General Real Estate Archives

21 Best Cities to Invest in Real Estate in 2022

December 30, 2021 by Marco Santarelli

In this article, we discuss some of the best places to invest in real estate. Real estate remains an appealing asset class for investors because of the opportunity to earn recurrent income from rentals. If the market dynamics are optimal, your monthly rental income can fully offset the expenses associated with servicing your mortgage. Interest rates remain low and so debt is still cheap. Record-low mortgage rates and shortage of inventory have kept the US housing market strong concerning buyer demand. Strong housing demand pushed by the pandemic is driving prices insane.

As of now it the US housing market remains a hot seller's real estate market, with annual price growth reaching record highs and inventory continuing to fall. Because it's a seller's market, expect a bidding war if you're looking for a new house in 2022. If you are an investor, you must crunch the numbers to determine the best cities to invest in real estate in 2022. During the pandemic, prospective homebuyers around the United States are paying top dollar for homes, with remote employees and their desire for more lavish homes fueling the market.

And, while home values in the United States are expected to rise by only 2.9 percent in 2022 (compared to 19.8 percent in 2021), buyers will continue to face a seller's market, according to Realtor.com. For as long as there is a lack of homes for sale, the balance of would-be owners unable to find affordable entry-level housing will be predisposed to transition into single-family rentals. That means rental demand will continue to increase in 2022.

Many regions of the country are experiencing huge booms in demand and the price of homes is rising sharply as a result — higher than the rate of inflation. That has made many homes unaffordable for their potential buyers. All these factors are influencing more and more people to choose to rent a home instead of buying one or to stay in their rental longer than they had originally hoped. This has resulted in favorable data in the single-family rental market, which is primed for investment opportunities in 2022.

According to the National Home Rental Council's market index, the single-family rental market remains robust as renters flock to the suburbs. If you can access credit, or otherwise have money to invest, consider real estate and purchase a single-family rental property. However, you must do thorough research to choose the best places to invest in real estate in 2022. All real estate is local so you much understand the local factors that can affect your investment in the future. Choosing single-family rental homes for investment is a great option. They provide an affordable and flexible option to meet the needs of families and individuals in search of quality housing.

“The single-family rental sector is having its moment,” according to Arbor's newly-released Q3 2020 Single-Family Rental Investment Trends Report. The pandemic boosted outward migration from big cities to suburbs, which further boosted the demand for single-family homes. Rent collections have remained stable, new demand has hit generational records and rents have seen upward pressure, according to the report.

That's good news for the future of single-family rental investors. Single-family rental starts totaled 40,000 units in the last 12 months. While down slightly from pre-pandemic levels, it shows the activity in the market. SFRs offer a 6% to 8% cap rate, much higher than a typical apartment investment. SFR cap rates ticked down to 6.5% in the third quarter of 2020, down 18 bps from the prior quarter. However, Arbor's report has a positive outlook on the sector for 2022.

It says that the asset class was the best positioned to grow through the pandemic. However, it also warned that landlords still have hurdles ahead in terms of rent collections and the ongoing pandemic that has hurt the economy. According to the Census Bureau, in the third quarter of 2020, single-family rentals had an average 95.3% occupancy rating, a 100 basis point increase from the first quarter of the year. This is the highest occupancy rate since 1994 for single-family rentals. The data reflects both rising user demand and landlords prioritizing tenant retention.

For comparable owner-occupied single-family housing units, occupancy rates sat at 99.1% in the third quarter — the second-highest reading on record, topped only by the immediately preceding quarter, measured at 99.2%. This demand could lead to a shortage of single-family rental homes. However, recently investors and developers have shown a renewed commitment to operating and developing these properties. Invitation Homes and Rockpoint Group recently formed a $1 billion joint venture to acquire and operate single-family rentals in the Western US, Southeast US, Florida, and Texas.

Through the joint venture, Invitation Homes will provide investment, asset management, and property management services. In addition, RangeWater just launched an $800 million platform to build and operate single-family rental communities in the sunbelt region. It shows that the interest of investors in single-family rental homes has risen to a great extent during this pandemic.

Large investors are gravitating towards it. As of now, institutional investors account for only 2 percent of the 90-million unit market, according to NHRC. This is meager as compared to the US multifamily sector, where more than 50 percent of ownership is held by institutional investors. Hence, the single-family rental market remains an emerging market for both individual and institutional investors.

How To Choose Best Places To Invest In Real Estate In The World?

You may be located anywhere in the world, the basic principles of real estate business remain unchanged – you want to choose those places for your investment properties where the return-on-investment is high. To maximize the returns from your real estate investment you want to buy property in places with the following features:

High rental occupancy: Check how much of the available housing stock in an area is vacant;
High rentals relative to your mortgage repayments: The more of your mortgage you can cover from rentals, the better; and
A low tenant default rate: The last thing you want is to buy property in an area when tenants frequently miss rent payments.

Real estate investing requires in-depth research. Market timing also matters as some cities have exceptional rental income prospects, but a very tight inventory. In that scenario, it becomes very difficult to find and close a deal that fits your investment criteria. Therefore, you need to act fast and wisely.

Don't take any uninformed decision without evaluating the fundamentals of the real estate market you intend to purchase in – is it growing, stable, or declining? Are you planning for the short-term capital gains or the long-term buy and hold? To make it easy for you, we recommend contacting an investment counselor who can help you to invest in some of the best real estate markets in the United States.

21 Best Places To Invest In Real Estate in 2022

If you're considering a real estate investment in the coming year, there are a few markets worth investigating further due to anticipated price increases. We looked at data and examined trends from across the US to bring you this list of the 21 best places to invest in real estate in 2022. Here are the best places to invest in real estate and buy rental properties. They all have their own set of qualities and disadvantages, but many of them are less expensive than the national average.

1. Boise, Idaho

Bosie stands at the 1st position for real estate investment. It has a record of being one of the best long-term real estate investments in the U.S. The supply and demand dynamics continue to drive home prices up in Boise. The Boise housing market was ranked as the #1 in the U.S., by Realtor.com’s metro level housing forecast for the year 2020. Their main criteria were based on the combined yearly percentage growth in both home sales (0.3%) and prices (8.1%) expected in 2020 among the top 100 largest markets in the country.

Home prices are soaring and breaking records despite the coronavirus pandemic. Persistently tight inventory in the entire Boise Metro Area housing market, coupled with historically low 30-year fixed mortgage rates are keeping the demand high, which in turn is pushing home prices up in this region. Housing prices in Boise have risen sharply as Ada County's median home sale price exceeds $500,000. The real estate appreciation rate in Boise in the latest quarter was around 4.53%, which equates to an annual appreciation rate of nearly 20%.

Top Reasons Why Boise is One of The Best Places to Invest in Real Estate

Population and Job Growth Triple Than National Average.
Strong population growth.
Job growth is 2-3 times the national average.
Low cost of doing business.
Low unemployment rate at 3.5%.
Forbes ranked #6 for most job growth.
1-year appreciation forecast of 15-20% (Boise Metro).
Despite high appreciation, home values are expected to hold because demand for the market appears to be strong.

2. Dallas, Texas

Dallas is another good place to invest in real estate in 2022. The strong availability of housing stock and high rental rates relative to the house price make it an accessible market to invest in. The Dallas real estate market offers a wide range of investment properties; you just have to find your tenants to rent out the property. Hiring a local property management company can help in finding tenants for your rental property in Dallas.

You should think of investing in Dallas real estate because it has a very diverse economy so there is a niche for people of every income level. It is estimated that 340 people move to Dallas-Fort Worth every day. Dallas has the lowest homeownership rate in the country, with renting more affordable than buying. The demand for rental units has increased 14% over the last year, so it’s the perfect opportunity to invest in Dallas real estate. The Metro area is growing and it's expected that at least 20000 new homes in this area and Dallas a total of 50000 new single-family homes and 50000 apartments.

Top Reasons Why Dallas is One of The Best Places to Invest in Real Estate

Population Expected to Double in Next 15 Years
Dallas is one of the leaders in the U.S. for employment and population growth.
52.9% of Dallas rents vs. 33% nationally.
Newly remodeled REOs (2004 or newer).
Properties 5% – 15% below market value.
3-year appreciation forecast of 10-15%.
Demand for housing has surged over the last year.

3. Houston, Texas

Houston is one of the all-time best places to invest in real estate. This city is the home of the US oil and gas industry and offers perennial employment opportunities. Greater Houston is Texas' fifth-largest metro region, with over 7 million residents, and its population continues to expand at a rate nearly double that of the rest of the country. It is home to 53 Fortune 1000 businesses, putting it in third place behind New York and Chicago as the most concentrated city.

These strong macroeconomic factors continue to power the Houston housing market. The average home is valued at $412,000. The rental income of $1,550 is relatively low given the property valuations. However, what makes Houston a strong investment destination is that it has a very active real estate market. Volumes of trade are high and housing stock moves fast. This means it is fairly easy to exit investments and find a buyer for your home. You may also take a look at – Top Reasons To Invest in Houston Real Estate.

Top Reasons Why Houston is One of The Best Cities to Invest in Real Estate

Houston is the #1 Market in the US for Job Creation.
Housing real estate is affordable.
4th largest city in the US.
5%-20% below the current fair market value.
12 Month ‘No Vacancy’ Guarantee.
12 Month Home Warranty.
$75,000 average purchase price.
Median rental per month: $1,550.
1-year appreciation forecast of 10-15% (Houston Metro).
Its unemployment rate is far below the national level.
It’s home to more Fortune 500 headquarters than anywhere in America except for New York.
Massive international trade gives another big job boost to the rapidly growing city.

4. Atlanta, Georgia

Atlanta, GA is also one of the best places to invest in real estate. Atlanta offers attractive buying prospects for savvy rental property investors. The city’s population has grown by over 14 percent in the last decade. This increasing population is driving the housing demand. Should you buy investment properties in the Atlanta Real Estate Market? Located in the state of Georgia, the city of Atlanta is a hotspot for any type of real estate investment. Atlanta has shown promising population growth and employment, which are two signs of a healthy real estate market.

Atlanta is Georgia’s capital and economic center. It is considered as one of the 10 most productive states that contribute to the USA’s GDP annually. As the city continues to go through an economic boom, prices of properties in Atlanta are forecasted to increase in the following years. People will want to beat out the competition and purchase soon if they’re looking to develop a successful career, surrounded by a diverse community, especially for today’s youth.

Top Reasons Why Atlanta is One of The Best Places to Invest in Real Estate

Atlanta is one of the Top Rental Markets in the U.S.
Newly rehabbed properties with tenants.
Properties start at $70,000.
Median rental per month: $1,500.
Up to $750/mo in cash flow.
500 people move to Atlanta every day!
2 million more people are expected by 2030.
1-year appreciation forecast of 10-15% (
Atlanta has a growing economy that is 8^th in the nation for GDP and is home to a wide variety of businesses that includes Fortune 500 companies.
The relocation of payment processing giant NCR is expected to bring more than 3,500 jobs to the metro Atlanta region.

5. Las Vegas, Nevada

How can we miss Las Vegas on our list of best places to invest in real estate? Las Vegas has experienced several booms in its history. And it saw an incredible real estate bust during the Great Recession. Las Vegas’ recovery hasn’t made the same headlines as the 50% or greater declines in home values did a decade ago. Yet its recovery shouldn’t keep investors away. For savvy investors, the Las Vegas real estate market is both stable and predictable. Throughout 2019, the Las Vegas housing market was the hottest in the United States.

The Las Vegas real estate market is entirely brimming with new businesses. Its friendly business environment is propping up the economy and helping towards the positive Las Vegas real estate market trends for 2021. The new businesses are propping up at a much faster rate than the national average. Las Vegas home values reported the highest year-over-year gains in home values, totaling a 13 percent increase, according to the S&P’s Corelogic Case-Shiller Index in 2018 (the leading measure of U.S. home prices). Now is a great time to invest in Las Vegas rental properties.

Top Reasons Why Las Vegas is One of The Best Cities to Invest in Real Estate

Las Vegas is the most populated city in the state of Nevada and the 28th-most populated city in the United States.
The current metro area population of Las Vegas is 2,699,000, a 2.98% increase from 2019 – Macrotrends.net.
The Las Vegas Valley as a whole serves as the leading financial, commercial, and cultural center for Nevada.
A diversified economy is driven by health-related, high-tech, and other commercial interests.
The primary drivers of the Las Vegas economy are tourism, gaming, and conventions, which in turn feed the retail and restaurant industries.
Mining constitutes the mainstay of the region’s industrial sector.
Most of the manufacturing plants are concentrated in the communities of Henderson and North Las Vegas.
No state tax for individuals or corporations, as well as a lack of other forms of business-related taxes, have aided economic growth.
Construction is also a significant component of the economy.
The government is the metropolitan area’s single largest employer.
The low unemployment rate of 3.5% as of Dec 2019 – U.S. Bureau of Labor Statistics.
Rising rents.
The average rental income from an apartment in Las Vegas is $1,107, a 5% increase compared to the previous year.
The average condo or townhome costs nearly 200,000 dollars, and their prices increased 11 percent.
Currently, Las Vegas is a sizzling seller's real estate market in the United States.

6. Orlando, Florida

Orlando, FL is a tourism and entertainment favorite, because of this, it remains a strong real estate investment destination. Investors have a choice of targeting the long-term residential or holiday markets with their properties. Both offer strong returns. While improving the Orlando real estate market and flourishing tourism are two of the most important reasons behind Orlando’s economic stability, these two industries have a lot to gain from the successful economy. This expansion is related to the growing population and job opportunities in this city, this translates to more rental income and tourism leading to a better economy for the city.

Top Reasons Why Orlando is One of The Best Places to Invest in Real Estate

Orlando is the fourth-largest city in Florida and the state's largest inland city.
It is the center of the Orlando metropolitan area, with a population of about 2.5 million.
Third-largest metropolitan area in Florida.
Ranked #2 In America’s Fastest-Growing Cities – Forbes.
Orlando's real estate has been one of the best long-term investments throughout the last decade.
It has appreciated by 43.67% over the last 10 years.
The median home value is around $260,000.
Strong renter’s market.
Median rental per month: $1,599.
Over 60% of the population rents.
Strong economic and job growth.
Orlando is a major industrial and hi-tech center employing thousands of people.
The low unemployment rate of 2.5% in Dec 2019 – U.S. Bureau of labor statistics.
Currently, Orlando is a sizzling hot seller's real estate market in the United States.

7. Spokane, Washington

Spokane stands at the 5th position. With a population of only 213,000 people, Spokane is small, but it is a rising real estate hot spot. House prices are relatively cheap compared to much of the country at a median price of around $265,000 that offers fantastic mortgage coverage. Data from Zillow shows that Spokane’s housing market is hotter than Seattle’s for the first time in six years. Spokane homes are selling faster than Seattle homes. For renters in Spokane, the good areas are mostly on the north side (north of Garland street). Perry District is growing faster than many other parts of Spokane. Spokane Valley and Liberty Lake are also desirable neighborhoods and are growing rapidly.

One reason to invest in Spokane real estate now instead of waiting is that prices are appreciating so fast. For example, home values increased by more than 13% in 2019. According to Neighborhoodscout.com, single-family detached homes are the single most common housing type in Spokane, accounting for 65.75% of the city's housing units. Real estate appreciation rates in Spokane's have tracked to near the national average over the last ten years, with the annual appreciation rate averaging 0.23% during the period.

Top Reasons Why Spokane is One of The Best Cities to Invest in Real Estate

It is the economic and cultural center of the Spokane metropolitan area.
The second second-largest city in Washington by population.
It is a beautiful city to live in.
Spokane has a system of over 87 parks and includes six neighborhood aquatic centers.
It has several trendy, walkable, and revitalized neighborhoods with good walkability and local shops.
Spokane's diversified economy includes mining, forestry, agribusiness, high-tech, and biotech sectors.
Affordable real estate.
Buyers are giving up on pricey markets like Seattle and Portland and heading to Spokane where the median listing price is $220,000.
Rising Rents in Spokane.
Median rental per month: $1,295.
Owners of both single-family homes and rental property are seeing good returns.
It is fast becoming a popular choice for homebuyers looking for a nice & attractive place to live.
Currently, Spokane is a red-hot seller's real estate market in the United States.

8. Tampa, Florida

Tampa, FL is also on the list of best places to invest in real estate in 2022. With a population of more than 4 million, Tampa, FL is not only an attractive metropolitan area but is also one of the most frequently visited tourist destinations. There are several economic and development prospects attached to this market and Tampa was described as one of the hottest real estate markets in the US in the past year. There’s a tremendous amount of pent-up demand for entry-level single-family homes in Tampa. The median home value is $251,287 (on Zillow).

The Tampa housing market is growing steadily, prices are still low and properties have a good chance for a strong appreciation in the coming years. Home values have gone up 5.3% over the past year. There is less than 2-month of the available inventory in the entire Tampa metro area – down almost 21.4% over last year. This is one of the key factors in rising home prices. The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory. Anything lower than 5.5 months of inventory is traditionally a sellers’ real estate market.

Top Reasons Why Tampa is One of The Best Places to Invest in Real Estate

The prices of residential properties in Tampa are growing at a fast pace.
Affordable Real Estate.
Median Home Price in Tampa is around $250,000.
Median Rent is $1,600.
Currently, Tampa is a red-hot seller's real estate market in the United States.
Tampa, Florida’s cost of living is 5% lower than the national average.
Investors can buy properties at lower rates right now and rent them out to new residents of the city to improve their cash flows.
Tampa has the headquarters of four Fortune 500 companies which makes it a moderately attractive city for work and economic growth.
The influx of people into Tampa is especially occasioned by the fact that it is one of the fastest-growing job hubs in the country.
The healthcare, education, and transportation facilities in Tampa are also impeccable.

9. Austin, Texas

Austin, TX is also on our list of best places to invest in real estate. The Austin housing market has gained a lot of steam, with home values almost doubling since 2010. The Austin real estate market isn’t as big as Dallas, San Antonio, or Houston. Austin is only the fourth largest city in the state. However, the Austin housing market is sizable – it is the eleventh largest city in the U.S. as of this writing, and it is the center of a large metro area. Austin has come up as another tech hub in the last 5 to 6 years.

There are tons of high-paying tech jobs moved to Austin in the last couple of years. As Austin is a young city by many standards, Millennials will be the largest buying force in Austin in 2021, and this trend should continue in the coming years. This is going to be more attractive for the areas being close to neighborhood amenities and close by shopping & hang-out spots. Real estate industry experts think that there is no bubble. Austin’s economy is strong and varied. Overall there is a huge scarcity of homes for sale in Austin. It just hasn’t kept up with the pace of people moving here.

Top Reasons Why Austin is One of The Best Cities to Invest in Real Estate

Austin has a strong economy.
The low unemployment rate of 2.7%.
Growing population.
It is the 11th most populated city in the U.S. and the 4th most populated in Texas.
Affordable Real Estate.
Rising rents.
The median rent per month is $1,750.
Currently, Austin is a red-hot seller's real estate market in the United States.
You can get investment properties in the price range of $200,000 to $250,000.
Austin has a record of being one of the best long-term real estate investments in the U.S. over the past 10 years.
Last December, the median home price increased 8% year-over-year to $405,093.
The Austin real estate appreciation rate in the last quarter was around 1.7%, which amounts to an annual rate of 6.8%.

10. Chicago, Illinois

Chicago is also on our list of the best places to invest in real estate. Chicago is the third-largest metropolitan area in the U.S, with almost three million in Chicago and another ten million in the surrounding metro area. Chicago has a large population, a diverse economy, and a stable market. It is home to 32 Fortune 500 companies. It has high private sector employment. And due to several factors, Chicago is one of the best real estate markets for investing in rental properties for sale. Over 50% of the population rents.

The large population of renters means that rental income from a Chicago investment property is far better than you’d see if you invested elsewhere in the country. The average rent for a one-bedroom apartment is roughly a thousand dollars. Two-bedroom apartments in Chicago cost an average of 1300 dollars a month. Rental rates for Chicago rental properties are appreciating more slowly than average, increasing at 0.9 percent a year. This is one-third less than the 1.5 percent rental rate increase in 2019 for the country as a whole. The average house in Chicago sits on the market for 50 to 55 days. However, hot homes can sell in just two weeks.

Top Reasons Why Chicago is One of The Best Places to Invest in Real Estate

Chicago was ranked first in the 2018 Time Out City Life Index (Time Out Group).
Strong Rental Market – Over 50% of the population rents.
Fully renovated single-family homes with great ROI.
Solid blue-collar areas with high rents.
High private sector employment.
On the UBS list of the world’s richest cities.
Often rated as having the most balanced economy in the United States.
Ranked seventh in the entire world in the 2017 Global Cities Index.
Home to 12 Fortune Global 500 companies and 17 Financial Times 500 companies.
Strong economic and job growth.
Affordable Real Estate.
Rising rent prices.
The median rent per month is $1,761.
2% increase in Chicago’s government employment between November 2018 to November 2019 (Bls.gov).

11. Columbus, Ohio

Columbus is also on the list of the best places to invest in real estate. The residential property in Columbus sells for a median price of $174,109. This means that the rental yield is high. The cost of buying a home is well within the reach of an average household income. The Columbus Ohio housing market is seeing steady growth due to slow population growth. Between 2013 and 2018, property values have increased. In the past year, they increased a whopping 8.4%. There is a great demand for older, renovated homes in established, walkable neighborhoods. The limited supply of family-friendly homes in these areas is driving up their prices.

Buyers should choose their neighborhoods carefully though as the $1,250 rental is not distributed evenly across the city. Some neighborhoods remain economically depressed, and so will attract lower rental incomes and make poor investment choices. You can find great deals in neighborhoods like Franklinton, Near East Side, Olde Towne East, Downtown Columbus, Italian Village, Upper Arlington, North Linden, and Grandview Heights.

Top Reasons Why Columbus is One of The Best Cities to Invest in Real Estate

Currently, Columbus is a red-hot seller's real estate market in the United States.
Very affordable real estate.
The median price in Columbus is $174,109.
Large rental market.
The median rent is $1,250, which is lower than the Columbus Metro median of $1,300.
Ohio is landlord-friendly, so that's good for owning a rental property.
Columbus, Ohio is considered a “Rust Belt” city that’s unique for a rebound.
It enjoys unemployment rates of around 4%, but this is phenomenal compared to the surrounding area.
The lower cost of living attracts residents who earn just as much here as in Chicago but don’t have to pay as much for things.
The sheer variety of colleges in the area means that investors can rent to the large population of students in Columbus without worrying about their property values rising and falling based on the popularity of a flagship school.

12. Lakeland, Florida

Lakeland, FL also enters the list of the best places to invest in real estate in 2022. The Lakeland FL real estate market was ranked fifth among major metro areas in early 2018. In the past year, it moved into the number-one position in the Realtor.com ranking. While the Lakeland FL real estate market is cheaper than Orlando and Tampa, it is not a good overall value given the lower average wages of its residents. That explains why U.S. News and World Report gave the city an index score of 5.5 out of ten.

This is due to the average resident earning around $23,000 a year, several thousand less than the U.S. average. Median household incomes are no better. The median household income in Lakeland, Florida is around $40,000, more than ten thousand dollars below the national average. This creates a strong demand for Lakeland rental homes, especially those that low-income residents can afford.

Top Reasons Why Lakeland is One of The Places to Invest in Real Estate

Lakeland is a principal city of the Lakeland–Winter Haven Metropolitan Statistical Area.
It is the largest city on Interstate 4 between Orlando and Tampa.
Lakeland is a transportation hub.
In the past few decades, tourism, medicine, insurance, transportation, and music have grown in importance.
More than 22,000 people moved to the Lakeland-Winter Haven metropolitan area from July 1, 2017, to July 1, 2018, according to the U.S. Census Bureau.
The 3.2% annual population increase earned it the fourth spot on U.S. Census's Top 10 Metropolitan Areas in Percentage Growth list.
Affordable Real Estate.
Single-family detached homes are the single most common housing type in Lakeland.
Studio apartments are the smallest and most affordable for rental rates.
With a median house value of $155,796, house prices in Lakeland are solidly below the national average.
Lakeland's appreciation rates in the latest quarter were at 1.45%, which equates to an annual appreciation rate of 5.94% (Neighborhoodscout.com).
The average rent for an apartment in Lakeland is $1,084, a 4% increase compared to the previous year (RENTCafe).
Currently, Lakeland is a red-hot seller's real estate market in the United States.

13. Ocala, Florida

Ocala, FL finds itself on the list of the best places to invest in real estate in 2022. Ocala is home to around sixty thousand people, though the real Ocala housing market includes the broader metropolitan area that’s home to more than three hundred thousand people. Ocala is interesting for its population density given how rural the surrounding area is. The Ocala real estate market is buoyed by several nearly recession-proof industries. A large number of retirees here creates significant demand for medical professionals and caregivers.

The horse-centered community offers several good-paying jobs to trainers, veterinarians, and animal caregivers. There are several manufacturers in the area such as mobile home manufacturers and EMS vehicle makers. This is why Ocala not only has a 4% unemployment rate but a much more stable job market than cities in Florida dependent on tourism. Another factor affecting the demand for Ocala rental properties is that half the people who live in the county commute to more expensive surrounding areas to work.

Top Reasons Why Ocala is One of The Best Cities to Invest in Real Estate

As of the 2019 census, Ocala's population, estimated by the United States Census Bureau, was 60,786, making it the 49th most populated city in Florida.
It is the principal city of the Ocala, Florida Metropolitan Statistical Area.
In the last decade of the twentieth century, the greater Ocala area had one of the highest growth rates in the country for a city of its size.
The median household income is around $37,442.
Ocala is also a great city to live in for families. The median age is about 38.7.
When you buy real estate in Ocala you are investing in an area that is situated between three huge cosmopolitan centers, namely Tampa, Orlando, and Jacksonville.
With a median house value of $162,607, house prices in Ocala are solidly below the national average.
The average annual real estate appreciation rate over the past decade has been around 2.28%.
The average rent for an apartment in Ocala is $1,071, a 4% increase compared to the previous year when the average rent was $1,032 (RENTCafe).
Currently, Ocala is a red-hot seller's real estate market in the United States.

14. Birmingham, Alabama

Birmingham, AL also ranks in our list of the best places to invest in rental real estate in 2022. The Birmingham AL real estate market continues to take steps in the right direction. Single-family rental homes are the single most common housing type in Birmingham AL real estate, accounting for about 60% of the city’s housing units. Property appreciation rates are so strong in Birmingham real estate market that despite a nationwide downturn in the housing market, Birmingham AL real estate has continued to appreciate much faster than most other top performing real estate markets in the US.

There has been a distinct trend of people moving to the largest metropolitan area in the region to find the greatest opportunities. The Birmingham area is home to more than 1.2 million people. LendingTree ranked the Birmingham area as one of the least competitive real estate markets in the country. There were more potential buyers than sellers, forcing many would-be homeowners to rent instead.

Top Reasons Why Birmingham is One of The Best Places to Invest in Real Estate

With an estimated 2019 population of 209,403, it is the most populous city in Alabama.
Birmingham is the seat of Jefferson County, Alabama's most populous and fifth-largest county.
The Birmingham-Hoover Metropolitan Statistical Area is the most populous in Alabama.
Being home to several colleges and universities, Birmingham has a large pool of student renters.
Strong and diversified economy.
Birmingham is a leading banking center and a powerhouse of construction and engineering companies.
Very affordable real estate.
With a median home price of $64,840, house prices in Birmingham are solidly below the national average.
The average rent for an apartment in Birmingham is $968, a 3% increase compared to the previous year (RENTCafe).
Currently, Birmingham is a red-hot seller's real estate market in the United States.

15. Durham, North Carolina

Durham, NC is also one of the best places to invest in rental real estate in 2022. The Durham housing market has made considerable improvements since the housing bubble burst. Only two years after the market crash in 2008, Durham was considered as one of the few favorable locations to invest in real estate. With strong population growth and a solid economy, the rental demand in Durham, North Carolina is continuously increasing.

Durham real estate typically performed stronger than the U.S. average due to the popularity of the Triangle area among new and out-of-state residents, as well as investors. Rents in downtown Durham grew by 10% or more in 2016 and 2017, though an influx of new apartments in the area helped it cool down to the single digits. Rent for the average one-bedroom apartment in Durham hit $1100 a month in January 2019. This is a 7% increase over 2018 figures. Two-bedroom apartments increased by about 6% to $1350 a month. Single-family homes, of course, rent for much more.

Top Reasons Why Durham is One of The Best Cities to Invest in Real Estate

Durham is one of the best places to live in North Carolina.
It offers residents a dense suburban feel and most residents (about 52%) rent their homes.
With a median home price of $256,993, Durham real estate prices are well above average cost compared to national prices.
The U.S. Census Bureau estimated the city's population to be 278,993 as of July 1, 2019, making it the 4th-most populous city in North Carolina,
Also, the 79th-most populous city in the United States.
Durham is also a national leader in health-related activities, which are focused on Duke University Hospital and many private companies.
Duke University and Duke University Health System are also Durham's largest employers
Being home to several colleges, universities & research centers, Durham has a large pool of student renters.
The median household income is $54,284 and per capita income is $32,305.
The average rent for an apartment in Durham is $1,181, a 3% increase compared to the previous year (RENTCafe).
Durham has a track record of being one of the best long-term real estate investments.
Average annual home appreciation rate of 4.03%.
Currently, Durham is a seller's real estate market in the United States.

16. Charlotte, North Carolina

Charlotte is also one of the best places to invest in rental real estate in 2022. The Charlotte metropolitan area or Metrolina has experienced rapid population and job expansion. One reason for this is the city's business-friendly environment. The homebuyers in the Charlotte area have dealt with a persistent seller’s market, which has shrunk inventory and driven up home prices.

Last year was the fifth consecutive year of home price gains in the Charlotte real estate market. However, record-low unemployment and low-interest rates have led the buyers to still find a home in this region. Until March 2020 the real estate sales were going steady in the entire Charlotte Metropolitan Statistical Area. 3,630 homes were sold in March, which is a year-over-year increase of 4.9%.

As you can see the Charlotte real estate market isn’t cooling off as yet. Charlotte is a hot market for investors whether they want to renovate and flip, buy to hold and rent or invest in multi-family properties. Charlotte’s real estate appreciation rate in the latest quarter was around 0.52% which equates to an annual appreciation rate of 2.10%. You can choose to market your home to potential buyers. Any homeowner looking to cash out and sell off their property should do it in the current phase. It is better to avoid the price decline phase that will accompany the coming correction.

Top Reasons Why Charlotte is One of The Best Places to Invest in Real Estate

Affordable real estate.
The median home price is $252,438.
Charlotte's home values have gone up 5.3% over the past year.
Charlotte's appreciation rates in the latest quarter were at 0.52%, which equates to an annual appreciation rate of 2.10%.
The average rent for an apartment in Charlotte is $1,259, a 6% increase compared to the previous year.
The Median household income of a Charlotte resident is $53,274 a year.
It is one of the best places to live in North Carolina.
Ranked one of the best places to live in the United States for 2019, according to U.S. News & World Report.
The Queen City is 34th in the best places to retire.
It offers residents an urban-suburban mix feel and most residents own their homes.
The city has a mixture of owners and renters, with 52.07% owning and 47.93% renting.
The city is the cultural, economic, and transportation center of the Charlotte metropolitan area, whose population ranks 23rd in the U.S.
Charlotte has become a major U.S. financial center with the second-most banking assets after New York City.
Between 2018 and 2019, Charlotte saw a 2.3 percent increase in jobs.
Currently, Charlotte is a seller's real estate market in the United States.

17. Colorado Springs, Colorado

Colorado Springs is also on the list of the best places to invest in rental real estate in 2022. Colorado Springs real estate has continued to appreciate faster than most of the markets in the US. Conditions in the Colorado Springs real estate market seem to be in a sustainable, upward direction and show no signs of slowing down. The single-family home market in Colorado Springs is stabilizing a little bit. Inventory is rising and prices are increasing at a slower pace. The local economy is strong and mortgage rates remain low.

The Colorado Springs real estate market is notable for how affordable it is compared to many other cities in the Rockies. The median home price is around $320,000, and the median rent is roughly $1,600 a month. The average price of a home in Denver passed half a million dollars in 2018. In short, you can buy two homes in Colorado Springs for the price of one in Denver. The double-digit price gains in Denver will push people to Colorado Springs, as well, since relatively very few earn $90,000 a year, which is the income needed to afford the average Denver home.

Top Reasons Why Colorado Springs is One of The Best Cities to Invest in Real Estate

The median home price is $323,194.
Home values have gone up by 7.6% over the past year.
Currently, it is a red-hot seller's real estate market in the United States.
Single-family detached homes are the single most common housing type in Colorado Springs.
Colorado Springs's appreciation rates in the latest quarter were at 1.18%, which amounts to an annual appreciation rate of 4.80%.
The average rent for an apartment in Colorado Springs is $1,191, a 6% increase compared to the previous year.
The Median household income of a Colorado Springs resident is $54,228 a year.
Colorado Springs had a 5.5-percent gain in nonfarm jobs between December 2017 and December 2018, which ranked fourth out of 388 metros, according to a survey from the U.S. Bureau of Labor Statistics.
It was ranked as the fifth-best city in the United States to find a job in 2019, according to a survey released by Wallethub.com.
In 2018, U.S. News & World Report ranked Colorado Springs and the most desirable place to live in the U.S.
Currently, Colorado Springs is a sizzling hot seller's real estate market in the United States.

18. Denver, Colorado

Denver also makes the list of the best places to invest in real estate in 2022. Rentals in this city have been gradually increasing over the years. This consistent growth has been driven by a buoyant economy creating jobs. Tourism is also high, driving strong returns in the holiday rental market. Jobs are a major reason why people move to Denver in the first place. The area’s unemployment rate is less than 3%. Denver’s unemployment rate has been well below the national average for years.

That explains why Denver is one of the top cities for in-migration, attracting people from all over the state as well as the country. You don’t want to invest in the Denver investment properties and end up losing money because the neighborhood is going downhill. Conversely, areas slated for redevelopment will almost certainly go up. And Denver has known and planned for areas of redevelopment. Downtown Denver saw multiple infill projects downtown ten years ago. Redevelopment is planned around Elitch Gardens today.

Top Reasons Why Denver is One of The Best Places to Invest in Real Estate

Growing population – It is the 19th-most populous city in the nation.
The current metro area population of Denver in 2020 is 2,827,000, a 1.33% increase from 2019 – Macrotrends.net.
Ranked as a Beta world city by the Globalization and World Cities Research Network.
In 2016, Denver has named the best place to live in the United States by U.S. News & World Report.
Denver is in the top 10% nationally for real estate appreciation.
3.8% 1-yr forecast till Feb 2021.
The average number of days on market is 83.
Colorado has had the lowest rate of mortgage delinquencies in any state.
A third of the Denver metro area rents.
Denver South is home to 7 Fortune 500 companies.
Denver was named 6th on Forbes Magazine’s “Best Places for Business and Careers.”
A low unemployment rate of 2.3% as of Dec 2019 – U.S. BLS.
The average rent for an apartment in Denver is $1,674, a 3% increase compared to the previous year.

19. Raleigh, North Carolina

Raleigh is also on the list of best places to invest in rental real estate in 2022. The Raleigh metropolitan area – the city and its surrounding suburbs – account for about one and a half million people. Recent forecasts and predictions for the Raleigh housing market suggest that home prices will continue rising in 2021. To consider the prospects of investing in the Raleigh NC real estate market, we’ll focus on factors that matter to investors instead of citing the many high quality of life metrics and awards the city receives that draw new residents to the area.

About a third of Americans rent their homes. In the Raleigh NC real estate market, the rate is 43%. This is partially due to the large student market, but it is also fueled by young people moving here for work. That explains why downtown Raleigh rents grew 9% in 2018. It also explains why you can rent out a studio for $900 a month and one-bedroom apartments for a thousand dollars a month.

Top Reasons Why Raleigh is One of The Best Cities to Invest in Real Estate

Raleigh is considered one of the best cities to live and work in the US.
The median home price is $290,270.
Raleigh home values have gone up by 2.9% over the past year.
Currently, it is a seller's real estate market in the United States.
Single-family detached homes are the single most common housing type in Raleigh.
Raleigh's appreciation rates in the latest quarter were at 1.31%, which amounts to an annual appreciation rate of 5.34%.
The average rent for an apartment in Raleigh is $1,238, a 6% increase compared to the previous year.
Between 2017 and 2018 the population of Raleigh, NC grew by 1.19% and its median household income grew from $64,660 to $65,695, a 1.6% increase.
The Raleigh, North Carolina area is the highly-rated area in the country for information and technology job opportunities. It is second to Austin, Texas, which ranks #1.
Raleigh & Durham have lower unemployment rates than the national average and the region's annual average income is above the national average.

20. Phoenix, Arizona

Phoenix is also on the list of best places to invest in rental real estate in 2022. It is becoming a top destination for people living in high-cost areas like Los Angeles & Seattle. The Greater Phoenix area was also predicted to be among the top housing markets in the year 2020. Phoenix's housing market started so strong in 2020 that only something as drastic as the ongoing pandemic could have impeded the real estate sector. The year started with an extreme shortage of houses for sale, and an increasing number of sales over the asking price of property owners.

In January, many experts expected moderate growth and moderate price appreciation in 2020. In March, Metro Phoenix’s median home price hit a record of $302,500. The median sales price in Maricopa County for Q1-2020 was $309,990, up by + 12.7% from last year. Even in the times of the Covid-19 pandemic, the sales prices in the Phoenix housing market are not declining. The favorable living conditions have, furthermore, comforted real estate investors and buyers to invest in Arizona real estate market.

Top Reasons Why Phoenix is One of The Best Places to Invest in Real Estate

There are several other reasons to consider investing in Phoenix real estate.
Affordable real estate.
The median home price is $269,175.
Phoenix home values have gone up 8.0% over the past year.
Currently, it is a red-hot seller's real estate market in the United States.
Phoenix's housing market has been one of the highest appreciating communities not only in Arizona but in the nation as well.
Its more reasonably priced housing, lower cost of living, available workforce, and stable climate forecast a growing economy and stronger housing growth.
Prices are up 17.8% since two years ago and 145% since prices bottomed out in May 2011.
The national economy is super strong and the number of people moving into Phoenix is finally strong again after tanking during the Great Recession.

21. Seattle, Washington

Seattle too makes our list of one of the best places to invest in real estate for those who can afford it. Seattle offers strong economic prospects and a buoyant labor market. This means that rental occupancies are expected to remain high. The city’s population has grown consistently over the last few years with families drawn to the city’s lifestyle. The housing prices have doubled in the past five years, growing twice as fast as the national average since 2016.

Seattle’s tech landscape and real estate market are rapidly evolving. Google just upped the size of its new Seattle campus. Facebook has been on a hiring spree in the Seattle area, particularly for its virtual reality arm Oculus, which is growing fast in Microsoft’s backyard of Redmond.

GeekWire reported on new HQ leases for top Seattle startups Rover and Outreach. Other companies continue to grow and that will pick up any slack. Tech has blown up Seattle. For the past 5 years, we have seen 50% price growth in this market which has priced out many middle-class buyers.

Seattle has long been second to Silicon Valley, but its strong economy, diverse population, and better regulatory climate are bringing refugees from California and migrants from around the country and world to live here. Regardless of the area’s weather, the Seattle housing market’s outlook can only be described as sunny.

Top Reasons Why Seattle is One of The Best Places to Invest in Real Estate

Ranked as 10th in the nation in overall prospects of the “Emerging Trends in Real Estate 2020” – By Urban Land Institute.
They describe Seattle's real estate as “in expansionary mode” and the report was jointly produced with PwC consultants.
According to Mashvisor, the decreasing home values in Seattle demonstrate the real estate market is restoring balance and returning to a healthy state.
The average rent for an apartment in Seattle is $2,169, a 6% increase compared to the previous year – RENTCafe.
176,400 or 54% of the households in Seattle, WA are renter-occupied while 147,046 or 45% are owner-occupied.
According to many experts, Seattle remains one of the top places to invest in real estate.
It may be very expensive, but Seattle's demographics & economy make sure that it remains a profitable and popular real estate market in the nation.
More people move to Seattle each year.
The U.S. Census places Seattle fourth for growth among the 50 biggest U.S. cities.
Seattle is a great city for families to start and grow, with a lot of quality public schools and lush green scenery.
It has a diverse mix of neighborhoods to choose from – from tree-lined streets to urban condos and townhomes.
Seattle's one of the greenest cities in the U.S.

Now that you know where to invest in real estate, it's time to figure out how to do it properly. One of the best investments you can make is in income-producing rental properties, but only if you know what you're doing. We can help you succeed by avoiding risk and boosting profit by researching top real estate growth markets.

Contact us if you're seeking the best real estate investment opportunities in 2021. We are a provider of turnkey real estate – with properties as far south as Florida to as far north as Michigan. Here is a link to some of the best real estate markets where we have investment properties for sale.

Foreign Investment In US Real Estate

Foreign individuals and corporations are free to purchase residential or commercial real estate in the United States. In 2013, foreign buyers made up about 7% ($92.2 billion) of transactions in the $1.2 trillion U.S. real estate market (Source: Wikipedia). The annual survey of the Association of Foreign Investors in Real Estate ranked San Francisco, which had been one of the top five global cities since 2011, at 11th place, and Washington, D.C., at 25th from 15th place last year. Furthermore, the survey revealed that New York City is no longer the only No. 1 city in the US that appeals to foreign investors; that title is now shared with Los Angeles, which is tied with New York in this latest survey.

5 Best Cities For Foreign Investment In United States Real Estate

According to an old survey of the Association of Foreign Investors in Real Estate (AFIRE), the United States was deemed the number one country for planned real estate investment and the 5 best cities for foreign investment in United States real estate (CRE) are:

Los Angeles (tied with New York)
New York (tied with Los Angeles)
Seattle
Washington, DC
San Francisco

With 58% of respondents’ votes, the US remains the country considered the most stable for real estate investment, and 86% said they plan to maintain or increase their investment in US real estate.

Residential Properties Purchased by Foreign Buyers in the United States

According to a report published in 2017 by NAR, Chinese buyers have been the top foreign buyers of U.S. residential property for three straight years, hitting a record high.

The below data has been taken from the report published by NAR (National Association of Realtors).

Foreign buyers purchased $153.0 billion of residential property from April 2016—March 2017,
an increase from $102.6 billion during the previous 12-month period (April 2015—March 2016).
The dollar volume of foreign buyer purchases accounted for 10 percent of the dollar volume of
existing-home sales, an increase from the eight percent share during the previous period.
Foreign buyers purchased 284,455 residential properties, an increase from 214,885 during the
previous 12-month period. The number of units purchased made up five percent of existing
home sales, an increase from the four percent share during the previous period.
Foreign buyers who primarily reside outside the United States (non-resident foreign buyers)
accounted for 42 percent of all foreign buyers, while recent immigrants and foreign buyers who
reside in the United States on work, student, or other visas (resident foreign buyers) accounted
for 58 percent. This composition is about the same as that of the previous 12-month period.
The average price of properties purchased by foreign buyers was $536,852, more than the
average price of $277,733 of all U.S. existing home sales.3 The median price of properties
purchased by foreign buyers was $302,290, also more than the median price of $235,792 of all
U.S. existing home sales.4
China remained as the top origin of foreign buyers ($31.7B), followed by Canada ($19.0B), the
United Kingdom ($9.5B), Mexico ($9.3B), and India ($7.8B). The bulk of buyers from China,
India and Mexico were resident buyers, while most buyers from Canada and the United
Kingdom were non-resident buyers.
Although foreigners purchased property nationwide, five states accounted for 54 percent of total
residential property purchases: Florida (22 percent), Texas (12 percent), California (12 percent),
New Jersey (four percent), and Arizona (four percent).
Nearly half of foreign buyers purchased the property as a primary residence.
Most non-resident foreign buyers made an all-cash purchase (72 percent), while a smaller
fraction of resident foreign buyers paid all-cash (35 percent).

For the new foreign real estate investors, it is important to know that in the United States, real estate listing information is shared by agents using multiple listing services, and consumers can access that same information using real estate sites such as Zillow. Each state in the US has its own set of rules regarding the purchase of real estate, including the type of purchase contract used, the method of closing the sale, and even the duties and titles of the individuals involved.

Make the most of your investment dollars in 2021 by investing in real estate. Our analysis of the 20 best cities to invest in real estate was based on the most recent housing market trends, rate of appreciation, rent prices, job growth, economy dependencies, quality of life, etc. Please note that real estate prices are deeply cyclical because their demand side is impacted by economic cycles. Much of it is dependent on factors you can’t control. A recent example is COVID-19 which has impacted our economy. Therefore, many variables can potentially impact the value of the real estate and some of these variables are impossible to predict in advance.

References:

https://www.zillow.com
http://www.afire.org
https://www.neighborhoodscout.com
https://www.rentcafe.com
https://en.wikipedia.org
https://fortress.wa.gov/esd/employmentdata/reports-publications/regional-reports/county-profiles/spokane-county-profile

10 Tips to Be Successful in Real Estate Investing

September 7, 2021 by Marco Santarelli

Successful real estate investment has long been one of the proven ways to become wealthy. Buy or secure title to land. Develop the improved agricultural potential of the property or build housing you can rent out, or make the investment property more attractive to tenants so you can charge higher rent. These are common ways to become successful in real estate investing. The real estate market is always changing, and not just in terms of where people want to live.

But we all know that real estate provides better returns on investment than the stock market without as much volatility. In real estate, your risk of loss is minimized by the length of time you hold on to your investment property. When the market improves, so does the value of your property. Here’s our rundown of how to become successful in real estate investment.

People think about money when they invest in real estate. There are numerous compelling reasons for this. Real estate is a scarce resource. After all, it is impossible to manufacture additional land. As a result, real estate is widely regarded as a sound investment. However, it must be recognised that conventional wisdom regarding real estate is evolving. This almost certainly has to do with the economy.

It is not unusual to encounter individuals who are fearful of real estate investing. They believe there is no money left. Additionally, they may believe that they cannot succeed without investing substantial amounts of their own money. Both of these beliefs are demonstrably false. Regardless of the market, real estate investing is an excellent way to build wealth. Markets that are “down” may actually be the most fertile for opportunity. If you have a creative mind, real estate investing is for you.

Here are some basic principles that you need to understand in order to succeed in real estate investing:

Keep your mind open to new ideas. The most successful real estate investors see profit opportunities everywhere. The ability to see creative financing is critical, even more so in today's market.
It's important to know all of your options. By definition, real estate investing is a high-stakes game. Never make an investment that you are unsure of. It is critical to understand what you are doing in order to succeed.
Investing in your education will pay off in the long run. It is common for real estate investors to invest in properties that generate multiples of their initial investment. Consider your own education in this light as well. The ability to employ a strategy correctly can result in substantial returns. Naturally, if you do not utilise critical resources, you risk experiencing loss.

10 Tips to Become Successful in Real Estate Investment in 2021

how to be successful in real estate investing

1. Choosing Your Market & Timing The Investment Wisely

For successful real estate investment, it’s more important to know your local market than just what’s going on nationwide. Your purchase and its success will be most influenced by the factors at work in your specific real estate market. A good rule of thumb to become successful in real estate investing is to avoid very hot markets. Some real estate investors here may brag about the appreciation of their properties or rising rates, but you risk buying at the top of the market and losing your money.

The real estate markets move in cycles due to the desire for economic profits, and every real estate market is at a slightly different phase of its housing cycle. You need to find markets that are in the phase of expansion – where sales and prices are rising, affordability is good, construction is low and capital investment is rising.

The exact market you’re in should inform your approach as you choose investments. Peak new construction tends to occur past peak housing demand, which ultimately leads to temporary oversupply and lower prices. This bust phase usually lasts between 1-3 years before a price floor is found.

To become successful in real estate investment, your focus should also be on the location of the property within the market. You need to invest in those neighborhoods which have high population density, are developing, and have all basic amenities nearby.

All great neighborhoods have this in common:

Low crime rate
Great schools
Access to parks and leisure destinations
Access to medical care
Family-friendly
Access to public transportation
Access to shopping malls and restaurants
Good walkability

All of these translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

Avoid any area that is dependent on one economic driver such as the tourism or auto industry. Detroit is one such example of a market whose economy was heavily driven by the auto industry. When its auto industry failed, it led to a drastic decline in home values. All the rentals went vacant as no one able to find work. Fewer jobs in the city eventually resulted in fewer people able to live there. There were more houses than people who want them, so the law of supply-and-demand drove prices down.

2. Buy Low

Real estate investing can be compared to investing in a dividend-paying stock. The return on investment is based on how cheap you bought the commodity. However, you have to look at the return on the investment. A cheap little house in an unsafe neighborhood can be bought for little money, but you won’t get much money from it, either.

3. Tap into the Hidden Market

The ideal case is buying property from a distressed seller because you can get it way below the fair market value. Forget foreclosure auctions; this can yield deals, but you’ll often find properties in dire need of repair. Instead, look for homes with distressed sellers who haven’t put it on the market yet. The couple going through a divorce or family that wants to sell Mom’s home after she passed are the ideal sellers; they just want to get the money, and the buyer is probably getting a well-maintained home.

4. Understand Your Costs Up Front

If you’re new in the business of real estate investment, it is crucial to understand your costs upfront. It isn’t just the cost of the property and realtor commissions. You’ll need to pay for repairs, and too many newcomers to real estate investing don’t know how to accurately estimate costs to repair that cracked foundation, fix electrical problems, and address pest infestations.

Don’t think you can solve the problem by working on weekends to add a little paint. Most DIY work detracts from the value of the home, and trying to fix someone’s electrical and plumbing issues yourself may make it unsellable unless you’re already capable of doing work like this to code. Others fail to budget for closing costs, insurance, or utility costs and end up losing money on a deal.

5. Understand The Market

One of the best ways to avoid problems when investing in real estate is to understand the market. Understanding your real estate market will help you to evaluate the price of an investment property. Know how much the typical house in a community is worth per square foot and the rent you could charge for a given investment property. Renovate properties in ways that make it more appealing to the expected buyer.

For example, never reduce the bedroom count in a family-friendly community. Nor should you reduce the size of the closet or shrink the master bath to put in a hot tub few in the area would appreciate. Don’t rip out a good yard to put in a pool if there is little demand for it. Choose the best real estate markets like the metro Atlanta area which has seen stellar growth in real estate.

In the Atlanta real estate market, demand has caused home values to rise around ten percent a year for the last few years. Housing prices in Atlanta dipped in 2017, allowing prices to adjust. Average home prices today are similar to where they were at the 2006 peak, but they’re more affordable when you take inflation into account. If you put time and effort into truly understanding your local real estate market, you can significantly improve your chances of becoming successful in real estate investment

6. Manage Your Risks In Real Estate Investment

There are several ways in which you can manage risk in a real estate investment. First, don’t go deeply into debt. When buying an investment property for sale, aim to put at least 10% down. Twenty percent is better since it eliminates private mortgage insurance and often yields a lower interest rate on the loan as well. Second, maintain a large cash reserve. You’ll reduce the risk of having to sell a property fast at a loss if you have the cash to carry the property long before it needs to move.

By having a larger cash reserve, you’ll also be able to pay for unexpected repair bills before you can put a property on the market. Running to a hard money lender to get the last $20,000 to fix a property is possible, but it comes with a high-interest rate that eats into your profit margin. Managing risks in the right manner can significantly improve your chances of becoming successful in real estate investment.

Don’t buy a property for which the math looks bad because you’re afraid you’ll lose out on the deal. Never fall in love with an investment property. You’re not going to live there – someone else will. Be aware of your risk tolerance. Then take action to manage the risk, whether you’re avoiding the fixer-upper you’re afraid will be a money hole or improving your cash position before you buy it. If you can’t handle the potential stresses of fix and flip, buy turnkey properties instead.

7. Go for Best in Class – Not “The Best”

A common mistake in real estate investment is trying to develop a property to be the best in the area. They may try to renovate homes in a working-class area and turn it into a luxury home. You can’t sell that for the same price you would receive in an upscale area. You end up losing money. Over-building a home is wasteful. Go for “best in class” touches, not trying to make an office building the fanciest or elite product.

First, fix everything that is broken or damaged. Then make little changes that stand out but don’t cost much. Two-tone paint over a single color paint job is one good example. More convenient soap dispensers and trash receptacles are another. Skip the Corian or granite countertops, the top of the line appliances, or expensive decorating.

8. Maximize Value of Real Estate

Look for ways to maximize the value of the real estate, eking out more profit for the same investment property. It could involve renting out a corner to a bank to install an ATM. You could rent out space in the lobby for a small commissary, generating rental income from what otherwise failed to add to the business’ cash flow. In an apartment complex, you can look for value-added services. For example, offer trash pickup from someone’s door to the dumpster for a modest fee per month.

Or add a concierge or security guard to the building. Now you can charge higher rent for a more attractive property. Another variation of this applies to house flipping. Instead of buying the home, fixing it up and selling it to a home buyer, fill it with a tenant, instead. Once the tenant has moved in with a lease, start looking for buyers. This is called a turnkey rental property, and it can easily be sold to a new investor who wants to jump into real estate investment without any hassles.

9. Know the Rules and Regulations of Real Estate Investment

Don’t turn that basement into a second rental unit until you know whether or not that’s allowed. Don’t convert the first floor of the building into commercial space if local zoning laws prohibit it. Be careful about food service business rules before you replace a break area full of vending machines with a little sandwich shop. Never assume you can add another room or second story to a building. Understand the degree of work that requires a permit before you start it.

10. Consider Non-Traditional Real Estate Investments

Remember that real estate investing doesn’t have to equal a choice between investing in single-family homes and apartment buildings. You could invest in office buildings, storage unit complexes, industrial space, and warehouse. All of these generate rental income. In the case of offices and industrial buildings, you may be able to reduce overall costs with a triple-net lease where the tenant covers basic insurance and pays the property taxes and maintenance. Your investment then yields steady cash flow with few out of pocket expenses.

Easiest Way To Become A Successful Real Estate Investor

Real estate is a great investment option for those who want to achieve financial success. Becoming a successful real estate investor is a great step towards achieving that much desired financial freedom. Real estate investment offers better cash flow prospects than the stock market. However, you need to take care to avoid mistakes that cause so many dreams of getting rich investing in property turning into nightmares in bankruptcy court.

Good cash flow from the rental real estate means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good investment opportunity would be key to becoming successful in real estate investing. The less expensive the investment property is, the lower your ongoing expenses will be.

Real estate investing represents a perennial opportunity. However, the faces of real estate investing can be very different depending on the state of the economy and the real estate market. As a real estate investor, you must be aware of every opportunity. Keeping an open mind in real estate investing is vital to your success. We can help you succeed by minimizing risk and maximizing profitability. Consult with one of the investment counselors who can help build you a custom portfolio of turnkey cash-flow rental properties in the various growth markets across the United States.

All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching top real estate growth markets and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

References

https://www.huffingtonpost.com/aj-agrawal/5-basic-tips-for-investing-in-real-estate_b_9072532.html
https://money.usnews.com/money/personal-finance/articles/2017-06-29/9-secrets-of-successful-house-flippers
http://www.remodeling.hw.net/business/leadership/buy-fix-sell-profit-flipping-homes-can-be-lucrative-but-its-not-for-the-timid
https://www.forbes.com/sites/forbesrealestatecouncil/2018/02/23/18-ways-new-real-estate-investors-can-succeed-in-2018/#6ccdd9f12980
https://www.financialsamurai.com/what-if-you-buy-a-home-at-the-top-of-the-market-and-a-recession-hits/

18 Best Real Estate Investing Books To Read in 2021

August 17, 2021 by Marco Santarelli

Real estate investments can provide excellent returns if the proper steps are taken, but many new investors lack the necessary skills and education. I wanted to discuss the significance of real estate education through books. This article will present the 18 best real estate investing books to get you started in 2021. If you read all of these books, you will gain a lot of knowledge and learn from the case studies of top investors who have had great success in real estate investing.

Are you a real estate investor? Are you planning to invest? Real estate investing is an ever-evolving industry. Real estate is regarded as one of the best investments that a person can make. But why do so many people struggle with it? The first step is to prepare your mind and habits for success. You will also require adequate real estate education to assist you along the way.

Why Should You Read Best Real Estate Books Before Your Investment Starts?

Well, real estate investors disagree on many topics, but one that nearly all agree on is the necessity of investing in yourself. There are literally thousands of books out there that deal with real estate investing, and I've probably read a lot of them! These are my choices of good books on real estate investing for this year. What about you?

Reading books is one thing, but where do you start? To be successful as a new real estate investor, you need to learn but it can be hard to sift through all the books to choose from. Finding a good real estate book can be difficult, especially if you don't read a lot. So I've created this list and I felt I would give it to you in a way that breaks it down into several categories.

I want it to break it down into the following areas, mindset, finance, and investing real estate investing for beginners, which is really from beginners to intermediate level investors, and then real estate investing books to grow your business. So once you've gotten started to just continue to grow and scale books on property management and books on taxes, or more specifically on how to save and minimize your taxes.

So that's essentially six categories. Now, keep in mind, this is not an exhaustive list. There are literally hundreds, if not thousands, but hundreds of books on real estate. In fact, if you don't believe me, just go to amazon.com and type in real estate investing or even just real estate. And you will see there are a lot of books and that's the problem. There are just too many books to choose from, and it's really hard to know which ones are good, great, or bad. And believe me, there are many bad books out there.

The other thing too, to keep in mind is that if you don't like reading, or if you're a slow reader, you can get the audiobook version of most, or probably all of these books that I have on the list today. So whether it's print or audio, there's something for you today. In fact, you could actually have both. You could read when you have the time to read and listen to the audiobook in the car, or when you're doing stuff around the house or going for a walk.

And last but not least, I will edit and continue to edit and add to this list from time to time. So it's a living, breathing dynamic list. It's not static, it's not a one size fits all list, but I wanted to pick what I felt were the best books for this list at this time. So with that, let's start with the first of the six categories and that is the mindset.

So I've tried to keep it to about anywhere from two to four books per category or section, it's probably an average of three books per section. And what I'm going to do is just tell you the book and give you a brief description of that book and what you can expect from it. And then you can just decide on your own, whether it's something you want to listen to or read. So the three books that I picked for mindset start with a classic, a perennial classic, and most people would think I'm going to say, Think and Grow Rich.

That is a great book. And I do recommend reading the classic, the original book, not the revised edition of it. If that's a book that you haven't read or it's been a long time and you probably should go back to reading it because Napoleon Hill's come out with a lot of great books and a lot of great content because he had access to some of the wealthiest people in the country back in the day.

18 Best Real Estate Investing Books You Must Read In 2021

Below, you will find 18 of the best real estate investing books recommended by entrepreneurs and investors. Read these real estate books in 2021 to become successful in this business. These books are vital to get success in real estate. They will form the backbone of your success for years to come. These books are not just real estate specific, they will also help you develop a winning mindset.

1. The Richest Man in Babylon

But my first pick is The Richest Man in Babylon. And again, this is the original edition that I'm referring to, not the edited or revised edition for the 21st century. Get the original text. The Richest Man in Babylon is based on Babylonian parables, and it has been hailed as the greatest of all inspirational works on the subject of thrift and financial planning, and personal wealth in simple language, these fascinating and informative stories in the book set you on a sure path to prosperity and it's accompanying joy.

So these are just great stories. It's not really a how-to book. It's more of a storybook than anything else, but it is a celebrated bestseller. And it often offers an understanding and a solution to most people's personal financial problems, whether they know it or not, it identifies what your problems are, but revealed inside of the book are the secrets to acquiring money, keeping the money, and making money, earn more money for you, which really parallels perfectly with what I talk about all the time.

And that is the three categories, buckets, or areas of creating wealth. And that makes money, grow your money and protect your money. So anyway, stick to the original edition. It is the original uncensored version of the book, the language of the content, and the message from the author. George S Clason, I believe that's how you pronounce his last name.

2. The Compound Effect: Jumpstart Your Income, Your Life, Your Success

And this book was actually written in 1926. So it's way back there. In fact, it's even before Napoleon Hill's Think and Grow Rich. Now, fast-forward to the recent past as in the 21st century, the next book I'm sure many of you are familiar with, but probably most of you are not a book by Darren Hardy called The Compound Effect: Jumpstart Your Income, Your Life, Your Success.

This book reveals the core principles that drive success and The Compound Effect book contains the essence of what every super achiever needs to know practice and master to obtain those extraordinary results, the extraordinary success. So in this book, they talk about things like how to win almost every time, the number one strategy to achieve any goal and triumph over your competition.

It really is a book to help separate and differentiate yourself. It talks about eradicating bad habits and we all have bad habits. And often those derail your progress. It talks about the real lasting keys to motivation, kind of like what Tony Robbins talks about, but more so. And that is how to get yourself to do things you don't feel like doing.

And I know we're all there at various times of the day, the week, the month, how to capture that elusive awesome force of momentum. Because once you get going, you feel like you want to keep going. You don't want to stop because once you get going, it's almost hard to stop, and talks about many other things and something he refers to as the acceleration secrets of super achievers.

So The Compound Effect has a great title because small successes compounding on small successes lead to larger successes, which continue to compound on themselves. And so once you have that momentum, it continues to grow. But if you're serious about living an extraordinary life, then read this book. It will help to create the success that you desire.

3. High Performance Habits

My third book pick here is from Brendon Burchard, someone who I had on the show, not too long ago, I think it was about a year, year, and a half ago. Great guy. In fact, our interview went so long. I had to split that episode into two parts. So you could look for that episode. And I believe it was called High-Performance Habits, which happens to be about the book that he wrote.

One of his last books is called High Performance Habits. How extraordinary people become that way. So 20 years ago, or so Brendan became obsessed with answering three questions. He wanted to know why do some individuals and teams succeed quickly more quickly than others, and actually sustain that success over the longterm. You wanted to find out of those people who actually pull it off, why are some miserable?

And then the other group are consistently happy on their journey. And thirdly, you wanted to know what motivates people to reach for higher levels of success in the first place. And then what practices help them improve the most. So after doing some extensive, original research that he does in his own company, and after a decade, as the world's leading high performance, coach Brandon found the answers to these three questions.

And it turns out that just six deliberate habits give you that edge. Now he says that anyone can practice these habits. And when they do extraordinary things happen in their lives, in their relationships, in their careers, it really is a good book. It is definitely well worth reading regardless of what you do in terms of your job or career, business, or practice. It really is a book on becoming a high performer. And to become a high performer, you must seek clarity.

Clarity is so critically important. You have to know how to generate energy. You have to know how to raise necessity, increase your productivity, develop influence, and then lastly demonstrate courage. And this is what he talks about in the book. So it's really the art and the science of how to do it all. And that's what you're going to learn by reading this book or listening to the audio.

So those are my three picks and believe me in this category about mindset, literally, there are over a thousand books. I mean, there is so much out there from Brian, Tracy to Tony Robbins and you name it. But these three are, I think very, very fundamental. In fact, I would argue that they are cornerstone books, The Richest Man in Babylon, The Compound Effect, and High-Performance Habits will improve and change your life. Okay. That's the first category.

The second category is finance and investing. And again, this is one of those sections where there are literally hundreds of books. And again, it's hard to narrow it down, but it wasn't too hard for me to pick. What I feel are probably the three cornerstone books, regardless of how experienced you are how much, you know, or how seasoned you are, or how wealthy you are.

Because the fundamentals and the principles found in these three next books are great as a refresher. I'm sure you're going to read it. And there are things that you never knew before, and it's just great additional knowledge.

4. Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!

So the first one is probably no surprise to anybody. I'm sure most of you have read this at some point in the last 22 years, it's been that long, but many of you know of it. So it is Rich Dad, Poor Dad, what the rich teach their kids about money that the poor and middle class do not buy. Obviously, Robert Kiyosaki, this book has since become the number one personal finance book of all time.

It's been translated into dozens of languages and it's been sold all around the world. I'm not even sure how many millions of copies this book has sold, but it has become a modern-day classic finance classic. So Rich Dad, Poor Dad is Robert's story of growing up with two dads, his real father and the father of his best friend, his rich dad.

And it talks about how both of these men, his fathers shaped his thoughts about money and investing. So the book explodes the myth that you need to earn a high income, to be rich and explains the difference between working for money and having money work for you. And that's a key distinction.

And a lot of the book builds upon that concept, but the book is great because it challenges the beliefs that your house is an asset, which most people still believe to this day. It is not, it is a liability. And if you don't know why to read the book, it shows why parents rely on the school system to teach their kids about money and why that's a mistake in that.

Doesn't actually work. It defines once and for all, what an asset and a liability truly are. It makes simple definitions for this stuff. And it teaches you what to teach your kids about money for their future. So if you're a parent listening to this and you want to help your children become financially literate and increase their financial IQ, this is a foundational book. It's one of the starting books if you will.

5. Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom

So the second book, no surprise is going to be the second book in what is essentially a three-part series of the Rich Dad series of books. These are the three foundational books, but the second book is Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom. This was the second book. So rich dad's cashflow quadrant is a guide to financial freedom.

It picks up where the last book left off the first book, rich dad, poor dad. So as the second book in the rich dad series, reveals how some people work less, earn more, pay less in taxes, and learn to become financially free. So cashflow quadrant was written for those people who are ready to move beyond what they feel is job security.

And I say that in air quotes and enter the world of financial freedom. It's for those people who want to make significant changes in their lives and take control of their financial future because this is more of the how-to Rich Dad, Poor Dad was more of the foundational book, kind of laid out the principles and the concepts and some of the definitions that you need to know such as a profit and loss statement, a balance sheet, how money flows and all that, this builds on top of that.

Robert believes that the reason most people struggle financially is that they've spent years in school, but we're never taught about money. And Robert's rich. Dad taught him that this lack of financial education is why so many people work so hard. All their lives it's to work for money, instead of learning how to make money work for them, they basically just work for money.

So this book will change the way you think about your job, your career, owning your own business. And hopefully, it will inspire you to learn these rules of money that the rich use all the time to build and grow their wealth.

6. Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle-Class Do Not

The third book again, no surprises. It's not going to be a shocker. It's really the third book in that rich dad series. And these books work well together. They're built to be stacked on top of each other. So the third book is Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle-Class Do Not. So investing obviously means some different things to different people.

And there is a huge between passive investing and becoming an actively engaged investor. And one is not better than the other. There's no right or wrong. We're both at different times in our lives. And it also depends on what we're actually doing. We're always going to be active or passive investors.

Usually, we're both, but you just need to understand the distinction there, but becoming an active investor means you're an engaged investor. And so there's a lot of power in that. So rich dad's guide to investing is one of the three core titles in this series. And it covers the basic rules of investing, how to reduce your risk in investing, how to convert that earned income you get from your active job or career, and turn that into passive income.

And he talks about something he refers to as rich dad's 10 investor controls. And this is where he gets into the weeds gets deep into the concepts of investing. So the rich dad philosophy makes a key distinction between managing your money and growing it and understanding the key principles of investing is the first step towards creating and growing wealth.

So this book delivers the guidance. You need to help begin that process of becoming an investor and stay on that road till you get to that point of financial freedom. It's really more of a guide. In fact, the title says it all rich dad's guide to investing. All right, well, those are the three books in the finance and investing category, and it's really the trio, the three rich dad series books, the initial or the original books.

7. The Ultimate Guide to Passive Real Estate Investing

Now let's talk about real estate investing for beginners. So this was a little bit challenging for me. In this category, I ultimately decided on four bucks instead of three for this now keep in mind, even though I'm calling it real estate investing for beginners, these books apply to almost everybody. Even if you are a seasoned or an experienced investor, there's a lot of stuff you can learn from these books.

If not every chapter, certainly some of the chapters in these books and the first one is really not a book at all. In fact, it is my ebook that has been a free download on our websites for the last probably 10 years, which has been downloaded literally tens of thousands of times. And I wrote this 40, 42-page ebook as a primer for people to understand the key concepts and key components of investing in real estate, leaning towards passive investing, meaning buy and hold, not flipping real estate, or to actively involved.

It's really about building a portfolio, creating wealth, creating passive income, and learning the fundamental key pieces. So it is really a great primer. So you read it, it's a great starting point, but then you build on top of it with these other books. So The Ultimate Guide to Passive Real Estate Investing the free download on our website is really about the most powerful way to accumulate wealth.

This guide that I wrote has been written to help educate all real estate investors, regardless of their experience level. And again, it's a primer. It talks about the advantages of income-generating real estate, how to analyze properties, key metrics, cash flow returns, what to look for in the quick test to see if a deal is worth even pursuing.

So it's kind of like the smell test, if you will, how to choose some of the best markets and neighborhoods. I try to pack it all in there. There's no fluff. It's just crammed with good information. So if you haven't downloaded a copy or read it, go ahead and do so. I'm going to be updating that soon to kind of a version 2.0, so I'll expand on it a little bit. And I'll just tighten up a few things in there based on today's economy and environment, but not much has changed because principles don't change. All right.

8. How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started

The second book in the real estate investing for beginners series here is How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started. This book was written by Brandon Turner. He's got several books. I've picked a couple of his and this book is great if you're starting and good if you're a moderate level investor.

So everyone knows that real estate investing can be a powerful way to build wealth and achieve true financial freedom. But because each person's journey is going to be a little different knowing the first steps to take is challenging for some people. So what this book does, it becomes a manual of sorts on getting started in real estate investing.

It gives you essentially an insider's look at the many different niches and strategies that exist. So it's not all about passive real estate investing. It's got a little bit of everything and it just kind of helps to paint picture. In other words, it shows you the landscape and then you can choose your path.

So what you can do is find which strategy and path work best for you, and then help you build the resources and the goals around that. Unlike most real estate books, this one won't tell you that there's anyone secret path, okay. It is considered by many as one of the best books on real estate investing.

9. The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits, Most Investors Miss

There's more than one path to success in real estate, but it has more than 40 real-life stories in the book from other investors on how they achieve success in real estate investing. And I'm sure you're going to be able to relate to many of those stories. There's a lot of similarities, but there are differences with every person and every story.

All right, the next book, the third book, if you will, is The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits, Most Investors Miss. And this is by one of the rich dad advisors, Ken McElroy. He is a sharp guy. You know, I've talked to him in the past. I've had him on the show at one point and you know, I like his content. Now he's really a big real estate guy.

He's focused primarily on big multi-family apartment complexes, but he did start with, you know, small real estate, single-family homes. And that doesn't mean that there's a migration path here. Some people will start with, you know, multi-units and apartments and work their way down to single families, duplexes, and fourplexes, and other people do the other way around.

And while other people just stick with one and stay with it. So you can create wealth and passive income with every size and type of real estate. But with his book on the ABCs of real estate investing, he kind of geared it more towards the people who are just getting started in the beginners and just real estate investing.

Think of it like real estate investing one Oh one, but he talks about things on achieving wealth and cashflow using real estate. You know, what a property is potential is how to unlock the myths that float around real estate for people who are seasoned, how to negotiate on deals, evaluating properties and the purchase price, how to increase the income on a property, and ways to properly manage a property.

10. Long-Distance Real Estate Investing

Now he doesn't get into property management in any depth in this book, it just touches upon it. He actually has another book on that topic, which I'll talk about here in a minute. And then the fourth, if you will, fourth and last book in this category is Long-Distance Real Estate Investing. Now I love that title. He doesn't get too deep into it, but it is a good book. It's by David Green.

It's one of the bigger pockets series books. But you know, what he talks about is living in a hot market or a market that's not suited for buying hold investing because it's just unaffordable too expensive. The numbers don't work, whatever the case is, but he poses the question. Well, how do I take advantage of building wealth in real estate? When I live in a market that I can't invest in, it's impossible, or how do I avoid, you know, market fluctuations or the next market crash.

So we know real estate investing is one of the greatest vehicles for creating wealth, but you need to understand how to choose markets and be able to be nimble and agnostic. And this is stuff I talk about on the podcast all the time, and this is what he talks about in the book. I just wish he would get more deep into the concept of done for you and rent, ready properties, and turnkey properties.

He touches upon it. But to be completely honest with you guys, I have always found since the beginning of bigger pockets in 2007, they've always had a bias towards turnkey, real estate investing, and passive real estate investing in general. They are certainly of the active, real estate investing flavor. They certainly believe in buying, fixing, and creating value on properties.

It seems that to me, that most, if not all of their content, either excludes conversations about turnkey investing, buying properties that are essentially rent ready. So you don't have to do any fix-up or renovation work. They're all about putting in sweat equity to create value. That's fine, but that's not for everybody. And we all know that a lot of us are busy. We don't want to go down that road.

We just want to invest in real estate and build a portfolio and let it grow over time. So I'm not knocking the book. The book is good. I just wish he had more on the topic of passive real estate, investing, turnkey, real estate, investing, and done for you models instead of hiring a team outside of your local market to essentially do all the grunt work, swinging the hammers, and everything else, that's fine.

But I think he glosses over a little too much. In fact, all the “Bigger Pockets” books gloss over the turnkey space. So in this book, real estate investor and police officer David Green, shows you how he's built a multi-million dollar portfolio through buying, managing, and flipping out of state properties. So keep that in mind when you read it, but he does share tips, tricks, and systems that he's put in place over the years of his real estate investing experience and journey and what he's done to essentially succeed and avoid making mistakes along the way, but just realize that's the perspective.

Anyway, the bottom line with this book, and what I like to talk about all the time is to don't let your location dictate your financial freedom, learn how to succeed regardless of where you live and where you invest, choose the right markets, the right neighborhoods, the right properties, and have the right team around you. And that will be a secret if you will, or a formula to your success.

11. The Millionaire Real Estate Investor

All right, the next category is real estate investing to grow. So this is kind of the next level up. One of my favorite books that I read in real estate investing is The Millionaire Real Estate Investor by Gary Keller, Gary Keller well-known author. He is obviously the founder of Keller Williams, the real estate brokerage nationwide real estate brokerage. So he is a real estate investor and a very good one.

Anyone who seeks financial wealth first needs to learn the fundamental truths and models that drive it. And this is what he talks about in the book. So the millionaire real estate investor represents the collected wisdom and experience of over a hundred millionaire investors from all walks of life who have pursued financial wealth and achieved it through real estate.

And so what he did is he basically created this book in a straightforward, no-nonsense way that reveals the strategies that these hundred millionaire investors have used to create financial freedom, independence, and a lifestyle that works for them. So this book essentially is a handbook that has tried and true financial wealth-building principles and models built around the real estate that reward your patience and perseverance, and he lays it out.

So some of the things he talks about are the myths about money and investing and especially the ones that hold people back and really how to develop a mindset of a millionaire investor, which goes back full circle to where we began about mindset. You know, even when he talks about this in the beginning part of the book, he talks about how to develop sound criteria for identifying great real estate investment opportunities, how to zero in on key terms and parts of transactions, and achieve the best possible deals when you're putting a deal together or looking for a deal.

He also talks about how to develop your dream team, which is something I talk about often proven models and strategies that millionaire investors use to track their net worth understand finances. It's not a very complex or complicated book. It's not going to put you to sleep or cause your eyes to glaze over.

12. The Book on Rental Property Investing

I think it's extremely well-written. So again, it's one of my favorite books. It's a blue and white book. The next book in this category on real estate investing to grow is The Book on Rental Property Investing. Again, this one is the second one by Brandon Turner. So in this book, he discusses practical strategies that investors around the world use to build significant cashflow with their rental properties. So this is getting a little bit more into the weeds, a little bit more tactical if you will.

So in this book, you'll learn how to build an achievable plan, how to find good deals, how to analyze those properties and those deals build your team, finance, the rentals, and a whole bunch more, and basically everything you need to become successful at rental property investing. Again, it's a book there's only so much you can put in the book, but it does a good job of laying it out. This is one of the best books on real estate investing. This book will feed what you need to succeed in rental property investing.

13. Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals

Okay. So again, think of it like a, a, a practical guide. So there's a lot that he covers in this book, but you know, he starts with why real estate investors fail and how you ensure that you don't. And he talks about four easy-to-follow strategies that you can build your real estate portfolio on creative tips to find those deals, how to achieve success by avoiding property management, which, you know, we all love actionable ideas on financing.

Those rentals. Now, obviously, there are limitations there, but for the most part, it's going to be cheap financing like conventional loans and a little bit of advice on keeping your wealth by deferring and eliminating your taxes, which you know, is really not an extensive part of the book, but essentially something we'll talk about here in a minute last but not least. I included another book by Ken McElroy, and this is the Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals.

So if you're interested in the real estate investing space, you may have noticed that this part of real estate doesn't get covered much. And when it does the mainstream media focuses mostly on, you know, stocks, bonds, mutual funds, and that kind of stuff. And they don't really talk about real estate as an investment, all that much. It's really about homeownership.

And even when they do talk about it, it's like, Oh, it's like this one, nebulous bob, they refer to as the housing market, but they don't really talk about specific markets unless you're listening to your local news channel, but that's because financial publications, TV, radio, um, they make the bulk of their money from advertising paid by the very companies who provide the mainstream media and those channels with financial services, the advertising, the marketing, all that stuff.

But real estate investment is something that you can do on your own without a large amount of money upfront, as we all know if you just learn how to do it and pick the right markets to do that. So what Ken did with this book is he picked up where he left off in the first book, the best-selling book, ABCs of real estate investing. And he reveals the next essential lessons and the information that you need as an investor to succeed and continue to scale and grow your business.

So he built on the foundation of the first book, which is kind of like real estate investing one-on-one and he talks more about how to think and operate like a real estate mogul. How do identify and close expert deals, you know, differences between single multi-family property surrounding yourself with the right team to maximize your money, avoid paying thousands in taxes, by structuring property sales wisely? This is a kind of asset protection and tax strategy combined, and last but not least important projections about the future of real estate investing. Now, this book is a few years old, so, you know, I'm sure some things have changed.

14. TheABCs of Property Management: What You Need to Know to Maximize Your Money Now

I don't think Ken was expecting the amount of appreciation that we would have seen over the last two, three years and the lack of inventory. So it kind of compounds on what he talks about. The next section is about property management. And so again, Ken wrote a third book on this subject because this is where he actually started his real estate career as a property manager.

And so his book is The ABCs of Property Management: What You Need to Know to Maximize Your Money Now. So as you start to invest and you build your portfolio, the question comes up, you know, how are you going to make it as profitable as possible? And how will you maximize its potential and make it grow in value? And the one word he has for this is management.

Now that doesn't mean your managing the property, although you could, if you want it to, there's nothing wrong with that. And it's probably good to understand how to manage your property, but if you're managing your managers, this is good information. So in this book can reveal the key to his success, and that is exceptional property management.

So he teaches you the most important principles and the keys to achieving success, where other people fail, which is often in the management of their properties. So he talks about things on how to decide, you know when to manage your property and went to hire someone, to do it, how to implement the right systems.

If you're doing it yourself structures for your investment, how to manage and maximize cash flow, you know what to expect, essentially it's the life of an owner-manager and how to find the right property manager and avoid the wrong ones. So I think this is a good book as a frame of reference, whether you manage or you don't.

15. The Book on Managing Rental Properties

The second book is if you choose to manage your own properties, it's another book by Brandon Turner called The Book on Managing Rental Properties, a proven system for finding, screening, and managing tenants with fewer headaches and maximum profits. This is definitely a book for a do-it-yourself. So if you want to manage your own properties, even if it's just one or you already manage your properties, and this might be a good supplement to that.

So no matter how great, you know, you are at finding real estate deals, if you, I don't want to manage your properties well or correctly, you're obviously leaving money on the table, or you're not maximizing your returns. Brandon likes to say that being a landlord can be fun, but only if you do it right. So learning to effectively manage your tenants means that you end up with more freedom, less drama, higher profits from your real estate business.

And it just ends up looking good, feeling good. So Brandon's a, you know, an experienced property manager, he's been managing his own properties for a long time. And what he does in this book is essentially takes you on an insightful tour of their management business there as in, you know, him and his wife. So you can learn how they've been able to maximize profit, minimize their stress.

He says that he has a blast doing it. So I guess you can learn how to do that too. But he talks a lot about his personal stories of the mistakes and that they've had, and that you can learn from. And he talks about the different tools and tricks and systems that they've put in place over the years. And the book probably will change the way you think about property management altogether.

So there's a lot of stuff he covers in the book. I think it's more than a beginner's book. It's certainly a primer, but it has some advanced content. So overall I think it's great. And last but not least taxes, you know, the thing we want to defer or eliminate as much as possible. So I have three book picks here. There are many books out there on taxes, but I think these are great fundamental books.

And really what I've tried to do again, is boil it down to the best two, three, or four books in each section that will give you everything. You need, the nuts bolts strategies, tactical plans, and not leave you hanging. So the three books I chose for the area of taxes is first and foremost, the book by Tom Wheelwright, another one of Robert Kiyosaki's rich dad advisors, great guy, super smart. I've had him on the show several times. Always have great episodes talking to Tom, but his book, which he just revised recently.

16. Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

So it's the newly revised version, but it's called Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes, what a great title. So I will say that this book is slanted a little bit more towards business owners and entrepreneurs, but it applies to anybody and everybody because if you pay taxes in any way, shape, or form, you're going to learn something or you can learn something from this book.

So tax-free wealth is about tax planning, concepts, and how to use the tax laws to your benefit. So Tom explains how the tax laws work and how they are designed to actually reduce your taxes, not increase them. The key here is to understand how taxes and tax law works. So the book explains how to use the tax laws to your advantage, and in ways that will support your vision and growth plans, not only for your company or your business, but you know, for your investing empire as well, however, that is structured and you know, more specifically real estate.

17. The Book on Tax Strategies for the Savvy Real Estate Investor

So once you understand the basic principles of tax reduction, then you can immediately reduce your taxes to the point where eventually you may be able to legally eliminate and contactless and drastically reduce your taxes overall. And he talks about this in the book. So it's about minimizing, eliminating, and deferring your taxes.

Those are the three things he talks about in the book. Now, once you get through that, there are two books specifically on real estate investing, as it relates to taxes. And the first one is The Book on Tax Strategies for the Savvy Real Estate Investor. The subtitle to this book is powerful techniques.

Anyone can use to deduct more, invest martyr and pay far less to the IRS. The book was written by Amanda Hahn. She actually lives in Orange County here, not too far from Ireland. And what she talks about is ways to maximize your deductions for your real estate business.

18. The Book on Advanced Tax Strategies: Cracking the Code for Savvy Real Estate Investors

And they also talk about practicals on how to minimize your taxes, not only for this year but in future years, as well as ongoing strategies that will make your next tax season that much easier. So what they want to do is basically help you save thousands of dollars by having great tax strategies in place.

So they talk about creative methods to maximize your deductions, clever ways to write off your kids' strategies, to write off every penny on your travel tips and tricks to cut down on bookkeeping time, and simple procedures that will protect you from IRS audits. So that's their first book, the foundational book, there's a lot in that book, but then they wrote a sequel to it, which is my third book in this category of taxes again by Amanda Hahn.

And this is The Book on Advanced Tax Strategies: Cracking the Code for Savvy Real Estate Investors. And you know, what they say is that when it comes to taxes, it's not about how much money you make, but how much money you actually keep. So if you're tired of working hard all year, just to lose, you know, the largest chunk of that money that you earned to the IRS, then, you know, obviously you want to learn as much as you can about taxes, you know, believe it or not.

The US tax system is filled with loopholes designed specifically to benefit real estate investors. And this actually got better in 2017 with the new tax act that was put into play under the Trump administration. So what was great as far as tax benefits for investors and real estate investors actually got even better with that tax act. So this book is a comprehensive follow-up to the book on tax strategies, which was a best-selling book by Han and Matthew McFarland.

And this just brings you more strategies to slash your taxes and turn your real estate investments into a tax-saving machine. And, you know, again, this book just goes deeper into a lot of the stuff from 10 31 exchanges to taking advantage of opportunity zone, tax benefits, how to supercharge your nest egg with self-directed investment strategies, steps to use your rental properties to legally wipe out your taxable income.

What else did they talk about in their ways to take advantage of the tax reform benefits that came about with all your real estate deals, accelerating your depreciation, and even common retirement and investment tax traps, and really how to avoid those. So, you know, people sometimes make the mistake of investing in their retirement account and then only find out that, you know, they've made a mistake. They don't have any tax benefits or maybe not liable for tax penalties because they did it wrong.

Here's another blog that you can read – 12 Books to Read if You Want to Get Rich.

How To Make Money In Real Estate And Get Rich In 2021?

July 10, 2021 by Marco Santarelli

There is no shortcut to make money or get rich quickly in real estate, but you can slowly and steadily build wealth by investing wisely. You would know that there are many different ways to become rich but real estate is one of the best ways to build wealth. Having said that, making money in real estate takes the right advice, systems, and determination. Investing in real estate stands out as a tried and tested approach to make money but like every other business, it has some risks associated with it.

If done the right way, real estate can be a great source to build wealth if you take the time to educate yourself about the process and the best ways to get great returns. If you have cash (a 20% down payment), it's much easier to get started in real estate investing. But the truth is many entrepreneurs start their businesses – including real estate investing – with very little money every day. Many of them just get off the ground by dreaming big and putting in a lot of effort.

This article has been written for beginners who want to know how to make money in real estate. Today, there are numerous options for investors to invest in real estate; there is no one-size-fits-all answer. One of the finest ways to diversify your portfolio is to learn how to generate money in real estate. If you have a lot of money, you could, for example, buy an undervalued real estate property, fix it up, and sell it to an investor. You profit from the sale of the property for a considerably higher price than you paid for it after the work is completed.

You can also consider buying a long-term rental property or a second home where you vacation and rent out to others when it's not in use if you'd rather leverage your investment by using a mortgage to invest in a tenant-ready property. With the right steps, you can increase your wealth, hedge against inflation, and profit from a rising market. There are so many advantages to owning real estate like leverage, appreciation, tax benefits, that just getting a “good deal” can make for a great long-term investment.

We'll show you how to make money in real estate, and avoid the most common mistakes. The most popular way is to buy an investment property and slowly build up your portfolio. Generally, there are two primary ways to make money from real estate assets — appreciation, which is an increase in property value over a period of time, and rental income collected by renting out the property to tenants. The majority of the money & wealth you build through real estate comes from appreciation but cash flow is important because it helps in reducing your risk.

Buying a rental property that loses money every month in hopes of a future appreciation is a bad investment. The positive cash flow doesn't only enable you to pay off the property but it also contributes to saving for another down payment to buy your next investment property sooner. The more properties you buy, the more you can save, and the faster you can achieve your money-making goals through real estate investing.

But we shall discuss some more “well-known” ways to make money in real estate which include both active and passive investing. Remember, knowledge is the key to using real estate as a vehicle for wealth building. Smart investors always know what drives markets, how to time market cycles, and whether to invest in a local market or to invest out of state.

10 Ways To Make Money In Real Estate And Get Rich

Investing in real estate can add diversification to your investment portfolio. In this article, our focus will be on how to make money in real estate through different means. Are you excited? There are multiple ways to begin growing your wealth by utilizing real estate. Let's get started and see how you, too, can become a successful real estate investor.

1. Making Money in Real Estate Through Rental Properties

This is the classic way of making money in real estate and getting rich. In this type of investment, you make money by leveraging long-term buy-and-hold residential rentals. People will always require a place to live. Lords and nobles fought over titles that let them collect rent from those living, farming, and otherwise working the land. A few entrepreneurial types drained swamps and built businesses so that they could make more from the land than they would if they merely leased it out to farmers and ranchers.

We’ve come a long way in the intervening ways, providing many options for those who want to know how to make money in real estate. You may buy land, build a home, and then rent it out. You could find distressed properties, rehabilitate them, and then rent them out. Turnkey properties were purchased by someone else who rehabilitated them before finding a tenant. Regardless of how you acquire the property, it is a buy and holds strategy.

You can own residential, commercial, and industrial real estate property. One of the biggest benefits of owning rental real estate is the steady cash flow it generates. It is the best form of owning investment real estate for earning a passive income. The downside of this approach is that you’re putting all your eggs in relatively few baskets. If there are issues with the apartment complex you own, the rental income from it suffers as people leave or the repair costs eat into your profits.

This strategy is probably the one most likely to let you generate a steady income that is large enough to live off of once you own multiple rental properties. You may be able to utilize this strategy if you cash out money from a retirement account or equity in your home. If you want to know how to get rich in real estate, understand that this is one of the most secure routes to doing so as long as you manage expenses and the properties themselves well. Dallas is a very good real estate market for buying rental properties.

Know the rules for evicting tenants and raising rental rates if you’ll be managing an apartment building. Understand the local building code, community norms for properties in the price range you’ll be buying, and cost-effective upgrades if you’ll be buying and flipping properties.

You can’t afford to lose money turning a middle-class home into the only luxury property on the block. All of this requires the money to buy the properties. We’d recommend saving up or tapping into funds you have to put down the first down payments on single-family homes or small multi-family housing units. This may come from your savings, equity in your primary residence, or a retirement account.

We’d recommend against borrowing against your 401K since the money has to be paid back within a few weeks of losing your job or else you have to pay taxes and a penalty on it. You’d almost be better off pulling money out of an IRA. You have more control over the fees and taxes you’d pay. Set aside thousands of dollars in an emergency fund to cover unplanned repair bills, surprise legal fees, and other costs you haven’t properly taken into account.

Then you don’t end up cutting into your cash flow with high-interest hard money loans to pay for the little repairs needed to legally rent out the unit or hit your credit cards to pay contractors. Buy a single property with your cash down payment, a mortgage, and your business plan. Set the goal of renting out the unit for 1 percent of its total value per month.

For example, a 100,000 dollar house should rent for around a thousand dollars a month. Then apply your strategy. Sell the fixer-upper or collect the first few months of rent from your new tenant. Rebuild your emergency fund, since you may need thousands of dollars to fix a broken water heater or hole in the roof. Save up enough money for your next renovation or down payment.

Then seek a mortgage to buy that next property and repeat the pattern. Don’t rush out to buy a bunch of properties. Debt multiplies risk, and you don’t want to end up with a million dollars of outstanding unsecured debt because you tried to manage ten rental properties without any experience as a landlord. Nor can you afford to make a mistake with a property management company. Don’t try to fix and flip several properties at once. Grow slow so that you have the margin to absorb the cost of mistakes.

This is why you should be buying one to three rental properties a year, not the ten some property investment programs recommend. Buy and flip one property at a time, no matter how long that takes, until you have the expertise or expert contractor on your team to handle several such renovations at once. Buy a small apartment building and learn how to manage it or find a good property manager to do the work for you.

Remember that every month results in increased equity in the property, and that’s aside from the income you’re earning. You could dramatically improve the cash flow if you aggressively pay down the outstanding mortgage on a property. For example, you go from earning 300 dollars to 1000 dollars per month per single-family rental home.

What is a property that turns out to need far more work than you expected? What if the apartment building isn’t working out as expected? Sell it, pay off the debt, and then start over with the cash you have leftover. You will eventually be making millions in real estate as you build up your real estate portfolio, and you could see a million-dollar net worth in less than five years.

If you own dozens of rental homes, consider selling them to buy professionally managed multi-family housing. When you’re ready to earn truly passive income, that is one route. Selling the properties to other investors and investing in real estate investment trusts or shares of a property managed by others is another.

2. Interest-Based Income Through Investing in Mortgage Notes

Mortgage notes can be a good real estate investment for people seeking passive income. When you buy a mortgage note, you receive monthly payments that include both interest and principle. It is a steady stream of income like you’d receive from a rental property, but there is no need to maintain the property like a landlord. It is far easier to invest in real estate located around the country because you don’t have to deal with local rules regarding real estate licensing or taxes. The mortgage note spells out the loan duration. You know how long you’ll receive loan payments, and it may be 10 to 30 years.

You may be able to increase the value of the mortgage note by buying from a distressed note holder. For example, you may find a farm or family property sold via owner financing. The person sold their home, but now they have to manage the loan. They may need the money, whether it is to allow them to buy a new home or simply get cash to fund their retirement. In these cases, you might offer 80,000 dollars to buy a 100,000 dollar note. If they accept, you receive the interest and principal on a 100,000 dollar loan but only paid 20,000 dollars for it.

Another class of desperate sellers is the private lender with a slow or non-paying borrower. They’re not getting the income they expected. They may be reluctant to foreclose on a slow-paying family member. Or they may not want the property back. You can buy these notes for far less than their face value. However, you’re going to either need to ramp up collection efforts or foreclose on the property. Only buy notes like this if you have a plan for how to monetize the property, whether you rent it out, sell it to someone else or redevelop the property.

3. Getting Rich By Flipping Real Estate

This is another proven way to make quick money in real estate to get rich. Fix and Flip is a specific form of real estate investing. The investor buys a home, pays for repairs and renovations, and then sells the property for a profit. This type of real estate investing is the subject of numerous reality shows. The reality is that this form of real estate investing is high risk. If you’ve underestimated rehabilitation costs, you could lose money.

If you put too much money into the investment property because you don’t understand your target market and buyer expectations, you’ve probably wiped out your real estate profit margins. Whether there are problems with the selling price, the real estate agent, the neighborhood, or how the property looks, every month the house sits on the market subtracts the property’s carrying costs from your profit margin.

If you try to do the repairs yourself to save money, the theoretical savings on labor costs are offset by the delays in getting the property to market. If you’re not already a skilled building contractor, there is a risk that DIY repairs don’t meet code or potential buyers’ expectations. Then you may lose everything on the deal because you have to pay for someone else to redo what you thought was done. The ideal fix and flip is a property that only needs cosmetic repairs, but these are truly rare.

4. Making Money Through Real Estate Investment Trusts

Real Estate Investment Trusts or REITs allow you to invest in real estate without having to buy and manage a property. REITs may be invested in mortgages, properties, or a mix of both. You can diversify your holdings in real estate by buying REITS invested in particular market niches. Because REITs are publicly listed, you can buy and sell shares on the open market, making your money more liquid and allowing you to diversify your investments. One of the benefits of REITs is their non-correlation with other types of equities.

This means that the value of REITs depends on the real estate market, not the stock market. REITs are available in publicly traded and non-traded forms. The Securities and Exchange Commission recommends against non-traded REITs due to their high fees, the challenge of liquidating them, and the risk they may become worthless. Publicly traded REITs are as liquid as stocks and bonds. REITs stand out for their regular payment of dividends, something that a decreasing share of stocks offers anymore. Clearly, this also shows a way to make money in real estate and get rich.

5. Making Money Through Real Estate ETFs and Mutual Funds

You can buy exchange-traded funds (ETFs) and mutual funds that are broadly diversified or targeted to a particular sector. And you can buy ETFs and mutual funds that are themselves invested in real estate. For example, it is possible to buy ETFs that invest in real estate stocks such as publicly traded home builders. Some ETFs invest in REITs, as well. There are mutual funds that invest in real estate developers and property management firms. Both investments are handled by a fund manager (ETFs are passively managed, and mutual funds are actively managed).

ETFs are less expensive than mutual funds, and you can trade them like stocks at any time during market hours. The benefits of investing in ETFs and mutual funds include high liquidity and low costs. Forget cashing out your 401K or 403B plan to buy rental real estate, since this strategy allows you to invest in real estate within tax-advantaged retirement accounts. You don’t need a lot of money up front to start investing this way. Conversely, you may not receive dividends. You may not receive any returns until you sell the appreciated shares.

6. Using Private Lending To Making Money in Real Estate

Hard money lenders loan money to those utilizing the fix and flip strategy. They may lend money to those buying a property to renovate and then rent out; the property investor, in this case, would secure a traditional mortgage after they have an attractive property bank will now consider as collateral. Acting as a bank to property buyers yields a higher rate of return than you’d see if you left money sitting in the bank. You have to do your due diligence since mistakes could mean you don’t have a valid lien against the property.

For those not yet ready to invest a large sum into a single project, crowdfunding is an option. You can loan money to someone who wants to buy a rental property or secure a down payment on their own home. In either case, the loans are high-risk and illiquid. Another issue is that hard money lending of more than modest means that SEC rules apply. If you don’t meet the income and net worth requirements set by the SEC, you may not be allowed to loan money to real estate investors unless it is in token amounts through a crowdsourcing site.

7. Increase In Wealth Through Real Estate Appreciation

When the value of a property increases, we call this “appreciation.” While appreciation is not always guaranteed but historically real estate prices have appreciated over the long term. So, again, appreciation alone is not likely going to make you a millionaire but real estate has always increased in the US, averaging 3% per year over the past century. For example, if you purchased a property for $250,000 2 years ago, and today that property is worth $350,000, the appreciation made you $100,000 richer or in other words, your assets grew by $100,000.

Another type of appreciation that can come into play is known as “forced appreciation,” the concept of increasing the value by physically upgrading the property through renovation. Any form of appreciation makes you money in real estate and you become richer. Click on the link to find out how investing in Kansas City real estate can help you gain wealth.

8. Opting For 1031 Exchange in Real Estate

As a real estate investor, you can use this tax code called 1031 Exchange to sell an investment real estate and use the profit to buy a new one that is of equal or greater value. In this way, you can defer paying taxes until that next property is sold or you can opt for another 1031 Exchange. When you choose to sell your property, you are required to pay taxes for your capital gains. With the help of section 1031 of the Internal Revenue Code, you are permitted to postpone paying taxes when you reinvest those gains in another property. IRS considers that you are exchanging your old property for another real estate property.

9. Loan Pay Down

When you purchase a rental property with a mortgage, each month you make a payment to the lender. That payment includes two parts: principal and interest. Interest is the profit for the lender, but the principal is the money you are paying down the loan with. Over time, your tenant is essentially paying the loan down for you, helping you build wealth automatically. For example, if you purchased a house five years ago for $100,000 and obtained an $80,000 mortgage (we’ll say it was a 30-year mortgage with a 5 percent fixed rate), today you would owe only $74,000.

Ten years from now, you would owe only $65,000. This means that every year your equity increased. You'd gain value, as long as the property value didn't drop. And if it made $0 in cash flow or broke even and never climbed in value, still after the mortgage is paid off, you’ll now have a property worth $100,000 or more that you didn’t save for. Your tenant paid it off due to the “loan pay-down.” This can't happen if you pay all your cash or savings for the property and don't go for the mortgage options. This is the smartest strategy for making money in real estate to get rich.

10. Refinancing Your Mortgage For Better Cash Flow

You can also opt for refinancing your mortgage. The number one benefit of refinancing your mortgage is to obtain a loan at a lower rate of interest and also to decrease the monthly mortgage payment amount. One of the benefits of refinancing your mortgage is also that refinancing provides the borrower with fresh money at lower interest rates due to which the homeowner can lower his/her monthly payment amount. Another advantage of refinancing your mortgage is that the decrease in the interest rates allows homeowners to replace an existing loan with another with an added benefit of a shorter loan term and no change in the payment amount.

Is Real Estate The Best Way To Make Money or Build Wealth?

how to get rich in real estate

While making money in real estate you can minimize the risks and get a high return on your investment but it comes with proper education and experience. You may be fixing and flipping properties. You may be buying fixer-uppers, repairing them, and renting them out. Or you might be buying existing rental properties with tenants, knowing you can improve the cash flow by getting rid of non-paying tenants and adding amenities that allow you to up the rental rates.

It doesn’t matter which strategy you use as long as you pick one and master it. You need to learn a lot of things and also understand the risks involved before buying your first investment property. Location is your priority for a successful real estate investment. It would enhance your chances of selling the property further.

Real estate is one of the best investments available to make a lot of money, assuming you buy properties that have good fundamentals in their favor. It is one of the few businesses where banks are almost eager to loan you money, whereas banks reject roughly half of all business loans. Real estate almost always appreciates at a rate higher than the rate of inflation. Property appreciation rates have averaged 3 to 5 percent annually for the past thirty years.

It takes a dramatic downturn like the Great Depression or the Great Recession of 2007-2012 to hurt property values across the board. Know that real estate is ultimately local, so individual real estate markets can collapse due to lack of demand or dramatic over-building though the national market is steadily growing. One of the points in favor of real estate is that you’re holding a real asset. A company could go bankrupt and wipe out the value of its shares. They could be hit with a massive lawsuit, and the dividends they were paying disappears.

When you own quality real estate, the value won’t go down unless the area as a whole becomes undesirable. As long as you don’t have to sell it in a hurry, you can get your money back. That’s why private mortgage insurance is canceled once you hit 20 percent equity in the property. All of this explains why real estate investing is safer than stock market investing. It is possible to buy real estate for capital gains. Buying condos in the hope of flipping them for a profit is one such case.

Buying land to eventually sell to developers is another. However, real estate offers significant cash flow. You can rent out apartments, condos, single-family houses, and commercial space. This generates monthly cash flow for the owner. The cash flow is offset by tax-deductible expenses like maintenance, property taxes, and insurance. There are a variety of ways to calculate the return on investment for rental real estate. If you use the cap rate equation, a good ROI is 10 percent, while 12 percent is considered excellent.

The cap rate is generally used because the equation is straightforward. (NOI / purchase price x 100 percent). Note that these returns are based on the income you see with every rent check. Appreciation of the property is a capital gain you don’t realize unless you sell the property. When you invest in real estate, you could achieve a million-dollar or greater net worth simply because the properties you own and manage have gone up in value over the years.

Few of us have the cash on hand to buy the property outright. This is why many put a down payment down on a property before repairing it. They may then rent it out or flip it. Renting it out generates steady income that has significant legal protection since you can generally evict non-paying tenants. The cash on cash returns take the mortgage on a property into account, and you can easily see a double-digit ROI using this equation.

Flipping the property or selling it after you’ve purchased it and repaired it will generate a profit. However, this approach is riskier than renting out real estate. You lose money every month you hold the property and pay carrying costs like the mortgage. If you sell the property for less than it is worth, you could lose tens of thousands of dollars. On the other hand, if you buy real estate and rent it out, you’ll get more for the property from investors because it comes with an income stream, the existing tenant.

References

REITs | Fix and flip
https://thecollegeinvestor.com/10414/ways-to-invest-in-real-estate
https://www.forbes.com/sites/jrose/2018/04/18/real-estate-investing-without-buying-property/#7b1b9b511496

Crowdfunding and Hard Money Lending
https://www.usatoday.com/story/money/personalfinance/2017/08/23/diversified-portfolio-5-ways-invest-real-estate/588610001

Appreciation
https://www.zillow.com/research/zillow-home-value-appreciation-5235

PMI
https://www.foxbusiness.com/features/how-to-dump-pmi-asap

ROI
https://www.mashvisor.com/blog/rate-of-return-on-a-rental-property
https://www.biggerpockets.com/blog/rental-investing-earn-2000-month

Strategy to make money
https://www.businessinsider.com/secret-to-wealth-real-estate-2015-4
https://www.biggerpockets.com/blog/rental-investing-earn-2000-month
https://www.biggerpockets.com/blog/plan-to-make-a-million

Loan Pay Down
https://www.forbes.com/sites/brandonturner/2016/10/18/4-things-you-need-to-become-a-millionaire-through-real-estate-investing/#3c402999247a

Business loans rejected
https://www.biz2credit.com/blog/2019/05/13/6-reasons-small-businesses-get-rejected-for-loans/

Single Family Rental Homes vs Multi-Family Investing in 2021

June 28, 2021 by Marco Santarelli

A single family home is a standalone property on its own lot. Investing in a single family home is basically investing in a house or a condo to rent it to a single tenant. One of the simplest definitions of single family rental property investing is getting paid for what you own, rather than just paying to own it. It has a few pros and cons attached to it but it depends on your expectations from the property.

Usually, people tend to buy a property in a low-budget or affordable locality and revamp it to attract new tenants. Investing in single family rental homes gives the investors the liberty to determine their profits in many ways. Some of the advantages of buying single family rental properties are huge tax write-offs, a passive rental income, and a long-term capital appreciation of properties.

[Read more…]

How To Choose Best Places To Invest In Real Estate In The World?

21 Best Places To Invest In Real Estate in 2022

1. Boise, Idaho

2. Dallas, Texas

3. Houston, Texas

4. Atlanta, Georgia

5. Las Vegas, Nevada

6. Orlando, Florida

7. Spokane, Washington

8. Tampa, Florida

9. Austin, Texas

10. Chicago, Illinois

11. Columbus, Ohio

12. Lakeland, Florida

13. Ocala, Florida

14. Birmingham, Alabama

15. Durham, North Carolina

16. Charlotte, North Carolina

17. Colorado Springs, Colorado

18. Denver, Colorado

19. Raleigh, North Carolina

20. Phoenix, Arizona

21. Seattle, Washington

Foreign Investment In US Real Estate

5 Best Cities For Foreign Investment In United States Real Estate

Residential Properties Purchased by Foreign Buyers in the United States

10 Tips to Become Successful in Real Estate Investment in 2021

1. Choosing Your Market & Timing The Investment Wisely

2. Buy Low

3. Tap into the Hidden Market

4. Understand Your Costs Up Front

5. Understand The Market

6. Manage Your Risks In Real Estate Investment

7. Go for Best in Class – Not “The Best”

8. Maximize Value of Real Estate

9. Know the Rules and Regulations of Real Estate Investment

10. Consider Non-Traditional Real Estate Investments

Easiest Way To Become A Successful Real Estate Investor

Why Should You Read Best Real Estate Books Before Your Investment Starts?

18 Best Real Estate Investing Books You Must Read In 2021

1. The Richest Man in Babylon

2. The Compound Effect: Jumpstart Your Income, Your Life, Your Success

3. High Performance Habits

4. Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!

5. Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom

6. Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle-Class Do Not

7. The Ultimate Guide to Passive Real Estate Investing

8. How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started

9. The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits, Most Investors Miss

10. Long-Distance Real Estate Investing

11. The Millionaire Real Estate Investor

12. The Book on Rental Property Investing

13. Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals

14. TheABCs of Property Management: What You Need to Know to Maximize Your Money Now

15. The Book on Managing Rental Properties

16. Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

17. The Book on Tax Strategies for the Savvy Real Estate Investor

18. The Book on Advanced Tax Strategies: Cracking the Code for Savvy Real Estate Investors

10 Ways To Make Money In Real Estate And Get Rich

1. Making Money in Real Estate Through Rental Properties

2. Interest-Based Income Through Investing in Mortgage Notes

3. Getting Rich By Flipping Real Estate

4. Making Money Through Real Estate Investment Trusts

5. Making Money Through Real Estate ETFs and Mutual Funds

6. Using Private Lending To Making Money in Real Estate

7. Increase In Wealth Through Real Estate Appreciation

8. Opting For 1031 Exchange in Real Estate

9. Loan Pay Down

10. Refinancing Your Mortgage For Better Cash Flow

Is Real Estate The Best Way To Make Money or Build Wealth?

Real Estate

Quick Links

Blog Posts

Contact

(949) 218-6668

(800) 611-3060