Real estate is one of the most lucrative potential investing opportunities out there. As the old saying goes, they’re not making any more land. Plus, the good news is that, even if you don’t have the capital on-hand to make your dreams of buying property a reality (at least for now), there are still opportunities to make cash in the real estate market through innovative investing platforms.
You can even invest in property out of state. This is key, as not all the best investment opportunities are likely to be located in your home state. If you’re curious about cashing in on the real estate investing game, even if your state doesn’t have a booming market right now, we’ve got the guide for you.
Decide on your investment location
The first thing you need to do as you start your investment journey is decide on the location that you’ll pursue. There area few different ways that you can invest in real estate out of state, so it’s critical that you know exactly what you’re doing so that you can make the right decisions about your portfolio.
Here are just a few examples:
- Will you use hard money loans to fix and flip bungalows in California?
- Are you hoping to use VA loans for Hawaii veterans to snag beach-front island property?
- Are you thinking of getting into condos in Newark New Jersey?
- Is a mountain cabin in the Pacific Northwest calling your name?
Knowing ahead of time which market you’re curious about will help you narrow down the scope when it’s time to set about the next stage in the out of state real estate investing process: knowing local market trends.
Let’s review that now.
Research local market trends
Local trends can vary significantly by location. Sometimes, it feels like markets move at a lightning-quick pace, accelerating in intensity before rapidly dropping off. That means having your finger on the pulse of real estate market research is key to landing the deals that you need to if you’re going to be a successful investor.
So, what should you look for? Here are a few signs that property values in a certain area might soon start to heat up, making it a great time for investors to get in early and make a killing:
- New jobs start opening up in a booming sector, like tech
- The restaurant scene is starting to heat up
- Young people have begun flocking to the city
- Average income among residents is increasing
- The population has seen steady growth in the past few years
If you see signs like these, then there’s a good chance the market may be ripe for investment. That means it’s time to start seriously thinking not just about the location where you plan on investing, but the investment strategy you hope to pursue – and the platform you’ll use to do it.
Find the right platform and strategy
There are tons of new and innovative investing platforms out there, fueled by high-tech, cloud-compatible technology that helps investors keep up to date with the latest trends. The platform you use, however, will be significantly influenced by your investment strategy.
- If you’re looking to invest in REITs, a good option for beginners who don’t have enough capital yet to start their own rental property, a brokerage form with app-based trading may be your best bet.
- Using a hard money loan to access capital fast is often a great choice for those who are confident they can successfully complete a fix-and-flip in time to capitalize on a booming market.
- Invest in mortgages using an innovative new home ownership app that allows you to profit from co-investment in property.
There are tons more strategies out there. In order to learn about them, it’s important to seek advice.
Seek advice when you’re feeling uncertain
Real estate investing can be a challenging game to get into. That’s why, if you’re feeling uncertain, it’s smart to find mentors and resources that you can rely on to help you succeed.
With the right strategy, sufficient research, and a mentor or resource base that can provide you with the answers you need, real estate investing can be a great source of income.