4 Most Important Criteria For Making Real Estate Investments Now
There are a lot of market drivers making investments in real estate even more attractive and important right now.
Still, it is important to evaluate the opportunities on the market and select the investments which can best deliver on your financial goals. Here are four of the most important criteria to look for when picking smart property investments now.
- Income Cash Flow
Investors and experts have increasingly woken up to the fact that cash flow and passive income is perhaps the most important reason to invest today. You never know when you are going to need more passive income. Cash flow is going to be the lifeblood that keeps you afloat when other sources of income and investments fail to perform.
- Inflation Beating Yields
Unfortunately, while real estate can be a good investment and reliability in investing can be more valuable than speculating, some are accepting yields that are far too conservative. If your yields are too low, inflation, taxes, and admin fees can effectively put you in a net negative return position. You might be better off with cash under your mattress. Make sure you know any costs that will come out of your payouts, and pay attention to real inflation at the store.
- Tangible Hard Value
Public REITs or buying publicly traded stock in a construction company is not a true real estate investment. You are just buying into a company. Like other publicly traded stocks, these investments suffer extreme and emotional volatility. There may be no logical justification in them folding, but they can. Those paper assets and effectively be evaporated overnight, leaving you nothing. In this digital investment environment, you don’t even get a paper stock certificate you can put in the fireplace to keep warm.
One of the best benefits of true real estate investment is the tangible hard value these assets have. This is what guarantees the return of your investment, protects your capital, and gives you the chance to bounce back and generate great returns on your investment if the market ever dips and jumps.
- Ability to Add Value
Aside from real estate, there are very few investments which give you the ability to control and add value to your own assets. You can splurge seven figures on a Ferrari, without nudging up your Ferrari stock value by 1 cent. You can buy your whole family iPhones for the holidays, without adding a 1% improvement to your Apple stock. Yet, especially when it comes to multifamily real estate investments you can add value to your own assets, no matter what the external market is doing. You can do this through physical capital improvements, marketing, and operational performance.
Learn more about how we are vetting and selecting investments today, and how you can participate in the best of them…
ABOUT THE AUTHOR
Bill Zahller is the Managing Partner of Park Capital Partners, LLC and resides in Asheville, NC. As a Multifamily Real Estate Investor and Syndicator, he founded Park Capital Partners, LLC in 2016 after 14 years involvement in real estate investment. He works with accredited investors and professionals who are interested in real estate investment, diversification, and financial freedom.
Bill has been flying since high school. His father was a Naval Aviator and Captain for TWA. Bill has been flying professionally for over 25 years, 23 of those at his current company. He has accumulated over 12,000 hours and 7 Jet type ratings. He has also held Instructor, IOE Instructor and NRFO pilot positions with a large fractional flight company. He is currently flying the Global 6000 in a long range mission capacity. This keeps it interesting – one week its Beijing or Sydney; the next Rio or Rome.
Bill is also the founder of the Asheville Multifamily Investor Club. Visit www.ParkCapitalPartnersLLC.com for more information.