The term challenging property has two aspects: location and dimension. These two elements determine what type of property you are investing in, how much you should pay for it, and how long you will enjoy owning it.
When searching for a property, the location element is looked at first. Does it have access to services like groceries, doctor visits, or transportation? Does it have unique features that make it desirable?
These factors combined with the price element create the second part of challenging properties investment platform. With many online real estate investment platforms that cater to limited populations, getting involved can be hard.
The challenges facing traditional real estate investment
As the population continues to grow and affluent individuals continue to flock to large, well-maintained homes in highly desirable areas, the demand for quality real estate is expected to remain high.
This increase in demand will continue at a rapid rate until the technology economy becomes more prevalent. Technology-enabled investment platforms will continue to emerge as companies that offer limited or no oversight on properties are exposed to increased value and ownership changes.
This will not be a issue of negative trust, or an inability for the owner to turn over control of the property. These issues are already seen with 2nd and 3rd party management services that oversee properties for investors.
These issues include lack of transparency on expenses, lack of personal involvement, and difficulty appealing if decisions are not favorable to the owner. Owners often do not have enough control over their property due to these issues.
Bringing technology to real estate investing
Technology has a big impact on everyday life. There are so many new technologies being introduced and used in conjunction with current technology.
With the advent of mobile devices, apps, and super-fast internet connections, new technology is being introduced at an alarming rate. Some of these include: GPS tracking systems, cloud-based software applications, 24/7 support services, and live streamers.
Some of these support services are helpful but not very cost effective to keep up. By investing in a support service that provides you with little to no support but live streaming you will be more focused on your property and your client.
Having this type of support service available makes it more cost effective for hardening properties for clients. People can now look at property using an app or website which requires no previous knowledge or skills.
Using a platform to invest in challenging properties
The concept of a real estate investment platform has been around for years, but has gained momentum in the last year. Currently, there are over a dozenhene-based platforms available, all focused on providing opportunities to invest in challenging properties.
These sites range from established brands like Opening Day and StadiumShares to new, emerging players like Hardestfields. All of them focus on offering their clients the ability to create a customized investment strategy and manage it through the platform.
Somehents even offer webinars and phone calls with experts to help help clients determine if their property is a candidate for ownership. Ultimately, it is the clients who make the decision to invest, but having an expert present can help save some money on attorney’s fees.
Who can invest in these properties?
Currently, most real estate investment platforms for very tough properties are for the criminally-minded. They can offer services such as locating tax-exempt foundations or non-profit organizations that invest in these properties, or finding investors who can afford to purchase the property at an affordable price.
However, there are more limited cases where a non-profit organization can invest in these kinds of properties. For instance, if the property were used as a school, then a non-profit could possibly invest in it.
These limited cases of investments are not for everyone, and show how important this field is to be considered challenging property owners. If someone did not meet the standard of being able to afford an acceptable investment in this property, then they would not be able to use this platform.
Make money by sharing your property with others
As the digital era continues to change our lives, new ways to make money are being introduced on a regular basis. Some of these new ways to make money include online tips monetization platforms, paid app stores, and even paid services that allow you to share your property with others.
We all have two things that matter most in life: ourselves, and what we like to do. If you know what you like doing the best, do that! Get into a space where you can focus completely on yourself for a few days or weeks and then others can come but you have to go first.
By sharing your property with others, you are also getting back in control of your life. You are able to control how much money is making for whoever is renting or renting from you and your property. This is done by creating a system that works for you.
Get help managing your property
As more and more investors look to challenging properties as investments, meetups and other resources have grown to support these properties.
There are now hundreds of these events around the country, and many have dedicated staff members to help you through the process.
Many of these events have collection nights or other community services offered with property, so you can connect with the community around you.
Some even offer legal assistance or help with landlord-tenant issues, making this a potentially very powerful investment tool.
Because these properties can be difficult to manage, many staff members come out to join property owners at meetings and help them out.
Learn how to fix-up a property with a partner
From fixing up a couple of bedrooms and a bathroom to converting an entire house, the sky is the limit for what you can create in your property.
To help make it easier to convert a home, many pro developers have developed wedding-style partnerships with homeowners known as collaborative real estate developers. These real estate developers work with home owners as their contractor during the conversion process.
These collaborative real estate developers usually work with previous homeowners who have good reputations for working well together. After being acquired by a company, this person may even go by their previous name but with a new last name attached.
Homeowners typically get help from other members of the household when fixing up their homes. A common question that people get asked is whether or not they are able to collaborate together.
Reduce your tax liability with LTCGs and deductions
Let’s say you own a very challenging property. The neighborhood is poor and risky. There is a high chance of neighbors being troublesome and taking advantage of you should you choose to make improvements.
If you make changes to this property, such as adding a pool or a dining room, it could increase your tax liability. By investing into this property and providing upgrades, you potentially save money in future years due to tax savings.
You also receive fewer deductions when filing your taxes, as the government believes your property is more valuable than it actually is. This can cause you to overreport income on your taxes, which increases your tax liability further.