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Successful strategies for women investing in real estate: know the risks

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Many women are now looking to the real estate industry for investing. With a fairly stable housing market at the moment, for women investing in real estate there is an opportunity that has much potential for success. However, it is still investing, meaning that there is some risk involved.

When investing in anything, the main thing you will want is an ROI, or a return on your investment. No person wants to put their hard earned money into something just to see it go away.

Successful strategies for women investing in real estate

As a new investor, or maybe just new to the real estate industry, here are a few tips for success when venturing into real estate investing.

#1: Invest in REITs as a Beginner

Most beginners in the real estate market look to REITs (real estate investment trusts) to invest in first. Investing in physical properties can be risky, especially if you are not sure what you’re doing just yet. REITs are kind of like stocks, and these “stocks” are held by companies that have invested in physical properties. These properties are typically commercial properties, such as hotels and apartment complexes.

Like all investment endeavors, REITs have their pros and cons. They are definitely less risky and cost less than investing in a commercial property itself, but there’s not as much money to be made from them. Even when there is a return on investment, it usually takes a long time.

#2: Invest in Locations with Higher Tourism Rates

Rental properties are another popular way people invest in real estate. Also known as vacation rentals, residential rental properties are usually single-family homes, but they can also be multi-family homes, like duplexes or quadruplexes. The key to being successful in investing in rental properties is to find properties in an ideal area.

What is an ideal area? It really depends on what your goals are, but overall, the most successful rental properties are located in areas that have high rates of tourism. This guarantees that there will be people looking for short-term rentals. Other factors to consider are population growth, the job market, and how affordable is the housing in that location. These factors attract longer-term renters and even people looking to buy houses; they most definitely will play a role when you start checking your investment numbers.

#3: Research the Statistics for Your Market

In general, one of the easiest ways to invest in the real estate market is with a rental property— either one you purchase yourself or by listing your home on Airbnb as a short-term rental. However, before you can do either of these there are two things you should be aware of: Is it legal to rent short-term in your area, and what are the rental statistics like in your area?

Airbnb stats show that in the United States, Florida, California, New York, Texas, and Colorado are the top five states with the most active Airbnb listings. This is no surprise, as these states see a lot of tourism often. If you don’t live in any of these states, don’t worry— North Carolina, Georgia, and Arizona aren’t too far behind on the list. Also, remember that you have the option to purchase rental properties in other states.

Conclusion

Being successful in real estate investing takes a lot of research, time, and patience. With emphasis being on research, it’s important to know all the ins and outs of real estate investing, as well as any rules and regulations that go along with rental properties. Some cities won’t allow you to rent property to others for less than six months, and others will, but there are taxes and fees required.

For some investors, it could be problematic if the assumption of rising property prices does not work. If the real estate values ​​even decline, there is a risk of a sale with a loss or more expensive than intended follow-up financing, as the investor has to inject more money into the bank as security.

Nobody sees an acute threat of price decline at the moment, as investors continue to rely heavily on real estate in view of the persistent phase of low interest rates and are thus stabilizing purchase prices. The big question, however, is: What happens if interest rates do rise again in a few years, when the big investors shift their positions?

Many people see real estate as an anchor of stability for their wealth in troubled times. In addition to large investors, many small investors now believe in this. The hype about real estate as an investment is sometimes reminiscent of the “housemaid boom” on the stock market.

The not entirely undisputed term suggests that suddenly everyone in the world is pushing into an asset class in anticipation of high profits, without being an expert in the field.

As with any type of investment, it does take some time and money before you see an ROI. Making a lot of money from investments doesn’t happen overnight, so it’s important to remember to be patient. Also, make sure that you’re in a good place financially before investing in real estate.

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