The evolution of the real estate investing business in the last 20 years has been staggering, to say the least. Real estate has developed at such a massive rate since the turn of the century that it has become extremely diversified as an investment. The Internet age, computers, and smartphones have broken down all barriers that ever existed in the real estate industry. Creative real estate investing has become an art form of investing, where real estate investors and other real estate professionals are always competing with each other on new ideas to make more and more money in real estate. The opportunity of creative real estate investing has made real estate a profitable prospect for almost anyone.
Think about how real estate was 10 years ago and you will realize how much change has happened. A decade ago real estate investment was basically earning money in two ways as far as the majority of people were concerned: either by appreciation of the investment property or by traditional rental income. This is what most of us though real estate investing was. However, the emergence of creative real estate investing has comprehensively changed the foundation of how people view real estate investments.
Creative real estate investing is a relatively new concept, and as every innovative idea it’s constantly evolving. Such as every new idea or concept has a beginning, creative real estate investing was initially kick started by innovative investor minds that wanted to make a change in the real estate business. In the real estate market today, you don’t need to own investment properties to get rental income; not having enough money to purchase a real estate property is no longer a barrier to becoming a real estate investor; and your parking spot in a downtown spot is no longer useless space. This is how far creative real estate investing has gone to become the safest and most diverse investment in the world.
3 Ways for Creative Real Estate Investing
1. Short-Term Rentals (AirBnB)
In real estate investing, short-term rentals have become one of the most common trends amongst potential and current real estate investors. The fact that short-term rentals are on a constant rise just shows their value in the real estate market today. Renting an entire real estate property or a room for short-term has been the most successful creative real estate investing scheme in recent history. Nothing demonstrates the success short-term rentals have had more than Airbnb. The platform which gives investors and homeowners the ability to list their properties on the website has been revolutionary. Its rise has affected the real estate market and hotel market in so many ways.
Whether you are buying a home or an investment property, Airbnb has its uses. The ability to use the platform to generate a steady income has been remarkable. Real estate investors see it as a creative real estate investing plan because it is new, different, and more profitable than the traditional rental strategy. Airbnb basically gives you the chance to make your rental experience as unique as possible depending on how creative you want to be. The competition between hosts has constantly pushed the creativity level so that new amenities, services, and experiences are provided for guests.
What if you are looking to purchase your first home? Applying for a mortgage will be taking a big chunk of your monthly salary. One way to deal with it is by renting a private room on Airbnb. This is extremely popular amongst millennials, because they see Airbnb rentals in their own homes as a way to finance their monthly mortgage payments.
This shows the creative real estate investing side that has been developed by Airbnb; its success has generated opportunities for more property investments nationwide. It started out as a home-sharing service but has become a successful real estate investment plan. Just remember, short-term rentals success is all about excellent property management, key location, and positive guest-host relations.
2. Living for Free (House Hacking)
One of the most creative real estate investing ideas has been house hacking: the ability to live in your own personally owned property for free. It is basically about buying a multi-family home that can consist of 2 or more units and renting it out for long term to tenants. The great thing about this type of real estate investment is that the location is not very important because long-term rentals are more in demand and that makes it easier to find tenants. Being flexible with locations can save the investor vast amounts of money if you compare property values in central areas compared to suburban areas anywhere.
You can apply for a mortgage to buy this property and then rent out some of the units to pay off for your mortgage and other expenses, while living in one of the units. Depending on the size of the property, an investor can even make enough money to turn it into a profitable investment. This is considered creative real estate investing at its very best: innovative, practical, and – if done correctly – costing nothing.
3. Turnkey Properties
Remember when purchasing a real estate property was stressful, tiring, and time consuming? Those days are long gone. If you are looking for a creative real estate investing opportunity that is easy and effortless, then turnkey properties are the right choice for you. Turnkey property investment is a type of real estate investing in which the investor purchases a recently renovated property that is being managed by a real estate company. The company is also responsible for handling everything related to that property. It will assume responsibility for finding tenants, managing them, collecting rent, and selling the property for you.
Turnkey investments are basically a package deal that involves purchasing a property, property management, and real estate agent services put together in one. It is one of the most creative real estate investing ideas because many investors have full-time jobs and having someone manage all aspects of their properties is just too good to turn down.
There is no way to know how far creative real estate investing will go down the years. The truth is that technology, ideas, and cultures are becoming too universal, which makes the US real estate market open to new innovations. The fact that buyers, sellers, and real estate services are all connected through smartphones and the Internet means that creative real estate investing will continue to grow in a way that will benefit investors more than anyone else.
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