Shalom Drizin – Marketer

Advantages of investing in real estate

Real estate investment is, according to experts, the best investment alternatives, because it allows the acquisition of an asset that will rarely lose its value, but instead, will increase it. Learn the tips and advantages of investing in real estate in the best way.

That is why you cannot miss the opportunity to put your savings to yield, and with these tips, you will see that entering the world of Real Estate is not so complicated.

1.- Prudence and reflection: qualities of every investor
The first advice we give you is that you should inform yourself from the beginning, learn more about the characteristics, conditions, and opportunities of your future real estate investment. It will never hurt to consult with experts, inform you of news or specialized blogs and study the profile of the creators of the project in which you wish to invest.

2.- Everything takes time
Another very important tip to take into account before entering the world of real estate is time. Any investment you make will be reflected, usually after five years, and this is one of the main problems for those who are beginning to invest. It is common to have a little impatience and even fear, but neglect, in the real estate sector, the time factor usually only benefits.

3.- Determine the use of your investment
One of the biggest advantages when investing in a property is the double profit: the value of the property and the income that it generates. But it is important that you reflect on what will be the end of your investment, will it be to sell it or to rent it? It never hurts to combine both options, but if your answer is to sell, then you must define the time in which you will stop renting and put the sale of your property.

4.- Study the types of property
There are several types, residential, commercial and industrial, you must make a thorough evaluation of the type of property in which you will invest, this depending on the area, the price, and references of the place.

Whether you are contemplating the idea of ​​investing or have already taken the first step in the real estate world, we are sure that, if you follow these recommendations and trust your instincts, you will make your investment multiply just as you expected.

How to start investing in real estate?

How to start investing in real estate?

1) Develop your real estate business plan
If you want to be a successful real estate investor, you should treat your investment as a business. And, like any other business and industry, you must have a plan. Your real estate investment plan will show you the steps to get started, what should be done, what resources are required, what to expect and will keep you focused throughout your career as a real estate investor. Therefore, take the time to think about your investment objectives, strategy, financial and marketing plans, etc. Write them down and update the document as your real estate investment portfolio grows and new information arrives.

2) Start saving
This next tip is a piece of cake. The sooner you start saving money, the sooner you can start investing in real estate. It is not necessary to save the total price of a rental property, but you do need to save for your first down payment. Typically, lenders require a 20% down payment from property investors to finance investment properties. Therefore, you may want to start reserving a percentage of your income for real estate investment plans. Also, a history of healthy savings will look good for lenders.

Also, you may need to start building your credit. So, get a secured card, just buy what you can afford and pay your bills on time. If you have any debt, pay before investing in real estate. The more debt you pay, the better your debt/income ratio, which will result in a higher credit score. Also, do not add more debt before buying an investment property and keep your credit and debt history clean.

3) Take advantage of today's technology
Technology has changed almost every aspect of life, including real estate. Today, a real estate investor can gain access to multiple online tools designed to help you excel in the industry.

How to invest in real estate?

According to real estate investor Shalom Drizin, to invest in real estate the risk profile of each person plays an important role. That is why the platform presents three different forms of investment in the sector.

Income
The rent of a real estate allows obtaining benefits in a smaller term. However, it is necessary to take into account that initial investment is required to maintain the property and with this, this achieves a greater value.

The location is important to determine the rental price. A well-connected property and close to public transport access roads could generate more benefits, facilitating your rent.

One option is to launch the hosting offer through collaborative systems such as Airbnb. Shalom Drizin, Head officer of Fieldbridge Associates LLC, said that this is feasible if what you want is to rent a room of the property, since renting it completely includes some maintenance costs.

Remodeling
Another option is to buy a used property, remodel it and sell it later. These types of projects increase the value of homes, so that the final closing price is higher, as explained by Shalom Drizin.

He added that although the gain may be variable, in some very dynamic areas the value of a property could increase between 5 and 7 percent.

Sale
The investment in real estate purchase is medium to long term, selling a property could take between six months and a year, especially if you consider that you should wait for it to generate surplus value.

As noted by Leonardo González, other important factors to consider are the term or time of stay on offer, method of payment or amortization of the value of the property, guarantees of tenure rights, expected surplus-value, risk tolerance for claims or contingencies and the metropolitan environment of the property.

The 4 Ways to Make Money in Real Estate

The purchase, ownership, lease, or sale of land and any structures on it for the purpose of earning money is known as real estate investing. Real estate has four categories: residential, commercial, industrial, and land.

However, it doesn’t mean that you should avoid investing in real estate, just because you may be unfamiliar with this investment opportunity.

Real estate can offer lucrative and reliable ways to generate substantial short term and long term returns when approached correctly.

The real estate investor Shalom Drizin points out that real estate can create a consistent income stream. It also can supplement your portfolio with unique benefits, including appreciation potential, portfolio diversification, and tax advantages.

In this article, Drizin points out several ways to make money when investing in real estate:

Real Estate Appreciation

This is when due to a change in the real estate market, the property increases in value. “I may be when the land around the property becomes more attractive because a major shopping center is built next door. This increases its value,” says the real estate investor, Shalom Drizin. He also warns that Real estate appreciation can be a tricky game and it can be riskier than investing for cash flow income.

Cash Flow Income

Drizin explains that this type of real estate investment is all about buying a real estate property, in order to rent it and collect a stream of cash. He points out that cash flow income can be generated from well-run storage units, apartment buildings, car washes, rental houses, office buildings, and more.

Real Estate Related Income

This income is generated by real estate specialists such as real estate brokers. Drizin, who serves as Head Officer at Fieldbridge Associates LLC (a real-estate management company), indicates that these specialists make money from buying and selling a property or real estate management companies who get to keep a percentage of rents in exchange for running the day-to-day operations of a property.

Ancillary Real Estate Investment Income

This can be a huge source of profit for some real estate investments. As Shalom Drizin specifies, ancillary real estate investment income can include vending machines in office buildings or laundry facilities in low-rent apartments. These things can serve as mini-businesses within a bigger real estate investment. Drizin mentions that this can let you make money from a semi-captive collection of customers.

3 Reasons to Invest in Real Estate

Real estate investing isn’t for everyone. Making money in real estate takes grit, time, and most importantly, cash.

According to Shalom Drizin, a noted real-estate professional from Crown Heights in Brooklyn, real estate investing is a decidedly “non-traditional” method for building wealth, but a powerful one nonetheless.

This real estate investor owns a number of properties and serves as Head Officer at Fieldbridge Associates LLC. Through this company, he purchased the Ebbets Field Apartments, a housing complex built on the ground of the famous Ebbets Field in the 1960s. Drizin started investing in real estate more than three decades ago.

Here’s why Shalom Drizin believes real-estate investing is a valuable tool for building wealth:

1. Real estate diversifies your income

Developing and maintaining multiple income streams it’s a common habit among financially successful people

“Although diversification is certainly important when investing, it is even more important to be diversified with your income,” Drizin says. “This is because the loss of your primary source of income is the largest financial risk for most of you, which is typically in the form of a day job.”

A stream of steady income can be opened up by setting up and managing a rental property. This stream of steady income doesn’t require the time commitment of a full-time job.

“With the continuous expansion of your income streams, you can eventually reach a point where you no longer need to rely on a day job. This is the point of financial freedom,” the landlord of Ebbets Field Appartments, Drizin says.

2. The real estate produces near-immediate results

“Rental properties can produce income quickly and consistently when managed correctly,” says the real estate investor.

“Results can be achieved and seen almost immediately. Properties are visible and tangible. Rent payments can be cashed, spent, and invested almost immediately. Not after 20 years,” Drizin continues.

3. Passive income can help you become financially independent sooner

Shalom Drizin claims that a financially independent person is considered someone who has 25 times his annual expenses saved. These persons would be able to withdraw 4% of their investments each year. Moreover, they can live comfortably without ever running out of money, assuming they earn the average return.

According to Shalom Drizin, you can halve the amount you need to be invested to become financially independent with passive income from real-estate investments.

Furthermore, he points out that, compared to other types of investments, which can be affected by returns, taxes, and inflation, cash-flowing real-estate is a clear asset.