One of the first steps in the world of real estate investing is to find and develop the strategies that will work best for your business. The ultimate goal for any business is to be profitable, and doing that in the most efficient way possible.
There are a number of different real estate investing strategies out there. Determining which are most appropriate for your portfolio will save you time and make real estate investing work for you.
Having a community of other people who have tried true real estate investing strategies is priceless.
Where To Begin
- Do your research! – Whether you are investing in real estate in your hometown, or somewhere else, knowing the market is essential. Does the area have a large number of foreclosed homes? Are there zombie properties on every street? What is the ROI? These are just a few questions to ask when developing your plan.
- Location, location, location – It cannot be said enough times. And will continue to be said MANY times in your real estate investing career. It truly is a tenet through of real estate investing… location is key. Finding a location where people want to be will make all the difference in the world.
- Real estate investment strategies – Believe it or not, there are so many different branches of real estate that is can be hard to find your niche. By doing your research and knowing the knowing the area, finding the best real estate investment strategies will be a breeze.
Top Real Estate Investment Strategies that Work
Becoming a member of The Smart Money Life allows you access to mentors and other investors who have already been through the trial and error of figuring out what works. By making SML part of your research process, you will have a wealth of knowledge to determine the best real estate investment strategies for you.
- Fix and flips – This is one of the types of real estate investment strategies that will generate a profit more quickly than buying an apartment building, or a longer term investment property. Generally, if a home is in need of repairs, it can be purchased well below the fair market value. This does depend on the extent of repairs needed and often these are properties that are bank owned and have been vacant for some time (zombie properties). Finding a property for an amount that will allow an investor to make a profit after repairs is key in the fix and flip real estate investment strategy.
- Buy and holds – These are longer term real estate investment strategies and will involve tenants and managing the property yourself or hiring a property management company. This type of real estate investment strategy does allow for a steady stream of income, and knowing the market in the area is essential to making the most of buy and holds. If the time comes that you need to sell the property, but it is not a seller’s market, then you may be forced to sell for less than what you wanted.
- Commercial investments – While there are many advantages to the commercial real estate investing strategy, the disadvantages can also be larger than residential rental properties. Commercial rentals do yield higher rental returns, and often the tenants are responsible for maintenance, and sometimes taxes, they also have the potential to sit empty longer if a tenant should leave.
These are just a few of the many real estate investment strategies that are out there. Remember that so many options exist, it is important to find the ones that are most appropriate for you.
A SML membership will help explain the different real estate investment strategies and much more. Networking with other real estate investment colleagues will bring knowledge, confidence and profitability.