The old-school method to maximize passive income in real estate investment is known as BRRRR™: Buy, Rehab, Rent, Refinance, and Repeat. Technology moves quickly, and investment strategies need to advance with it. BRRRR™ is effective, but it’s also a saturated real estate investment strategy. ReAlpha’s BRAIN, Buy, Rehab, Reinvest, Next property, is an iterative AI strategy. It builds upon the solid groundwork of BRRRR™. At the same time, it also gives access to revenue streams that weren’t available before with new ways to invest in real estate. This maximizes profitability in real estate investing!
The first step to any real estate investing is buying an investment property. The issue with residential real estate investing in the past has been how does one invest in real estate with no money? Real estate investor websites offer new ways to invest in real estate. Instead of one person having to come up with 20-25% of a realty investment in cash for a down payment, real estate investment groups allow individuals to aggregate funds using property investment funds. This process gives people access to investment opportunities that they couldn’t do by themselves.
The best real estate investments are the ones where the buyer can raise the value of the property. The key is to do improvements that will add more value than they cost. Cosmetic updates such as new paint, refinished floors, and new tile are cost effective ways to increase your after-renovation-value (ARV) without going over budget. At the end of the day, everything in a home should work well and look nice.
The BRRRR™ method relies upon long term tenants to fill real estate investment properties. BRAIN instead uses Airbnb to fill investment realty. Listing properties on Airbnb increases revenue by more than 70% compared to long-term renting on average. This is a 1.2 trillion-dollar industry that is currently led by mom-and-pop Airbnb hosts. Airbnb is a world-renowned brand. It gives traveling tenants a great experience while making the process easy for homeowners. With Airbnb, hosts don’t need to screen tenants. They also don’t have to spend money on marketing or deal with lease agreements. Airbnb also offers flexible pricing, host protection, and a built-in client pool for passive investments.
Maximizing profits and ARV allows you to reinvest more quickly into more real estate opportunities. Everyone knows diversification is important for traditional investing, but it’s important for alternative investments as well. In this case, diversification over time is key. Reinvesting profits into new properties allows you to hedge against dips and bumps in the market for the best property investments. Another important issue is taking too much debt. Be sure to avoid taking on multiple loans at the same time. Assume future property investing will need more cash than you expected.
Rinse and repeat! Continue buying up homes, rehabbing them, maximizing profit on Airbnb, and reinvesting the profits. Property investing may seem daunting at first, but it can be made accessible through a property investment company. ReAlpha’s BRAIN method is designed to boost your profits and build your real estate portfolio more quickly. It takes advantage of new technology and revenue streams.
Realpha is a digital marketplace that simplifies, finances, and manages short-term rental investments. Our model gives you access to a broader range of properties and talent. All of this without the hassle of directly managing the investment properties yourself. Using our proprietary optimization algorithms, we identify the short-term with the best revenue potential and handle the entire closing process. Relax and enjoy ownership in your new investment property while earning superior returns. Learn more at ReAlpha.com
reAlpha Webinar Recap: Episode 1
Whether you missed our most recent webinar or you’d prefer to read instead of listen, we’ve got you covered. Here’s a quick recap of reAlpha Webinar #1, featuring CMO, Christie Currie and CEO, Giri Devanur.
Regulation A: What Is It and Who Uses It?
Historically, investing in startups is hard. So hard, it can feel pretty much impossible. Equity crowdfunding has come a long way since the days of Kickstarter. Reg A is a great tool to increase access to investment in early-stage companies.
An Entrepreneur’s Guide To IPOs, SPACs And Regulation A
What if you want something with more SEC oversight than a SPAC but smaller than an IPO? Is it possible to have a mini IPO?