A Guide to Virtual Real Estate Investing
Virtual real estate investing offers several benefits to investors, but it can be overwhelming for investors who aren’t used to doing business online. Thankfully, there are some basic steps that investors can take to maximize the benefits of virtual investing while avoiding confusion and maximizing profitability.
A lot of investors are unsure what virtual real estate investing means. While virtual real estate investing can be used to describe a variety of different real estate methods and transactions, it is essentially the process of putting together real estate deals completely online. This enables real estate investors to do business remotely, which can cut costs and minimize the time spent on individual real estate deals.
Benefits of virtual real estate investing
There are a lot of benefits of doing virtual real estate investing. Here are some of the reasons why investors choose virtual real estate investing:
One of the biggest benefits of virtual real estate investing is that it is more convenient than traditional investing. Investors can make deals from the comfort of their own homes without ever having to travel to a different site or sit through lengthy in-person meetings. When done properly, virtual real estate investing is a secure and convenient way to expand a portfolio without the hassle of travelling for traditional investing.
Another advantage of virtual real estate investing is that investors can save a significant amount of money during the investing process. Between the cost of travel to inspect sites and the hours that investors spend working on traditional real estate deals, the amount of money that goes into the preliminary stages of real estate investing can be significant. Conducting business virtually streamlines the process to save investors time and money by reducing the need for travel and minimizing other expenses.
With traditional real estate investing, investors are often limited by time and cost constraints and must invest in markets that are nearby. Virtual investing opens up endless possibilities for investors who want to diversify their portfolios with properties across the country-- or even across the world. Strategic virtual real estate investing gives investors the flexibility and opportunities that they strive for.
Getting started in virtual investing
With all of the benefits available to investors who get started with virtual real estate, it’s no wonder why so many people are interested in learning more. Unfortunately, a lot of people who want to try virtual investing don’t know how to approach this approach to real estate. If you’re interested in getting started with virtual investing, but you aren’t sure where to start, here are some tips to help you get started:
Get yourself set up
Before you jump into the deep end, it’s important to make sure that you are set up for success in virtual real estate investing. You will need a reliable computer or laptop, a good internet connection, a smartphone or landline, a scanner or printer and software to develop business strategies for your target market.
Find the right market
Choosing the right market is crucial when it comes to navigating the complex world of virtual real estate investing. One of the benefits of virtual investing is that it gives you access to markets anywhere in the world so that you can explore emerging investment opportunities, but having that many options can also feel overwhelming for investors. Do plenty of research to identify markets that are slated for growth in the coming years. If possible, find a market where you have some local connections. Having people in your target market can make it easier to negotiate deals and find the local resources you need for your investment properties.
Choose a strategy
Next, think about what kind of strategy you want to adopt for virtual real estate investing. There are a variety of virtual investment strategies to choose from, including house flipping, wholesale real estate and real estate syndications. When choosing a real estate strategy, it’s important to think about things like the amount of time that you have for investing, the amount of money you have to invest in developing a portfolio and how involved you want to be in property management.
Establish a system
For the most successful virtual investing experience, it’s important to spend time developing a marketing strategy and comprehensive business plan based on your target market. Research online tools, like Zillow, Redfin, Google Maps and DocuSign that will help you successfully negotiate virtual real estate deals remotely. Do as much research as possible into your chosen market and find out the best way to leverage online tools to improve your chances of success.
Coordinate with a local team
Even though there are a lot of things that real estate investors can do remotely, it’s still important to work with a local team that can provide boots on the ground services. There are a few different ways that real estate investors can establish a team, depending on the specifics of the real estate deal and the needs of the property. One of the best ways to approach this is to contract with a professional property management company.
Try virtual investing
If you feel like you want to try virtual real estate investing, there’s no time like the present. Right now, more industries are shifting their business online and remote work is becoming widely available. With plenty of research, strategic preparation and the right team behind you, you can take advantage of all the benefits of virtual investing to help you establish and expand your portfolio in the coming year.