HOW TO BUILD WEALTH WITH REAL ESTATE: A STEP-BY-STEP GUIDE
Real estate investing has been a tried-and-true wealth-building strategy for generations. Whether you’re interested in flipping properties for a quick profit or building a portfolio of rental properties for long-term cash flow, there’s no denying the potential for significant financial gains.But where do you start? How can you build wealth with real estate in a responsible and effective way? At MY SMART COUSIN, we help budding home buyers and real estate investors conceptualize, fund and build their real estate portfolios. As seasoned coaches, we work with clients to penetrate the lucrative market of buying a house for the price of a car. We work with a broad range of clients and focus, in particular, on Black and Brown folks and women, to develop a detailed roadmap unique to each client. In this step-by-step guide, we’ll walk you through the key strategies to build wealth through real estate investing. WHY BUILDING WEALTH THROUGH REAL ESTATE IS IMPORTANT? Building wealth through real estate is important for several reasons. Overall, building wealth through real estate is a smart and effective way to achieve financial independence and security. By leveraging the benefits of real estate investments, investors can create a diversified portfolio and build a strong foundation for their financial future. THE KEY STRATEGIES FOR BUILDING WEALTH THROUGH REAL ESTATE INVESTING. STEP 1: DEFINE YOUR GOALS Before you start investing in real estate, it’s important to have a clear understanding of your financial goals. Do you want to build long-term wealth through rental properties, or are you looking to flip properties for quick profits? How much risk are you comfortable taking on? Having a clear sense of your goals will help you make informed decisions about where and how to invest. STEP 2: EDUCATE YOURSELF Real estate investing can be complex, with many different strategies and approaches to choose from. To build wealth with real estate, you need to educate yourself on the fundamentals of investing, including market analysis, property valuation, financing options and property management. There are many resources available including books, blogs, podcasts and seminars. STEP 3: BUILD YOUR NETWORK Real estate investing is a team sport. To succeed, you need a network of professionals you can rely on such as real estate agents, attorneys, lenders and property managers. Start cultivating these relationships early on and consistently, and don’t be afraid to ask for advice and guidance. STEP 4: SECURE FINANCING Once you have a clear sense of your goals and have educated yourself on the fundamentals of investing, it’s time to start thinking about financing. There are many different financing options available, with the most common types being traditional mortgages, hard money loans and private lending. Evaluate your options and choose the financing strategy that best aligns with your goals and risk tolerance. STEP 5: FIND THE RIGHT PROPERTIES Finding the right properties is key to building wealth with real estate. Look for properties that are undervalued or in up-and-coming neighborhoods. Conduct thorough due diligence with a focus on property inspections and market analysis, to ensure that you’re making a sound investment. STEP 6: MANAGE YOUR PROPERTIES Effective property management is essential for building long-term wealth through real estate investing. Whether you’re managing the properties yourself or working with a professional property management company, it’s important to stay on top of maintenance, tenant relations and financial reporting. STEP 7: EVALUATE AND ADJUST YOUR STRATEGY Real estate investing is not a set-it-and-forget-it strategy. It’s important to regularly analyze your investments and adjust your strategy as needed. Keep track of your financial performance and be willing to pivot if you’re not seeing the results you want. BRINGING IT ALL TOGETHER In conclusion, building wealth with real estate is a long-term strategy that requires careful planning, education and execution. By following these steps and staying focused on your goals, you can create a successful and profitable real estate investment portfolio. So start building your wealth today! YOU CAN ALSO READ: THE PROS AND CONS OF INVESTING IN INTERNATIONAL REAL ESTATE MARKETSFOLLOW US: @MYSMARTCOUSIN
THE PROS AND CONS OF INVESTING IN INTERNATIONAL REAL ESTATE MARKETS
Investing in real estate markets has always been considered a smart investment strategy. In recent years, many investors have turned to international real estate markets as a way to diversify their portfolio and maximize their profits. While investing in international real estate markets can be lucrative, it also comes with its own set of risks and challenges. At MY SMART COUSIN, we work as an investment coach, specializing in helping new property investors and home buyers, conceptualize, fund and build their Real Estate empires. As seasoned Real Estate Investors, we work with clients to penetrate the lucrative market of buying a house for the price of a car. We help investors, with a special focus on Black and Brown folks and women, develop and implement a tailored strategy and roadmap. In this blog post we will explore the pros and cons of investing in international real estate markets, including the benefits and risks associated with this type of investment. INVESTING IN INTERNATIONAL REAL ESTATE MARKETS Investing in international real estate markets refers to purchasing and owning real estate properties in countries other than one’s own. It involves the acquisition, ownership, rental and sale of real estate properties in foreign countries. This type of investment has become increasingly popular in recent years due to globalization and the ease of access to information about global markets. International real estate investments provide an opportunity for investors to diversify their portfolios, generate higher returns and hedge against market risks. By investing in real estate properties in foreign countries, investors can take advantage of differences in real estate values, rental income and exchange rates to increase their wealth. However, there are also risks and challenges associated with international real estate investments including cultural and language barriers, market volatility, legal issues and higher operational costs. As such, it is essential to weigh the pros and cons before investing in international real estate markets. PROS OF INVESTING IN INTERNATIONAL REAL ESTATE MARKETS One of the most significant benefits of investing in international real estate markets is diversification. Investing in multiple countries’ real estate markets helps spread the risk associated with local economies and real estate investments. If one market experiences a downturn, the investor’s portfolio won’t be as affected because the other markets may be performing well. Investing in international real estate markets can provide higher returns compared to domestic markets. Certain markets may have lower costs of living and property prices, making it easier for investors to enter the market at a lower price point and experience higher returns over time. Investing in international real estate markets can provide investors with the opportunity to take advantage of favorable currency exchange rates. If the exchange rate between the investor’s home currency and the foreign currency improves, the investor can benefit from the appreciation in the foreign currency. Investing in international real estate markets can provide portfolio stability, especially during times of market volatility. Real estate markets tend to be less volatile than stock markets, and investing in international real estate markets can help offset the risk associated with other investments in the investor’s portfolio. RISKS OF INVESTING IN INTERNATIONAL REAL ESTATE MARKETS Investing in international real estate markets requires an understanding of cultural differences, including laws and regulations related to real estate transactions. The investor needs to be aware of the legal and cultural nuances of the market they are investing in to avoid misunderstandings and legal issues. Investing in international real estate markets may involve language barriers, which can make communication with potential buyers or sellers challenging. The investor may need to hire a translator or interpreter to overcome these barriers, which can add additional costs to the investment. International real estate markets can be volatile, and investors may experience significant fluctuations in the market value of their investments. Economic, political and social factors can all affect the value of the real estate market, and investors need to be prepared to manage the risks associated with these fluctuations. Investing in international real estate markets may involve legal issues, including the lack of protection for foreign investors in some markets, as well as different tax laws and regulations that may apply to foreign investors. Investing in international real estate markets may involve higher operational costs than domestic investments. The investor may need to travel to the foreign country to view properties, hire a local property manager, or pay for additional legal and administrative fees. WRAPPING IT ALL UP Investing in international real estate markets can provide investors with numerous benefits including diversification, higher returns, favorable currency exchange rates and portfolio stability. However, it also comes with its own set of risks and challenges including cultural differences, language barriers, market volatility, legal issues and operational costs. To be successful in international real estate investing, investors must understand the market they are investing in, assess the risks involved and be prepared to manage these risks effectively. Overall, investing in international real estate markets can be a lucrative investment opportunity for savvy investors who are willing to take on the additional risks and challenges associated with this type of investment. YOU CAN ALSO READ: THE FUTURE OF REAL ESTATE: TRENDS AND PREDICTIONS FOR THE NEXT DECADEFOLLOW US: @MYSMARTCOUSIN
HOW TO EVALUATE REAL ESTATE INVESTMENT TRUSTS (REITS) FOR MAXIMUM RETURNS
Real Estate Investment Trusts (REITs) offer investors an opportunity to invest in real estate without having to purchase physical properties. By investing in REITs, investors can earn rental income and capital appreciation, just like owning physical properties, but without the hassle of managing them. However, not all REITs are created equal, and it is important for investors to evaluate them carefully to maximize returns. At MY SMART COUSIN, we understand the challenges of finding, financing, and even refinancing a house for you and your family, or purchasing an investment. We are an experienced Real Estate Investment coach who can help you weigh the pros and cons of various paths, and implement them with confidence. We specialize in helping new and aspiring real estate investors, particularly Black and Brown folks and women, buy and manage their first property, and buy a house for the price of a car. In this blog, we will discuss how to evaluate REITs for maximum returns UNDERSTAND THE DIFFERENT TYPES OF REITS There are several types of REITs, including equity REITs, mortgage REITs and hybrid REITs. It is important to understand the differences between these types of REITs and their investment strategies before investing. Overall, understanding the differences between these types of REITs is crucial when evaluating potential investments. Equity REITs may be a good choice for investors seeking stable, long-term income from real estate, while mortgage REITs may be better suited for those seeking higher yields in a potentially volatile market. Hybrid REITs can offer a balance between the two approaches, but it is important to carefully evaluate the specific investment strategy and portfolio of any REIT before investing. EVALUATE THE QUALITY OF THE REAL ESTATE PORTFOLIO The quality of a REIT’s real estate portfolio is a critical factor to evaluate. Investors should look at the location, age, condition, and quality of the properties in the portfolio. Properties in prime locations with high occupancy rates and stable rental income streams are generally more desirable. Additionally, newer and well-maintained properties tend to require less maintenance and have lower vacancy rates. EXAMINE THE FINANCIAL HEALTH OF THE REIT Investors should examine the financial health of the REIT by looking at its financial statements and ratios. Important ratios to consider include the debt-to-equity ratio, interest coverage ratio and cash flow per share. A REIT with a low debt-to-equity ratio, high interest coverage ratio, and positive cash flow is generally considered to be financially healthy. ANALYZE THE DIVIDEND YIELD AND GROWTH POTENTIAL One of the key attractions of REITs is their dividend yield. Investors should examine the REIT’s dividend yield and its history of dividend payments. Additionally, it is important to evaluate the growth potential of the REIT, which is influenced by factors such as the growth prospects of the underlying real estate portfolio, the quality of management and the overall economic environment. ASSESS THE MANAGEMENT TEAM The quality of the management team is another critical factor to evaluate when investing in REITs. Investors should look at the experience and track record of the management team, as well as their strategy and alignment with shareholder interests. A strong management team with a proven track record of delivering strong returns is generally considered to be a positive sign. THE BOTTOM LINE Investing in REITs can be a great way to earn rental income and capital appreciation without having to manage physical properties. However, not all REITs are created equal, and investors need to evaluate them carefully to maximize returns. By understanding the different types of REITs, evaluating the quality of the real estate portfolio, examining the financial health of the REIT, analyzing the dividend yield and growth potential, and assessing the management team, investors can make informed investment decisions and maximize returns from their REIT investments. Remember, investing in REITs involves risk, and it is important to consult a financial advisor before making any investment decisions. YOU CAN ALSO READ: WHAT IS A PLANNED UNIT DEVELOPMENT (PUD) IN REAL ESTATE?FOLLOW US: @MYSMARTCOUSIN
GRANTOR VS. GRANTEE IN REAL ESTATE: DEFINITIONS & FAQS
Real estate transactions involve a lot of legal terms that can be confusing for buyers and sellers. Two of the most important terms in any real estate transaction are “grantor” and “grantee”. At MY SMART COUSIN, we work as an investment coach, specializing in helping new property investors and home buyers, conceptualize, fund and build their Real Estate empires. As seasoned Real Estate Investors, we work with clients to penetrate the lucrative market of buying a house for the price of a car. We help investors, with a special focus on Black and Brown folks and women, develop and implement a tailored strategy and roadmap. In this blog, we will define these terms and answer some frequently asked questions about them. WHAT IS A GRANTOR? A grantor is a person who transfers ownership of a property to someone else. This person is also known as the “seller” or “transferor” in a real estate transaction. The grantor must have legal ownership of the property to be able to transfer it to someone else. WHAT IS A GRANTEE? A grantee is a person who receives ownership of a property from the grantor. This person is also known as the “buyer” or “transferee” in a real estate transaction. The grantee must accept the transfer of ownership and assume any responsibilities that come with owning the property. WHAT ARE THE RESPONSIBILITIES OF A GRANTOR? The grantor has several responsibilities in a real estate transaction. These responsibilities include: WHAT ARE THE RESPONSIBILITIES OF A GRANTEE? The grantee also has several responsibilities in a real estate transaction. These responsibilities include: WHAT IS A GRANT DEED? A grant deed is a legal document that transfers ownership of a property from a grantor to a grantee. The grant deed includes a description of the property, the names of the grantor and grantee, and the terms of the transfer. The grant deed must be signed by the grantor and notarized before it can be recorded with the county recorder’s office. WHAT IS THE DIFFERENCE BETWEEN A GRANTOR AND A GRANTEE? The main difference between a grantor and a grantee is their role in a real estate transaction. The grantor is the person who transfers ownership of a property to someone else, while the grantee is the person who receives ownership of the property. The grantor has several responsibilities in the transaction, including providing clear title to the property and paying off any outstanding debts, while the grantee must accept ownership and assume any responsibilities that come with owning the property. FINAL THOUGHTS In conclusion, understanding the roles and responsibilities of a grantor and grantee is essential for any real estate transaction. The grantor is responsible for transferring ownership of the property and ensuring that the transfer is legal and free of any liens or encumbrances, while the grantee is responsible for accepting ownership and assuming any responsibilities that come with owning the property, including paying the purchase price and assuming any outstanding debts or mortgages. By understanding these roles and responsibilities, both parties can ensure a smooth and successful real estate transaction. YOU CAN ALSO READ: HOW TO AVOID INCOME TAXES (LEGALLY) WITH REAL ESTATE INVESTINGFOLLOW US: @MYSMARTCOUSIN
ANALYZING REAL ESTATE INVESTMENT PROPERTIES: KEY METRICS TO CONSIDER
Real estate investment can be a lucrative way to build wealth, but it’s important to know what you’re getting into before you buy. Investing in real estate requires a lot of research and due diligence, and one of the most important things to consider when evaluating a potential investment property is the key metrics that will help you determine whether the property is a good investment. At MY SMART COUSIN, we want you to get into property ownership! We can help by providing expertise and resources for budding Real Estate Investors, and homebuyers of all stripes–especially those looking to buy a house for the price of a car! As Real Estate Investment Coaches, we work closely with aspiring real estate investors, focusing especially on Black and Brown folks and women, to position you for success in developing and executing your plan for investment and building generational wealth. In this article, we’ll explore the key metrics you need to consider when analyzing real estate investment properties. THE IMPORTANCE OF EVALUATING POTENTIAL INVESTMENT PROPERTIES Evaluating potential investment properties is crucial to making informed and profitable investment decisions. Here are some reasons why: KEY METRICS YOU NEED TO CONSIDER WHEN ANALYZING REAL ESTATE INVESTMENT PROPERTIES. Cash flow is one of the most important metrics to consider when evaluating a potential investment property. Cash flow refers to the amount of money you have left after all expenses have been paid, including mortgage payments, property taxes, insurance and maintenance costs. A positive cash flow means that the property is generating more income than it’s costing you to maintain, while a negative cash flow means that the property is costing you more money than it’s generating. Ideally, you want to invest in properties that have a positive cash flow, as this means you’ll be making money on your investment. Notably, cash flow does not include the growth or appreciation in the value of the property over time. Cap rate, short for capitalization rate, is another important metric to consider when analyzing investment properties. The cap rate is the rate of return you can expect to earn on your investment, based on the property’s income and value. A high cap rate indicates a higher potential return on your investment, while a low cap rate indicates a lower potential return. The cap rate is calculated by dividing the property’s net operating income (NOI) by its current market value. Cash-on-cash return is a measure of the return on investment based on the amount of cash invested. This metric takes into account the amount of cash you’ve invested in the property, including the down payment and any other closing costs, and compares it to the amount of cash flow you can expect to receive each year. A high cash-on-cash return means that you’re earning a high return on your investment, while a low cash-on-cash return means that you’re not earning as much on your investment. The gross rent multiplier (GRM) is a metric used to determine the value of a rental property based on its gross rental income. The GRM is calculated by dividing the property’s purchase price by its gross rental income. The lower the GRM, the more affordable the property is relative to its rental income. A high GRM indicates that the property is more expensive relative to its rental income. When comparing properties, it’s important to consider the GRM in conjunction with other metrics, such as the cap rate and cash-on-cash return, to get a more complete picture of the property’s potential return on investment. The debt service coverage ratio (DSCR) is a metric used to assess a property’s ability to generate enough income to cover its debt obligations, which principally comprise the principal and interest payments on the mortgage. The DSCR is calculated by dividing the property’s net operating income by its annual debt service. Lenders typically require a minimum DSCR of 1.25 to 1.5, which means that the property’s net operating income is at least 1.25 to 1.5 times its annual debt service. Or said another way, lenders tend to breathe easier when the net operating income generated from a property is at least $1.25 to $1.50 for every $1.00 in debt payments that must be made. A higher DSCR indicates a lower risk for the lender, as the property is generating enough income and then some to cover its debt obligations. THE MONEY WRAP UP When evaluating a potential investment property, it’s important to consider a variety of metrics to determine its potential return on investment. Cash flow, cap rate, cash-on-cash return, gross rent multiplier and debt service coverage ratio are all important metrics to consider when analyzing investment properties. However, it’s important to remember that these metrics should be used in conjunction with each other to get a more complete picture of the property’s potential return on investment. By taking the time to evaluate these metrics, you can make more informed decisions about which investment properties are right for you. YOU CAN ALSO READ: HOW TO NAVIGATE THE RENTAL MARKET DURING ECONOMIC UNCERTAINTYFOLLOW US: @MYSMARTCOUSIN
REAL ESTATE PRICES ARE GETTING OUT OF HAND! SHOULD I WAIT TO INVEST?
Real estate has long been a popular investment option for people looking to build wealth over the long term. However, in recent years, real estate prices have been on the rise, and many potential investors are wondering if now is the right time to invest. At MY SMART COUSIN, we want you to get into property ownership! We can help by providing expertise and resources for budding Real Estate Investors, and homebuyers of all stripes–especially those looking to buy a house for the price of a car! As Real Estate Investment Coaches, we work closely with aspiring real estate investors, focusing especially on Black and Brown folks and women, to position you for success in developing and executing your plan for investment and building generational wealth. In this blog, we will explore the current state of real estate prices and whether it’s a good idea to wait to invest. RISING REAL ESTATE PRICES It’s no secret that real estate prices have been rising in many markets across the country. In some areas, prices have risen significantly, making it more difficult for people to find affordable homes or investment properties. This is due in part to low inventory levels, increased demand, and low-interest rates. All of these factors have combined to drive up prices, making it more difficult for people to find affordable real estate opportunities. ARE REAL ESTATE PRICES OVERVALUED? One of the biggest questions that people are asking is whether real estate prices are overvalued. Some experts believe that prices are indeed overvalued and that a correction is inevitable. However, others argue that prices are simply reflecting the current market conditions and that there’s no reason to believe that a correction is imminent. Ultimately, only time will tell whether prices will continue to rise or if a correction is on the horizon. THE BENEFITS OF INVESTING IN REAL ESTATE Investing in real estate can offer a number of significant benefits that are not typically available through other types of investments. Some of the most notable benefits of real estate investment include: a. Stable and Reliable Income: If you invest in rental properties, you can generate a stable and reliable source of income in the form of rental payments. This can provide a much-needed supplement to your other sources of income and can help you achieve financial stability over the long term. b. Long-Term Appreciation: Real estate can also provide long-term appreciation, as property values generally increase over time. This means that if you hold onto your property for several years, you can potentially see a significant return on your investment. c. Tax Benefits: Real estate investment can also provide a number of tax benefits, including the ability to write off mortgage interest, property taxes, depreciation, and other expenses. These tax benefits can help reduce your overall tax liability and provide you with more money to reinvest in your property or other investments. d. Tangible Asset: Unlike stocks or bonds, real estate is a tangible asset that you can see and touch. This can provide a level of comfort and security that you may not find with other types of investments. Additionally, because real estate is a physical asset, you can potentially use it as collateral for other investments or loans, which can help you access additional financial resources if needed. THE RISKS OF INVESTING IN REAL ESTATE While there are many benefits to investing in real estate, there are also some risks that you should be aware of. For example, real estate is a relatively illiquid investment, which means that it can take some time to sell a property if you need to. Additionally, real estate can be an expensive investment, and you may need to take on a significant amount of debt in order to finance your purchase— which is why we advocate buying a house for the price of a car! Furthermore, the real estate market can be volatile, and prices can fluctuate based on a variety of factors, such as economic conditions, interest rates, and local real estate trends. IS NOW THE RIGHT TIME TO INVEST IN REAL ESTATE? So, should you wait to invest in real estate? The answer to this question will depend on your individual financial situation and investment goals. If you have the financial resources to invest in real estate and you believe that prices will continue to rise, then you may want to consider investing now. However, if you’re concerned about the potential risks of investing in real estate, you may want to wait until you have a better understanding of the market and the potential risks and benefits of investing. FINAL THOUGHTS In conclusion, real estate prices are indeed getting out of hand in many markets. Whether you should wait to invest will depend on your individual circumstances and investment goals. If you’re considering investing in real estate, it’s important to do your research, understand the market, and consider all of the potential risks and benefits before making a decision. With the right strategy and approach, real estate can be a valuable investment that can help you build wealth and achieve your financial goals over the long term. YOU CAN ALSO READ: WHAT IS AN EASEMENT IN REAL ESTATE & WHY IT’S IMPORTANT?FOLLOW US: @MYSMARTCOUSIN
REAL ESTATE CYCLE: UNDERSTANDING THE FOUR PHASES
The real estate market, like any other market, operates in cycles. Understanding the four phases of the real estate cycle can help investors and homebuyers make informed decisions about buying and selling property. Want to buy or invest in real estate without making all the typical mistakes first-time buyers make? You don’t have to go it alone, not with MY SMART COUSIN! As an experienced Real Estate Investment Coach, we’re here for new investors, and for Black and Brown folks and women, in particular. We’ll help you navigate from start to finish, and weigh the pros and cons of each option along your journey. Plus at a price that won’t break the bank when buying a house for the price of a car! In this blog, we’ll explore each of the four phases in detail and provide insights on how to take advantage of them. WHAT IS THE REAL ESTATE CYCLE AND WHY IS IT IMPORTANT? The real estate cycle is a repeating pattern of growth and contraction in the real estate market. It consists of four phases: expansion, peak, recession, and recovery. Each phase of the cycle is characterized by different market conditions, such as rising property values, low unemployment, and low-interest rates during the expansion phase; declining property values, high unemployment, and rising interest rates during the recession phase. The importance of the real estate cycle lies in the fact that it provides a framework for understanding the current state of the real estate market and predicting future trends. Understanding the real estate cycle can help investors and homebuyers make informed decisions about buying and selling real estate. For example, during the expansion phase, it may be a good time to buy property as values are rising, while during the recession phase, it may be a good time to look for bargains. By understanding the real estate cycle, buyers and sellers can time their purchases and sales to take advantage of market conditions and make the most of their investments. The real estate cycle can also impact the broader economy, as the performance of the real estate market is closely tied to the overall health of the economy. During the expansion phase, the real estate market can drive economic growth, while during the recession phase, the real estate market can drag down the economy. As such, understanding the real estate cycle is important for investors, homeowners and anyone with an interest in the health of the economy. THE 4 PHASES OF THE REAL ESTATE CYCLE The expansion phase is characterized by rising property values, low unemployment, and low-interest rates. This is the best time to buy real estate, as the market is growing and the value of properties is increasing. In this phase, many people are confident about the economy and are eager to invest in real estate, which creates demand and drives prices higher. During the peak phase, property values have reached their highest point, and the market is considered to be at its most expensive. In this phase, the demand for real estate begins to slow as the market reaches saturation. As a result, prices start to level off, and the rate of appreciation slows down.
REAL ESTATE INVESTMENT TRENDS TO WATCH IN 2023 AND BEYOND
Real estate is a long-term investment that has consistently provided a good return on investment. In recent years, there have been several trends that have impacted the real estate market, including technological advancements, shifting consumer preferences, and government policies. As we move into 2023, there are several trends that investors should keep an eye on to make informed investment decisions. We’re here to help you make your money work for YOU. MY SMART COUSIN specializes in providing tailored solutions that will suit any aspect of owning investment properties, from buying a house for the price of a car, something that is still entirely within the realm of the possible, to managing these properties once you own them. As an experienced Real Estate Investment Coach, we help you develop and implement a real estate investment strategy. We work with all clients and focus particularly on Black and Brown folks and women, providing advice that helps you build generational wealth. In this blog post, we will explore the real estate investment trends to watch in 2023 and beyond, including the impact of technological advancements, remote work, environmentally sustainable properties, co-living spaces, self-storage facilities, micro-apartments, and government policies. Technology is transforming the real estate industry, making it easier for investors to purchase and manage properties. With the growth of prop-tech, investors can now access property data and conduct transactions online, reducing the time and effort required to purchase a property. In addition, virtual and augmented reality technologies are being used to provide potential buyers with immersive experiences, giving them a better idea of what the property is like before they make a purchase. The COVID-19 pandemic significantly accelerated the trend of remote work, leading to a change in consumer preferences for residential properties. With more people working from home, demand for properties with more space and home offices is increasing. Additionally, many people are looking to move away from urban areas to find more affordable housing options, leading to an increase in demand for properties in suburban and rural areas. There is a growing interest in environmentally sustainable properties, as consumers are becoming more aware of the impact of their lifestyle choices on the environment. Properties that have eco-friendly features such as solar panels, energy-efficient appliances, and water-conserving devices in bathroom and kitchen fixtures are becoming more popular, and are often associated with higher property values. Co-living spaces are becoming increasingly popular, particularly among millennials and young professionals. These properties offer a shared living experience, with shared amenities such as kitchens, lounges, and recreational spaces. Co-living spaces are often more affordable than traditional rental properties, making them an attractive option for those who are looking to save money on housing. Self-storage facilities are becoming a popular investment option, as demand for storage space continues to grow. With the rise of e-commerce and the growth of urban populations, people are increasingly in need of additional storage space, making self-storage facilities a profitable investment option. Micro-apartments are becoming increasingly popular, particularly in urban areas where space is at a premium. These tiny apartments are typically less than 300 square feet in size and are designed to be efficient and affordable. They are often rented out to young professionals who are looking for a place to live in the city, making them a profitable investment option. Government policies play a significant role in shaping the real estate market, and it is important for investors to keep an eye on any changes that may impact their investments. For example, changes to tax laws, zoning regulations, and building codes can have an outsized impact on the value of properties, so it is important for investors to be aware of any changes that may impact their investments. FINAL THOUGHTS In conclusion, there are several trends that are shaping the real estate market as we push the gas on 2023. Technological advancements, remote work, environmentally sustainable properties, co-living spaces, self-storage facilities, micro-apartments, and government policies are all trends that investors should keep an eye on to make informed investment decisions. As the Real Estate market continues to evolve, it is important for investors to stay informed and adapt to changing trends to ensure a profitable return on their investments. YOU CAN ALSO READ: WHAT IS A WRAPAROUND MORTGAGE? DEFINITIONS & FAQsFOLLOW US: @MYSMARTCOUSIN
SFR IN REAL ESTATE: AN INVESTOR’S GUIDE TO SINGLE FAMILY RESIDENCES
Single-family residences, or SFRs, are a popular investment option for real estate investors. These properties, also known as single-family homes or single-family dwellings, provide a range of benefits and opportunities for investors looking to generate passive income or build wealth through property ownership. At MY SMART COUSIN, we want you to get into property ownership! We can help by providing expertise and resources for budding Real Estate Investors, and homebuyers of all stripes–especially those looking to buy a house for the price of a car! As Real Estate Investment Coaches, we work closely with aspiring real estate investors, focusing especially on Black and Brown folks and women, to position you for success in developing and executing your plan for investment and building generational wealth. In this blog post, we will take a closer look at SFRs and provide an investor’s guide to understanding and investing in these properties. WHAT IS AN SFR? First, let’s define what exactly an SFR is. As the name implies, an SFR is a single-family residential property. These properties can be found in a variety of neighborhoods and price ranges and can include everything from small starter homes to large, luxury properties. SFRs are typically owned and occupied by the person who holds the mortgage on the property.
THE ONE PERCENT RULE – QUICK MATH FOR POSITIVE CASH FLOW RENTAL PROPERTIES
Investing in rental properties can be a great way to generate passive income and build wealth over time. However, not all rental properties are created equally, and it’s important to carefully evaluate the potential cash flow before making a decision. One quick and easy way to do this is by using the One Percent Rule. At MY SMART COUSIN, we understand the challenges of finding, financing, and even refinancing a house for you and your family, or purchasing an investment property. We are an experienced Real Estate Investment coach who can help you weigh the pros and cons of various paths, and implement them with confidence. We specialize in helping new and aspiring real estate investors, particularly Black and Brown folks and women, buy and manage their first property, and buy a house for the price of a car. In this blog post, we will discuss the One Percent Rule and how it can be used to determine if a rental property will generate positive cash flow. WHAT IS THE ONE PERCENT RULE? The One Percent Rule is a quick and simple way to determine if a rental property will generate positive cash flow. The rule states that the rental income from a property should be equal to or greater than 1% of the purchase price of the property. For example, if you purchase a rental property for $100,000, the One Percent Rule states that the monthly rental income from the property should be at least $1,000. This means that if you can find a property that meets these criteria, you can be confident that it will generate positive cash flow. HOW TO USE THE ONE PERCENT RULE? To use the One Percent Rule, you first need to determine the purchase price of the property. This includes not only the cost of the property itself, but also any closing costs, repairs, and other expenses associated with the purchase. Once you have the purchase price, you can calculate the monthly rental income by dividing the purchase price by 100. For example, if you purchase a property for $200,000, the monthly rental income should be at least $2,000. If the property is currently renting for less than this amount, it may not be a good investment according to the One Percent Rule. FACTORS THAT AFFECT THE ONE PERCENT RULE It’s important to keep in mind that the One Percent Rule is not a guarantee of positive cash flow. There are many other factors that can affect the cash flow of a rental property, such as property taxes, insurance, and maintenance costs. Additionally, the rule doesn’t take into account the potential appreciation of the property, which could also impact the overall return on investment.