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Investing in real estate has always been one of the best ways to increase your net worth. Real estate investment has a lot of options and strategies. To find the best strategy or type of investment , investors should have some factors in mind.  There are three main factors to know before investing in a real estate market. Investors should invest in markets with advanced job opportunities. The number of jobs in an area indicates economic growth in any area. The average salary is a good indicator too. If the average wages are high , it is a sign of a growing economy. The number of commercial buildings (such as offices and malls) also go up as the economy improves. Population growth is a really important factor when investing in an area. A real estate property will only bring in revenue when there is a good population willing to live in it. When job opportunities are expanding and the population is increasing , the demand for housing will also increase. It is also important for an investor to consider the price to rent ratio of the market. The price to rent ratio indicates any market’s potential probability. The higher the ratio , the worse the market will be for real estate investment. When a market possesses all three qualities – job growth, population growth and affordability – that market is good for real estate investment in terms of generating rental income as well as capital appreciation. Here are some of the best real estate markets in the US to invest in.  CHICAGO Chicago is an excellent market for real estate investment because of the population growth. The population growth indicates high demands for housing. The quality of life is affordable in Chicago as compared to similar sized cities. Chicago has a good job market in the major fields of hospitality and transport industries. CLEVELAND Cleveland is known to be the gold mine for real estate investors. It is one of the most diverse cities in the US. Cleveland is one of the best areas to live and work and has a service-based economy. Cleveland has a great job market in the fields of professional services, construction and hospitality. Real estate market in Cleveland is a strong rental market. It is an excellent market for new real estate investors. The St. Louis The St. Louis real estate market is excellent for low risk investment. House values in this market have consistently risen over the time. Variety of neighborhoods are available for investment from cheapest to most expensive. San Antonio San Antonio is one of the fastest growing real estate markets in the US. The population grew at an astonishing rate of 20% in the past decade. Home prices in San Antonio have increased at a rate of 10% annually for the past decade. San Antonio has become a den for short term real estate investments because of millions of tourists visiting every year. There are a lot of other real estate markets also all over the world. Investors should do the research of the market and diversify the investment to achieve higher returns.

As we all can see the importance of digital assets nowadays but a lot of people still prefer to own a physical asset. The way we used to spend our money has changed. Ownership of an asset has its own appeal and is not limited to any age group.  In fact, Real estate investment is a good source to create wealth but there is a big barrier to enter into this market, which is the cost of entry. This biggest barrier is crushed by blockchain based real estate providing fractional ownership with very small investments. The tokenization of a real estate asset solves the accessibility and affordability issues in the real estate market. Lets say a new investor does not have enough money to buy the whole property, he can now buy a percentage ownership of that real estate property with the minimal investment. The investment share of the investor will then appreciate and depreciate with the overall value of the property. Tokenization or fractionalization of an asset works with the help of smart contracts. The contracts are saved over the blockchain and are completely transparent. The tokens associated with your investment are transferred to the investor’s wallet. The token gives the legal ownership rights to the investor over his percentage(fraction) in the asset. Real estate investment platforms backed by blockchain improve liquidity of assets and are cost effective. Tokenization of real estate assets cuts out the intermediaries, such: dealers and brokers. Blockchain based platforms allow direct payments using crypto. The transparency of blockchain based purchases makes it less riskier than purchasing the old fashioned way. Blockchain backed platforms are new to the market but they have great potential in the near future. Blockchain democratizes real estate investing by allowing everyone to enter the market. There is no need for investors to get licensed. Blockchain based investments are transparent for everybody and require no paperwork. Investing in real estate based on blockchain is way faster as compared to the old fashioned way. Obviously there is a long way to go until blockchain based real estate platforms transform the whole market. Banking regulations will soon change to include cryptocurrency transactions.

It is important to not put all your eggs in one basket. it means you should not risk all your money on the success of one asset or business. To overcome this risk, investors go for diversification. Diversification is actually balancing of riskier investments with less risky ones. A good real estate investor does not put all his investment into one property (asset). Investors look for different types of investments in a certain field depending on many factors, such as: asset type , risks , geological locations , hold time and appreciation etc. Diversification of real estate portfolio means buying into different types of real estate assets. Diversification of Real Estate Investments by sectors: Residential properties are often bought by investors to generate rental income as well as capital appreciation in the long term. Residential properties range from small apartments to multi storey houses. Industrial properties are used for industrial purposes, such as: production plant , packaging hall or storage unit etc. The lease agreement on these properties is for a longer period than residential properties. Commercial properties are the ones used for commercial purposes, such as: business centers, offices, shops and malls. Commercial properties are expensive but also have a higher income return. Investors can also diversify their real real estate portfolio by asset class. It means that investors will invest in similar assets having no dependence on one another. If one asset stops generating income, the other would not be affected. Diversification in the real estate investment portfolio is also possible by using different types of strategies. Some investors rely on long term strategies while others on short term projects. There are a number of mistakes an investor should keep an eye for and be careful to avoid those blunders. In conclusion, there are a lot of ways to diversify your real estate investment portfolio. The diversification lowers the investment risks and balances out volatile investments. While diversifying the portfolio, investors should diversify every single aspect of it to be safe. Investing into REITs can be a safe option for starters but the return over investment is low. Investing into blockchain based real estate platforms is also a good way to diversify the investment portfolio. The blockchain backed platforms have a good return and low fees.

Investing in real estate has always been one of the best ways to get wealthy. People usually think and wait for the best time to invest in any asset. For real estate, it is always the best time to start. As we have witnessed in history, real estate assets have gotten expensive with time. In real estate, income can be generated in a number of ways, such as: There are some tricks and techniques practiced to make money through real estate depending on the investor preferences, location and period of investment etc. Most investors get into real estate for long term business. In the long term trajectory, the key return over investment is through the appreciation of the property. Whether it is residential or commercial , the value of a property increases in the long term which means an investor can sell a property at a higher value than the purchase value. Flipping: An investor buys a property and renovates it in a short period of time, sells it and then moves on to the next property. Wholesaling: It is another short term way of real estate income. Investor holds a property for a short period of time and finds the next buyer and makes the contract to the new buyer’s name. In this case, the investor acts as a middleman. Airbnb renting can be more suitable for some properties depending on the location. Airbnb is more profitable than long term tenants as the per night rate is high. The costs are high too as you have to provide basic facilities , pay utility bills and clean after each stay. There is this mainstream belief in the real estate industry that an investor should be a millionaire or have high net worth. This is not true now as you can in real estate with as little as $50. There are a bunch of blockchain based real estate platforms on which you can buy tokens and shares of a property for very little investment and get a good return on it. You do not even need a license to invest on these platforms. There are a few factors to keep in mind while deciding the right choice for your real estate investment, such as: Etc Real estate investing seems to be complicated but it is actually a very authentic and productive way to earn wealth and is not that difficult to start. As long as people need a place to live and businesses need outlets, offices and warehouses, there will always be a need for real estate.

There are a number of ways to invest in Real Estate market including buying a property on your own , buying into a publicly traded REIT or buying shares/tokens on a blockchain based real estate platform.A REIT is Real Estate Investment Trust which buys a bunch of properties or mortgages and allows investors to invest in the REIT. Investors can invest in it with less amount as compared to buying and managing a property on their own.Investing in REITs has its own cons such as high taxes and fees etc. And this market is completely volatile to interest rates trends. Investing into REITs is quite risky as any investor does not get any detailed information about certain assets (real estate). Investing in Real Estate Investment Trusts(REITs) is kind of similar to mutual funds. Some of the potential downsides of investing into REITs are as follows: There are basically three types of REITs: Most REITs are equity based REITs. They buy and manage income producing real estate assets. Mortgage REITs lend money to real estate owners and managers in terms of loans or mortgages. The income produced is in terms of interest on that loan amount. Hybrid REITs use both equity and mortgage strategies to generate income. Summarizing the whole topic, investing into publicly traded REITs is good to produce a steady income. Although Investors can go for blockchain based real estate platforms to have the benefit of least volatility, higher returns , greater capital appreciation and the capability to choose the exact real estate property in which they want to invest their money.

A security token is a form of cryptocurrency which represents an investor’s rights, stake or equity in an asset. Security tokens were initially issued by companies and the government as bonds for the purpose of voting and stocks. Now the security tokens are underpinned by the blockchain technology and it has gained innumerable benefits.The blockchain is completely transparent for anyone to access. Anyone can track transactions , possessions , issuance and other details about any fungible or non fungible tokens. The procedure of possessing or transferring a security token is quick and automated. This market working on blockchain technology is not bound to any fixed time period or schedule benefiting in terms of availability.There are basically two major types of security tokens available in market: Equity tokens are just like the traditional bond and stocks. But the key difference is that the information is stored on the blockchain, the equity security token is registered on the blockchain and the transaction is saved in the network of hundreds and thousands of systems around the world. The Debt token functions the same way but it describes the short term loan by a party (i.e. investors) at some decided interest rate. Asset backed tokens describe the ownership of an asset such as: Artwork and Real Estate etc. Asset backed tokens provide owners the fractional ownership of the asset. This token represents the stake of the investor in an asset which has some return over time and the value of the token may also increase with time. The key topic here is “How security tokens bring fair distribution of value” In tokenization of real estate assets, the security tokens underpinned by blockchain is a young market but it is highly essential and will undoubtedly take over the whole market. Security tokens in real estate facilitates in every single aspect from being cost effective to complete transparency. It cuts out the intermediaries such as brokers and dealerships etc. This makes the whole procedure cost effective as it saves a bunch of fees such as commissions and brokerage etc.  Security tokens are made up of many smart contracts over blockchain which makes it a much safer and secure choice. It has also lower the barrier for entry in big markets(e.g. Real Estate). It has made it easy for small investors to invest in big markets by offering fractional ownership of assets. Investors were previously limited to investing in a company or business as a whole or in terms of shares. Security tokens allow the investors to invest in a variety of markets where there was no sign of fractional ownership before(e.g. Real estate & Collectibles). Another advantage of security tokens is that the history of ownership is saved permanently on a secure ledger which is transparent to anybody. It actually provides the investors with the complete past trend , previous ownership and other records of the assets.

Real Estate has always been the first priority of investors. However, investing in real estate requires massive investment and it is considered as the business of an upper-class community. The introduction of blockchain-based real estate investment has overcome this limitation and small investors can also invest in good properties with minimum investment and enjoy good returns. Further, anyone can buy property tokens without any discrimination, equal rights for every investor, excluding US investors as their law allows only accredited investors to purchase blockchain-based real estate tokens. Blockchain-based real estate has definitely helped newbie real estate investors to venture in and get good ROIs. One more key edge of Blockchain-based real estate investment is diversification. Investors can invest in a lot of properties and can minimize the risk of losing money. Further, buying real estate on a blockchain is a far more speedy experience as compared with traditional real estate investment which involves a lengthy and time-consuming process & procedures to transfer the properties from one owner to another. Dividing real estate into small units is not a new concept as it’s been prevalent in real estate since the 1960s, i.e., REITs. However, REITs are least transparent, and have different investment structures as compared with blockchain-based real estate investment. REIT investors get only a proportion of rental income. Also, if you compare the transaction and handling charges with REITs, Blockchain-based real estate investment does not have any hidden charges like ATM fees and investors make more returns on their investments. As mentioned above, transparency is the key in blockchain-based real estate investment, where one can track all the purchase history of real estate from its first day of offering at blockchain to the rest of its physical life, with all the owner’s wallet address and token transfers without involving any intermediaries. All you need is a wallet address and can purchase tokens from online marketplaces or from individual investors.