There are always hot new trends and opportunities emerging in the world of real estate investing. Depending on what your focus is now they may be must do tweaks in order to stay profitable or they could just be major distractions. Should you be on these 3 trends?
1. Property Management & Rentals
Demand for rentals is at an incredible high and it is only expected to continue to climb. This has many real estate agents and real estate investing companies scrambling to hire rental agents and get into property management. Is this a smart move?
If your main real estate investing focus is already on rental properties then ramping up volume and getting ready to compete is good. If you are already doing property management for your own properties then yes expanding to do it for others with your current structure can help to offset your own expenses and produce additional revenues. However, jumping in to property management just because everyone else is may be more time consuming than profitable, especially with so much competition.
2. Co-Working Office Space
Co-working office spaces have become an incredibly hot trend, especially with so many new independent entrepreneurs and a lack of demand for overdeveloped traditional office space. If you are already into commercial real estate investing, enjoy having your own office or would like to own the build you house your office in this can be a great idea. The collaborative atmosphere and new contacts could be just what you need to take your real estate investing business to the next level while offsetting your own overhead. However, investing in office space just to get on the trend may not be a wise move in the currently soft office market.
3. Owner Financing
Some real estate investing pros are refusing to rent their homes to avoid damage and are choosing to offer them with seller financing. If you are cash rich then this can enable you to get the maximum sales price for your property but holding paper has its own risks too. Give some serious thought to the best combination of terms and down payment and decide whether you want to move homes quickly with lower down payments and higher monthly rents or plan to turn around and sell the note you create for cash now in which case you are going to want more money down and will certainly be tougher on credit.