But what does that cool trend mean for me?

I love data. I love numbers. I love context. I love it all.  I refer to myself as a data-geek and one of the most rewarding parts of my last career were data-nerd dates with faculty members who were curious.

As I’ve transitioned to real estate, I’ve found pockets of people with similar curiosity.  They know that the growth in the economy is important and they believe that if they dig deeper they could figure out how it impacts their strategies.  However, for the life of them they don’t have the time or the inclination to sit down and delve into it.

According to Berkadia report on Dallas-Fort Worth, “The enormous leasing activity [in 2018] is projected to drive occupancy up 50 basis points to 95.2%.”.  In short this means that there will be more demand than supply. So, landlords who have vacancies can charge more for their supply; the market will support higher rents.

But, what does the trend mean for a real estate investor who owns single-family homes with long-term leases and tenants.  Does this mean that she misses this opportunity? Well, it depends.

You could always increase rents. When you notify the tenants, explain the increase is the result of rising costs.  If the tenants balk at the idea of a higher rent, then when they look at the supply they will see the higher rents for themselves.  If you price it appropriately, staying will be more appealing than the hassle of packing and moving.

 

 

 

Investing in RE: The secret formula

There is no secret formula. Investing in Real Estate is hard. Being successful at it, involves hard work.

The good thing is that most of the gurus, books, and online experts are willing to share at least apart of their process for free. Many times their processes are all derivations of the same formula. The trend is to 1) identify motivated sellers, 2) find a deal and run the numbers, 3) make an offer, and 4) implement your exist strategy. Then, simply rinse and repeat.

The work comes in defining what works for who you are and your lifestyle. If you are good at garnering attention and charming people, then get in there do what the masses are doing. Buy a list of names or identify a group of people, contact all of them, follow-up, follow-up, a few people will respond. Identify properties or areas via drive-by’s, walk-by’s, or at auctions. Then get in there and compete. If you are wired for it, eventually it will work.

However, if you are not wired for it. If your lifestyle and who you are seem to be at odds with the trend, then there is hope. You can succeed at real estate investing. Unfortunately, your process and your success will not look like the vision you have in your head.

Your growth will be ragged and nuanced. That’s okay. Perhaps, you will eventually follow the trend. It is also possible that your formula will always be outside of the box. Give yourself room and time for this growth. Because your most significant growth and the growth of others around you will happen as you bring who you are and your life to this thing called real estate investing.

[Photo by Tim Lossen, https://creativecommons.org/licenses/by/2.0/%5D