If you are looking for a way to build wealth, earn cash flow, reap tax advantages and diversify your investment portfolio, there is no better option than real estate investing. Those who are new to this space will find the real estate industry to be an intimidating one. This is where Asaf Izhak Rubin can help you overcome the learning curve. He has shared some real estate investing tips that you can use to hit the ground running in 2022. Check them out below:
- Diversify your real estate investments
There are a variety of ways at your disposal when you decide to invest in real estate. You can choose to be a passive investor by buying shares of real estate investment trusts (REITs), or you become an active investor and do the buying and selling yourself. Asaf Izhak Rubin also highlights crowdfunding opportunities for you to check out, such as mortgage notes, commercial to residential real estate, mortgage notes and rental properties. Sure, you can choose to focus on just one arena, but opting for a diverse portfolio is a much better option. You can get property in different asset classes, or different markets.
- Invest in rental real estate to hedge inflation
Opting for rental real estate can offer you a number of benefits. You can hedge against inflation, take advantage of tax deductions, and build your wealth via real estate appreciation, all while generating cash flow. Asaf Izhak Rubin highlights that your rental investment can help you hedge the rising prices of goods because real estate and rental values are also adjusted accordingly. If you purchase a property and hold it for the long term, you will be able to earn additional income while the tenant pays off the mortgage and this leaves you with a paid off property at the end.
- Understand the investment
According to Asaf Izhak Rubin, it is very tempting to get swept away by the numerous possibilities an investment can offer to you without having a clear understanding of it. It is a must for an investor to have knowledge of the risks associated with and investment and hedge that risk with the right measures. If you have decided to branch out into a new neighborhood or market, you have to understand the market and this includes its crime rates, values as well as supply and demand.
- Don’t hesitate to outsource
Real estate investment requires a lot of effort. You have to think about tax preparation, legal advice, and bookkeepingand also actively manage your rental property. Sure, you can decide to handle these tasks yourself as an active investor, but Asaf Izhak Rubin says that you should not hesitate to outsource anything if you don’t think you can manage all of it. Hiring a third-party manager can help you save a lot of time, money and headaches, as they will manage your entire investment on your behalf.
- Be ready for the unexpected
Expenses can spring up anytime and markets can also fall. It is inevitable that your investment will go awry at some point. Therefore, real estate experts like Asaf Izhak Rubin will recommend that you always have an extra cushion because this will help you cover any unexpected costs and also give you peace of mind. If you have a rental property, it is a good idea to keep 10% of the income for future repairs and improvements. But, you can adjust this number depending on how old the property is as well as its existing condition.
- Invest for the long term
Last, but definitely not the least, you should remember that real estate investment is a long game. According to Asaf Izhak Rubin, there are short-term strategies, such as fix-and-flips, the long game can give you maximum appreciation, tax benefits and cash flow opportunities. There might be shaky times, but you can ride through it.