Real estate has long been one of the best assets to invest in due the potential for high returns. However, the fact that investing in real estate requires a lot of investment capital leaves no room for mistakes. Fortunately, there are several apps and services that novice investors can leverage to minimize their margin of error. Here are a few of them.
RealtyNA
While most guides will almost always suggest having at least one multi-listing service, these alone are not enough to secure you the deals needed for business growth. Realtyna enables users to integrate listings from other sites which are then imported directly into their personal website. This injects an element of SEO into these listings, which can significantly speed up your rate of sales while also improving the SEO ranking of your personal website. This even grants RealtyNA users the option to use their listings on other sites as a pseudo funnel by simply directing listing views to browse their catalog on their personal website.
BiggerPockets
BiggerPockets is a collection of forums, online calculators, podcasts, and books that contain the information needed to build a profitable real estate business. Most of the resources found in this repository are free, and this can help novices understand the nuances of a real estate business much quicker. This can also serve as a way to learn from the experiences of business owners who have many years of experience in the industry.
Pre-Purchase Home Inspections
Purchasing a property with issues will almost always be more trouble than it’s worth. This is why it’s important to always spend a little extra for a pre-purchase home inspection. This not only allows you to spot any potential problems the property may have, but it will also give you a more accurate insight into the actual market value of the property, which keeps you from overpaying for a property that could be hiding potential problems, and this will also give you leverage to negotiate for better terms.
Cap Rate Calculator
A capitalization rate calculator is a tool that helps investors get an estimate on the revenue a particular property is expected to generate. A cap rate calculator will help investors determine whether a property might be a good investment relative to other properties. This tool takes into account factors such as property value, total projected revenue, and total projected expenses.
The cap rate is computed by subtracting the total expenses from total revenue, and by dividing the sum by the property value. This percentage will then serve as a point of reference for determining which properties are likely to yield greater returns.
Data Analytics
Over the years, data has transformed into a commodity, and several companies are willing to pay a premium for user data. User data gives businesses insight into customer preference and behavior, and it helps them determine which strategies are not only most effective, but also which strategies are optimal for varying demographics.
However, interpreting data can prove to be a tedious and complex process. The data you collect won’t be worth much if you’re unable to interpret it accurately. This is why services like Automated Insights are an essential component of any novice real estate investor’s kit. This particular service is capable of translating raw data into a narrative that is compelling and easy to understand. This is perfect for novice investors who have yet to acclimate themselves to the world of data analytics.
Property Management Software
Using property management software has two main
benefits. Switching to property management software allows you to move all your
data to the cloud. This clears a significant amount of space in your office,
and it makes it easier and far quicker to retrieve the files you need.
The other main benefit of using
property management software is that it provides users with a more
comprehensive overview of their properties. This includes client data,
maintenance schedules, and rent collection. This allows them to keep track of
the things that require their attention, and it allows them to operate on a
tight and efficient schedule. This becomes especially important when handling
multiple properties.
Despite its relatively stable returns, real estate investing can still be risky if you aren’t careful. If you’re new to the industry, these are some of the tools and apps that can help you manage your risk to ensure your greatest chances of success. While there are many other tools that can potentially make it to this list, these are the basics that will form the foundation of your kit.