Almost 50% of millennials are hacking long-distance real estate investment to build wealth. Are you surprised? Despite the Coronavirus pandemic, recession, and social upheaval, pockets of the US housing market are heating up. Particularly in the suburb and rural rental areas. And guess what? The millennials are not shy from taking full advantage of it! Especially in cities like Detroit, Cleveland, St. Louis, and Kansas City. And because of this, of course, inventory levels are lowering.
According to a Real Estate investing report by Harris Interactive, 55% of Millennials said they were interested in investing in real estate. With more money in the bank, this generation leads the housing market charge through long-distance real estate investing. “This is the new way of the future”, says Julius L. Cartwright, founder of Equity Movement and Broker of DreamTeam Realty, Inc.
Long-Distance Real Estate Investing
About 15 years ago, maybe 2/3 of investors were primarily focused on the stock market. That number has since fallen to roughly ½, millennials choosing to invest in real estate instead. A few reasons attributing to the trend are the volatility of the stock market, booming real estate in the US, and millennials chasing the tangible experience of owning a home. Though another major factor that led to this push is the growing number of US millennials aspiring for early investing as a potential source of passive income.
Real estate has evolved to be a multi-faceted investment vehicle for growing wealth. Investors no longer need to buy a home to live in it or retire. Instead, millennial investors are doing quite the contrary. By investing in single-family rentals, they use their investing as a cash-flow generator to amass wealth and eventually reach the “retired at 40” goal. This amazes me!
Buying Out of State
This has become the new normal in real estate investing. Heavy down payment and expensive properties within your hometown are major bottlenecks for real estate investors. But companies like DreamTeam Realty, Inc are clearing the way and making the process of investing in real estate as convenient as buying a pair of shoes online. They have a specialized group inside the brokerage that focuses only on out-of-state and international investors. This group is seeing more and more millennials beginning to dominate in this space.
When investment property is acquired out of the state, one is faced with managing the property. Unless you have an established reliable team already in the city that you purchased the property in, then you will find out just how difficult property management can be remote. DreamTeam Realty, Inc. has partnered with Global Realty Investor Relations (GRIR) to fill that void. Everything from maintenance requests and make-ready units to rent collections and tenant placement, GRIR has what is needed to manage your properties successfully.