10 Real Estate Investing Trends for 2021

In the midst of a pandemic, it’s safe to say we’ve all seen better times. But it is times such as these that differentiate real estate investors from the crowd. Where other people might see disaster, real estate investors see opportunity. 

Perhaps the most exciting part of moving forward into 2021 and beyond is the rapid development and fine-tuning of real estate investment software. That, combined with the fact that REI software is not just reserved for the elite, makes our world an interesting place to live in.

Before we dive into our top real estate investing trends for 2021, it’s important to recognize that now is just as good a time as ever to get into real estate. And more than ever, opportunities are opening up for investors with all levels of cash reserves (or no cash) to jump into the game. The only requirement is an internet connection.

1. Access To Big Data & REI Software Will Differentiate Investors

As mentioned, real estate investment software has been a game-changer, and it will continue to differentiate investors who are taking advantage of it from those who aren’t. Real estate investors who are still doing things “old school” will quickly be left in the dust, if they haven’t been already. 

There is simply no competing against the intelligence that is out there: the kind of AI that’s inside of Connected Investor’s platform, for instance. With our PiN software, investors can find, fund, and flip houses in less than a week. Without technology to instantly connect you with deals, funding, buyers, and sellers, it will become harder and harder to stay competitive in the REI space.

2. Micro Flipping Will Be One of The Best REI Strategies in 2021

Not too keen on leaving the house more than you have to? Not a problem. Real estate investors are joining the work-from-home movement via micro flipping, and it is a true revolution. 

The future of real estate is starting to resemble the rest of our world: virtual and instantaneous. It’s no wonder more and more investors are choosing this fast-paced strategy over traditional methods. 

Micro flipping involves finding a house to flip which requires no rehab. Investors will then bump up the price a few thousand dollars and sell the house to a buyer within a few days or less, making thousands of dollars in profit for only a few hours of work.

Want to learn more about micro flipping? Read this article: Micro Flipping: The Next Evolution of Real Estate Investing

3. Rising Home Prices Mean Big Profits For Home Flippers

Rising home prices are another area of advantage for investors looking for houses to flip. Micro flippers should have an easy time spotting properties and raising the prices a few grand before reselling. With home values increasing, buyers are prepared to pay premium prices. 

4. Low Inventory Will Give Sellers an Edge

For most of 2020, inventory has been very low, and this trend is likely to continue into 2021. While low inventory can feel frustrating because there isn’t much on the market to choose from, it can be a huge advantage for investors. 

Why? Because once you grab that perfect property, you’re going to want to flip it. That means you’ll eventually become the seller too. And in a seller’s market, you’re going to have buyers out-bidding each other to own your home, giving you the greatest chances of making a sizable profit.

5. Cash Will Be King For Buying Houses To Flip

Cash is always king in real estate. But it becomes an even more important factor when finding houses to flip in a seller’s market. Particularly with micro flipping, cash on hand will be important for competing with the big players in the game. 

Don’t have the cash reserves to get you started with micro flipping? Get connected with hard money lenders within our platform here.

6. Low Mortgage Rates Will Encourage Homeownership

Mortgage rates are still extremely low, and buyers are taking notice. Not to mention, there has been a recent migration away from major cities as the pandemic has changed the way we live, and people who previously rented are now considering purchasing a home. This is great news for real estate investors, as there will be no shortage of buyers. Micro flippers should have no trouble getting a line of eager buyers set up before making their next purchase. 

7. Affordability Is The #1 Factor Driving Buyers

As mentioned, there is a shift taking place with home buyers that started back in 2020 and should continue well into 2021. The pandemic abruptly made city life less livable. People can work from home, keeping their city salaries without a need to stay in a city. Likewise, crowded places are no longer deemed desirable, as the virus changes our social lives. 

This has placed a significant demand on more affordable markets, and buyers will be flocking to suburbs and smaller, less pricey cities to increase their standard of living. Regardless of the kind of house flipping you are doing – traditional or micro – keep an eye on these unexpectedly up-and-coming markets.

8. High Demand For Homes Means Low Competition For Flippers

Because the pool of buyers is increasing and the inventory is decreasing, any real estate investor selling a house flip can expect to have a flood of offers coming in. This decreases the competition amongst micro flippers, because there are more buyers than there are sellers, meaning your flip will get plenty of attention regardless of what else is out there. 

9. Crowdfunding is an Accessible Way To Invest in Real Estate

We promised that investors don’t need tens of thousands in cash reserves to get started in real estate investing, and not surprisingly, real estate investment software is responsible for this.

While micro flipping is getting attention for its ability to turn cash reserves into a day-job-rivaling income stream, not everyone interested in becoming an investor has the money to purchase houses to flip. 

With crowdfunding, you can invest as much or as little as you like. If all you have is $10, you can get started. Crowdfunding is exactly what it sounds like: a bunch of investors contributing what they can to owning an investment collectively. The benefits? There’s typically no minimum investment to get started, and you’ll own a percentage of the property’s equity. This makes crowdfunding one of the most accessible forms of real estate investing and a great place to start building wealth in real estate.

10. REI Networking Is Both More Important & Easier Than Ever

A network is an important asset to any professional, real estate investors included. In a fast-paced world, tapping into an online platform with seemingly infinite possibilities for lucrative connections is both necessary for REI success and possible. 

While you might have a network in your own community, there are certain limitations in restricting yourself to in-person connections. By accessing an online community of real estate investment professionals, you’ll find expertise in any market, from real estate agents to hard money lenders, as well as motivated buyers and sellers. Essentially, this kind of platform is a micro flipper’s (or traditional house flipper’s) dream. 

The Bottom Line:

There’s never a bad time to get into real estate investing: not even during a pandemic. 2021 is looking like a year for sellers, positioning home flippers – micro flippers especially – to make big profits. With software capable of bringing the best real estate data and connections right to your laptop, there has never been a better time to make real estate investments a priority.

To learn more about how Connected Investors will help you find, fund, and flip the best deals, check out our REI software here.