Investing in property, either to benefit from a high-growth neighborhood or earn a profit from rental income, is one of the best ways to generate wealth. But for many decades, it was a practice exclusively available to real estate agents or people educated in real estate investing. Today, thanks to modern technology, it’s easy for anyone, regardless of prior experience, to get involved.
The Basics of Property Investing
There are a few different ways to invest in property, but all of them involve purchasing property with the intention of generating a profit. Some people prefer to purchase properties with the intention of gaining value over time; for example, they may purchase an inexpensive property in a growing neighborhood, hoping the value and price of the property to increase over the course of a few years. This is generally a long-term play.
It’s also possible to purchase properties with the intention of renting them out; in this case, a property owner becomes a landlord or hires a property management firm, and finds tenants to fill the property. Ideally, they’ll collect rent in excess of the monthly expenses of property management, resulting in ongoing positive cash flow. This is generally a play for investors who prioritize an ongoing return.
Whatever your directives or goals are, modern technology makes it easier to accomplish them, and in several ways.
Learning the Ropes
The most successful property investors are people with lots of experience. These are people who have made lots of mistakes and learned from them. Unfortunately, there are no shortcuts to generate this experience, but you no longer need to be directly involved in real estate transactions to learn. These days, you can rely on educational blogs, online learning institutions, YouTube videos from successful investors, and other sources to learn the basics. You’ll still need real-world practice, but the availability of free online resources will give you a massive leg-up.
Researching Neighborhoods and Market Prices
The internet is also full of helpful tools you can use to research neighborhoods and rental prices. The ideal property is one you can purchase inexpensively in a promising, attractive area. But how can you be sure this area is adequate without researching it?
You can research school system quality, crime rates, property prices, and dozens of other variables from the comfort of your home. If you’re planning to rent your property, you can also research other apartments and homes in the area to easily determine the best rental price to charge.
Scoping Out Properties
Of course, you can also use online platforms to research new properties to purchase. You’ll have access to a much wider range of properties than you’d get through other channels, and you’ll often have the benefit of going through virtual tours. One of the most important factors in a property investor’s success is purchasing the right property for the right price; with more options and more information available, it becomes much easier to identify those perfect opportunities.
Networking and Partnerships
Modern social networks, communication platforms, and internet access make it easier than ever to find investment partners, network with existing real estate agents and investors, and meet mentors who can help you learn and grow. Thanks to this accessibility, even inexperienced property investors can develop the experience and knowledge necessary to become successful on their own.
Most modern landlords employ the use of at least one online platform to manage tenant interactions. For example, they can set up a website to list and describe their properties, collect applications from prospective tenants, and collect payments from existing tenants. In some cases, you can also allow tenants to submit reports of damage or maintenance, so you can respond faster. However you use these platforms, they have the capacity to simplify your life as a landlord and automate processes that were once manual.
Perhaps most importantly, modern tech makes it possible to become a landlord in an area where you don’t currently reside. Successful property investment requires purchasing a low-cost property in an area with high growth and/or high demand, so there’s no guarantee you’ll find properties nearby that fit these criteria.
If you look in neighborhoods in other cities, other states, or possibly other countries, you can expand your range of options. If you’re not willing to travel, you can also find a property management company in the area to help you manage the day-to-day work.
Our technology has made it possible for anyone with an internet connection and a genuine desire to learn to become an amateur property investor and start making money. It’s no guarantee of success, nor is property investment the right move for everyone, but for many people, it can be a life-changing strategy.