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5 Benchmarks To Select A Real Estate Investment Platform Online

Real estate is traditionally one of the most sought-after investments. However, it had been a preserve for seasoned investors with a lot of capital. Today, you can build a real estate portfolio on an online platform regardless of your background or origin. All it takes is finding a great platform to cater to your real estate investment needs. Here are benchmarks to help you select the ideal real estate platform online to kick start your journey to become a real estate investor.

Image credit: apartmentcorp.com

Experienced And Professional Team

A great investment platform relies on the strength of its team. Successful real estate investment depends on having a team with appropriate knowledge of real estate fundamentals, finance, underwriting, and survival strategy. A real estate platform online connects real estate owners with investors. So, due diligence is still necessary just like when evaluating a brick and mortar real estate company. The ideal platform should have an expert team with a strict vetting procedure.

Equally important is to understand the company’s evaluation of financial projections for deals and factors influencing investment returns like the real estate value, business strategy of operator, and market quality. You have to be sure that the investment platform ensures all deals meet quality standards before availability. The leadership team behind the platform should have experience and expertise in related fields including underwriting, real estate, business strategy, and finance.

Company Portfolio

The best online real estate investment platform should have an impressive portfolio. You have to work with a team that has considerable real estate transaction experience in the niche you’re interested in. Working with a team that has adequate ‘skin in the game’ increases your chances of becoming a successful real estate investor. The investment platform should have safety guidelines in place to protect potential investors from downside risks such as potential loss of principal and illiquidity.

Performance of Underwriting Team

Ensure to look for a real estate investment platform online with a standard procedure for vetting deals. The team should not just work with numbers without verification. So, before you invest in such a company, check their vetting criteria to understand how the underwriting team does its work. All opportunities on the platform need vetting before they are made available to potential investors.

Some of the vetting aspects include:

Underwriting process for deals
Tallying of projected expenses with historical expenses
Rental assumption rate backed by market research
Assumptions backed by data from trusted third-party sources
Comparison of exit cap with going-in and market cap rate

Client Service Team

Another benchmark when selecting a real estate investment platform online is to check their service team. The ideal platform should have a knowledgeable customer service team to assist customers. This is very important since the service team is everyone’s first point of contact with the platform. So, any poor service gives a negative impression and is likely to make you look for a platform with better service.

Mentorship Program

The best online platform for real estate investment should try to help novice investors understand the nuances of the industry. Some of the benefits of a real estate mentorship program include:

Understanding property analysis
Acquiring knowledge regarding property development
Learning how to think like a property owner
Understanding investing and financing construction projects

Although the mentorship program comes at a cost, it is worth the investment given the knowledge you are likely to acquire for a lifetime career in real estate investment.

Extra Services Offered

Reputable real estate platforms online offer various services. So, ensure to check whether a platform that catches your fancy has extra services that you need. A platform with a legal team to help clients handle the processing of EB5 and E2 visas is a wonderful choice. The Employment-Based Fifth (EB5) visa offers eligible migrant investors a chance to become permanent residents like Green Card holders. A platform offering assistance to acquire an EB5 visa makes it easy for you to find the appropriate commercial investment you can invest in to qualify.

The E2 treaty visa allows someone to enter and work in the US after investing. Depending on your country of origin, this visa is valid from three months to five years with a chance for indefinite extension. If you need this visa, find a platform to assist you during the application process to ensure that you meet the five requirements required by the U.S. Citizenship and Immigration Services. Getting assistance from an all-service platform saves time and money.

Bottom Line

An online platform is a way to go when looking forward to making your first investment in real estate. Look for a company that offers a mentorship program for novices to understand the ins and outs of the industry. When from another country, look for a platform that offers assistance during EB5 or E2 visa applications.

Author: Eernesto Felder

Real Estate Agents during the COVID-19 pandemic

Are you a Real Estate Agents during the COVID-19 pandemic? Then this space is for you.

We would like to know: How is your business coping during the covid pandemic?

If you like to share your experience as a real estate agent during the COVID-19 pandemic, we are happy to publish it in this blog.

It would be great to know how the Real Estate market developed during the covid-19 pandemic in your country. Did the market pick up again? Prices went up or down? What challenges did you have to face etc.? Do you have a recommendation for our readers?

There is so much speculations about house prices going on right now that everybody appreciates to get some first hand information from people like yourself to see whats really happening.

How to apply

You are invited to introduce your agency to our readers as well and we can include a link to your real estate listings on our website.

Your article should have at least 500 words and you can include an image.

If you like to submit your article you can do so by simply sending it to

guestpost@listproperty4free.com

Please send it from the email address that you signed up with on our website in order for us to include a link to your listings.

We are happy to share your experience with our readers.

5 Ways to Begin Investing In Real Estate with Little or No Money

Lots of folks believe this to enter the world of property; you require plenty of money. But it doesn’t imply that a person with less or no cash can’t begin a real estate company. In This article we have covered the full topic of – how to do real estate business with no money?

The first thing required to initiate a real estate company (or any business, really) is the ideal mindset. You will need to work out creative and innovative ways of getting financing for your real estate deal, especially when you’ve got no funds to spend.

A business is successful once you earn profit by selling your goods or services. This is true for the real estate business, also. The best thing about the property sector is that everyone can start this business with the wish to sell the property and earn high returns.

So, how can you begin a real estate company with zero capital? How can you organize financing to back up your real-estate deal?

If these questions are running through your head, then we have got helpful answers for you.

How to Make Money in Real Estate Without a License

Real estate is an exciting business. I have met a few of the most driven and enthusiastic individuals, lots of whom are currently lifelong buddies. It keeps you on your feet! When most folks consider transitioning to a career in real estate, but the first thing that comes to mind is becoming a certified realtor. With all the licensing and education requirements, however, that may seem quite daunting. Many don’t understand that you may work in real estate without a license in most countries. In actuality, a quick scan of the internet job boards shows the assortment of opportunities.

How to Start a Real Estate Business with No Money

Here Are Five Powerful ways to start a property dealing Company (How to do real estate business with no money) with zero Cash in your pocket, Plans you can learn from and apply in other businesses as well:

1. Buy a House as a Main Home

You can buy a house to live in with a zero money down VA or USDA loan, remain there for at least one year, then move out and turn the house into a rental home. Do not forget that equity building through property investing also contains the houses where you live. Additionally, the down payment and credit rating requirements for a primary residence are always less strict compared to investment property. Living on your insignificant farms first is an excellent way to avoid the more rigorous lender rules for property investment properties.

2. Purchase a Duplex, and Reside in 1 Unit while You Rent Out another One

Did you know that you could fund a two-unit duplex using an FHA loan? You reside in one unit and rent out the other property for additional cash. Along with the reduced down payment requirement, the best thing about this property investing strategy is the lease you derive from the opposite side of this duplex will most likely play a significant part of your mortgage!

3. Create a HELOC (Home Equity Line of Credit) on Your Primary Residence or another Investment Property.

For those who have a large quantity of equity on your primary residence or another property rental property. Many banks will provide you with a HELOC, which you can then use for property investing. A normal HELOC will make a line of money in hand for around 70-80% of the instant equity in your currently owned land.

However, the HELOC can also be utilized as a zero-down mortgage to fund a rental property.

The HELOC interest rate is generally the prime rate and 1 or 2%, which now puts them around 5 percent. But the principal benefit of the HELOC is that it usually does not have any closing costs, and you’ll be able to close quickly with only a Drive-By evaluation on your premises. Some banks won’t charge you for this particular examination.

By way of instance, if the interest is $300, you can simply pay that minimum amount, or pay extra money each month to repay the principal. This permits you to make your mortgage under your terms.

Assuming the prime rate stays stable, the total amount of interest will fall as you pay down the principal monthly.

4. Ask the Seller to Pay your Closing Costs.

On many property transactions, the property seller is willing to cover buyer closing costs to incentivize a sale. However, the trade-off will most likely have to supply the full asking price or close to it. This is reasonable, so long as your lease is enough to cover all your expenses and give you little monthly cash flow. However, at full asking price in the event, the lender quotes you an entire mortgage payment (including insurance and taxes ). Which is equal to or higher than the lease you can reasonably cost, search for another deal.

5. Utilize a Bank that Pays Closing Costs or Supplies a Rebate on your Down Payment.

In combination with Freddie Mac’s Home Possible Advantage program, Quicken Loans has just promoted a 1% down payment option on single-family houses for owner-occupied properties. The buyer puts up 1 percent, and Quicken Loans provides a grant for another 2% needed. A 680 credit rating and a debt-to-income ratio of 45 percent or less will be required.

Sometimes the interest rate is slightly higher to get this deal, but some lenders are currently advertising. They’ll pay closing costs without increasing interest rates. Check with a site such as bankrate.com or do a Google search for a listing of those companies.

Whichever of these methods you opt to use, the most crucial point to bear in mind is that investing in real estate with very little money is a superb way to build wealth. It is among the very few investment approaches where you can begin without large quantities of cash. One never knows when particular property programs will come and go. So make sure to benefit from these ideas while they’re still around.

Is real estate an excellent way to earn money in 2020?

Real estate is best regarded as a long-term investment – it pays off best when held through the years. You can purchase property in 2020, but you would want to hold onto it for 20–30 years for the best results. Suppose you can find sellers that will sell their property for you at a substantial discount below market value. In that case, you can create a whole lot of cash in a couple of weeks through wholesaling or flipping. But finding people who will sell the property to you for 10–20 percent or more below market value is a whole lot tougher than finding quality properties that will appreciate and supply decent cash flow over the longer term.

How to Start Investing in Real Estate with Little Money

For many people, the term “investing” conjures up images of men in suits, tracking the exchange of tens of thousands of dollars on a stock ticker.

I am here to tell you: You do not have to be the Wolf of Wall Street to begin investing. It’s okay if you are more of a mouse of Main Street. Even if you just have a few bucks to spare, your money will grow with compound interest.

The key to building wealth is developing good habits–such as regularly putting money away each month. Replace the barista-made cappuccinos for coffee in your home, and you may already be saving more than $50 per month.

As soon as you have a little cash to play, you may begin to invest.

It’s just as straightforward. Having a robo-advisor or savings account, you can make your money work as you play. With a stock trading program, you can play a little money and learn valuable investing lessons simultaneously. Exactly like Halloween costumes, investing comes in several diverse forms. It should not be a scary word.

With so many diverse choices, investing for novices is more straightforward and more uncomplicated than ever before.

Conclusion

Property coping is a very profitable business. Use the ways mentioned above to enter this line of business even when you don’t have cash. But, do not forget that entry is simply the first step on the ladder of success. How your company grows and succeeds is mainly based on your hard work and your ability to recognize opportunities and take action accordingly.

Ready to begin taking advantage of the current opportunities in the housing market?

Whether you are new to investing or have closed a few bargains. Our new online property course will cover everything you will need to know to help you start real estate investing. Professional investor than Merrill explains the very best property plans to help get you on the path towards a better financial future.

About the author: My name is King kentus i blog at komback.com and i am the CEO of the said website.

Real Estate for Preppers

I just stumbled upon a few websites for preppers when I looked up how to make my own yeast (there was none left in the shop). That’s when I discovered that there is a whole trend out there, it looks like everybody wants to become a prepper these days. There are also a few real estate websites offering properties for preppers.

What are preppers and what is real estate for need?

Preppers or survivalists are people who prepare for emergencies, including probable disturbances in social or political order, as well as preparations for personal emergencies, such as job loss.

The main focus is on self-reliance, stockpiling supplies, and gaining survival knowledge and skills. Among other things preppers often stockpile food and water, prepare to become self-sufficient, if possible, off-grid living, and build structures such as underground shelters that may help them survive a disaster.

Why do so many look for real estate for preppers now

The covid-19 pandemic has caused many people to re-examine their way of life. It created a wave of interest in rural living and particularly in prepper properties. Relocation to rural areas where one can be self-sufficient to some degree is an increasingly attractive possibility.

A lot of workers have been sent to work from home, and discovered, they actually love it. They are seeing its many advantages. With internet available in even isolated locations, the feasibility of working from home has gone up radically.

It can be immensely satisfying to grow your own food.

Less populated areas = easier social distancing

People in city areas are feeling restricted to their homes or apartments. In such densely populated places, social distancing can only be accomplished by staying at home. In less populated areas, or maybe suburbs where a house comes with its own big garden there is plenty of opportunities for outdoor activity, while easily maintaining a proper distance to others.

If you are planning to become a prepper, survivalist or maybe you are just seeking some more space outdoors by moving to the countryside, have a look at our real estate listings.

Real Estate After Quarantine

This temporary quarantine made many people think about their values and goals in life as well as their work situation and their homes.

Although, this isolation is only temporary, life itself has always and will continue to change.

Our social interactions will be different for months, if not years to come. Our economies will eventually grow again, but the way we do business will have progressed. This is true for real estate as well.

Next time I like to quarantine on a tropical island…

One thing is certain, everybody needs a place to live, therefore real estate will always be needed. As much as everybody would like to improve their homes to be able to quarantine in style in case this happens again, it has to be considered that the financial situation of most people changed. Therefore, the housing market needs to adapt. Cheap real estate will be needed more than ever before. “Cheaper” meaning more cost effective.

This of course can mean that people have to downsize or reconsider what they really need in their home – simply back to the basic needs.

“Cheaper” doesn’t mean uglier

It’s true that many houses for sale that are on the lower end of the price range don’t look too good. But to be honest most of them only need a little bit of TLC and they can be a cosy home.

If you need to downsize, why not sleep on a sofa bed in the living room?

How can real estate agents adapt to this new situation?

You as a realtor can continue to do what you are really good at – be there for your clients and understand what they need in their circumstances. This is a new situation for all of us and for some it may be hard to adapt. Maybe some can’t picture themselves in a smaller, simpler home.

Whatever step someone needs to take, you can be there to help and make this a good experience.

What exactly does this mean?

You have to think outside the box, but yourselves in the buyer’s shoes. It maybe time to rethink how real estate deals where done in the past and see new ways that can make the whole process simpler, more time effective and more cost effective.

Will you go with the flow, let the waves take you wherever they go, or will you build a ship and go your own way?

Pick your boat and get on your way.

What is your idea of real estate after quarantine? Leave a comment below and let us know what you think.

Real Estate Guest Post

Guest post welcome. Do you have a topic you like to share with our visitors? We’re continually searching for articles that give a one of a kind and helpful point of view on any subject relating to real estate.

As we are listing real estate from all over the world, there is a lot to interesting areas to cover. With your help as well as other writers we can look at this subject from many diferent angles.

Real Estate Guest Post Guidelines

Title: Please give us the title of your Blog Post.

Name: we like to publish your name as author

Keyword: Please give us the keyword you are targeting with your article

The article has to be unique and well researched (no fake news).

Content Length: we would suggest a minimum of 500 words as it might be difficult to cover any subject in less than that. Please ensure your story is relevant to people in general and that it contains helpful data.

Pictures: You can send us one or two photographs to include in your article.

Altering: We maintain the right to alter your post (content, title and captions) to improve readability and SEO. In this case we will send the altered article for your approval before publishing.

If you like to include a backlink to your article please let us know before so we can approve it.

Please contact us at guestpost@listproperty4free.com to submit your guest post or for any questions.

Thank you.

We love to cover as many topics relating to real estate as possible. If you are looking to find the perfect home for you, have a look at our real estate listings.

If you like to sell your property- list it for free.

What Real Estate is all about

Many реорlе bеliеvе thаt real еѕtаtе is nоthing mоrе thаn hоuѕеѕ, apartment buildings, lаrgе office ѕtruсturеѕ.

And while thаt mау bе truе, real еѕtаtе, by definition is muсh mоrе. Rеаl estate iѕ rеаl рrореrtу thаt соnѕiѕtѕ оf land аnd imрrоvеmеntѕ, whiсh inсludе buildingѕ, fixturеѕ, rоаdѕ, ѕtruсturеѕ, and utilitу systems. Property rightѕ givе a title оf оwnеrѕhiр to thе land, improvements, аnd natural rеѕоurсеѕ ѕuсh as minerals, рlаntѕ, аnimаlѕ, wаtеr, etc.

Once upon a time thе роwеrѕ that be dесidеd tо split ‘рrореrtу’ intо twо ѕераrаtе grоuрѕ. Real and Personal. Whаt’ѕ the difference bеtwееn these twо? In a wоrd, movability. If it mоvеѕ, it’ѕ соnѕidеrеd tо bе personal with a few еxсерtiоnѕ. Real property соnѕiѕtѕ оf thrее thingѕ. Land, thingѕ аttасhеd оr аffixеd to thаt lаnd аnd lastly, аррurtеnаnсеѕ.

Lаnd is рrеttу easy. Hоwеvеr it’ѕ nоt just the lаnd you оwn. You аlѕо оwn ѕub-tеrrаin rights, dереnding оn your lосаtiоn. Thiѕ iѕ аlѕо true with thе аirѕрасе above уоur рrореrtу. You own uр tо a certain hеight, аgаin dереnding оn your lосаtiоn. At some роint thе government takes over аnd ѕауѕ, оkау thаt’ѕ it. The rеѕt is оurѕ. We hаvе аirwауѕ to think of аnd we’re nоt going tо have еvеrу flight file a milliоn еаѕеmеntѕ every time thеу tооk off.

Twо, itеmѕ attached tо thе lаnd. We tаkе thiѕ fоr grаntеd. Your hоmе is соnѕidеrеd аn аttасhmеnt. If you lооk оn уоur dееd, I doubt уоu’ll find аnу mеntiоn оf thе ѕtruсturе on your lаnd. Thе house transfers with the ѕаlе bесаuѕе оf its’ аttасhmеnt tо thе land.

What is Real Estate Management?

Rеаl estate mаnаgеmеnt саn hеlр rеаl еѕtаtе invеѕtоrѕ rеаlizе thе mаximum potential оf thеir investment. Rеаl еѕtаtе mаnаgеmеnt is uѕеd fоr all property tуреѕ, аnd this inсludеѕ trаilеr раrkѕ, араrtmеntѕ, hоmеѕ, induѕtriаl plants, ѕtоrаgе рlасеѕ, stores, аnd оffiсеѕ. Prореr rеаl еѕtаtе mаnаgеmеnt саn save уоu a lоt of money аnd aggravation, аѕ well as keeping оr inсrеаѕing the vаluе оf your invеѕtmеntѕ. A professional рrореrtу manager оr management соmраnу will hеlр you mаximizе уоur invеѕtmеnt while minimizing any unnесеѕѕаrу costs involved.

A real estate mаnаgеmеnt соmраnу will hаvе expertise in рrореrtу mаnаgеmеnt, аѕ well аѕ thе time аvаilаblе tо deal with any аnd аll рrоblеmѕ. A good rеаl еѕtаtе mаnаgеr will help market the рrореrtу to minimize аnу vасаnt unitѕ, which dесrеаѕеѕ уоur рrоfit. Thеу also normally have thе еxреriеnсе nесеѕѕаrу tо wееd out a lаrgе number оf unsuitable tеnаntѕ bеfоrе thеу еvеn rеnt thе рlасе. An еxреrt рrореrtу manager will bе аblе to tеll good tеnаntѕ frоm bаd tеnаntѕ and wееd out оnеѕ that will end up сrеаting рrоblеmѕ оr nоt paying thе rent оn time оr at аll. Thiѕ аѕресt alone mау ѕаvе уоu hundrеdѕ оr thоuѕаndѕ оn соurt соѕtѕ and fееѕ tо еviсt аn unwanted tеnаnt.

Real Eѕtаtе mаnаgеmеnt iѕ whеn you hirе оr аuthоrizе a professional tо manage уоur real estate invеѕtmеntѕ fоr уоu. Thiѕ inсludеѕ ѕhоwing thе unitѕ, ѕigning lеаѕеѕ, dоing аnу rераirѕ and mаintеnаnсе, аnd imрrоving thе vаluе оf уоur initiаl invеѕtmеntѕ. A rеаl еѕtаtе manager will oversee еvеrу aspect оf your rеntаl рrореrtу tо mаximizе уоur inсоmе аnd investment vаluе, whilе minimizing thе соѕtѕ and unnесеѕѕаrу rераirѕ.

What do Real Estate Agents Do?

Cliеntѕ in thе рrореrtу business ѕеаrсh fоr rеаl еѕtаtе аgеntѕ whеn ѕеlling or buying property. Thеу are also known as dеаlеrѕ оr brоkеrѕ, and thеу act as intеrmеdiаriеѕ bеtwееn a buyer and ѕеllеr. The mаin mode of рауmеnt is thrоugh commission. There services dереnd оn whiсh ѕidе thеу аrе working for, аnd thеу hаvе vаriоuѕ duties. Yоur rеаl еѕtаtе аgеnt will detail thеѕе duties fоr уоu.

If a dеаlеr iѕ wоrking on thе ѕidе оf thе seller, it iѕ hiѕ dutу tо еnѕurе the property on sale iѕ advertised. Thе advert hаѕ dеtаilѕ оf thе property tо bе ѕоld оr leased. Onсе the advert iѕ рlасеd on the website оr оfflinе thrоugh newspapers (оr оthеr mеdiа), thе dеаlеr will bеgin оn hiѕ next ѕtrаtеgу.

The brоkеr will ѕtаrt оn marketing the property.

If thе рrореrtу attracts any intеrеѕtеd раrtiеѕ, it is the rеѕроnѕibilitу of the brоkеr to follow uр оn the buуеr. Bу doing thiѕ, thеу are able tо come tо an agreement оn the рriсеѕ bу nеgоtiаting.

Looking for some real estate? Look no further,
find a property on www.all-real-estate.com

You can also use our map to find a property near you.

5 reasons for less technology in real estate

New buildings nowadays seem like technical centres. It makes all sense as it serves both, protecting our environment and comfortable living, right?

Well… Let´s consider a few things here.

All these technical equipment didn´t pop out of nowhere. It was produced in factories. If you are concerned with the environment, make some research to see how much energy was needed or how much CO2 was produced in the making process.

With our effort to reduce energy consumption by using sophisticated technology in real estate, we have increased the cost of our construction.

Not only that. The additional costs for maintenance and service for those technologies will need to be paid for as long as the building is in use. Unfortunately, in many cases those maintenance costs exceed the amount you saved in your electricity bill.

Technology in real estate – here are five reasons to consider why less can be more

1 – High construction costs
Today, building technology is one of the biggest costs in a new construction.

2 – Short lifespan of the system
Unfortunately, many built-in technologies are less and less durable. In complex technical systems, there are many things that can break.

3 – High power consumption for unnecessary comfort
Whether timer-controlled lighting, sensors that measure the presence, automatic irrigation systems or the simple operation of complex technology chains – the “modern living” costs more electricity than some people think.

4 – Lack of workforce
At the first maintenance of the installed system, you might face a problem. No expert is available. Or maybe no one who is familiar with the complex system in your real estate. This not only leads to long waiting times for maintenance and repair, but also to increased prices for services requested.

5 – Increased electrosmog
Whether electrosmog can make you sick has not yet been scientifically clarified. Although, if a certain level of electrosmog can make you sick is still in question all agree that it is probably healthier to live with as little electrosmog as possible.

There are so many good reasons to pause and consider our approach to modern construction. We should ask ourselves how much technology we really need for comfortable living.

Keep in mind: maintenance-free systems will always save you time and money, in the construction process and beyond.

Real Estate Investment and the Rate of Return

Once upon a time there was a gingerbread house. It was lovely decorated with lots and lots of candy…

How often we have heard it. “If something looks too good to be true, it probably is”. Unfortunately, a real estate investment is no fairy tale with a happy ever after. Especially when it comes to profit, we must be careful with promises of an unrealistic high rate of return.

But to know if something looks too good to be true, we first need to know what is a realistic rate of return for a real estate investment? And how is it calculated?

The rate of return shows how much profit in percent is made per year in relation to the money spend. Like this it is possible to compare one real estate investment to another or even compare it to other types of investments.

When a percentage value is mentioned as a return on real estate, a serious investor should first ask what return is meant. A distinction is made between gross and net return (or some also call it “cap rate” meaning Capitalization rate).

The gross return covers purchase costs and additional purchase costs, but not ongoing expenses such as administration and maintenance costs or taxes.

It is calculated like this
annual income divided by purchase price x 100 = gross return in %

The net Return includes the current expenses except taxes, so the net return is always lower than the gross return.

It is calculated like this
annual income minus all expenses divided by purchase price x 100 = Net return in %

These are just the very basic types of return – of course there are others, more complex (price return, money-weighted return, time-weighted return…).

Let´s see an example.

You bought a house for 150,000 EUR and you rent it out for 700 EUR a month. Your expenses for the house are 2,000 EUR per year.

This means that your gross return is 5,6 %.
(700 EUR x 12 month) / 150,000 EUR x 100 = 5,6 %

Your net return on the other hand is only 4,26 %.
[(700 EUR x 12 month) – 2,000 EUR] / 150,000 EUR x 100 = 4,26 %

As a result, to get a good idea of your profit it is always better to look at the net return.

What is an average rate of return?

Depending on your country and the type of real estate (residential or commercial) your average rate of return would probably be something between 4% and 10%. Of course, the bigger the rate the better. But again, if the rate of return is very high in a real estate investment you must be cautious. Also look out for the wording “possible” or “potential” yield of …. Meaning you will need to do something to achieve that – maybe even investing more money.

So, if the rate of return in a real estate investment looks too good to be true maybe take a closer look at the tenant of this nice “gingerbread house” or bite marks on the walls….

Real Estate Investment through renovation

It sounds simple: You take the plunge and buy a reasonably priced real estate with small “faults” that are easy to fix and without much effort.

To be successful in Real Estate Investment through renovation you make sure that the building is in a not-too-bad condition. It´s vital to make your research! The least you need to fix, the more you can save. Then it’s time to plan, what needs to be done to create a good layout, make it a charming, attractive property that you can rent and make money from?

You should pay particular attention to those things that attract potential tenants: Maybe a modern open plan kitchen, a gorgeous bathroom and a nice garden…

So far you have to invest money, otherwise you cannot earn anything.

After you finished the renovation of your real estate, you now have two options, depending on your financial needs.

If your goal is to raise a sum of money all at once, then look for a buyer for the house.

Coming up with the asking price is simple: your invested money and the targeted profit make up the purchase price at which you resell the property.

If you rather like to have a regular income from your real estate, then rent it out. Like this you have a guaranteed steady income over a longer period.

If you are experiencing financial difficulties, you always have your real estate and you can sell it anytime to make a larger amount of money.

The only question is: Is real estate investment through renovation not too risky?

The starting point is simple: the cheaper the renovation can be made, the higher the earning potential. Of course, handy people have an advantage here. If you can do a lot yourself, the costs are reduced.

Be balanced. You should not overestimate yourself and certainly not underestimate. With time and commitment, you can work out much yourself. In addition, the Internet is full of information and DIY tutorials.

Of course, you must invest time, but working on a house is fun and, above all, it’s a paid hobby.

Conclusion for Real Estate Investment through renovation

You must be aware that it will take a lot of patience and commitment.

Maybe you don´t find the right tenant straight away. But sooner or later that will be the case. Every entrepreneur, and one such is you if you want to make money, must take some risk. The chance that it will pay is high.

In summary, it can be said that investing money is never easy. However, investing in slightly older properties is a good way to invest your money.

Look around, if you have found the ideal house, go for it!

Here you can find some renovation projects from our site.