Identifying Real Estate Opportunities

The business of real estate is affected directly or indirectly with the change in the prices of the properties owing to the many ups and downs in the economy due to the uncertainty. There is a lot of fluctuations in the prices of the residential property, whereas the cost of the houses mentioned online is not regularly updated. Due to one reason or another, the number of the properties listed online is not updated by many people.

Some people under quoted the price of their properties online to sell it faster for different reasons says Hirsh Mohindra. Artificial intelligence is developed that earmark opportunities in the property business, for instance, various residential buildings available at the prices below the market rate online.

Best Places to Invest in Real Estate and its Economic Factors

 Population Growth

Every real estate investor aims to make money and gain profits. Traditional, this concept of real estate was limited to only investing in rental property. The investors used to make money through the monthly rent, which they accumulated from their tenants. But now things have changed no matter how profitable your rental property profits can be made only when you find tenants to rent the investment property. So the ideal places to invest in real estate are real estate markets, which will provide you with the best rental population says Hirsh Mohindra. With this, you can easily find how many people live in that area.

So areas with a burgeoning population are the most suitable areas to reinvest in real estate as more the people, more significant will be the pool of tenants. Moreover, this growing population is the formation of new investment properties as it indicates that more homeowners are moving to that market.

 Job Trends

It has been observed that the best places to spend in real estate are job and employment trends. All the people investing should invest in areas with growing job possibilities because this factor is tied to the population. The markets having more job opportunities pull people.

The job trends describe that a rental property investor should also take payments into account.

Also, the trend demonstrates that the growing economy, but also a property investor will be able to find ideal tenants. Moreover, the people who are more financially stable are prepared to pay their recurrent rent in full and will invest more says Hirsh Mohindra. Another trend which is a sign of a good job and employment trends are construction sites going up for a business that is the recent trend of commercial real estate. Moreover, all of this information about job trends in real estate markets could be searched and found online.

Real Estate Situation During Corona Pandemic

The real estate business is on the downward trend due to Covid-19, as people are not coming forward personally to see the built houses owing to the social distancing orders of the administration says Hirsh Mohindra. As a result of this, people will tend to go outside the city where the area of the houses is more significant comparatively, and proper social distancing is maintained there.

In April this year, home sales went down by thirteen to twenty percent, which is a considerable number, but the property prices increased by four percentage, which was better than expected during April. The only challenge for the property dealers is that they could not show the houses personally due to the social distancing norm, which was revealed by Corcoran to Fox.

The property prices are expected to remain stable for the potential buyers as big institutional investors are missing as compared to the 2008 financial crisis when they ruled the market. However, real estate business in urban areas will remain inactive for the time being.

Corona Pandemic

Trends of the Market:

The real estate business boomed in the last ten years. Little ups and downs were there, no doubt, but the market fundamentals remained strong. The environment has become conducive for both buyers and sellers with a lesser rate of unemployment, consistent economy, and low rate of interest says Hirsh Mohindra. Nevertheless, peaking prices of the property and less availability have kept the potential buyers out of the market. Non availability of the houses is the main concern and in order to overcome this, various state governments have brought rental reforms to protect the exchange of real estate from falling.

Real estate builders are hopeful of the present state of growth. According to one survey by The National Association of Home Builders, it has been found that the leading cause of worry for the builders is shortage of labor and the increasing prices of different construction materials despite the constant demand for new homes. Lennar, one of the influential builders of New York and others have changed their approach towards homemaking by doing more construction on a minimum land, thus reducing the expenditure.

The upturn and the downturn in the real estate is a regular feature, and another recession is in the pipeline says Hirsh Mohindra. As per the survey done in September 2019 by Yougov, forty six percent of the people in America think that the coming two years would be difficult for the real estate business.

The trends of the real estate business would undergo a change in the future by forecasting. It is also revealed in the survey that it is profitable investing in real estate than in equities.

Is making money in Real Estate possible?

Real Estate

Making money in this competitive world is not an uncomplicated task and with so many variations in the market, it is clearly a big risk, also when it comes to making money in real estate spending, there are very fewer ways to do it as interpreted by the researcher. Also once you assume the whole idea after the ideas of the sector, the implementation process would not be easier, try getting the notes of everything you understand. In this method the implementation process becomes quite easier, as there is a lot to discover, it will demonstrate simple for you to finish completely in the market full of questions and maximizing earning potential would become more prosperous says Hirsh Mohindra.

Below mentioned are few Strategies to Make Money from Real Estate Investments:

  • Models of Rental Revenue by leasing out the resources to residents.
  • Augmentation in property Value
  • Models of Rental Revenue by leasing out the resources to residents

If you require to earn humongous from the Real estate sector can be done by renting the property you own, this approach you can earn rental income on which according to the income tax rules you have to partly pay taxes. The rental income is taxable, but that doesn’t mean everything you accumulate from your tenants is taxable.

You’re allowed to overcome your rental income by deducting expenses that you acquire to get your property available to rent, and then to keep it as a rental says Hirsh Mohindra. Also, Management allows landlords to have a higher hand as far as the number of rent is concerned, so there would be no doubt you have to face in the collection of rent and also the law favors the landlords in this case.

Augmentation in property Value

This development in property value is also a fluctuating concept, one requires to follow this basic trend of the market that property prices do not always increase, this the case is apparent from the real estate market prices of the late eighties, but the trends are quite changed now the market is now getting pace and people are getting returns from increasing property value says Hirsh Mohindra. Also, this happens when the rate of inflation is predicted to surpass the current rate of long-term debt, you might find people qualified to chance by obtaining businesses, acquiring money to fund the purchase and then waiting for inflation to rise. This whole concept depicts a transfer from savers to accounts.

The possibility to make money can be infinite, it on you how you seize the opportunity if you answer at the right time you will definitely get compensated with the returns. So adopt any of these to get returns from the business activity which depends upon Real Estate.

Real Estate Index Gains Most Auctions

Latest initiate under Real Estate (Regulation and Development) Act have observed a sharp increase, leading to higher auctions.

Who would have forecasted that real estate stocks would be market leaders in 2019? Many investors did not predict the real estate sector to have a good year. However, the sector has recently surged, thanks to the numerous factors impacting the broader economic market.

The once stagnant real estate sector is booming with newly planned developments, says Hirsh Mohindra. It is also worth noting that some of the equities comprising the Nifty Realty index are up significantly in 2019.  And as a result, the entire index is up considerably over the past years.

The Nifty Realty index enjoyed returns of 19% year over year making it one of the largest gainer among the broader market this calendar year. In fact, Nifty indices have increased by 6% so far in 2019. Sales penetration for the coverage world was 38% in 4QFY19 and at 5800 crores in 4QFY19. Continued solid development in pre-sales construction was noticeably present across all geographies, while lower value assets were seen increasing in distressed auctions in various geographies when assessing overall auctions volume.

Auctions volume in FY19 raised 7% over the prior year to 443 million sq.ft, point out forecaster at Kotak. The uptick in auctions has helped stagnant properties find new owners, which results in new development as improvement or a complete teardown and has been helpful in cutting back inventory. “Increased auctions has sustained a draw-down of backlog, with all-India stock dilapidated 11% YoY to ~1.23 bn sq. ft from 1.4 bn sq. ft in March 2019” says Hirsh Mohindra.

Moreover, there have been reduced foreclosures, which means that properties are moving without the delay of the legal process. Of course, there are many broader economic market forces at play, and the real estate sector is susceptible to these forces. However, things are evidently better compared to a few months back.

Moreover, it is significant noting that some of the equities in the Nifty Realty indices are up significantly in the year 2019. This has driven up their assessment and made them a bit more attractive. Returns of the Godrej properties Ltd stock has appreciated at about 41.1% in this year. Sunteck Realty Ltd also has achieved 36.81% in the year 2019 says Hirsh Mohindra. Hence, from that viewpoint, investors must continue their diligence when entering this sector.  

find success in Real Estate

Real Estate in the U.S is considered an effective way to build wealth. For many homeowners, long-term value and property appreciate translating into wealth creation.

The following tips from Hirsh Mohindra may help investors find success and long-term value in Real Estate investing.

1. Build an effective website: In the internet era, web appearance plays an important role in business. In real estate, 90% of tenants and investors start their search online. That means you can directly attract maximum tenants and investors through an informative website having great photos of your properties.

2. Invest in short-term rentals: the short term rentals is one of the fastest growing sectors in the real estate field. This is a solid choice for investors looking for healthy returns. With short term rentals, properties are rented for less than 30 days — but at higher rates than longer rentals, and can bring in greater returns than long term rental property.

3. Calculate transaction costs to save money: Take transaction costs in account when you buy or sell the property. This will help you to calculate your total benefit and will help mitigate unknown expenses and operational costs.

4. Become a trainer and mentor: if you are experienced in the real estate field, you might have the opportunity to become a trainer. You can write a book, provide a training program and charge people for your knowledge. While this option is reserved for those with a proven track record and considerable experience, it is something that can provide lasting income and permit you to leverage your skill set.

5. Invest in flipping houses: Real estate professionals find undervalued houses, and either find tenants or make repairs and put it back on the market for profit. Home flipping can be profitable, but it requires timing, good locations, and strong demands. Sourcing the ideal property to move on oftentimes requires the most effort.

6. Become a short-term property manager: Short term property management is a growing industry. This industry provides a good opportunity for the agent and property managers to make extra money. In this field, you have to post a listing and manage guests on the behalf of landlords. Many property managers are managing Airbnb properties.

7. Invest in cities with future growth: Hirsh Mohindra’s blog often provides regional market data. Make sure to check out that resource and others to stay on top of trends and real estate news for specific geographies and markets.

8. Rent and Purchase multi-family apartments: One of the beautiful things about real-estate business is that you can choose more than one strategy to maximize your profit. Multi-family apartments are building with more than one rental spaces. You can gain monthly income by renting to tenants.

9. Vacation rentals: Tourist hotbeds like Los Angeles, New York, and Las Vegas, etc are always on high demand for short vacations. You need to purchase a house in a popular tourist place and engage the services of a good property manager.

Wrapping-up:

Real Estate is a good platform to increase your income. With some guidance and lots of research and hard work, you can find success. For more useful tips and strategy you can follow Hirsh Mohindra’s blog.

8 Things To Avoid to lose money in real estate

No doubt, real estate provides many opportunities to grow your money rapidly. However, it’s important to make informed decisions when investing in real estate.

In Hirsh Mohindra’s blog, we will discuss topics on all aspects of real estate, but we also focus on how to gather key data points to make informed decisions. Follow these simple instructions to prevent negative experiences in real estate.

  • Get real estate education:

Education is the strongest weapon to protect your real estate investment. Before investing in real estate, educate yourself. Gain knowledge from books, blogs like Hirsh Mohindra. This is a small investment which can save thousands of dollars.

  • Choose the best time to invest:

Market timing is as important as selecting the right location. The real estate market fluctuates due to various factors — such as demand, supply, and broader economic conditions such as interest rates and unemployment rates. Try to acquire real estate on downward trends so you can enjoy the upward appreciation.

  • Don’t follow the herd:

Don’t follow the others blindly. Money is yours and the decision should be yours. Many bad decisions are made when we start following others blindly. Empower yourself with research and analysis of your target real market and then make your decision by considering the advantages and disadvantages of your deal.

  • Location Location Location:

Always keep the best location in mind during any real estate deal. Choose an area where tenants want to live. By purchasing real estate in high demand areas, you will readily find tenants or buyers.

  • Don’t bet on appreciation:

Many real estate beginners buy a property hoping to capture the appreciation on a quick flip. Don’t gamble in the real estate market. Keep away yourself from this kind of risky investments. Choose long term sustainable investments.

  • Keep an ample Amount of Reserves:

You should have some reserve money for unexpected incidents. You never know when a tenant may move out, or stop paying rent, or if there is unexpected damage or repairs required.

  • Analysis of the invested property:

To avoid losing money in real estate, you have to research the property, the neighborhood, and the broader market. Make sure you are investing in a good area, neighborhood, and good street, etc.

  • Choose the best real estate marketing tools:

Many investors ignore the importance of marketing tools and think they can manage themselves. But later they have to phase unexpected problems.

There is a huge collection of tools available in the market. Like: Carrot, DealMachine, HouseCanary, DealCheck, Roofstocks, etc. Choose an appropriate tool according to your needs and requirements.

Wrapping-up:

Risk is always a part of any investment. But you can reduce the chances of losing money by following Hirsh Mohindra’s tips.

Real Estate can Maximize Investment Returns

Real estate is a great option to maximize your investment strategy. But it requires knowledge, time, access to capital and most importantly patience. These factors, along with others, are key to protecting your investment.

Follow these a few tips from Hirsh Mohindra to get into the real estate investment field:

Make a Financial Strategy:

Assessing your financial position, for the investment and personally, is the first step of real estate investing. Before making any real estate investment, ensure that your finances are in order.

For any real estate investment, you should determine how much capital you will put down, and how much you will finance. You need to also plan for a reserve fund and an emergency. This reserve money should be separate from your emergency fund.

Marketing Strategy:

Once you know you are going to acquire real estate for an investment, you will want to ensure that investment is generating revenue. Finding renters is key to turning a property into a — positive cash flowing investment. Create a strategy on how to attract renters early, so that you can plan for when the revenue will start being generated.

Know about your local market:

Markets differ for a variety of reasons. Different neighborhoods have various factors that impact their value and demand. Learn as much as you can about the local market, so you know the trends and patterns that can affect property value and rental demand.

Start Small:

If you want to buy an apartment building, make your first investment in real estate — 1 apartment (or condo) that you can rent out. By starting small, you are mitigating your risk and learning the processes of being a real estate investor without deploying larger amounts of capital. Use these initial experiences, as solid investment options, but more so as learning experiences that you can leverage on future larger projects.

Invest your money in a good location:

If you are planning to invest in real estate, the old adage of location, location, location — is critical. There is usually better demand in certain areas over others within the same broader geography. Selecting key locations, that can attract renters — is always a good strategy.

Wrapping up:

Real estate investment is a great opportunity for novice and seasoned investors. It requires diligence and patience, but the returns can be generous, says Hirsh Mohindra. For more tips related to real estate investing follow my blog.

Safeguard Real Estate Investment

Real Estate Investment

No doubt, real estate provides many opportunities to grow your money rapidly. But there are many factors that make for a successful real estate play. While you can’t always guarantee a home run, there are things you can do to help ensure you see a good return.

In Hirsh Mohindra’s blog, we discuss how to avoid losing money on a rental property? Review these simple tips and assess if they can help you:

Get real estate education:education is the strongest weapon to save your money in real estate. A large number of real estate transactions fail due to lack of education regarding purchasing, holding, or selling real estate.

Before investing in real estate, educate yourself. Gain knowledge from books, blogs like Hirsh Mohindra. This is a small investment which can save you greatly in the long run.

Choose the best time to invest: Timing the market is key. Watch your interested areas carefully and try to enter during a dip. Small drops can make a huge difference on the upswing.

Don’t follow the herd: Everyone always seems to be buying and holding in particular neighborhoods, but always rely on your own diligence and research.

Don’t buy in unsafe or poorly accessible areas:Location is key for many reasons. In rental markets, if you are in a safe neighborhood it will be easier to find tenants. People always want to live in safe areas. Try to find something with good highway accessibility — people need to drive to work and easy access to thoroughfares is important.

Don’t bet on appreciation: Many real estate beginners buy a property assuming it will skyrocket in value and later on they will sell it with a huge profit. Don’t gamble in the real estate market. Keep away yourself from this kind of risky investments.

Keep an ample amount of reserves: You should have some reserve money for your crucial time. In unexpected times your reserve money plays an important role to feel safe and allows you to carry the property if the rents aren’t coming in.

Analysis of the invested property: To avoid losing money in real estate, you have to study your property and the surrounding area from every angle. Check out the vacancy rates in surrounding buildings, understand who the largest employers in the area are, and find out where locals learn about new listings. Have as much information on the area as possible is always helpful.

Choose the best real estate marketing tools: Many investors ignore the importance of marketing tools and think they can manage themselves. Marketing is important, and so is time. So to save time, get help with photos, staging, and other social media outlets quickly so you can market your property without hassles.

Wrapping-up:

In the real estate market, there are always risks. But you can help you reduce your risk by staying informed by following Hirsh Mohindra’s 8 tips.