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Invest in the Future, Invest in Airbnb Properties!

As the economic world and its markets shift to make room for newer contenders, investors need to keep an eye out for any better investment opportunities that might come along with these new market players.

Traditional Investors who only wish to play it safe and invest in traditionally profitable markets and companies have suffered the most in these unprecedented times of a pandemic. The businesses that were guaranteed to deliver the highest profits have failed to even stay in business and those that did manage to keep afloat have taken a huge hit to their profit margins. These atrocities that the times have brought onto us are not only to fight through but also to learn from. It is time to re-think what we have needed to do differently all along.
Almost all sectors of investment have been taken aback during these times, which is just as one would expect, but it is those extra ordinarily innovative ones that did not sink despite of their very predictable failure. 

Comparatively, newer investment options might not sound very promising to a traditional investor but imagine if Apple’s initial investors had lacked the foresight for what the future could bring and had rejected the investment opportunity without having realized how big of an opportunity they were passing up on. They would have lost billions!

Market players like Airbnb properties that have built themselves up from some mere start up seed money represent how money, if put in place, can make the biggest difference.

Airbnb being one of the most high profile companies to ever emerge out of start-up accelerator, is one of the few companies that every smart investor has their eyes on in 2020. To build up a brand name as established and well reputed as Airbnb has, it must have taken the utmost perseverance and an innovative bone. Those are the qualities that it takes to build up a business empire out of a small amount of seed money.   

The YC tells the founders of its companies to prepare for the hardest in the few initial years to build up the company. Those are the years that define any company, set it apart from those who do not make it. If a company pulls through these years successfully, it becomes rather immune to failing in the near future. And as profitable and successful as Airbnb has gotten in this decade, we can only see an even brighter future ahead.
Airbnb is the definition of a globally successful company with having over 7 million listings spread across 22 million countries.

Especially In a time like the present, where companies, globally, have been hit hard because of the economic demise that this pandemic has brought upon the international business community. One might find it very normal for a company that generates its revenues mostly via travelers to suffer or fail completely. But Airbnb has outsmarted something as unpredictable as a pandemic and has managed to keep generating profits by adapting to these restrictions.
According to the Wall Street Journal, Airbnb shifted to local travel just in time and so perfectly that they received just as many bookings by the start of July as they did before the pandemic. We would call that the equivalent of pulling a rabbit out of a hat in the business world.

Airbnb was expected to be one of the companies that would most definitely endure big losses because of this pandemic, but because of its innovative founders it managed to keep in business, and that is part of the reason Airbnb’s IPO is being called the most anticipated public debut of any YC company in 2020, coming up at the end of this year.
Any investors looking to invest in the stock market can see this as possibly the best investment opportunity to come along all year. And it would make the perfect investment opportunity for those investors who wish to take a leap and invest in the future.

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Why you Should Invest in Multifamily Properties?

Are you a first time investor looking for a secure and guaranteed way of making a real estate investment? Then multifamily properties might be the most appropriate form of investment for you.

When it comes to making investments in property and real estate, every investor might have a different outlook. Some might prefer distributing their investment among different property units to not put all of their eggs into one basket, but others might not have the same approach.
There are a ton of benefits that come with investing in properties like multifamily houses where all your wealth is tied together.

Any property that has more than one unit is considered a multifamily property. The smallest units are duplexes, which are called two family homes in different parts of the U.S. Then triplexes and four-plexes with three and four units in each property.  

Most rental multifamily properties are financed by banks just as single family homes usually are. The most popular way of making such an investment is by acquiring ownership of the multi-unit property where the owner resides in one of the units and rents out the rest of the units to tenants. This is an easy way to secure your investment. This kind of setting can be financially benefitting and help lower the interest rates and even lower down payment in certain cases.

It also saves a lot on the cost of property management fees as you will easily be able to self-manage the property instead of lending the job to another party, which would cost you heavily in the name of managing your property, which usually rounds up to hundreds of dollars each month.
This also saves a lot of inconvenience for the owner whenever there is a need to visit the property as there is usually a rental home. The owner can monitor and maintain the property along with their own residence without any extra cost or hassle.
The owner has the liberty to choose the tenants’ demographics for his multifamily property considering whichever kind of family or people would be easier for the owner to manage.

As these properties grow in scale, they begin to fall in the category of “commercial real estate.” Any property with five or more units falls in this category and qualifies for a more expensive kind of financing. This is because the property on a scale that large does not strictly qualify for a residential property.

Profit margins and complexities grow as the scale of the property units grows, and each kind of investment attracts different kinds of investors. From two family properties to high-rise apartment buildings, the opportunities are endless.

One of the many benefits of investing in a multifamily property is the steady cash flow it generates each month. Especially in strong markets where it is relatively easier to re-lease the property to the owner after another, to keep the income flowing consistently. Setting rent rates is also easier as they are mostly quite predictable. This helps the investor generate a dependable and safe amount of income throughout the year with the minimum amount of risks and expenses.

The current economic downturn caused by this pandemic has made investors rethink their investment strategies. Those who had invested in properties that were deemed “non-essential” because of this pandemic have suffered a great loss. However, housing is a basic necessity that can never lose its value no matter how badly hit every other business sector might be, which makes a multifamily property investment the safest kind of investment in real estate investment.

The upcoming government has every investor conscious about the change in tax rates, and no one is sure as to which parties will be benefited from the new expected taxation standards. In multifamily homes, there is a great tax advantage. Like most investors, you can use a mortgage to finance the property. Because of asset depreciation, a sizable amount of income coming from rent can be balanced each year, making this class of asset one of great profitability.

There are tons of more benefits to Invest in Multifamily properties, and we are here to guide you along the way, feel free to contact us for a consultation.    

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Property Management Giving you a Tough Time?

For any investor looking for a profitable investment opportunity, real estate may seem like the most attractive option, but there is a lot that goes into making and managing investment in real estate than meets the eye. That is why it is not perceived as the easiest type of investment. Many people might abstain from bringing their investments into the real estate market for the fear of being unaware of the jargons and the implications used in the real estate sector.

Here at the Republic Investment Group, we make use of our expertise and knowledge of the real estate sector to help you maximize your profits. Our vast experience in the sector helps us formulate proactive strategies to help manage your investment in the most profitable way possible.

We believe that no amount of knowledge of the market can guarantee you success in property management, and it is actually the swift decision making and contingent approach by an investor that results in success. We believe in taking the right step at the right time to help you gain maximum profits and secure your investment.  

It is not enough to place your savings into safe hands but also in the hands of someone smart. Someone who might know a thing or about making decisions quickly when the need be.

Also, an experienced real estate investor will be far more vigilant to any opportunities coming his way and find it easier to dodge any loss anticipated in the future. That is why it is essential for any new investor to team up with a group of experienced professionals before going into the business of investors’ property management.

At Republic Investment Group, we prioritize educating the investor on where and how their money is being invested and letting the investor choose freely to invest in whichever property they might wish to. 
You will be the sole decision maker, and our job will only be to advise you and guide you about the possibilities and threats you could face as an investor.

An investor who invests through a corporate investment management firm would have to adhere to that firm’s rules and conditions, and the investor might not be able to use their personal opinions and wisdom to help the management of their own property.
With an extensive entrepreneurial experience in the field, our team can help you utilize your personal genius to manage your own investments rather than relying on the firm to dictate you on your decision making.
In today’s world, where entrepreneurs are rising to the top, an entrepreneurial approach is the best way to do any business, especially when it comes to investors’ property management. Every investment and investor comes with customized needs and wishes.

Our company accommodates all kinds of investors and their investments, however unique their needs might be. Our goal is to understand your investment needs and meet them as best as we can. You do not have to adapt and adjust to our company rules or try to understand the rules of the market, but instead, we will be trying to understand your expectations as to what kind of property you would be interested to invest in, how long would you like to keep your money invested, how much of a risk you are willing to bear and how profitable of an investment you are looking for.

Although it seems overly complicated to manage a real estate investment in today’s day and age where the economy has gotten the least predictable. We make sure that you partake in all of the decision makings when dealing with your property and have a proper understanding of how your money is being dealt with.

We believe that we are not the only ones providing knowledge to our clients, but our clients’ wisdom and intellect can also help us make the most out of their respective investments and give us an opportunity to learn. It is indeed a give and take for us! We share our experience and knowledge with you, and you give us a chance to employ your smarts into making the maximum profits for you! Isn’t that a sweet deal?

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Single-Family or Multi-family Rental Properties: Which Is Superior?

Rental Properties

For those unable to withstand the stock market’s volatility, real estate can be an excellent alternative. It’s also a better investment for investors who’re looking to take on an active role in increasing their capital, instead of passively putting their money into a fund for someone else to manage. The fact that multiple strategies can be successfully used is one of the greatest advantages about investing in real estate.

For instance, real estate investing moguls – Zhang Xin and Donald Bren both built their billion-dollar fortunes by developing several residential and commercial properties. In contrast, Sam Zell, the founder of Equity Residential, built his wealth by slowly acquiring an income-producing portfolio of rental properties.

Other real estate investors have also earned a lot from purchasing properties or house flipping for cents on the dollar (buying houses in disrepair and renovating them to sell them at greater cost). One such form of investment is in multi-family properties; let’s see why it’s one of many investors’ best options.

A Lot Easier to Finance, But More Expensive

In many cases, purchasing an apartment building as an investment is substantially more expensive than the cost to buy a single-family home. While a single unit rental can cost an investor a few thousand dollars, a multi-family building can go up to millions.

Initially, it may seem as though securing a one-family property loan is simpler than trying to secure funds for a million-dollar complex. However, the fact is, a multi-family property has more chances of being approved by a bank for a loan than a typical home. The reason is that multi-family properties consistently generate strong cash flows on a monthly basis. This remains the case even if a property has many vacancies or some tenants who don’t pay rent on time.

If a tenant moves out of a one-family home, that whole property become vacant. In contrast, a property with ten units and a single vacancy is considered 10% vacant. Consequently, the chance of foreclosing on an apartment building isn’t as high as a one-family rental. All of this translates to a less risky investment for a lending institution; it can also result in a better interest rate for the landlord.

Growing a Portfolio Doesn’t Take Much Time

For property investors who intend to build a relatively big rental units portfolio, multi-family real estate is a great option. Acquiring an apartment building with 20 units is less time consuming and more efficient than buying 20 different one-family homes. With the latter option, an individual would need to work with 20 different sellers and perform inspections on 20 houses, with each of them a potentially at different locations. This route would also need an investor to open 20 separate loans for each property in certain cases. By simply buying one property with 20 units, this headache can simply be avoided.

You’re in a Situation Where Property Management Makes Financial Sense

Certain real estate investors don’t enjoy the hassles of property management and appoint a property management firm to take hold of their rentals’ day-to-day operations. Typically, a property manageris is paid a portion of the monthly income that a property produces. Their responsibilities may consist of screening and finding tenants, maintaining the property, handling evictions, and gathering rent payments.

Many investors who own one or two single-family homes don’t have the luxury of contracting a manager from outside since it’s not a financially sound decision considering their small portfolio. The amount of money that multi-family properties generate every month gives their owners room to leverage property management services without substantially cutting into their margins.

The Bottom Line

Like stocks, investing in real estate enables an individual to be successful using a variety of different strategies. Owning a collection of rental properties is one of the most popular ways to invest in real estate. One-family rentals are properties consisting of just one residential rental unit, while apartment complexes that have more than one rental unit are referred to as multi-family properties. There are a plethora of advantages to owning multi-family real estate. These comprise the ability to grow one’s rental property portfolio quickly, and access to better and easier financing opportunities. So go ahead and invest in multi-family properties. It’s worth it.