Real estate investing is a combination of opportunity and timing. Like any investment, real estate requires you to understand how to maximize your chance while limiting your risk of exposure.
When your house hunting, you want to find a good management team or landlord. But how do you find a landlord or partner to work with that you can be assured will have your best interests as a priority?
When looking for a trusted advisor and partner, you want a property management company with a positive reputation and years of experience in the business.
The power of a good team will have a wealth of experience in the real estate business to help guide you and minimize any issues before they become significant. The benefits of good property management and landlord services are many.
An experienced professional will provide:
- Ease of tenancy and mitigating vacancies
- Communicate responsively for all issues and concerns
- Foster a sense of community within the building
Alchemy Ventures has over 30-years of experience handling properties of all types, from apartments to commercial, and the wealth of knowledge and know-how is something the individual investor lacks.
The wealth of experience at Alchemy provides expert guidance for investors and renters alike.
Post-Renting: The Risk/Reward of Real Estate Investing
With inflation at a 40-year high and interest rates rising to combat the inflationary trend, real estate is still a safe, long-term investment toward building equity and wealth for those considering investing.
Real estate can appreciate as high as 10% per annum, making it inflationary proof as an investment.
Also, real estate is one of the few ways a person can leverage debt to make a profit. For example, when you borrow for a mortgage, you’re taking a large loan with favorable payments in order to make money over time.
Then, as you pay down the mortgage and your property appreciate, you dramatically increase your investment value.
There are various ways to get involved with real estate investing, but you’ll need capital and a long-term strategy to make that investment profitable like any investment.
House hunting can mean a variety of things to people. It may mean looking for the right investment opportunity or finding the best deal on a rental unit for you and your family.
A good landlord and property management team will provide guidance and advice and communicate well with owners and tenants, acting as an intermediary between both parties when needed.
Let’s look at investment opportunities in real estate and how a good management team can act as landlords for your investment.
When you are house hunting, whether you’re looking for investment opportunities or renting a new apartment, working with trusted partners and landlords is as essential as any other consideration.
Buy and hold reflects the process of buying property and holding it to accrue equity in the real estate as you pay down the mortgage and other liabilities. This method is the most prevalent in real estate investment and is the standard way people invest.
Fix and Flip
Reality shows such as Flip or Flop and Property Brothers have made flipping seem easy to make quick cash in real estate. However, the reality is that flipping homes can be a great investment vehicle and a boondoggle if you don’t know how to fix and flip a home effectively.
Purchasing units and housing with the intent to rent them out can be a great long-term strategy for generating wealth. You can choose between investing in multiple-unit buildings like apartments or single-family dwellings, depending on your experience and interests.
However, calculating the local going rate for rents, budgeting for vacancies, marketing the properties, and handling tenant concerns, maintenance, and repair issues can be challenging.
Renting Vs Investing
Once you invest in real estate, if you own in a different geographic location than where you live or have multiple units to manage, you need to consider hiring a property management team.
If you are looking, you want to research and interview reputable, experienced management teams. For example, Samuel Kooris of Alchemy Ventures can provide you with a strategy for finding the right property services.
The benefit of renting is the flexibility of moving around when you decide without entanglements or obligations. However, by renting, you’re actually in the process of paying down someone else’s mortgage and increasing their equity, building them long-term wealth.
As an investor, you can make long-term wealth, but you’ll be fixed into the property and how it’s managed and financed are two significant considerations when determining profitability.
The benefits of hiring a quality property management team are that they serve your interests while providing good customer service and mitigating issues for your tenants.
A good management company helps set a budget for maintenance and repairs, prepare for vacancies, and limit the time that a unit remains vacant.
Also, providing proactive communication and having a great dialogue with tenants make for happy renters.
In addition, happy tenants tend to rent longer than unhappy renters, and the length a tenant leases from you, the more profit you make over time.
As you look at options between continuing to rent or transitioning toward investing in real estate, the trust you can have in a partner like Alchemy Ventures is crucial.
They can manage your property and improve tenant relations as an investing partner. For renters, knowing that a building is operated and managed by experienced professionals should be one of the most essential criteria when house hunting.