In real estate, you can choose to invest in one investment property and wait a few years to sell it OR see real estate as a business growth strategy for long term financial rewards and independence.
Making money in real estate is the ultimate goal and as a result, it has become a cutthroat competition amongst investors worldwide. Savvy investors think quick on their feet, acquire the right forethought, analyze their prospective investments or just hire the right professionals to capitalize on investment opportunities before the rest of the competition. But don’t think this skill comes to you overnight; it takes years of hard work and dedication to hone in on the right business growth strategies that will allow you to become a successful real estate investor. Big success starts with small steps.
Top Real Estate Business Growth Strategies for Maximum ROI
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Invest for appreciation
The best business growth strategy for real estate investors is to hone in on investment properties with expected appreciation down the line to maximize their wealth and returns. With this said, investing for appreciation is a long term strategy and may or may not reap you positive cash flow returns in a short while. But the savvy investors who invest solely for appreciation see the financial rewards overtime as opposed to the quick cash fixes in the short term. Investing solely for appreciation is riskier than investing for cash flow, but the return on investment is much greater.
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Capitalize on positive cash flow properties
Finding positive cash flow properties are amongst the top business growth strategies in real estate investing. In short, positive cash flow properties reap investors a surplus of cash returns and cover the expenses/costs of owning the property as a whole. Mashvisor is the #1 online source for finding positive cash flow properties across the country in just a matter of minutes. Don’t believe us? Check it out for yourself here.
Related: The 6 Hidden Costs of Owning Rental Property
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Use home equity to buy more real estate
This is another great business strategy to kickstart your real estate investing. If you are in a financial constraint, consider using your home equity as leverage to buy real estate. This tactic made it onto our top list of business growth strategies because it saves you money and does not require you to bend over backward to pay the deposit out of your own pocket.
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Diversify your real estate portfolio
Diversify, diversify, diversify is one of the best business growth strategies for real estate investors. Why might you ask? The reason is simple: by diversifying, you multiply your returns while minimizing your overall risk. The most successful real estate investors have an impressive real estate portfolio of properties in multiple cities and even countries. To become a millionaire in real estate, you must diversify and seek profitable real estate opportunities at full force.
Want an easy way to diversify your portfolio? Read: What Is Real Estate Syndication and How Can You Take Part In It?
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Use home renovations for maximum economic benefits
Amongst the top business growth strategies in real estate is the use of home renovations to drive the value of rental property in the long run. Our advice to you is to identify and prioritize work in the house that will reap you the most economic benefits. This means do not renovate the whole in one go. On the contrary, try to keep costs at a minimum by fixing or renovating key areas in the house that will give the wow factor and attract buyers.
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Hire a property manager if deemed necessary
If you cannot manage the daily operations of your real estate business, then it might make more sense to hire a professional to run your operations and keep your costs to a minimum. Property management can provide a good return on investment if investors have more than one real estate property under their wing.
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Invest in single family homes
Investing in traditional real estate and more specifically a single family home is one of the best business growth strategies in real estate investing. If we were to conduct a cost/benefit analysis of buying a single family home, the benefits far outweigh the costs of buying and here are the reasons why:
A. A single family home is less expensive to buy: you can find single family homes below market value
B. Appreciation is higher on a single family home in the long run
C. It is much easier to finance a single family home than a condo or a multi-family home
D. A single family home is less risky when it comes to selling it down the line or finding a good tenant in the interim
Related: Owning a Rental Property: Hearing From an Investor
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Invest in Airbnb rental properties
Do not discount an Airbnb rental strategy to grow your real estate business; not only do you have the full autonomy to set your price but you accumulate faster cash flow returns. This way, you can use the money to diversify with other real estate investments to grow your business in faster time. But a key prerequisite to a successful Airbnb strategy is location. Choose to invest in a city that makes sense for an Airbnb real estate strategy– one that will earn you more than it costs you in the long run. Airbnb is one of the top business growth strategies to earn the maximum rewards.
Do you have a free Mashvisor account? Click here to use our Property Finder and find Airbnb rental properties in a matter of minutes!
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Invest in REITs
Amongst the business growth strategies in real estate is REITs; REIT stands for a real estate investment trust. In simple terms, investing in a REIT is essentially pooling people’s money to invest in big real estate investments i.e. commercial real estate, shopping malls, large apartment complexes etc. The idea behind this real estate strategy is that investors don’t need to have a lot of money to invest in REITs and profits are equally distributed. This is also very hands-off; it requires little to no work from your end. All you need to do is invest little capital to get a chunk of the rewards.
Conclusion
To succeed in real estate, one must always have a business plan to maximize returns and build a sustainable business. Plan accordingly and choose the best real estate growth strategy aligned with your business visions and financial goals. Most successful real estate investors start out small to win big in the long term.