Investor’s Choice: This Is How Many Real Estate Investors Are Making Returns During 2019
2008 was a bad year for the real estate market. Anyone who invested during that time, or had money tied up in real estate, doesn’t need to be reminded of the chaos of that time. However, since then things have sort of leveled out a little bit making it a lot easier for people to invest in real estate. After all, who wouldn’t? Real estate has the advantage of normally gaining value unless something out of the ordinary happens that will affect its overall value. But there’s only so much real estate that you can own to fit in your portfolio and every year more and more people want a part of it.
So, how exactly are real estate investors making good returns in 2019? Let’s take a quick look.
- Rental Properties: Ever since 2008, home ownership has been on the decline. With the way things are currently in the housing market, owning a home is still too high for a lot of people who have other debts to think about. Thus, renting property is seen as the alternative. So, a lot of real estate investors buy up housing properties and just rent them out to people. Simple, really.
- Flipping Houses: This is also another simple investment. You simply buy a home that needs some work and remodel it. Thus, causing an automatic revaluation of the home that you can then sell for a profit. It’s rather risky and requires a hands-on approach, but it tends to see a massive return in profits if you´ve chose the right project and if the property sells quickly.
- Real Estate Investment Trusts (REIT): This is for those investors who don’t like working with the land that they technically invest in. What an REIT does basically is set up investments in mortgages, bonds, stocks, and equities all tied up in real estate. You’re essentially buying up securities and funds that you then cash out down the line when they mature.
- Becoming a Lender: Sometimes, you don’t need to have a stake in anything. Sometimes, it’s just best to lend out your money with a certain interest rate attached to what you loan out. Lending money out doesn’t mean you have anything, but it does mean you’ll at least see a return on your investment that’s not tied to the market.
For the most part, investing in real estate in 2019 is still a risky endeavor. However, that’s the draw for so many investors looking to the real estate market, but going into the future it doesn’t have to be for you if you’ve been keeping your ears open. A lot of real estate investors have been talking about another way to invest in real estate without getting their hands dirty, dealing with property managers, flipping homes, or anything else that could tie up your money in the long term. Since, after all, the biggest downside to real estate is having to find a buyer for your property first.
But if we go back to the basics, one of the reasons many real estate investors prefer this industry is that real estate provides them with a certain sense of security, even though they do not get a very liquid instrument since they normally find a property that can gain value overtime and therefore can net them a profit when they flip it. Their investment is typically not a liquid one. It takes a significant amount of time for them to sell their commercial or residential property.
But for this market so dependable on long-term investments, economic crises and recessions are an extra downside since it hits them harder, just like it did in 2008, and many investors and regular homeowners experienced it themselves.
Currently many real estate investors are looking for money-making opportunities backed by real assets where they can put their money to work. It´s not only about finding an investment that performs right now while the economic cycle goes through the expansion stage, but also finding that asset that gives investors peace of mind during difficult economic times.
Gold throughout time has been considered a safe haven during slow economic phases, but not truly a way to make the type of profits that a real estate investor can experience when the real estate market is booming.
In fact, the key factor for an investor to be able to turn a profit regardless of the current financial conditions globally is having the ability to get involved in the right industry at the right time. It´s not a secret that timing is crucial when it comes to investing.
Periods of economic growth are led by a major boom in any given industry, which historically has had to do with innovation. In the 1990s and early 2000s the dot com boom made a lot of investors a lot of money. The internet revolution came to change everything, creating a great long-lasting positive impact in economies throughout the globe.
In 2019, the industry that is lined up to cause an impact of similar or of greater proportions is the fintech sector. The fintech sector is the industry that has to do with technology applied to finances, and it affects the way payments are processed, money is transferred, and everything having to do with an innovation in finances through the use of technology.
A fintech revolution is taking place. Payments, investing, venture capital, remittance services, and trading are changing. Even equity is evolving,
There´s a new asset class that has been created by a consortium of fintech companies. It´s very similar to publicly-traded stocks as it is a liquid instrument, but it’s also backed by real assets—equity of the holding company.
The fintech industry represents a safe haven for private capital unlike any other. Just follow the link below to learn more about this opportunity.