Great Strategies To Boost Your ROI As Real Estate Investors

Dana on January 25, 2022

GREAT STRATEGIES TO BOOST YOUR RETURNS AS REAL ESTATE INVESTORS

 

 

The current market conditions are a perfect opportunity to see why real estate is one of the most attractive investment sectors.

 

Throughout history it has not only provided excellent ROI for real estate investors but it has also enabled safety and proven its resilience during inflationary environments or uncertain times.

 

It comes to no surprise that an enormous capital is flowing into this sector that is encouraging real estate investors to implement various strategies to increase their return on investment and stay ahead of the competition.

 

What are some great strategies that real estate investors can use to achieve attractive investment returns?

 

Adaptive reuse of retail, office and industrial space

 

Hotels and entertainment venues, office buildings, and retail are hit the hardest by the current pandemic. Reopenings have helped some of them alleviate the impact a bit, but a combination of various factors resulted in a number of businesses closing their doors or filing bankruptcy.

 

Recovery is on the way, but it will take time, and property owners and real estate investors will need to get creative in the process.

 

Affordable housing and industrial real estate are two sectors in high demand. Turning an old downtown hotel into a multifamily housing project or converting an old retail building into a warehouse or industrial distribution center might be a very profitable long-term solution.

 

 

Investing in secondary and tertiary markets

 

The strong focus of private equity and REITs on primary markets is resulting in reduced investment returns and higher prices for real estate investors.

 

Higher potential available cap rates in secondary and tertiary markets may help investors to realize better return on investment compared to primary markets.

 

Secondary and tertiary markets may offer lower cost of living for future tenants that combined with the shifting demographic trends and customer preferences could increase the future value appreciation potential for real estate investors.

 

The secondary and tertiary markets present less competitive pressure and might be also financially more accessible for real estate investors.

 

Discover hidden gems and enter early

 

Due to the pandemic many areas that did not classify as high-growth before 2020 suddenly became attractive markets in the second half of 2020 and 2021 as growing number of people started relocating from major metropolitan to less densely populated areas with lower rents, more space and amenities that matched their lifestyle.

 

Identifying and getting in hidden market gems before real estate values begin ramping up is a game-changer.

 

This is the most difficult strategy to execute but it is also one that has proven to be most rewarding to real estate investors.

 

Value-add attractive opportunities

Overallocation of capital by real estate investors into primary markets means fewer opportunities with attractive returns and appreciation potential.

 

Investing in renovation and repositioning of B and C class properties in secondary and tertiary markets might provide very attractive ROI for real estate investors that would make them reconsider their focus only on primary markets and A class properties

Ready to start your next investment project?

Please contact us to learn how we can best help you to turn your next investment project into a success.

Email: [email protected]

Telephone: (954) 570-0300

Address: 850 SE 7th Street, Deerfield Beach FL 33441

About Adivo Construction

We are a national general contractor with over 50 years of combined construction expertise specializing in the value-add improvements of apartment communities.

Our mission is to assist our clients in finding the right balance between capital expenditure and appreciation potential by designing and executing customized renovation programs that are focused on increasing cash flow return and overall return on investment.

We have completed over 100 repositioning projects for publicly traded and privately held domestic and foreign companies in states such as Florida, Texas, Kentucky, Oklahoma, Georgia, South Carolina, Utah, North Carolina, Tennessee, Indiana, Michigan, Missouri, Arkansas, Ohio, Arizona, Nebraska, and Kansas.

 

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