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Any seasoned real estate investor will tell you how dynamic the real estate scene is. A real estate investment strategy considered juicy today can be obsolete tomorrow.
One of the greatest attributes a real estate investor can nurture is the ability to identify current and future market trends and be flexible enough to leverage and profit from them.
Within a few months, the 2020 coronavirus pandemic changed how realtors conducted business. Some of the strategies they adopted then will not be as effective in 2021, and realtors have to warm up to new approaches. Other approaches, however, have been around for a while. Agents just have to implement the right strategies to benefit from them.
In regard to this, we have compiled a list of three major real estate investment management approaches that will be crucial in 2021. Let’s dive right in.
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Use Social Media as a Marketing Tool with Real Estate Investment
Social media has been an essential tool for many businesses. Besides helping connect realtors with prospects and other professionals, social media is also a vital marketing platform. Professionals who’ve been cold toward embracing social media are losing out on a lot of opportunities and deals. This is set to continue in 2021.
2020 was a year of many challenges. For example, it changed a lot of ways about how people live, work, and go about their daily lives. One of the significant changes was working from home. With many offices closed in adherence to COVID-19 prevention protocols, many companies and businesses embraced the idea of allowing their employees to work remotely from the locations of their choice.
As physical interactions declined, online activities rose. This is because people were mostly confined to their homes. Moreover, remote work continues to be important in 2021.
What does this mean for the real estate industry?
More people are using the internet to find brokers and realtors who’ll buy and sell their properties. Social media presence will be one of the most important tools for realtors to increase their brands’ visibility, build it, and gather high-quality leads successfully.
If this is not the sign you’ve been waiting for to get on Facebook, LinkedIn, Instagram, and even YouTube in 2021, then what is?
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Fix and Flip
Many people predicted that the real estate industry would be gravely affected by the COVID-19 pandemic. Some went on to foresee a real estate economic downturn similar to the 2008 recession.
However, critics were proven wrong when house prices increased significantly. This was mainly because the demand for houses outpaced the supply.
The fix and flip market is set to get even more profitable when it comes to real estate investment. At the end of 2019 and in early 2020, house flipping was popular. However, its profits were down. This changed later in the year as most real estate investors developed cold feet due to the pandemic and withdrew or put a hold on their investments.
As the demand for high-quality homes continues to rise in 2021, the fix-and-flip market will be profitable. However, you’ll have to conduct due diligence and be careful with the numbers. This is because more real estate investors will be getting back into the game and increase competition. This could affect your returns.
Also, make sure you’ve acquired the necessary skills and information before you do any real estate investing, including fixing and flipping. House flipping could lose you a lot of money in a short time if you’re not careful.
Make Adaptive Reuse of Unwanted Space
While the COVID-19 pandemic in 2020 affected a lot of industries, some bore the brunt more than others. One of the industries majorly affected was the travel industry. Moreover, the travel and hospitality industries go hand-in-hand. Without people traveling for business and leisure activities, hotels will have no bookings.
As a result, many hotels, entertainment, and even retail spaces were rendered useless during 2020.
Adaptive reuse refers to the process of transforming an unwanted real estate space into a more flexible space that serves current and future market needs. In 2021, adaptive reuse will save a lot of real estate investors from incurring losses.
Even while the economy gradually recovers from the effects of the pandemic, it will take a lot of time for investors to recoup their investments. Some businesses will continue sizing down or shutting their doors completely. This is why investors need to get creative.
For example, recent trends have shown that affordable housing and industrial real estate are in high demand. An investor could renovate an old hotel in town into an affordable housing project in the heart of the city. Another investor could convert their old residential units into a warehouse that guarantees greater returns in the long term.
What Are the Key Takeaways for Real Estate Investment in 2021?
2021 is certainly the year when investors can look forward to real estate investment. In fact, investors will probably make more profits. However, you’ll need the right approaches to benefit from your investments. Some of the best approaches include social media marketing, house flipping, and adaptive reuse of unwanted space.
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