable property information as a buyer.

There are also a ton of great ways to find and fill vacant properties:

- Automated Email Alerts of ideal listings

- Online Screening Services

- LinkedIn for networking with Realtors

One of the coolest things technology has done for us is the development of 360 degree virtual tours that allow you to see the property as if you were really there. If you are investing outside of your local area, this will save you a ton of time and money wasted on unsuccessful prospecting trips.

 

6. Other Investments are Performing Poorly

In 2018 you will be lucky to see 1% on a typical savings account, which will really help you compete with the 2% yearly inflation rate. (if you appreciate a little sarcasm)

Certificate of Deposits or "CD's" offer no more than 2%, and you need to tie the money up for a pre-determined amount of time. The longer you park the money, the better return you will receive.

My motto has always been, If my investment strategy has restrictions that prevent me from self directing where my money goes and how long it stays there; It's probably a bad strategy.

Money Market Funds through companies like TD Ameritrade and E*Trade guarantee you a return but the rates are around .5% - 1.0%...if you're lucky.

I think you get the idea... Investments that once offered decent returns over an extended period are a thing of the past. Take your money and invest it into something you have control over, that's going to offer you what you're worth.

 

7. Anyone Can Learn Real Estate Investing

It doesn't take a genius or a natural born entrepreneur to be successful at investing of any kind.

You don't need to go to week long seminars in fancy hotels, get charged $29.99 for a water and sit through a "get rich quick scheme" presentation from some charismatic public speaker who has never even bought a house. (boy...its almost like...I've done that before)

You all know what I'm talking about... in 2018 anyone can learn Real Estate Investing!

Every question you have can be answered by the thousands of blog posts, ebooks, podcasts, and guides. Plus, you have hundreds of Real Estate Professionals at your disposal on social media.

The greatest thing about the internet is that you can get high quality information for FREE, if you know where to look.

 

8. Rising Rents and Short Supply

Currently most Americans pay 30% of their monthly income to rent. Prices range anywhere from $715 in Albuquerque, New Mexico, to $1,800 in Southern California.

As more and more people continue to get divorced, or never marry and have kids; the need for rentals continues to grow and the inventory continues to shrink.

This is where the thrifty investor comes along and scoops up rental properties in neighborhoods where inventory is scarce, demand is high, and median income is high.

Also, with the rising cost and repairs and upkeep, a rise in median rental price is good news for clever investors.

 

9. Side Hustles are Trending

You hear it in the news all the time, the job market is at a slow crawl and job security is a thing of the past.

Companies have a tight grip on their expenses as technology continues to turn the lights off on businesses in manufacturing, logistics, and skilled trades.

Having a side hustle is becoming more appealing to the average working person. Providing yourself with a decent side income that could hold you over in emergencies sounds pretty good.

Side Hustle Nation pins real estate as one of the ultimate beginner side hustles

Gaining knowledge and skills in Real Estate Investing from free resources (like this one) is becoming the most in demand skill going forward.

Many people do Real Estate Investing to secure a nice retirement or even to replace their day job.

 

10. You will wish you Started Today

You won't get rich overnight, Real Estate is a slow and steady business. We are currently in a market that is calling out to self starters and entrepreneurial minded people. (do you hear the call?)

There really has never been a better time to get started, the finances are right, the market is right, and the technology is right.

In 5 years you will look back at the current interest rates and fair market values wishing you started years ago. If this is something you have been considering, now is the time to take yourself seriously.

 

The truth is, Real Estate Investing has made more millionaires than any other business model. Whether your goal is to build a 100+ unit million dollar portfolio, or a $1,000 a month side income, Real Estate is the way to go looking ahead.

"Chime In"

Do you think this is the best market in history for investors? Let me know what you think in the comment section.

Thanks for reading,

- Wishing you much success -

Coty

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