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There are many options when it comes to investing, but real estate always blows the roof over the rest. According to a CNBC poll, 23% of Americans think he’s the best way to build wealth, and experts say they’re on to something.
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“From a risk-reward standpoint, real estate is much better than stocks. You take a lot less risk and make more money,” Wall Street banking investment analyst James Barkley told Business Insider. Told.
Even better, investing in real estate doesn’t cost hundreds of thousands of dollars.
Awning Founder and CEO Shri Ganeshram said: Awning is a technology-driven platform that helps people buy and own rental properties through options such as buy-side representation, short-term rental furniture and management. There is also a free his Airbnb estimator tool similar to Zillow. “There are many opportunities for someone to invest with as little as $20,000 in savings.”
Ganeshram also said one of the benefits of tools like Awning is that they offer partnerships with companies that allow investors to pool their funds to buy assets as a team, allowing more people to He points out that it will be more accessible. “Wealthy individuals certainly have their advantages, but many are building their wealth one investment at a time and it’s never too late to start,” he adds.
Regarding specific amounts to consider before investing in real estate, Mr Ganeshram said: Money needed for furniture and supplies. ”
If you have these savings or have access to a credit line to pay off and want to start investing in real estate, Ganeshram offers some tips for beginners. more investment.
“There is housing hacking, where an investor lives in an apartment complex, collects rent, and uses that money to finance a mortgage,” he says, offering one option. “But for most people just starting out, it’s better to invest in traditional rentals and focus on your primary job or source of income while generating cash flow, valuation, and equity through mortgage repayments. Then take the money earned by more savings and real estate and invest it again.”
There is also the option of ‘partial investment’ which can be done in options like the app Here. This allows you to buy shares of an investment property almost like shares. “It’s a possible entry point, but it doesn’t have many of the real estate advantages,” he warns Ganeshram. “The owner has accumulated no tax benefits for being an investor (mortgage interest deductions are an example) and has little to no control over investment performance. If you’re short on , it’s much better to team up with others in the same situation, and then buy shares in investments you have little or no control over.”
Ganeshram also points out that there are other financial investments to consider before starting real estate, such as insurance.
“Usually more expensive [for investors] You should also do property due diligence by reviewing inspection reports and calling experts to dig into specific issues. Having a great agent is the single biggest predictor of getting a great investment,” he said, noting that agents source good properties from across the market, analyze deals, and keep clients out of bad ones. It can keep you away and guarantee investor success.
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He also offers some tips on hot markets to watch when you’re ready to invest.
long term rental: “Some parts of Texas, like the Houston and Dallas-Fort Worth areas, still show high returns for investors.”
Short term rental: “Georgia’s Blue Ridge region is doing very well with lots of opportunities and a great regulatory environment.”
Investors with more capital: “Parts of Florida and California, with beaches, vineyards, and amusement parks, have some great Airbnb conversion properties. ”
Underfunded investors: “Look at the Atlanta area and parts of Alabama like Birmingham, where there’s massive job growth and relatively cheap real estate.”
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