Innovation for Smart Investors

[James Sanson]

Innovation for Smart Investors: Timely Tips and Strategy Blueprint for 2019

During Oliver Stone's 1987 Classic Film “Wall Street”, one very defining scene is with up-and-coming broke Bod Fox answering the phone as the sun rises placidly in Manhattan, and his new client tells him: “There's nothing more beautiful than the sun coming up over the ocean. I'm going to make you rich. Richer than you ever dreamed of”. This was a fantastic appeal and call to duty for anyone who had a dream, and anyone who looked past the 9 to 5 way of living and yearned for their own slice of a better tomorrow.

Even with some of the writing and reporting staff from many major blogs focusing on concern with rising interest rates, investing in real estate and rentals is sure to be a great move in 2019.

Forbes Magazine's own Ingo Winzer claimed a few months ago that this is time to stay away from the “inflated and sexy” markets and invest for long-term stability. In general, markets experiencing high growth are much better bets than those displaying the opposite, and many metro areas possess their own special form of luster.

Some cities have robust traits within the manufacturing sector, urban areas in Florida such as Orlando have a lifeline of steady tourism, and cities such as Seattle have experienced a boom in tech jobs. Home prices are a very certain marker of stoked demand for both rental properties and houses, and they have increased between 5 and ten percent during the last year, which we definitely define as “Stable, yet able”. In cities such as Denver, Atlanta, and Orlando, some are fearing that prices are climbing too fast, and keeping their eye on what was just a few years ago a form of “Income Appreciation Guarantee”, if there ever really was one.

When one is thinking of an investment that is sound and just “makes sense”, sometimes we all too quickly look at things like any publicly traded company's daily charts. It is absolutely imperative to “buy low and sell high”, but what about true residual income? The savvy investor of 2019 will be maneuvering daily through waters that are by no means treacherous but will require a close-up look and heavy scrutiny of any risk they take.

It is true that every step taken in life is, for the most part, a calculated risk, and we all want to come out ahead while using our wit to benefit ourselves and our families. We never know when a bubble will burst, but after looking over trends in general, one can take grave notice to a few things changing rapidly in regards to real estate. One of them is what some are now referring to as the “Umbrella” factor.

An age-old gadget of sorts that simply keeps one dry when the rain pours, the umbrella is actually seen as a nice metaphor for a one-stop shop in the business realm. As far as the home upsize or downsize process, there are innovators such as Dorrmat that is now providing ways to make the home buying process incredibly easy.

After many strategy meetings fueled by coffee and the desire to make things easier, real estate professionals nationwide are realizing scores of new things about the market, especially in larger metro areas. Frequent transactions are now happening sight unseen, and this is a reason for excitement and momentum, not fear of instability. Part of what results in a very smooth closing for the seller is not having to dedicate as much weekend time to being gone during open houses, and a bit of leeway on the time that they are allowed to stay in a property after the closing takes place.

Last December in a very informative piece from U.S. News found, the recovery of millennials is discussed. Many high-end home sellers may be forced to reduce prices as millennials are actively increasing demand for more affordable housing, making opportunities for investors very lucrative within the entry-level home category. Since many consumers are finding it easier to purchase goods online, it makes them want to have the various services of a real estate sale present under that one vital umbrella.

Since so many are demanding one party to do the work of what used to take multiples, old business models in real estate are absolutely headed for a major disruption. Those looking for healthy investments will see great vitality in a way of doing business that provides various services with confidence. The agency of the future will have “Home Buying Specialists” who guide a family through the local buying experience and even provide their own extended-stay options and home inspection professionals.

One of the most important quotes of the year regarding investors and the coming climate change was also found in U.S. News: “Thanks to growing traction of technologies like machine learning, data analytics, and platforms, the entire commercial real estate ecosystem will soon have better tools for decision-making.”

Some of the best to inform those in the process of selling real estate are the professionals who have been handling the task for years, yet have embraced a tech-savvy and “umbrella-providing” mantra. Property itself is a fantastic investment, but investing in those who are providing efficiency in a world full of past-tense clutter is promising: The door of ability for a rapid transaction has already opened, and the time is now to embrace those who have learned the ropes of the deal that is excitingly minus the snails pace.