Many entrepreneurs across the United States make money by means of investing, often in the stock market. But stocks are not the only way to generate passive income. There is also the option of commercial real estate investment, and investing in rental property for tenants. An investor will have a lot on their plate, but this endeavor can be made easier with apps for real estate investors. These, combined with commercial real estate investment services and general know-how, allow any investor to buy the right property and generate a profit from it. When it comes to buying commercial property for sale and using apps for real estate investors, what should a beginner bear in mind? Investing like this might start off slow, but an entrepreneur may buy more and more properties as they learn more about the trade.
American Real Estate Investment Today
Many studies are available to show the current state of commercial real estate investment, and many entrepreneurs would agree that these numbers are encouraging. For one thing, such investment is quite popular, even among the very wealthy. A UBS and Campden Wealth study in 2017 shows that among the ultra-wealthy, 15% of a person’s portfolio goes toward real estate. Overall, residential real estate as an asset class weighs in at $29 trillion on the market, and when the commercial sector is added, that total is closer to $39 trillion. Meanwhile, surveys show that 84% of people who have invested in real estate expressed their intention to make another real estate investment, and 97% of all real estate investors intend to increase their capital allocation for real estate within 18 months’ time. Finally, take note that 89% of surveyed American investors said that they are interested in adding real estate to their investment strategies. So, how might a new entrepreneur take part in this robust trade?
Real Estate Investment Done Right
This can be quite an involved process, but some basic, broad strategies can be discussed here. For one thing, a new entrepreneur can take advantage of apps for real estate investors, and the best investing apps allow them to easily connect to real estate companies, track tenant payments, manage a schedule, and manage a whole lot more information besides that. All of this can be done from the convenience of a smartphone, tablet, or similar device, meaning an investor can download apps for real estate investors and manage their properties anywhere, anytime. This may be especially appealing to Millennial investors (born 1982-1995), who are quite used to using apps and mobile devices as a whole. So, residential and commercial real estate apps may feel most intuitive and natural to them.
But it’s not just the apps; a physical component must be included, too. Even the best apps and websites can only tell a person so much, and once an entrepreneur has scouted out some properties as potential investments, they should visit in person. It is one thing to narrow down the field of potential investments based on price or location; it is another to get a personal view. While visiting, the entrepreneur can look over the property’s front and back lawns (if any), and the building’s interior and exterior. A house might need some routine repair, such as new siding or roof fixes, new plumbing, refinishing work for the floorboards, or fixing water stains on the drywall. A commercial building might have an outdated fire sprinkler system, or it may have loose windows.
Once a property is purchased, the investor will generate some profits when they rent it out to tenants (in case of residential properties) or business owners (commercial structures). Tenants are expected to pay rent fully and on time, and to track this, the investor can use their apps to see how much money has been paid, when it was paid, and for which property. In this way, the investor can easily (and at any time) note delinquent payments and take action. In fact, investment apps may have a calendar or reminder system to let the investor know when they should perform repairs on a property. While tenants may report damage to the property, it is up to the owner to hire repair experts to fix the problem.