Living a minimalist lifestyle does not mean you have to miss out on investment opportunities, especially in real estate. From house flipping to buying a rental property, there are many different ways to invest without sacrificing your current lifestyle. While it is true that you will have be more careful than the average investor, getting involved in this venture can be profitable for both your bottom line and help you follow your passions with even more zest. Here are a few tips to help you invest effectively without having to lose sight of what is most important to you.
Location Is Key
Before you consider real estate investment, consider why you started living a minimalist lifestyle in the first place. Leaving the corporate world behind and giving up creature comforts in order to focus on your passion and having the desire to create more than consume is at the heart of all you do. With that in mind, if you decide to invest in real estate, the location of the property is extremely important because realistically, some properties take more time and effort than others.
When choosing a location, consider your two main investments: time and money. If time is your top priority and you want to invest without the process eating up a large part of your day, look for opportunities that are located in areas with a low crime rate and that are easily accessible. For example, if a rental property is located in a rural area and you no longer own a car, you may have trouble getting to the site in order to collect rent and ensure that everything is running smoothly.
Participate in Seller Financing
You may think that investing in real estate is beyond your reach because it would require bringing a down payment to the table, and as a minimalist, every dollar counts. However, there are several ways you can take part in investment opportunities without needing a down payment. One of the most common is to take part in seller financing. This is an especially viable choice for buying rental properties. Typically, the seller owns the property he or she is selling, and when this type of deal is struck, the seller becomes the mortgage holder.
One of the greatest benefits of seller financing is that the terms of the sale are much more flexible and your chances of negotiating a deal that requires no money down increase. While it may take some time to find these types of deals, it is usually worth it if you want to invest in a property but have limited funds for a down payment. You should keep in mind, however, that the negation power is typically in the hands of the seller when it comes to seller financing, so it may take some savvy in order to secure the deal you need.
Use a Property Manager
Unless you have adopted a minimalist lifestyle because your passion is real estate and you want to spend your time managing a rental property, investing in one that has a property manager on hand may help you better commit to your passions. A property manager will deal with tenant issues, review rental applications, interview prospective tenants, collect rent on your behalf, and oversee any repairs or upgrades your property requires. As a result, you spend less time at the property and more time letting it work for you. If you plan on group investing in a property that does not have a manager, it may be a good idea to put at least of part your combined investment in putting one in place.
Property managers are a sensible investment because they typically have a great deal of expertise when it comes to tenant law, property insurance details, and the dozens of other details that comes with managing a rental property. The more your property manager can handle without having to involve you on a daily basis, the more you can enjoy the benefits of investing and maintain your current lifestyle.
Focus on Freedom
While real estate investment opportunities abound for the minimalist, you must pick and choose from them carefully. Investing can be a slippery slope, so one of the most effective ways for you to invest is to choose something that is line with your passion. For example, if you have a strong desire to create new and delicious recipes and chose a minimalist lifestyle in order to have more time to pursue this passion, then consider investing in a commercial restaurant property. Reading Louis Ceruzzi tweets may help get you started on viable investment opportunities, as he is a lead real estate developer in this field.
Choosing investment opportunities that are related to your life’s passions will help you avoid feeling trapped or frustrated. Also, since minimalist living is all about making choices that increase your happiness, it is important that you take your time with investing. Avoid jumping into an investment until you know all the details and have a chance to thoroughly tour a property. Consider how much time and effort you will have to spend on any property, as well as the financial aspect, before making your final decision.