For new real estate investors, getting into the business of buying and selling homes may seem a bit ambitious. But like any other area of personal finances, real estate investing breaks down to some simple basics. With the right investment strategy along with some patience and the will to learn, you my friend can walk your way into financial freedom and a secured future.
Let’s take a look at some real estate investment strategies that will help you invest like a pro!
Related: What Are the Best Real Estate Investment Strategies for Making Quick Money?
Before you even begin thinking about real estate investing you need to know your potential. You can’t be living off paycheck after paycheck and just wake up one day and decide to invest in commercial real estate. You need to be realistic, know your potential and invest accordingly. The best way to start off for new real estate investors is with residential real estate. In this category comes an array of real estate investment strategies to choose from. For example,
1. Buy and Holds
Basically, buy and hold means buying a property so you can hold that property in the long run. You may be purchasing the property for many different reasons such as for rental income or capital growth. Whatever the reason, it doesn’t matter. It’s going to be called buy and hold so long as you’re buying and holding it for a period of time.
Why are buy and holds good real estate investments? Well for one, it’s because of their steady additional income and the opportunity to gain appreciation. This is quite common because many say that an investment property tends to increase in value and gain appreciation every 7 to 10 years. You can get great money growth out of it and also rental incomes tend to go up over the years as well. And if your investment property is a positive cash flow property than you won’t have a hard time paying your mortgage loan since you will be making more than enough to cover it. So if you are looking for an active, long-term investment, buy-and-holds are the best and easiest way to go.
2. Real Estate Wholesaling
There are different types of real estate investors out there. If you’re the real estate investor who doesn’t like to put a lot of sweat equity into your deals, then the best option for you is real estate wholesaling. What is wholesaling? It is the process by which the property investor finds a property that is being sold for below market value and sells it to an end user. Wholesaling is considered one of the most in-demand real estate investment strategies because many investors would like to buy investment property at a discount. However, finding the time and effort is probably the main issue for investors.
Related: Wholesaling Real Estate vs. Rental Properties: Which is the Best Real Estate Investment Strategy?
3. House Flipping (Fix and Flip)
Flipping houses or fix and flip refers to purchasing an investment property at a certain price and adding some renovations to it. After you fix it, you put it back on the market for a higher price than you originally bought it for. The renovations you make to the investment property don’t have to be extravagant or overly pricey. It can be as simple as adding a new wallpaper design or new floor tiles. You can even do the remolding yourself, you don’t need to hire a professional or waste a lot of money. It may sound like a load of work but the outcome and results you’re going to get out of it can be very rewarding.
Related: Real Estate Investment Strategies Guide: Fix and Flip
4. Rental Properties
For real estate investors, the best real estate investment strategies are those that come from rental proprieties. Investing in rental properties is great because it gets you a steady monthly rental income. The key factor to this strategy is the location. How can you find the right location for a rental property? Do real estate market analysis. When buying any investment property, you will have to be able to think like a tenant. Ask yourself, what would you want if you were the one looking for a house to rent?
The area and the neighborhood always play a major role in attracting tenants. Look for an area with low crime rates because obviously, no one would want to live in a place with high criminal activity. Another option to consider is a property close to public amenities like universities and work hubs. These facilities always attract tenants.
5. Airbnb Properties
Of all the real estate investment strategies, this one is the most distinctive and unique. Why, you ask? Well, Airbnb properties are good because they provide high rental income over short periods of time. The tenants you will be dealing with are travelers only there to stay for a short time. They would search for a place that is cheaper than hotels so their alternative option would be Airbnb rentals. Another reason why this is one of the best real estate investment strategies is that you don’t have to be a real estate investor to work with Airbnb. They are a very flexible type of investment where you are able to name the price you want for a property and determine how long you would like it to be rented out.
Related: How to Boost Your Airbnb Rental Income: Tips from an Airbnb Super Host
As you can see, there are so many real estate investment strategies to choose from to help you invest like a pro! Please feel free to share any suggestions you may have or comments below. And don’t forget to check out Mashvior for the BEST real estate investment strategies!
