Real Estate Investing Success: Creating a Path of Least Resistance

by Matt Shachter | December 3 , 2019 | 0 Comments

The rise of the entrepreneurial real estate investor is uncovering a need for tools that support a flexible mindset and capital strategy. 

“Americans today are more mobile than ever in their pursuit of prosperity,” states Karlin Conklin Executive Vice President, Investors Management Group, in her Kiplinger’s Personal Finance article, “Lines of Desire: Follow the Trail to Real Estate Investment Success”

This “mobile” mentality creates opportunity for real estate investors - the focus of Conklin’s article - but it also reveals a shift in how we approach wealth building - create paths of least resistance.

The Rock and the Hard Place

One strategy that Conklin recommends is, “As we took the perspective of a renter following a path of least resistance, we shifted our view from the city’s core to outlying communities where access to the Denver economy was easy, but housing costs were more sustainable.”

In doing so, Conklin shows that creating a path of least resistance means repositioning where you invest and gives extremely valuable questions you should ask while doing so.

Other paths to cash flow

Flexibility in investment location opens new doors to “easier” opportunities for cash flow. However, more real estate investors are embracing alternative financing to create paths of least resistance.

TribeVest CEO, Travis Smith, discusses 5 ways to invest in your next property in a recent blog, sharing, “If we are honest, most investors looking to acquire their next property are using multiple ways to come up with the required capital to get the deal done.”

One of these ways is pooling capital. The barrier to doing so is finding the right people, building trust, agreeing to terms, and more.

Needs have changed

To truly make these proven strategies paths of least resistance, we must eliminate the risk.

Today, investors are using platforms, like TribeVest, to act as neutral 3rd parties for investors to pool capital with transparency while helping to organize and manage their collective business.

This also allows for investors to be in different locations with a single view of their accounts and activity, enabling more of the “explorer” flexibility that Conklin proposes.

It is important to not confuse the path to least resistance with easy. Yes, technology can make the processes easier and faster. Yes, following these strategies will make new opportunities more accessible to more investors. However, you must use these tools to create the path of least resistance for your team. 

As Conklin reminds us, “Collecting credible market data — and spotting trends in urban mobility before the wagon ruts get too deep — is fundamental to your investment success. ‘

In other words, real estate investment success is at the intersection of the right tools, the right team, the right amount of capital,  and the right information