Real estate makes up the largest asset class in the world. According to a report from Savills, real estate accounts for $217 trillion in total value around the world, with 50 percent of that being located in the United States.
But of those trillions of dollars of investment, only 1 percent of all the assets change hands every year.
What this says is real estate, while extremely valuable, isn’t accessible to the everyday investor. Instead, this asset class – which is often one of the best ways people can boost their wealth – seems to be restricted to large corporations, big investment firms or savvy individuals with a lot of money to invest.
Today, there are quite a few barriers of entry for those looking to invest in the real estate market. Among them are:
• High prices to enter the market: It takes a lot of capital to acquire and then invest in real estate.
• Lack of liquidity: It often takes a while to see a return on your investment in terms of cash in hand. Most of the asset is often tied up in the property itself.
• Tough to find a gem: So many real estate investment firms pounce on the “hidden gems” in the market, leaving the everyday investor with the leftovers.
• Tough to do the research: It’s easier than ever to research the real estate market and homes in a particular region, but it’s tough to do it all in one place, and to make sense of what you’re looking at.
While this is the state of much of the real estate investing world today, it doesn’t have to be this way. There is another, better way of investing in real estate – by partnering with HomeUnion®.
Real estate investing doesn’t have to be as complicated, complex and unattainable as it seems it is today. HomeUnion® helps investors turn the market on its head, and invest in real estate as easily as it is to invest in the stock market.
Let’s take a look at some of the ways HomeUnion® is helping to make real estate more accessible for investors.
HomeUnion® Simplifies the Research
One of the most important steps to becoming a successful real estate investor is to know the market. This requires a person to be educated in a wide variety of interrelated topics. At the very least, a successful real estate investor will need to:
• Understand the current state of the housing market
• Be able to predict the future of that housing market
• Understand financial factors such as mortgage rates
• Know whether a market is prime for investment based off not just home prices but the unemployment rate
Getting a solid grasp on those data points will give you a preliminary sense of whether you can make money in a particular market. From there, you’d need to hire a good real estate agent or on your own peruse homes for sale that are under market value for a flip or that would make solid rental properties.
That bevy of research only gets you to the point of making a decision on where and when to invest. It doesn’t, however, begin your investment or cover any number of other issues you’ll have to tackle such as getting approved for a mortgage, purchasing a home, doing renovations, listing it for re-sale or rent … and the list goes on.
This is one way in which real estate is inaccessible today. This is a difficult process for the everyday investor to do. Large investment firms, on the contrary, have teams and systems in place to identify the right markets and the right properties, which makes it easy for them to snatch up the gems before you even know what’s what.
HomeUnion® simplifies this research for you. They provide industry leading real estate market reports, as well as a proprietary formula they call the Neighborhood Investment Rating. Using these two tools alone can help simplify the research process and get you to the point of entry faster than doing it on your own, without the headaches.
Unlike other platforms out there, HomeUnion® takes information and research one step further, bridging the information void between property and tenant. The popular and accessible resources available to most people focus almost entirely on the real estate market. It’s easy to research homes for sale using highly targeted search terms and parameters.
What’s not easy, though, is researching what ultimately will have the biggest impact on your investment – the people who will rent your home. Many individual real estate investors who are able to access the market don’t do this research, or don’t know how to, and fail as a result. HomeUnion® helps to break down this wall by providing resources on what makes an ideal tenant and what kind of renters live in the area in which you’re considering investing.
Remember that real estate investing is not solely about purchasing an asset. Unlike the stock market in this sense, whether a real estate investment is successful or not depends on the transaction and relationship that’s developed after you make the purchase. You may not have much of a say in whether your stock of Apple will increase in value over time, for example, but you certainly will have at least some say in the outcome of your real estate investment.
That’s why researching the market based on the properties AND the buyers and/or tenants is so essential. In the past, that was all on you to figure out. But now, HomeUnion® is making real estate more accessible by providing those resources and information to you in one place.
HomeUnion® Expands the Market
Most people know the popular adage in real estate – “location, location, location.” The location of a property alone will determine the baseline for its price. Two properties with exactly the same measurables can have two dramatically different price points.
Take as an example a 1,200-square foot home with three bedrooms, one bathroom and similar amenities in terms of rooms, outdoor areas, basement and/or attic storage, age of the home and overall condition of the home. Such a house located in a rural part of Arkansas may be listed for around $100,000. But a similar house on the water in Laguna Beach, California? That could run you more than $1 million.
The simple fact that the Laguna Beach house is located on “prime real estate” compared to the Arkansas home is what makes it so much more valuable, even if the house itself is literally the same.
What does this have to do with real estate investing, you ask? Quite simply, investing in the real estate market in which you’re located might not be attainable for most investors, or smart for that matter. It would take a lot more money to invest in Laguna Beach than Arkansas, for example.
This is another way that traditional real estate investing is inaccessible. The way most individuals invest in the real estate market is by purchasing a home in their neighborhood, or at least in their general region, and making a profit by fixing it up and flipping it for re-sale, or renting it out to tenants and serving as a landlord.
HomeUnion® breaks down this significant barrier for investors. With more than 200 million transactions on its platform, HomeUnion® allows investors to do their research on markets across the country, and then put their money into whatever market fits their needs.
By using the Science behind HomeUnion®, investors can select the best properties in the best markets of the country, no matter where the investor themselves calls home.
HomeUnion® Makes Investing Easier
HomeUnion® makes investing in real estate simple by making it similar to the stock market. Their online portal allows investors to do all the research from the comfort of their own home, and then put their money into the market without the obvious barrier of location stopping them from doing so.
When investors begin with HomeUnion®, they are asked to provide a budget and whether they are looking to obtain cash flow or other value from the property. Investors can then search available properties by location and property type based on those prerequisites, or the system can make suggestions on properties for them.
Perhaps the best part about HomeUnion® is they provide a one-stop shop for real estate investors. Not only do they provide extensive market reports and a searchable database of available properties, but they provide in-depth information regarding what rent should be, what the expenses of running the unit might be, what the taxes on the property would be and so much more. This allows the investor to get an accurate, 360-degree picture of the entire investment, and not just what a property is listed for and could resell for.
If you’re ready to learn more about HomeUnion®, visit our website and download our Definitive Guide to Finding Investment Properties and how to Be an Investor, Not a Landlord. This and all the information we provide will make real estate investing not only make sense to you, but it will make it accessible as well.