The real estate investing market is a diverse one. The first step a real estate investor should do is choose one of the real estate investing strategies. What are the choices? Well if you plan on making money in real estate fast, then you should choose one of the short term investment strategies. Are short term investment strategies the best real estate investments? What strategy should a real estate investor use in order to start making money in real estate fast? Keep on reading to find out the answers!
Long Term Investment Strategies OR Short Term Investment Strategies
Trying to decide between long term investment strategies and short term investment strategies is a tough first step every real estate investor should take. In order to make up your mind at this stage, you should understand what type of property investor you really are. If you feel like making money in real estate investing is just an additional source of income, then you should pick one from the several long term investment strategies. Such strategies are: buy and hold and traditional rentals.
However, if long term investment strategies are not your thing and you see yourself as a dynamic player in the real estate investing world, you should aim for the fast ways to make money in real estate. To emphasize, consider such short term investment strategies as wholesaling real estate, fix and flip, and Airbnb rental properties. Let’s discuss why such short term investment strategies are considered as the fast ways to make money in real estate.
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Short Term Investment Strategies: Wholesaling Real Estate
How to make money in real estate without spending a dollar on investment properties? Well, the answer is easy: wholesale real estate. How does it work? A real estate wholesaler first finds a seller who is about to put his/her real estate property for sale. The next step is to make a deal with a seller for the investment property and in a specific timeframe, start looking for potential buyers. The difference between the final selling price and the set price of the real estate property is the profit which the wholesaler gets. In order to be successful with wholesaling real estate, you should continuously grow your real estate investing network. When you have the right contacts it is easier to find both the sellers and the buyers.
The biggest advantage of wholesaling real estate is that you skip the part where you buy an investment property. Why is this an advantage? Well, not every property investor has a good credit history and/or is able to cover a 20% down payment. Moreover, you avoid the future headache of managing the real estate property, paying the taxes, searching for tenants and so on.
Still, real estate wholesaling is not for everyone. In order to succeed with this investment strategy, you should have good communication skills as well as negotiation skills. Furthermore, you should expand your network and have a good relationship with potential buyers and sellers.
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Short Term Investment Strategies: Fix and Flip
When it comes to the short term investment strategies, fix and flip is the fastest way to make a profit after you buy an investment property. So, what are the steps that a real estate investor should take in order to select the best real estate investments? The first step is to select a real estate property that is below its market price. However, in most cases, such investment properties are typically in bad condition and require renovations. So, try to find a property that needs minimum repair.
The second step is the renovation itself. You are the one who covers all the expenses regarding the repairs. At this point, you should be a thousand percent sure that the selling price you get will be enough to cover the costs as well as to receive a profit.
Fix and flip is considered one of the best real estate investment strategies as you are able to make good money with fixing investment properties and selling them afterward. However, in order to make a fortune with fix and flip investments, you should have certain knowledge. Following such real estate investment strategies requires particular knowledge of fixing and experience in the renovation field. Moreover, you should be a great negotiator in order to make a bigger profit when selling the investment property. Interested to learn more about the fix and flip investment strategy? Make sure to read “5 Tricks To Save On Fix-and-Flips.”
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Short Term Investment Strategies: Airbnb Rental Properties
One of the best short term investment strategies is investing in Airbnb rental properties. Stop wondering how to make money in real estate as buying short term income properties is the answer. In addition, Airbnb rental properties are considered to be one of the best ways of making money in real estate fast. Furthermore, such income properties are generating great rental income per night. Consequently, the profit is great as well.
When talking about real estate investing for beginners, it is crucial to mention that the success of Airbnb rental properties is hidden in their location. You should use Mashvisor’s investment property calculator when planning to buy an investment property. This tool will present you the top locations for where to invest in real estate. The importance of location is tremendous, as Airbnb rental properties serve tourists as a substitution for hotels/ motels. Therefore, the location of income properties should be in tourist destination points.
Another aspect that is crucial to the success of an Airbnb income property, is the attitude of the host to his/her guests. In order to be among the successful Airbnb real estate investor, you should provide your guests with a “WOW” experience. What is meant by that? The place needs to look clean, nice and tidy. Furthermore, it should be located close to public transportation, supermarkets, and other facilities. Moreover, as a host, you should be available for your tenants. In case your guests have a question, you should answer fast without making them wait too long.
There are also certain events you should know about before owning an Airbnb property in order to take advantage of them. Curious to find out what those are? Make sure to read “Owning an Airbnb Rental? Keep These Events in Mind.”
To learn more about all aspects of real estate investing for beginners, continue reading our blog.