One-and-Done Real Estate Investing

What is the hardest part of buying real estate?

There is much to do on the path to property ownership:

  • Finding a property to purchase
  • Completing due diligence and verifying income
  • Getting the property under contract
  • Securing financing
  • Closing the deal

What is the hardest part of owning real estate?

When you ask most experienced commercial real estate owners what the most difficult part of owning property is, they will say — tenants. This is another way of saying: Property management – managing the people and the process that collects dollars in exchange for services.  Everyone wants to invest in real estate but no one wants to be the landlord.  Property management is charged with taking care of the physical and financial aspects of the property once it is owned.

What is ‘Property Management? Property management is the overseeing of real estate, including apartments, detached houses, condominiums, and shopping centers. It typically involves the managing of property that is owned by another party or entity -Investopedia

Remember, you only get to manage a property after having done a bunch of other difficult stuff first- finding, verifying, contracting, financing and closing the deal.  BuildingBITS provides real estate investment options for your consideration having accomplished all of the above: it’s one-and-done-investing into a real estate asset of your choosing.

And, BuildingBITS takes care of the hard part: property management.  It is true that income-producing real estate never takes a holiday.  It is a 24/7/365 business.  Competent management is a key ingredient to making a good investment into a great investment.

What About Diversification?

As much as investment diversification is a good thing, investing in publically-traded real estate alternatives (i.e. a REIT) excludes the individual investor from some of the benefits obtained when they invest in a single, directly owned, building. Let’s look at an example.

Owning real estate through a public offering provides two forms of yield: income and appreciation of stock value. Neither are guaranteed. When owning an individual building, owners gain a return on investment from four sources (these also are not guaranteed but direct investors have double the categories to gain yield):

  • Income from rents
  • Appreciation potential
  • Depreciation: Tax Benefits potential
  • Mortgage pay down (income from rents reduces mortgage debt over time)

One-and-done investing with BuildingBITS provides direct ownership into real estate assets giving investors transparent reporting, investment selection and the ability to know what they own.  And diversification is simply, you can buy one-off BITs of a property creating your own custom BIT portfolio giving you diversity and simplicity!

Get started now and check out these BIT offerings!