Over the last decade, the real estate market has seen significant changes. One has been the way people shop for and invest in real estate. These are some ways real estate platforms have been instrumental in changing the industry and how they might be influential in the future.
Key Takeaways
- Crowdfunding will open more opportunities for investors.
- Blockchain technology allows for improved record-keeping and streamlining.
- MLS services help renters and buyers find the information they want.
- Renting properties can be a completely digital process.
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Crowdfunding Helps More Buyers Participate
Crowdfunding makes a huge difference in who can participate in the market. In the past, buyers with little cash had few options for getting funding. They were primarily limited to taking out a loan from a bank or other lenders, for instance. Those who didn’t have access to the right connections missed out.
Today, real estate investing platforms that allow crowdfunding have made it so all you need is an internet connection. In fact, the funding process is more streamlined than ever. You can create a simple proposal and ask for financing, reducing the barrier to entry for investing. As a result, people who would never have had access to these types of investment opportunities have all the tools to participate.
Crowdfunding on real estate investing platforms breaks a loan down into small chunks. Essentially, investors can pay a small portion of a borrower’s need and earn this money back with interest. It’s a win-win situation for many borrowers who have been shut out from traditional funding. Investing in real estate is now a process that requires just a few clicks.
These websites have also made it simpler to automate your participation in real estate crowdfunding. Some websites have the option to automatically invest in projects that align with your specifications. You won’t have to worry about missing out on an opportunity.
Blockchain Technology Keeps Accurate Records
Blockchain technology has been revolutionary in changing the financial world and, going forward, it might do the same for the world of real estate. Blockchain keeps digital records of financial transactions, and it cannot be altered. Therefore, it might become a trusted option for real estate record-keeping.
Additionally, some real estate investors might use blockchain to shorten transaction processing times. It provides an alternative to working through traditional banks and funding options.
NFTs Can Make Ownership Transfers Simple
Recently, there has been a lot of talk about real estate non-fungible tokens (NFTs). A real estate NFT is essentially a minted version of a property’s documents. If somebody buys the NFT, they become the owner of the property. This is a quick process that doesn’t require a long, drawn-out financial transaction.
While this isn’t the right process for everybody, it’s certainly a desirable option for some buyers and sellers. Many investors like the security of these transactions. Buyers are looking to shorten the home-buying process and change what many see as an unnecessary status quo. This new technology would also use blockchain. While this buying and selling process is already in the works, investors might wait for certain legal issues to get ironed out before participating.
Shoppers Can Search for Specific Homes
Today, those looking for specific homes can find them more easily than in the past. Investors can search for properties that are ideal to rent or resell, while those looking for a home to live in can search for properties that meet their unique needs. As people continue to use smartphone apps to narrow down their home searches, their results will continue to get more specific.
As a real estate investor, you must list properties accurately and pay close attention to the keywords you use to describe a property so it gets more traffic. This also means investors must cater to the information potential renters and buyers expect to see.
For instance, some buyers want to see a 3D walk-through or 360-degree photos of the home before they tour it in person. You could be missing out on returns if you aren’t including this information in your property listing. Whether you’re investing in an Airbnb or have a long-term rental to offer, you’ll need to hit all these marks.
Multiple Listing Services Provide Transparency
Today, both sellers and buyers can access multiple listing services (MLS). In fact, the number of listing services is greater than ever. These platforms make it easier to be transparent about pricing, which is becoming increasingly important for sellers and buyers alike. As an investor, this is good news because it helps reduce fraudulent listings. You have more ways to cross-reference the property an owner has listed.
Rentals are also more commonly listed on MLS websites, and rental information has become more standardized. Renters expect listings to contain specific information, and you must ensure you’re hitting all the expected marks. If something is missing or incorrect on one or more platforms, it could impact your returns.
Digital Resources Make Renting a Breeze
If you have long-term investment properties you rent out, you might have noticed the process is much easier now than it was in the past. The industry can handle high volumes of rental applications digitally, and you can move through applications faster thanks to the ability to check credit reports and more online.
In fact, many investors appreciate that most of the rental process is available online. It’s simple for renters to sign a lease or request maintenance, and property owners can respond quickly and easily. You can reduce your vacancy rate with online platforms that allow you to manage tenants hassle-free. If you’re showing the home yourself, you can use technology to increase the speed at which you do so. As a result, you can see a greater number of prospective renters each day.
Investors Can’t Get Left Behind
One of the most important things to remember as a real estate investor is that you don’t want to fall behind the exciting changes in the industry. Maintaining a relationship with real estate investing platforms and keeping up with technological advances can help you avoid common investing pitfalls, such as high vacancy rates and poor property promotion.
Infinity Investing Featured Event
In this FREE event you’ll discover how the top 1% use little-known “compounders” to grow & protect their reserves. Our Infinity team of experts show you how to be the best possible steward of your finances and how to make your money and investments work for you instead of you working for them. Regardless of your financial situation today, you’ll have a road map to get to where you want to be.