We’ve all got some connection to the real estate industry even if it’s just in a tangential way. Most of us have somewhere we live, go into work in an office building, visit friends for housewarming parties, or maybe you’ve even watched the occasional television program about flipping houses (we’re looking at you Property Brothers!).

More people are investing in real estate than you might think. If you’re looking for a way to make money from investments then you might be interested in becoming an investor yourself.

So whether you’re a seasoned real estate investor, a prospective first time home buyer, a student on their first lease or even if you feel you’ve been priced out of the property market entirely, you’re practically guaranteed to learn something from this article about the real estate market. 

1. There are many ways to invest in real estate.

Many successful investors, who have made millions of dollars leveraging their market savvy, have spoken out saying that real estate is one of the best investments you can make and, surprisingly you don’t have to be a millionaire to get in on the ground floor of the market. So, what sort of investment is best suited for you and your investment journey?

You could invest in a cash flow property that produces income and provides the investor with stable cash flow. You could also look into a buy-and-hold property when values are high it’s a good idea to buy a property and hold onto it for a rainy day. This sort of property requires you to invest intelligently and know when to sell but, with the right advice, this could help you reap the benefits for years to come. A flix-and-flip is the sort of property that you’d likely see on reality shows. In this case, you buy low, either on or off the market and then invest the money needed to make repairs, renovations and design updates and then sell the property for more than they bought it for in order to make a profit. Wholesaling is a more complicated investment, an example of an arbitrage opportunity. In the case of wholesaling, you don’t actually take possession of a property. You buy from a highly-motivated seller at a fair but low price and then pass the contract onto another investor. A fifth common way of investing in real estate is through crowdfunding and real estate investment trusts, in this case, a small amount of money is collected for a large group of individual investors which is then used to purchase and manage a series of large income-producing properties. 

2. You don’t need a real estate license to become an investor. 

Investors don’t technically need a real estate licence to get involved in the market. If you’re going to be managing your own properties there’s no legal reason why you’d need a license. However, if you’re serious about investing then you might want to consider educating yourself. You can either think about attending real estate school and sitting the local exam in your state or you could continue to educate yourself through books, articles such as this Roofstock article about starting off as a real estate investor. Another added benefit to sitting your real estate exam is you’ll be able to build a network of contacts in the real estate market with whom you’ll be able to share advice and tips as you grow your career as an investor. 

3. Location, location, location: The secret markets that are booming. 

As the old adage goes, ‘location, location, location,’ and, unlike most adages this one rings true. In fact, a National Association of Realtors survey found that 78% of home buyers consider the quality of their neighborhood to be significantly more important than home size and 57% of buyers would rather have a home that guarantees a shorter commute every day than a larger backyard. For 84% of millennials and younger homebuyers location was far more important than amenities such as air conditioning, parking or even on-site laundry access. 

So, looking for those secret areas where markets are booming and buyers are headed? We can’t give you some sort of cheat code or tell you without a doubt but we can throw some stats your way courtesy of Apartment List and the National Association of Realtors. The fastest growing markets in 2019 were Henderson, Nevada and Mesa, Arizona. Apartment List also tells us that the best towns for families are both located just outside of Indianapolis: Fishers and Carmel. They also tell us that the most affordable rental market is Troy, Michigan. Surprisingly, the National Association of Realtors tells us that millennials are favoring relocating to Madison, Wisconsin and Grand Rapids Michigan.