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Virtual Real Estate:
How to Invest in Real Estate Virtually

Securing your financial freedom from the comfort of your own home.

Opportunities are expanding across the digital horizon for real estate investors. Over the last decade, the internet has revolutionized the way we do business like never before — and that includes investing in real estate. As the industry continues to shift to online platforms, investors can equip themselves with the knowledge and resources needed to succeed.

What is Virtual Real Estate Investing?

Virtual real estate investing, or remote real estate investing, allows investors to purchase and profit from real estate properties regardless of their geographic location. In contrast to the traditional way of investing, investors are now able to own and earn passive income from properties without physical boundaries that still reap the same long-term rewards. 

In addition, the new medium offers fresh new advantages never available before:

  • Virtual real estate investing saves time and money. Because an investment property can be bought anywhere in the nation and investors are no longer restricted to their local market, investors are able to focus on the finer details, such as property values, market analysis, and expenses. The need to travel is futile.

  • Emerging technology makes it easier than ever for investors to be engaged with their rental properties. Real estate virtual assistants afford investors the luxury of inspecting a property without having to actually set foot inside of it.

  • Some out-of-state markets garner more profitability than those that are local. Although many investors feel the most secure when purchasing properties within their own vicinity, many out-of-area markets can prove to be more viable and contribute to significantly more wealth.
  • Investing in real estate virtually allows for flexibility. Real estate investing that knows no boundaries allows investors to customize their strategy by providing more options and opportunities that are compatible with their budget and goals. 

Virtual real estate isn’t just a trend; it’s the new way to invest. The evolution of the internet paired with the COVID-19 pandemic launched real estate investing into the digital sphere — with no sign of retreating back to the traditional way.

Is Virtual Real Estate Right for You?

For first-time investors, the thought of investing in real estate can be overwhelming — especially if it’s virtually. The unlimited access to multiple sources, types of information, and choices to make can lead to analysis paralysis, preventing some would-be investors from ever taking the leap.

By empowering yourself with the technology and software available to you, accepting that real estate investing is a long-term game, and staying up to speed on the changes within the industry, you can make lucrative investments that build lifelong wealth. Here’s how.

The truth is that deciding you’re going to invest in real estate is the first step. Passive real estate investors are in it for the long haul. This is why research and due diligence will be imperative during your path to becoming a successful real estate investor.

Get Started Investing in Real Estate Virtually

Getting started in virtual real estate can be challenging at first because of the sheer amount of details to sift through. It can be difficult to know where exactly you need to begin. Here is how to get started.

Choose a Market

The beauty of virtual real estate investing is that you can invest anywhere. You’re not limited by your geographical location and you can choose any market in the country. However, endless possibilities can be difficult to narrow down. Here is the best way to get started choosing a market.

Researching markets you're interested in. Start out small. Think about cities or states that interest you. Family favorite vacation spots, hot tourist attractions, or destinations that populate your social media feeds are all great contenders. Use this as a brainstorming exercise and don’t limit yourself on possible options.

Next, consult the data. For first time investors, this can be a daunting task. With so much information available, what should you focus on? 

At REI Nation, we are very selective about the markets we choose to invest in. The three biggest key factors that we look for in a city are:

  • High affordability index rates
  • City growth in population and infrastructure 
  • Diversity in companies and industries
High Affordability Index Rates

The affordability index of a market is the measure of an average person’s ability to afford particular items — in this case, a house — based on the median family income. If the affordability index is below 100, it indicates that housing is less affordable. If it’s above 100, then housing is more affordable.

As an investor, seek out cities with high affordability index rates because it shows that residents living there are able to afford the housing. The income wages outweigh the cost of living. 

City Growth in Population and Infrastructure

Population growth increases the demand for housing. A higher demand paired with a limited supply of housing equated to higher rents and higher values. This is a key point to making money on your investments. 

Diversity in Companies and Industries

What is a driving factor for population growth? Job prospects. Rather than choosing single company cities where one company provides the majority of the population their job, secure your investments by buying properties in those with multiple industries and businesses. 

Remember that just because a city looks good on paper doesn’t always mean it’s a sound market to invest in. Be aware of your sources and keep an eye out for “glitz and glam” websites that are aimed at selling a city rather than providing actual facts. 

Related Article: 4 Qualities Shared Among High-Performing 2020 Real Estate Markets

When conducting your research, we recommend utilizing these resources:

  • Census.gov
  • BestPlaces.net

Beyond statistics, network with other individuals investing in real estate and seek out as much information as you can. Online forums like BiggerPockets and social media outlets such as Facebook groups can be prime places to gain insider information for markets and industry trends.

Choose a Real Estate Investment Company

As an investor, choosing the right real estate investment company can make or break your future investment decisions. Just as it’s important to research your markets, it’s equally important to ensure your market decisions are in your best interest. It’s important to know your needs. Yet no matter what your needs are, ask yourself these questions.

When searching for a real estate investing company, find out the following:

  • How long has this company been around? Credibility is earned from companies that hold over 10 years of experience. They should be able to prove their track record to you and reveal the highs and lows they’ve encountered along the way.
  • How does the company handle failures? No one wants to admit mistakes. Pay close attention to how a company discloses its operations in up-markets and down-markets. Companies willing to express how they’ve learned from their mistakes are more likely to be transparent with you personally.
  • Does the company invest in themselves? If you found out the CEO of Apple owned an Android rather than an Apple iPhone, you would probably question everything about your Apple products. The same logic applies to real estate investment companies.

  • Is the company compatible with your short and long-term needs? Passive real estate investing is a long-term game. Ensure that the company is growing at the same speed you hope for your investment portfolio to evolve and that they’re equipped to meet your needs. A viable investment company is able to buy, renovate, find residents, and manage your properties for you.
 

The Future of Investing is Here; Start Earning Now

Traditional real estate investing is out. Maximize your investments by expanding your portfolio to out-of-state markets virtually, while taking advantage of their benefits remotely from home. With the right software, and the right team, start securing your financial freedom one city at a time.

Are you ready to begin growing your portfolio?

Connect with one of our portfolio advisors today.