How to make a real estate investment?

The current landscape offers a large number of opportunities for any investor who wants to enter the world of the real estate market. A well-made real estate investment can be very lucrative, especially now that we are in an environment where interest rates are higher.

If in the article What is a good investment We tell you everything about real estate investments, today it's time to talk about what to do to make them have a high return.

However, there are many new investors who don't know how to start or where to invest in real estate. But that's what we're here for today. Keep reading to find out how to make a real estate investment.

5 tips before making a real estate investment

Before venturing into the world of real estate investment, it is imperative to follow a series of tips that can often make the difference between success or failure. Having knowledge about the world you are about to enter and the steps you must follow is essential, and that's why today we bring you these tips:

• Organize and plan your finances

Before starting to invest, you must Define an investment budget and the risks you're willing to take. This will not only ensure that Don't compromise your finances, but it will also save you a lot of headaches.

Take your time and analyze all your financial possibilities, with the objective of defining your borrowing capacity and avoiding falling into losses that could complicate your economic situation.

• Use an online real estate platform

Real estate platforms such as Reental can help you enter the real estate sector and large projects, starting with a very low investment.

The great advantage for investors is the possibility of obtaining high returns on their investments thanks to being able to participate in a lucrative operation that they would not have been able to access otherwise. Investors can participate in different projects, depending on the specific conditions of the operation. These investments can pay for cash distributions and offer the possibility of obtaining returns that are not correlated to the economy, allowing investors to diversify their portfolio exposure to market-based assets.

• Study the available offer

Don't start investing without first studying each project you want to participate in. Take your time to study, analyze, evaluate and compare the different alternatives that exist in the market. To make this decision, it can help you to determine the type of investment you want to start making and the main attributes you are looking for in a property.

As we have already mentioned in previous lines, online platforms such as Reental, or others of real estate crowdfunding, are an excellent alternative to start with, since they do not require very high initial investment capital, as is the case with the vast majority of real estate investments.

• Choose a suitable area

The area where you are going to invest must be in a good location. The main thing for a successful investment in the real estate market is that the property is in a dynamic, modern area equipped with all the basic services. In addition, it is also a plus that it has shopping centers, public transport, hospitals and educational centers nearby.

A good area is not only one that appreciates a lot over the years, but it can also be one that generates interesting rental income. In this way, greater profitability can be generated as time goes on. There are 3 ways to generate real estate returns:

• Capacity to generate monthly income.
• Revaluation because you make some improvement in the property.
• Market Appraisal.
• Check the legal status of the property

It is always essential to know the legal status of the property in which you are going to invest. If you make investments through an online platform, make sure that it complies with all the legal requirements required by the competent bodies.

With Reental you can invest in real estate assets with complete security, as it complies with all the legal requirements required by CNMV (National Securities Market Commission) and the competent bodies.

Factors that influence why you should invest in housing

In addition to the advice that every investor or potential investor should know, there are a number of factors that highly influence real estate investments:

• The price of housing and its potential

As an investor, you should always think about obtaining assets at low prices that are likely to appreciate over time. This means that it is necessary to assess its price and its potential for profitability.

Take into account all the aspects that encompass the investment:

1. Features
2. Conditions
3. Opportunities

Get informed and do your research to keep up to date with everything that happens with your investments or potential investments.

• The capital needed for investment

First and very important lesson for any investment: it must be in line with your income so that you can comfortably assume it. A good real estate investment is what we can afford.

After organizing and planning your investment finances, you should seek financing if you need it for the purchase of the property. Analyze all the prices and look for projects where the initial prices do not exceed your expectations.

However, I don't think this will be a problem if you choose to invest in platforms like Reental. Unlike the vast majority of real estate investments, with Reental you can invest in different properties starting at 100€.

• The time when you are going to invest

Summer clothing is cheap in winter and expensive in summer, and vice versa. It is a fact that we are all aware of. The time to buy an asset always matters. The same thing happens with real estate investments.

The moment you are going to make a real estate investment is crucial, because it will define whether you buy expensive or cheap. Pay attention to the real estate market situation to define the best time to make the investment.

• The possibilities that the future holds for this investment

Patience. It's the key word after making any investment. Find out what is the best formula for obtaining returns after investing. In case you want to sell, experts advise waiting a period of at least two years.

This is because by the time that time has passed, the property will have revalued and thus the returns will be wider.

How much money do I need to make a real estate investment?

There are many types of real estate investments, so there is no universal answer to this question. However, it is true that the real estate market has always been characterized by very high initial investment rates. Until now.

With the emergence of new technologies, including blockchain, new online platforms have emerged that allow real estate investments by breaking the entry barriers of the traditional real estate market.

It is the example of Reental, which with just 100€ allows you to invest in a large number of projects without having to risk all your personal finances.

Are you joining the real estate revolution?