For first time homeowners or budding real estate entrepreneurs, local investments are long-term wins.
“No one is making any more real estate,” the saying goes, but we all know that properties can often cost too much and it’s too anxious to have to compete in the local real estate game, especially as a rookie. Experienced investors know and corner the market best, but they’re always looking for smart upstarts like you.
So where do you start?
It’s right under your feet
If you can buy land, do so as soon as possible. That new franchise in town? They’re going to pay rent to someone, and unlike residential properties, the element of dealing with a business or franchise can appeal to owners who won’t have to make decisions concerning families and tenants who are just looking for an affordable place to live. That revenue could last you years without hiccups or downtime.
Think west, young investor
All that local property in the west of the city or town you live in? Get what you can–people will want to build there eventually, and the cost-risk factor will probably bend in your favor before you know it. If you want to be a landlord, consider a trend like tiny houses, which will attract new clientele to the city as well as forward-thinking investors. Unprotected (legal for development) marshland or wetlands or even abandoned properties just outside the city are perfect for the future of a growing town that needs space, and you will be there with the deed in hand.
Co-invest–and watch your influence grow
Consolidate your debt, do what’s necessary to get out of timeshare commitments, and budget for unforeseen costs are three ways for young investors to increase their credit score and become more attractive to local sellers. But for many investors in their 20s, they may want to start an LLC with other ready buyers to protect their money when it comes to seeking and investment. Four best friends who want to flip one house at a time, a couple seeking fields for solar panel placement for off-grid energy, or business partners who want to start eyeing empty lots in town for future sales can influence purchases locally. These investors might just save the city when the time is right or build revenue that wasn’t previously on the table.
With time and the right investment, local properties are the best for a town on the upswing–or a town that needs investors like you. Not every investment is going to be a homerun or even a double, but with the right attitude and neighborhood compass, that empty lot can be a school, farmer’s market, or home for the next generation of locals.