{"id":178576,"date":"2024-10-25T12:24:01","date_gmt":"2024-10-25T18:24:01","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=178576"},"modified":"2024-10-25T12:24:24","modified_gmt":"2024-10-25T18:24:24","slug":"five-things-investors-should-care-about-besides-interest-rates","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/five-things-investors-should-care-about-besides-interest-rates","title":{"rendered":"5 Things That Should Matter More to Investors Than Interest Rates"},"content":{"rendered":"\n

It feels as though we\u2019ve been waiting with bated breath for interest rates to change. With the <\/span>Federal Reserve finally cutting rates<\/span><\/a> by a whopping half-percentage point, <\/span>surely<\/span> smooth sailing is on the way for real estate investors. But maybe not. <\/span><\/p>\n\n\n\n

Here\u2019s the reality: Not only is it nigh-impossible to predict the ebb and flow of the real estate market, even if we can make educated guesses, but real estate investors should never hinge on their progress or success on a single factor. If you\u2019re always waiting for prime conditions, you\u2019ll squander months, even years, of potential.<\/span><\/p>\n\n\n\n

Stop waiting for interest rates to be where you want them to be. <\/span>Take<\/span> advantage of them when you can, by all means, but don\u2019t set yourself up for failure by waiting for conditions that may never come. There are other factors at play here.<\/span><\/p>\n\n\n\n

Now, we aren\u2019t saying that interest rates don\u2019t matter. They do. What we <\/span>are <\/span><\/em>saying is that investors shouldn\u2019t hinge their portfolio on <\/span>factors they can\u2019t control<\/span><\/a> much at all. Yes, a good credit score and a responsible debt-to-income ratio helps. <\/span>But it\u2019s not always enough to <\/span>make a significant difference in<\/span> your interest rates.<\/span><\/p>\n\n\n\n

Instead, real estate investors would be wise to prioritize what we can affect and control. Here are five examples.<\/span><\/p>\n\n\n\n

1. The Markets We Invest In<\/span><\/h2>\n\n\n\n

People <\/span>tend to<\/span> talk about the real estate market as a universal experience.<\/span> Rarely do the things happening in \u201cU.S. real estate\u201d translate to <\/span>every market<\/span><\/a>. They\u2019re reflective of overall trends, not actual trends on the ground. <\/span><\/p>\n\n\n\n

Where<\/span> you invest matters <\/span>because of this<\/span>. Affordability varies by city and region<\/span>. So does<\/span> job market strength, rental demand, population growth, and long-term prospects.<\/span> The variety may be challenging to navigate and learn, but investors can find a place that fits their criteria. <\/span><\/p>\n\n\n\n

2. The People We Work With<\/span><\/h2>\n\n\n\n

Even active real estate investors rely on other people. Passive or active, we all have vendors, partners, and professionals who work alongside us to craft a stellar portfolio. <\/span><\/p>\n\n\n\n

Passive investors must be particularly invested in those they partner with. Your <\/span>property management team<\/span><\/a> will make or break you. Your advisors will lead you to victory or lead you astray. <\/span><\/p>\n\n\n\n

Whomever you want to work with, do your homework. Ask questions. Verify information. Look for red flags.<\/span><\/p>\n\n\n\n

Your partners, <\/span>including the companies you hire to provide services to you<\/span>, must have experience and integrity!<\/span><\/p>\n\n\n\n

3. The Integrity of Our Business<\/span><\/h2>\n\n\n\n

Speaking of integrity<\/span>: <\/span>Investors should not underestimate the power of reputation. Whether you represent yourself or have managers as the \u201cface\u201d of your investing business, you\u2019re sending a message to the world. <\/span>It will<\/span> make the difference between loyal, long-term residents and high turnover. It <\/span>will<\/span> prevent legal issues or lead to negligence.<\/span> Value who you work with. <\/span><\/p>\n\n\n\n

4. The Long Game<\/span><\/h2>\n\n\n\n

Even buy-and-hold investors <\/span>run the risk of growing short-sighted<\/span>.<\/span> When <\/span>we start<\/span> worrying about every market change, we become <\/span>no better than<\/span> day traders.<\/span> <\/span><\/p>\n\n\n\n

We won\u2019t pretend it\u2019s easy to <\/span>ignore <\/span><\/em>daily ups and <\/span>downs,<\/span> or that there\u2019s nothing to learn from them. However, we don\u2019t obsess over them. <\/span><\/p>\n\n\n\n

Real estate investors are at their best when focused on the <\/span>long game<\/span><\/a>. You\u2019ll be fine if you nail the fundamentals, focus on your goals and benchmarks, and remain diligent. Market conditions are constantly changing. Fair-weather investors only get so far, but perseverance truly builds wealth.<\/span><\/p>\n\n\n\n

5. The Management of Risk<\/span><\/h2>\n\n\n\n

Finally, investors should focus on risk management. There are two parts to this. <\/span><\/p>\n\n\n\n

The first is recognizing risks and liabilities.  The second part is doing your best to mitigate them. You want to minimize risk exposure to prevent losses. You do this throughout the buying process and as you hold a property. It also includes the wise stewardship of your resources, from safety nets to <\/span>smart<\/span> tax strategies. <\/span><\/p>\n\n\n\n

If you can\u2019t eliminate risk (and you can\u2019t), you should prepare to absorb risks. <\/span><\/p>\n\n\n\n

Final Thoughts<\/span><\/h2>\n\n\n\n

At the end of the day,<\/span> investors may enjoy the opportunities afforded to them by the things they can\u2019t control, like interest rates. But they shouldn\u2019t rely on them for success. Instead, focus on what you <\/span>can <\/span><\/em>affect. Know what you want, and go after it!<\/span><\/p>\n\n\n\n

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\n \n <\/div>\n \n\n\n

This article is presented by REI Nation<\/strong><\/h3>\n\n\n\n
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Ready to add turnkey real estate to your portfolio in 2024? If so, now\u2019s the time to invest with REI Nation. Where you invest, and they handle the rest.<\/p>\n\n\n\n

Discover stress-free real estate investing with the largest family-owned turnkey investment company, REI Nation. Whether you\u2019re a seasoned investor or just starting, they are dedicated to helping you achieve your financial goals in the world of real estate investing. Visit our website<\/a> to start your turnkey real estate journey, where your success is their commitment.<\/p>\n\n\n\n

\n Learn more about REI Nation<\/a>\n <\/div>\n\n\n\n
<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

It feels as though we\u2019ve been waiting with bated breath for interest rates to change. With the Federal Reserve finally cutting rates by a whopping half-percentage point, surely smooth sailing […]<\/p>\n","protected":false},"author":676,"featured_media":177773,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4433],"tags":[],"class_list":["post-178576","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/178576","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/676"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=178576"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/178576\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/177773"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=178576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=178576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=178576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}