Nate Armstrong of Home Invest on Hollywood's Luxury Real Estate

In 2018, the real estate markets across the nation continue to offer investment opportunities the likes of which are rarely seen. Given the United States' homeownership rates, which remain consistent, realtors can conclude property transactions easier than ever before. Furthermore, the fact that the unemployment rate is under 4 percent indicates that buyers have more capital to utilize.

In the midst of such a booming market, there is an area where homes continue to sell for above-average prices. In fact, Hollywood remains one of the most luxurious regions of the United States where homes generally sell for over $800,000. An expert in the field, Nate Armstrong of Home Invest in Chicago, IL, contributes to the success of Hollywood's real estate through his multi-faceted approach. This includes successful property management, adaptable investors, careful tenant selection, and so on.

Investors Are Made, Not Born - Nate Armstrong

According to Mr. Nate Armstrong, who has completed north of 500 real estate deals to-date, successful investors are not determined by their talent. Instead, the real estate market allows only those who pride themselves in hard work to succeed. As expected, enthusiasm plays an important role when it comes to the perpetual growth of Hollywood's real estate offering. Adding the fact that a lot of sales originate in pursuit of weekend homes further makes it possible for the industry to thrive. After all, people not looking for full-time housing tend to be less strict with their purchasing requirements.

Careful Selection

In the spheres of residential real estate, many landlords enjoy the benefits of careful tenant selection. With the development of technology, they can now do everything from background checks to roommate matching algorithms. Doing so makes it easier to select the right people who will sign a lease and stay for the duration. In turn, the renewal rates are strong, and people tend to be more satisfied with their housing situation.

Besides the improved selection process, long-term renting is what allows landlords to steadily increase their prices. This is due to the rate of inflation and market development costs. Meaning, those who signed a long-term lease five years ago will probably be paying less than somebody who just signed theirs yesterday. Even with on-going tenants, raising rent is easier when their experience is satisfactory.

Learning and Improving

As stated, Nate Armstrong of Home Invest in Chicago, Illinois, is one of the many people who believe in the growth of real estate values in Hollywood. He is, however, one of the few who know how to successfully capitalize on this opportunity. In his opinion, many newcomers who are starting out do not learn from their mistakes. Real estate is one of the front-runners when it comes to the most volatile industries in the nation. Simply consider the housing bubble which caused the economic downturn in 2008 as proof. Now, as markets rebound and reach back into the positive, Hollywood is experiencing a dramatic change in demographics. Low income families are unable to afford housing and are leaving en masse, while affluent individuals continue to flock to Hollywood to enjoy the unique real estate environment.

Thus, in order to achieve longevity and financial freedom through property transaction, one must always be ready to learn. Even though some concepts tend to be timeless, a lot of innovation is making the real estate market unpredictable. For instance, new websites for property investment and management are developed every day. Lockboxes have been automated. Digital copies of official surveys are now available at the click of a button. Successful investors must be well versed in this area and know what resources provide the highest returns. Additionally, they must keep up with the state of the economy and current laws to avoid any setbacks.

If certain issues do arise, which is bound to happen, Nate Armstrong of Home Invest suggests viewing them as opportunities to grow. Currently, it is practically impossible to find an investor who has not lost money on one project or another. After all, a lot of the forecasting that goes into passive income ventures can be risky. Hence why those who are unsuccessful should take their failures as nothing more than unavoidable costs of doing business.

Versatility

Even when the market is doing well, no investor can afford to remain stagnant. Real estate is a field where a lot of knowledge from other specialties is needed. Mr. Armstrong sees this creating a mandatory professional versatility. For instance, people must be familiar with finance and important concepts surrounding the time value of money. They also need to understand tax laws to help maximize tax avoidance while not committing any evasion crimes. Not to mention how important it is to have a firm grasp of human psychology.

Ultimately, one can always invest in the expansion of their professional network. Going back to the Hollywood area, as Mr. Nathaniel Armstrong of Home Invest notices, most real estate moguls know one another. After all, joining forces with other successful investors makes it easier to close large deals. Hence why it is almost mandatory to have a strong network of hard-working professionals. Additionally, every investor should have ties to large banking institutions and accounting firms. If they do not, transactions' due diligence and closing details may be difficult to resolve.

Eventually, with enough diligence and versatility, amateur investors will be able to participate in massive multi-million-dollar property deals which are unheard of in most areas of the country. Here in Hollywood, there have been multiple 100+ million dollar sales during a single calendar year. With individual properties selling for such astronomical prices, it’s no wonder real estate can become a lucrative investment for those willing to take the risks.