When I began my career as a Real Estate Investor I looked at different markets and asset classes all across the Midwest. I immediately became interested in multi-family and residential real estate as I understood it best and discovered how to flip houses during my time in school. The next step was to choose my market. Since I was from Chicago I was immediately attracted to invest in Chicago. It wasn’t long before I could realize that, at the time, in the market, the obstacles were extremely high, and the rewards weren’t as appealing as those of smaller markets. There are bound to be difficulties in every market, but let me explain the reasons I decided to invest in the tertiary, smaller market that I continue to put my money into today.

1. You can master the market quickly.

I first began to drive the streets of my town while I was in college. I would spend about 10 hours a week for two weeks, and I swiftly discovered the areas I would like to put my money into and what ones I would prefer to stay clear of. It’s not much time to find the most profitable areas to invest in to meet your objectives in these kinds of markets.

2. Entry barriers are low due to the low costs and competition

Beginning to invest in my area (which is called the Quad Cities, which is just across the border from Illinois and Iowa along the Mississippi) I was aware of the basics of flipping single-family houses and tiny apartments. I was aware of what a good product looked like, and the market was not large enough that I was able to identify the most appealing regions quickly. The cost per square foot is significantly lower across all different asset classes. Rents are not affected in the same way as price. In my area, I could invest in a home for between $60,000 and 70,000 and rent it out for $1,000 per month. That’s an excellent cash on cash return.

Additionally, I quickly realized that the majority of people in markets were advanced in the way they managed their investments as if they were an enterprise. I recently graduated with a finance and accounting degree. I believed that I was ahead of several individuals who’ve operated for many years (including my boss, who sold lots of houses per month). A lot of them believed that it was smart to invest however, they seemed to purchase houses on the spur of the moment that didn’t have a lot of logic. Now, I’m buying the portfolios of many of these investors because they’re tired landlords who don’t comprehend how to buy the right property.

3. You can earn more

Because the cost is usually less when you buy a house in comparison to rental rates and you are able to earn higher returns if you are able to purchase the property correctly. I recently purchased a four-flat for $180,000. After some minor improvements I have purchased this property at a price of $210,000. I am currently earning $3,600 per month on this deal, which is a good return. In addition, the house itself is valued at around $260,000, so I am able to create around $50,000 of equity. All this was done by adhering to my investment goals and waiting for the perfect opportunity and making the purchase right.

Vairt.com Provides an opportunity to invest in real estate by diversifying with Hotels and Short Term Rental Assets with the potential to generate income and grow in value.

Vairt is a Crowdfunding Platform for Investing, tokenizing and liquidating real estate assets through Blockchain. Once you are ready to make an investment, you can make an investment in less than 2 minutes. Sit back and relax as your property gets funded. Vairt analyzes property investment opportunities using a 100-point proprietary screening tool and independent third-party market data to assess the investment attractiveness of each property. We give you the opportunity to Invest in Real Estate for as little as $5000. All properties on our platform are listed for 30 days to give investors ample time to raise funds.

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