5 Successful Real Estate Investing Tips for 2023

5 Successful Real Estate Investing Tips in Arizona for 2023

Many amateur homeowners buy real estate investments, sit back, and think that's enough to ensure desired returns. But upcoming trends are throwing new tools into the game.  If you're new to investing and want to know how to profit, continue reading to learn the top five best and latest tips when it comes to real estate investing.

1. Invest in Real Estate Investment Trusts

REITs are great for people who want to own property without taking on all the risks that come with it. With this form of investing, you obtain shares in properties that large companies own (such as shopping centers, hotels, office buildings, etc.) without being responsible for managing and maintaining the physical structures.

Handsome dividends and more liquidity make REITs a go-to for diversifying your portfolio.

2. Buy With the BRRRR Method

The “BRRRR” (Buy, Refurbish, Rent, Refinance, Repeat) method is for individuals who don't mind taking risks. Essentially, buying with BRRR means you'll:

• Purchase a property that needs to be renovated.

• Fix it up.

• Rent it.

• Refinance it.

• Repeat the process.

Buying real estate investment properties that need refurbishment is risky because you may run into more issues than you're prepared to handle. Furthermore, you may encounter difficulties with your tenants, such as their failure to pay rent on time or other inconvenient situations. 

However, the rewards of BRRRR could far outweigh its risks if you can get everything to run smoothly.

3. Pick Up Tokenized Real Estate

Tokenized real estate is like fractionalized investing, but your share is digitalized by putting it on a blockchain as a token.

4. Enter the House Hacking

“House hacking” is excellent if you own a multifamily home (or a traditional home with vacant rooms) because you can rent out the unused space to tenants, pocket the money, or put it towards your mortgage.

Airbnb has become especially popular as homeowners rent out houses or rooms within them.

5. Trade Synthetic Real Estate

Similar to traditional derivatives, the value of synthetic assets is derived from a mix of other assets. Blockchain technology allows investors to trade any asset they can track.

• The upcoming trend in real estate

Thanks to new technology like synthetic real estate trading, geographical trading in cities is possible. Geographical trading is similar to stock trading, but it uses physical locations.

Real Estate Investing Frequently Asked Question

• Is blockchain recommended for small investments?

• Blockchain technology makes it less expensive than traditional real estate investing, so it's excellent for people with little money to invest. Depending on the platform you use, you could also get rent payments every month.

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  Conclusion

  
  

  There are numerous ways to invest in real estate today. Thanks to technological advancements, an investor no longer needs to buy real estate investment properties directly. Use the above tips to assist you in making wise investment decisions that work best for you. If you’re planning to invest in real estate, particularly in Arizona, G.R.I.T. Home Professionals is the best company to reach out to. We provide the best and most affordable properties available.

  Visit us online today to browse or contact us to schedule your appointment!