Why You Need to Invest Your Money in Real Estate Investment Firm Vs. DIY
Can you be a do it yourself investor? Doing It Yourself (DIY) means not seeking professional advice from an investor or an investment company. This involves making your own decisions regarding how you want to invest your money.
Information on how to invest wisely is now available online. This information provides users with a wide range of options on smart investments. There are however advantages in investing your money in a real estate firm as opposed to doing it yourself
Investing Your Money in a Real Estate Investment Firm
Here are some advantages of real estate investment firms.
Saves time. Finding a real estate property to invest in can be time-consuming. Not to mention the amount of time you invest in maintaining the homes so that they are marketable. This type of an investment option is suitable for people that do not have a lot of time on their hands but would love to see their money grow.
Experience and Expertise. It is very easy to make money in real estate but also very easy to lose it. Experience and expertise are valuable when it comes to real estate investments. Since investors have years of experience, they will probably share their experiences and know how. This helps you monitor the market trends very well so as not to repeat the same mistakes they made when they first started out.
One slight disadvantage, though.
Less Profits. Like any other business, they also want to make money. They are what we call “middle men” in this situation. You might not make the profit that you would have made if you had done it yourself.
Why You Should Do It Yourself
Here are some reasons why it is a good idea to do it yourself.
You enjoy 100% of the profits. This is one of the biggest benefits! Simply because there are no “middle men,” and you do not have to split your profits with the firm that helped you sell the property. This option can leave you with a little bit more money to invest in more properties if you wish but much more work and the chance of not making profits if you fail.
Control Your Tenants. Another reason why doing it yourself is a good idea is that managing your investments yourself, especially rental properties, allows you to control your tenants. This allows you to have a close relationship with the people that may be occupying your properties. The only problem with communicating with tenants is when there is problems and situations that need expertise in that specific situation.
Freedom to make own decisions. DIY investment gives you that freedom to make the decisions yourself. You can decide how long you want to hold on to your property, when you want to sell it, etc. You get to decide when to sell your property and how you do it. This is something that is not quite so easy to do if you were to invest your money in a real estate investment firm as there are a lot of procedures to follow. The decision of whether to sell or keep the property might not be entirely up to the investor sometimes.
Here is why you shouldn’t go at it alone.
Challenging. Real estate is challenging when it comes to managing the properties, especially if they are spread out in a variety of geographical locations. It is very advisable to invest in properties in different geographical locations because that is also how you spread your risk as an investor.
Real Estate Value Can Fall. Geographical areas can either go up or down in value and when that happens so do the properties in that area. This hits you the most when you are buying property for re-sell.