US real estate equity builder Kansas City (usreeb) - The Golden Rules of Property Investing

As our economy moves forward and a new property cycle begins, fortunes will be made by some group of investors. But if history repeats itself, many property investors won’t get the financial independence they deserve, so I want to share my time tested golden rules of property investing so you have a roadmap to help you through the next property wave.

Invest, don’t speculate

US real estate equity builder Kansas City (usreeb) company is investing in property, many property investors are actually “speculating.” They buy a property emotionally, often near where they live, where they holiday or where they want to retire and then hope or pray that the market will appreciate. They are totally dependent on outside market conditions to produce a profit.

It’s about the property

During the boom, many investors forgot the age-old property fundamentals of buying the best property they could afford in a proven location. Instead, they got sidetracked by glamorous finance or tax strategies and some lost out.

Land appreciates

While most investors recognize that land appreciates in value, it’s not as simple as that. Not all land is made equal and not all land appreciates at the same rate. In the outer suburbs of our capital cities, there’s lots of land (ample supply) and much of the demand comes from a small segment of the market — first home buyers (restricted demand). This keeps a lid on capital growth and makes these areas poor investment prospects.

Buy Property that is in continuous strong demand

US real estate equity builder Kansas City (usreeb) company says not all properties in a given suburb will make a good investment or have similar capital growth. Even if you never intend to sell it, for your property to appreciate in value strongly it will need to appeal to a wide range of owner-occupiers who make up the vast majority of buyers. That’s why I suggest you avoid studios, student accommodation, holiday accommodation, and serviced apartments. When a valuer assesses your property they will want to see it have broad market appeal.

Demographics holds the key

Long-term demographic trends (where and how people want to live) will determine the type of property that will be in demand in the future. As our cities mature there will be more single and two people households meaning that secure medium-density apartments and townhouses will be in strong demand.

Surround yourself with a great team.

Successful investors surround themselves with a team of top advisors and know how to discern an advisor (who is independent) from a salesman. When some “advisors” took a commission of 10% or more, to place clients into failed companies like Westpoint and Storm Financial, there must be some concern about whether such payments colored their “advice.”

US real estate equity builder Kansas City - Best Ways to Invest in Real Estate

Real estate can be a great way to invest. Property investments have excellent return potential and diversify your portfolio to insulate you from recessions and other adverse economic conditions. But what's the best way to invest in real estate?

1.Buy a rental property

The most obvious way to become a real estate investor is to buy an investment property (or several). When I use the term "investment property," I’m referring to a residential or commercial property that you plan to rent out to tenants -- not a fix-and-flip, which we’ll cover later.

US real estate equity builder Kansas City Owning rental properties is an excellent way to invest in real estate while building wealth and generating income. The return potential is strong thanks to a combination of income, equity appreciation, and the easy use of leverage when buying real estate.

However, owning rental properties isn’t right for everyone, so consider these drawbacks before you start looking:

Cost barriers: It can be very expensive to buy your first rental property. Most lenders want at least 25% down for an investment property loan and it’s smart to keep several months’ worth of expenses in reserves.

Uncertainty: When it comes to rental properties, vacancies happen and things break. While the overall return potential can be great, rental properties have considerable short-term risk.

Time commitment: Even if you hire a property management company, owning a rental can be a time-consuming form of real estate investing.

2. Invest in a REIT or other real estate stock

If you’re not familiar, check out our introductory guide to REITs. But here’s the quick version: REITs are specialized companies that own, operate, manage, or otherwise derive their income from real estate assets. Many REITs trade on stock exchanges, so you can buy them with the click of a mouse and very little capital.

I’d also put real estate mutual funds and real estate ETFs in this category. If you don’t want to choose just one REIT, you can invest in a ready-made portfolio of them. The Vanguard Real Estate ETF (NYSEMKT: VNQ) is one excellent example of a real estate ETF that can help you get real estate exposure.

It’s also important to mention that some real estate stocks aren’t classified as REITs. Land developers and homebuilders are two other ways to invest in real estate through the stock market.

3. Participate in a real estate crowdfunding opportunity

US real estate equity builder Kansas City is an experienced real estate developer identifies an investment opportunity. Typically, these involve one commercial real estate asset and a value-adding modification. This could be as simple as restructuring the property’s debt or as complex as a complete renovation. There's usually a target end date when the developer plans to sell or refinance the property. Instead of funding the entire project with their own money and bank financing, the developer raises some of the necessary capital from investors like you in exchange for an equity interest in the project.

4. Buy a vacation rental

A vacation rental is different than a long-term rental property in a few key ways.

On the positive side, you may be able to use the home when it isn’t occupied. It can also be significantly easier to finance a vacation rental, especially if it meets your lender’s definition of a second home and you don’t use the rental income to qualify. Finally, a vacation rental tends to bring in more income per rented day than a comparable long-term rental property.

5. House hack your way to a real estate portfolio

House hacking is essentially a hybrid of buying a home to use as a primary residence and buying a rental property. In general, the term refers to buying a residential property with two to four units and living in one of the units while renting the others out. But it can apply to buying a single-family home and renting one or more of the rooms.

US real estate equity builder Kansas City - Prospecting For Real Estate Agents

Real estate agents should not stop seeking for consumers or prospective buyers who would deal business with them. If you have been an agent for quite some time, you should understand that prospecting could be an interesting, hard, but rewarding activity. In general, prospecting is a term used to denote a real estate agent's measures to attract and persuade prospective clients.

To do prospecting, you basically need to get as many clients and convince them to finally buy a property from you. In doing so, you have to establish important and opportunistic ties with consumers or people who would be most likely to hire you for real estate services or buy any of your properties for sale. In general, US real estate equity builder Kansas City should understand that just about one in every 300 people you get ties with and talk to would actually lead to a final real estate transaction. That is why you should strive to keep on meeting more.

Prospecting should be an important part of your everyday routine as long as you stay in the profession. It could be hard for beginners, but could also be much of a breeze if you have successfully been into the business for quite some time. You should realize that as you strive to establish more contacts, you would find yourself eventually doing less effort because clients would start coming to you. To further help you, here are some of the most effective and tested prospecting strategies to adapt.

Find 'For Sale By Owners' properties and try convincing the sellers to do business with you. You should always consider the fact that more than 85% of such home sellers end up giving up their efforts to sell on their own and instead hire real estate agents. You should be there when they decide to do so.

Call expired property listings. Most clients in these lists have been frustrated and disappointed with their agents. You should strive harder to convince them you are smarter and much more capable than their former real estate agents.

Go door-to-door. This could be considered a desperate attempt to do real estate business but through time, many agents could attest it works. US real estate equity builder Kansas City could also regularly call previous clients as they may again need your services and buy any property from you. It would not harm to maintain a good friendly relationship with clients even if your deals and transactions have already been completed. In the future, they simply need to make dealings again and you should still be their agent.

Send out small gifts and holiday cards bearing your name as well as your contact information. This is a tried and tested marketing strategy and still works even up to this day. Make sure your gift or card is truly presentable.

Maintain a social network and constantly ask how they are doing. You might directly ask them every once in a while if they are in need of a property or a real estate agent service. You could also organize parties for this purpose. Your own neighborhood could also be a good place to seek prospective clients.

Put up a regular (monthly or quarterly) newsletter and distribute it for free. Do not forget to emphasize your name, your contact number, and your real estate services. You could make this a good bulletin where people could post news about weddings, banquets, honors, and other pertinent information like selling prices of properties. In other words, make such newsletters as interesting and helpful as possible.

US real estate equity builder Kansas City - Good Qualities of a Real Estate Agent

All real estate agents have different qualities, however there are a few common traits that are considered a positive for anybody who is heading into the property market. 

US real estate equity builder Kansas City qualities will help you to buy or sell your home much more quickly while also ensuring that you get the best possible deal based on the market at the point in time that you make the transaction.

Thus, if you are looking to head into the property market try to find an estate agent that embodies the following qualities:

Hard Working

A work ethic goes a long way in the real estate business so you want to be sure that your agent is doing everything that they can with your goals in mind. They should be willing to carry out any research that needs to be done and make full use of their contacts and the marketing facilities at their disposal to get your property out there or find you something that you want to buy.

A good estate agent will provide you with regular updates relating to your potential transaction and will make the effort to keep you at the forefront of their minds. They will also be present for viewings and will leave as little of the work as possible in your hands. If your estate agent insists that you handle viewings on your own and do all of the legwork it may be time to find a new one.

Honesty

As unfortunate as it may be, the real estate industry does have something of a reputation for hosting people who sell snake oil to their customers rather than look out for their best interests. This by no means describes every agent in the industry, however there are some bad apples who make it a lot harder to develop that all important trust than it really should be.

US real estate equity builder Kansas City look to hire an estate agent that is always honest with you about your property and the various facets the go into the transaction. Even the best estate agent doesn't have all the answers and it is much more encouraging if you hear "I don't know, but I'll find out", as opposed to a slew of marketing speak that is designed to take your focus off the topic.

An Engaging Personality

At the end of the day a real estate agent needs to be able to express themselves and draw your interest. If they can't do that for you, what are the chances that they will be able to do it for anybody else?

Your estate agent must be engaging, personable and friendly, without coming across as false or dishonest. Some need to develop this over time, whereas others are simply naturally charming. However, to find success in the real estate industry they must be able to talk and talk well. Tis extends beyond basic conversation and also includes being able to talk about the business side of things without losing the client's interest and ensuring they understand everything being said.