Let’s ask a reasonable question: How can you profit off of the housing bubble?
You are looking to get into real estate at an interesting time. Chances are, you are well aware of the exorbitant cost of housing in the United States at the moment. Why is it all so expensive? There are more homes than there are people to live in them. How can demand be so high?
The simple answer is that the number of people in the United States has nothing to do with the number of homes in the United States. Homes are not homes—they are commodities. Their value comes from their potential use as an aggregate, not from anything real.
No matter how many homes there are, most of the homes can’t move, and most of the people who would need to live in them can’t get to the ones that they can afford. So, the market belongs to the suppliers, not the demanders. And who are the suppliers in this marketplace?
Real estate companies. If you want to invest in real estate in 2022, then you are going to need a real estate company to help you. Today we are going to look at 7 ways these companies help.
They Know How to go Small
In a way, it is easy to go big with an investment. Going big is the default, as most real estate investments that you run into will be big projects. But not everyone can afford such investments.
And perhaps more importantly, not everyone should. The risk of a big investment is dire, and many new investors have found themselves penniless as a result of trying them. Real estate companies can help you find smaller opportunities that allow you to risk less in an investment.
They Know Who is Reliable
Imagine that you have three different companies offering to buy your house. Statistically, one of those companies is going to try and defraud you. When you look at each company, can you tell who it is who is going to try and pull a fast one on you?
Luckily, you do not have to, at least you don’t if you use a real estate company. They are well-versed in which elements of the industry are known fraudsters and which are legitimate.
They Know How to Spot a Fraud
While we are on the subject of fraud, some investments will come from startups that have no history. These are usually high risk and high reward to begin with, but the biggest risk involved is easily the fact that there is now way to tell whether or not they are a scam from the outset.
Not superficially at least. Real estate companies do not just know who is and is not a fraud, but they have the resources to check who is and is not a fraud.
They Have Ways into the Market
Not every investment makes itself readily available to the people with the money to invest. Real estate companies are connected to systems of communication—usually multiple listing services—that are used for specifically that purpose. This means they can get your money into investments that you would otherwise never even hear about.
In a similar manner, they can also get your money into investments through methods that are not available to the average person. Some developments will be looking for people to essentially pay for houses as an investment. A real estate company can get you in for less.
They can Help You go Big
We talk about how to go small. But it was important that you understand that going small was an option. And, more importantly, that you knew the risks of fraud and the necessity of investing creatively before you even thought about investing large amounts of money into anything.
Once you understand those things, then the floodgates open. If you have the money then your real estate company will be more than willing to connect you to the investments that utilize it.
One of the things that you will notice about big investments is that they tend to be more secure. Only companies with a good track record of completing projects and paying their investors tend to have the capital to actually pursue big projects.
They Have a Network of Resources
So, you hear about an investment opportunity. Let’s say someone wants to demolish an office building they bought and build a house or apartment building in its place. But you are smart enough not to take it at face value. You go and you look at the building plan. You look at the property. You research the construction company that is doing the work. And what do you find?
Well, you’re not sure. You don’t know how to read a schematic, or you have never appraised a property before, or you can’t tell a construction company from a football team.
But you do not have to be able to do these things. A real estate company can provide all of that expertise for you through their network of contacts.
They can Save You Time (or Give You More)
Many investments will market themselves the same way: Limited time only! Get it while it’s hot! Early bird special! They will say this till the moment the project is complete, obviously.
Real estate companies can do two things for you. First, they can cut through the veil of nonsense that most projects have around them. Credit checks, background checks, and all sorts of other methods of protecting the project from fraud. They can vouch for you.
But they can also get you in on a project earlier than you should be able to, or later than what would normally be allowed.
You never know what the market will have in store for you. It may be a feast; it may be a famine. But whatever there is, a real estate company will help you find out.