Real estate investing trends shared by experts
Real estate investing trends shared by experts
Exploring Exciting Trends in Real Estate Investing
Deciding how to invest in real estate can sometimes seem complex and overwhelming, especially when you don’t know what’s hot and what’s not. Fortunately, we have reached out to some of the financial experts among our Building Wealth contributors and ANBLE Advisor Collective members to gain some valuable insights. We asked them to share their thoughts on one current trend in real estate investing and how investors can take advantage of it. Brace yourself, as we dive into these exciting trends and opportunities.
Online Real Estate Platforms for Everyone
“One current trend is using online real estate platforms. These platforms help investors get involved in bigger commercial deals without having to put down thousands or even millions of dollars. It is a very lucrative avenue, particularly for novice investors who lack the connections or relationships to access such opportunities. Online platforms provide exposure to individual investors, offering numerous starting points for all.” – Edward E. Fernandez, Building Wealth contributor
The rise of online real estate platforms has truly democratized real estate investing. They have broken down barriers, allowing smaller investors to access deals that were previously only available to institutional investors. With just a few clicks, investors can diversify their portfolios and tap into various real estate projects without significant upfront costs. From crowdfunding options to shared ownership models, these platforms offer a range of opportunities to suit different investor preferences and budgets.
Seizing Opportunities in Qualified Opportunity Zones (QOZs)
“Real estate investments in qualified opportunity zones (QOZs) have reached record highs as billions of dollars of private investors’ capital have been invested over the past five years into QOZ funds. Many consider QOZs to be one of the best pieces of tax legislation in a generation to combine tax benefits with some very attractive real estate development projects around the USA.” – Daniel Goodwin, Building Wealth contributor
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QOZs have emerged as a game-changing trend in real estate investing. These designated zones offer substantial tax advantages to investors, making them an attractive option for wealth growth. QOZ investments accept funds resulting from any capital gain and typically focus on Class A multifamily apartments, self-storage, medical, industrial, and life science facilities. By investing in QOZs, individuals can defer capital gains taxes until 2027 and potentially enjoy tax-free gains if held for ten years.
Unleashing the Power of Passive Real Estate Investing
“If your only idea of real estate investing is owning a property that requires regular upkeep and attention, you’re missing a big opportunity. Passive real estate investing is becoming more popular and offers the potential to make a return without actively managing a property. Through crowdfunding, you can invest in real estate projects that help diversify your overall portfolio.” – Tore Steen, ANBLE Advisor Collective member
Passive real estate investing revolutionizes the traditional approach of hands-on property management. By participating in crowdfunded real estate projects, investors can reap the benefits of real estate without the hassles of being a landlord. These projects often provide the advantage of diversification across different properties, locations, and types of real estate. It’s an excellent option for those seeking a more hands-off investment strategy while still tapping into the lucrative real estate market.
Exploring Undervalued Commercial Properties
“One of the main trends we are seeing, especially in the commercial real estate market, is the rapid increase in delinquency rates of commercial mortgage-backed securities (CMBS) backed by office properties. This is already causing significant waves throughout the commercial real estate industry, including forcing many owners of commercial properties to give back their properties to lenders because they can’t maintain the debt service. There is a likelihood that commercial properties will be able to be acquired at a discount, especially if they are purchased debt-free.” – Dwight Kay, Building Wealth contributor
The current economic uncertainties have led to increased delinquency rates in commercial real estate. This presents unique opportunities for investors with a keen eye for undervalued properties. By strategically identifying distressed commercial properties, investors can negotiate deals at favorable prices. However, careful due diligence is crucial, as understanding the specific circumstances surrounding each property and its potential for recovery is vital.
Thriving in Destination Rental Markets
“Most people think of real estate investing as rental homes near their current residence. Think beyond where you currently live and consider destination spots that include beaches, mountains, lakes, and other up-and-coming areas. If short-term rentals are allowed, consider the dual purpose of rental income during the peak season and then use it yourself as a second home in the off-season.” – John Bodrozic, ANBLE Advisor Collective member
The rise of the sharing economy has opened up vast opportunities in the vacation rental market. Investors can capitalize on the appeal of popular holiday destinations and leverage short-term rentals to generate income. By carefully selecting properties in sought-after locations and managing them effectively, investors can enjoy the dual benefits of rental income during peak seasons and personal use during off-seasons.
These trends highlight some of the exciting avenues available to real estate investors today. Whether it’s leveraging online platforms for access to commercial deals, exploring tax-advantaged investing in QOZs, engaging in passive investing through crowdfunding, capitalizing on undervalued commercial properties, or venturing into destination rental markets, there is a trend suited for every investor.
By staying informed and seeking advice from knowledgeable professionals, investors can navigate the real estate market with confidence. ANBLE Advisor Collective, our premier criteria-based professional organization, serves as a resource to connect investors with experienced advisors, managers, and executives in the world of personal finance.
Now armed with these insights, it’s time to seize the opportunities and embark on your own real estate investment journey. Remember, a well-informed investor is a successful investor.
