How to Invest in Real Estate to Solve Problems
How to invest in real estate to solve problems is a natural question for many real estate entrepreneurs. Real estate investing, like any other business, exists to solve problems. Whether it is providing relief from the burden of a possible foreclosure or improving neighborhoods by fixing dilapidated houses, real estate investors provide solutions to people and communities in need. Thinking of a real estate investor as a problem solver, make take a shift in your thinking. But in my experience, seeing your business through this lens has been eye-opening and rewarding. This post will explore several ways that show you how to invest in real estate to solve problems.
Real Estate Investors Add to the Economic Well-Being of the Community
Real estate investors help other businesses and local government by adding to the overall economic well-being of the community. For example, when a real estate investor rehabilitates a piece of property and puts it back on the market, the money spent during that process:
· increases the tax coffers,
· boosts the economy through the purchases of good and services, and
· provides work for those in construction, financial services, and household goods and services businesses.
During the real estate downturn from 2006 to 2014, real estate investors played a major role in turning around the real estate market. A study sponsored by Bigger Pockets. com, a leading web site for real estate investors, indicates the housing crisis pushed nearly 4 million foreclosures onto the open market. The housing crisis devastated home values. During this time, real estate investors bought many of these foreclosures when few other people could or would. The actions of real estate investors provided stability to the crumbling housing market. On average real estate investors spend $7,500 per home renovation. This spending pumps in more than $9.2 billion every year into construction-related spending.
Real Estate Investors Help Families in Times of Distress
As a real estate investor, my entire business model is based on ways to solve problems for my clients. When people find themselves in times of distress during a divorce, bereavement, loss of a job, or dealing with tax issues, a real estate investor has a variety of programs and services to help the client solve his problem. For example, as a real estate investor I can quickly help a family who inherits an outdated and unwanted home. We can also deal with any of the belongings in the property. During your time of grief, especially if you are far away, a real estate investor could promptly solve your problem.
Real Estate Investors Help Families Find Affordable Housing
As the housing markets recover in most parts of the country, real estate investors continue to help those most in need of affordable housing. Real estate investors provide services that many financial institutions and traditional real estate firms do not. For example, it’s estimated that over eighty percent of the population in the United States cannot qualify for a traditional mortgage loan. This means that there is a huge underserved market for housing that traditional financial institutions are failing to fill. Real estate investors can help these people solve their problem with a variety of tools to put them on a path to home ownership.