<\/span><\/h2>\nVirtual real estate investing is the practice of doing real estate deals exclusively online.<\/p>\n
Also known as remote real estate investment, virtual real estate investors identify and research the best markets for rental property. <\/p>\n
They go online to analyze the ROI of specific rental properties, complete due diligence, and close escrow remotely.<\/p>\n
Investing in real estate \u201cvirtually\u201d may also drastically cut the expenses and time required for individual real estate transactions. <\/p>\n
It could even enhance returns.<\/p>\n
It breaks down traditional barriers by allowing investors to pick and choose solutions and strategies for their goals.\u00a0<\/p>\n
Outside real estate markets may prove to be more successful over the long haul than somewhere an investor lives. <\/p>\n
It helps to raise potential returns and generate generational wealth.<\/p>\n
Plus, cutting-edge, state-of-the-art technology equips virtual real estate investors with the information and skills to purchase and hold investment properties.\u00a0<\/p>\n
Related Reading: The Hottest Digital Investing Trends Right Now \u2013 Click Here To Learn More.<\/em><\/p>\n<\/span>How To Start Dabbling In Virtual Real Estate Investing<\/span><\/h2>\nIf you\u2019re already interested in real estate, the next natural step is to take it virtually. <\/p>\n
Here are some of its key advantages:\u00a0<\/p>\n
\nIt has the convenience of doing deals from home.<\/li>\n It has the flexibility to diversify an investment portfolio with different rental properties across the United States.<\/li>\n You save more money by not traveling to each prospective property to purchase.<\/li>\n<\/ul>\nHere are the actions to take today to start investing in virtual real estate and reap those potential returns:<\/p>\n
Most folks now have the tools and software they need to start investing in real estate virtually in their own homes.<\/p>\n
A virtual real estate investor only needs a reliable internet connection, a device to browse the internet, and a scanner or printer. <\/p>\n
Investors will be ready to start once they have spreadsheet software and a word processing system.<\/p>\n
Virtual real estate investing software and online resource resources include:<\/p>\n
\nNews from reputable sources like the National Association of Realtors (NAR) and HousingWire\u00a0<\/li>\n Residential real estate market reports\u00a0<\/li>\n Google Earth (to obtain satellite images of properties)\u00a0<\/li>\n Online real estate investment groups on social media platforms\u00a0<\/li>\n Platforms dedicated to real estate like Realtor.com, Roofstock, and Zillow\u00a0<\/li>\n County assessor and recorder sites that keep track of owners, property taxes, and sellers\u00a0<\/li>\n<\/ul>\n2. Familiarize yourself with the most popular real estate markets for rental properties.\u00a0<\/h3>\n Some real estate markets can outperform others in cash flow and appreciation. <\/p>\n
One of the benefits of virtual real estate investing is that investors have access to a wealth of data. <\/p>\n
They can use this information to assist them in assessing the finest real estate markets for rental properties.<\/p>\n
The epidemic has increased the tendency of people and businesses to migrate to locations with reduced living costs and taxes. <\/p>\n
Naturally, everyone wants an improved quality of life.<\/p>\n
WalletHub keeps track of the most fantastic places in the United States. <\/p>\n
The platform categorizes them as the best small cities, best cities for jobs, and best-run cities. <\/p>\n
Check it out if you\u2019re looking for a place to start limiting your list of possible targets.<\/p>\n
Generally, communities where the local economy is diversified stand a greater chance of surviving an economic slump. <\/p>\n
That\u2019s compared to places that depend on one big corporation or industry for jobs.<\/p>\n
Diverse industries help minimize \u201cboom-and-bust cycles\u201d that affect the local job market and rental property demand. <\/p>\n
Census Reporter, Data USA, Census.gov, and BLS.gov are excellent online tools for learning about local economies.<\/p>\n
One exception to the varied economic guideline may be tiny college towns. <\/p>\n
While renting to college students may necessitate more property management, demand may lead to higher rental income and returns.<\/p>\n
The Freddie Mac House Price Index (FMHPI) tracks US properties at the national, state, and MSA levels.\u00a0<\/p>\n
In many circumstances, cities with high home prices also have a higher share of renter-occupied families. <\/p>\n
For example, cities with the highest number of renters, like Texas, Miami, and Florida, have high house price indexes.<\/p>\n
Metrics to look at to tell how strong the demand for a rental property in a market includes:<\/p>\n
\nAverage household and per capita incomes\u00a0<\/li>\n Fluctuations in rent prices every year\u00a0<\/li>\n Housing Affordability Index and House Price Index\u00a0<\/li>\n Number of renter-occupied households\u00a0<\/li>\n Percentage of Gen Z and Millennial renters in the area\u00a0<\/li>\n<\/ul>\nBuying rental properties, fixing and flipping, and real estate wholesaling are the most common real estate investment techniques.<\/p>\n
Purchasing and holding a single-family rental property is a frequent option for many investors to invest in real estate virtually. <\/p>\n
Single-family homes are plentiful.\u00a0<\/p>\n
Plus, financing for residential property is available from a variety of sources. <\/p>\n
Many tenants appreciate the extra space that a home provides.<\/p>\n
Investors may discover two further benefits of the buy-and-hold real estate investing method.<\/p>\n
First, it takes less time than active investing, such as flipping a house. Second, daily duties like tenant communication and property upkeep are delegated to a local property management business. <\/p>\n
This means less direct involvement is required.<\/p>\n
4. Dip your toes in the virtual real estate market by investing in a rental property.\u00a0<\/h3>\n Analyzing the finest markets for rental property investing is just as crucial as virtually deciding to invest in real estate.<\/p>\n
The Roofstock Marketplace has helped buyers and sellers execute more than $4 billion in transactions in less than six years.\u00a0<\/p>\n
Investors use technology to help make investment decisions based on insights and proprietary data. <\/p>\n
By doing so, they can do business with buyers and sellers all across the country.<\/p>\n
Roofstock conducts preliminary due diligence, including ordering a title report when a listing is submitted.<\/p>\n
Roofstock manages the entire closing process, with offers negotiated entirely online from start to finish.<\/p>\n
Buyers can connect with financing partners to get pre-approval for a loan. <\/p>\n
These institutions also recommended that property managers look after the tenant and property after the sale.\u00a0<\/p>\n
It\u2019s effortless to see why some investors think Roofstock and virtual real estate investing go hand in hand.<\/p>\n
Related Reading: How To Make Money In Real Estate \u2013 Learn How To Build Long Term Wealth Here.<\/em><\/p>\n\n
<\/figure>\n<\/div>\n<\/span>Should You Get Into Virtual Real Estate Investing Right Now?\u00a0<\/span><\/h2>\nBefore investing in virtual real estate, there are several potential benefits and drawbacks to consider:<\/p>\n
\nGaining chances to buy and own rental property in some of the top real estate markets in the United States<\/li>\n Saving significant time, money, and energy by not traveling back and forth to inspect the property, deal with tenants, and manage repairs<\/li>\n Roofstock and other real estate investing platforms make virtual real estate investing almost as simple as trading stocks.<\/li>\n<\/ul>\nOn the other hand, virtual real estate investing may not be the best for each real estate investor.<\/p>\n
Locating the best real estate markets for rental property can be time-consuming! <\/p>\n
You\u2019d have to stay at home in front of a computer rather than going to open houses and viewing properties.<\/p>\n
Owning a rental property remotely also means an investor needs to hire a local property management business.<\/p>\n
Virtual real estate investing generally demands less owner engagement. <\/p>\n
So this approach may not be a good fit for those who want to be more involved in day-to-day management.\u00a0<\/p>\n