Real Estate Investment Strategies
Investing in Real Estate is a matter of making a huge investment. You must invest wisely and prepare a valid list of strategies to get the most out of your investments. As discussed we know the 4 major types of real estate investments, but when it comes to strategies, there are numerous ways you can move forward. There are 100’s of known strategies that the expert investors use to get maximum returns, as we cant discuss all of them, we have prepared a list of 5 Golden Strategies that can be used to get maximum returns from your Real Estate investment.
If you are a beginner in Real Estate investing and looking for your first property to get into the business, You must take some time to search for your perfect first. Investing in real estate is a matter of risk as there is a huge amount on stake but if done wisely it is equally rewarding.
Here is a list of 5 Golden Strategies for you:
Property Appreciation
If you buy a property for say $100 and you were able to sell it at a price of $125, that extra $25 that gets added is the profit you just made by investing in one property alone. Value of a property depends on various external factors. This strategy works best for investors who live in a hot market and don’t want to invest in multiple properties.
Buy-Rehab-Rent-Refinance-Repeat (BRRRR)
You as an investor can invest in distressed properties and buy it at a price lower the current market price. Refurnishing a property may look expensive but if you can make your property look beautiful and comfortable stay for the tenants, you can rent your property at a good price. Renting allows you to collect an adequate amount of money to invest in a better property. This strategy will work well for you if you have some experience in renting.
Fix and Flip
Refurnishing a property always turn out to be profitable if the location is adequate. Being an investor you can buy a distressed property and make a small investment on it by refurbishing it to make it look beautiful. Fix and Flip strategy is considered to be one of the best as you get customers easily. Every customer loves to buy a property which not only is at a great location but is also comfortable to live in.
Long Term Rentals
If you are an investor and you don’t want much stress in your life and just enjoy the passive income out of your investment, you can use this strategy. Several people need to move to different cities for jobs and also may require to settle there. Buying a new property is not an easy option so they prefer renting one. You as an investor can rent your property to such people, as being shifted you can come in a long-term agreement with them. Managing a rental property involves drafting a lease, making minimum repairs and taking care of regular paperwork.
Short Term Rentals
One of the best examples of a short-term rental property is a business run by Airbnb. Short term rental includes renting your holiday homes or just providing accommodation to travellers. Renting to the short term tenants may look like a hectic job but you can get good returns, especially during the travel season. Renting your property for short term is more like working in the hospitality industry.
Bottom line:
Investing in real estate comes with a learning curve, You get to learn new things and you get to formulate new strategies every time you invest. Some strategies may work and some may not but your experience speaks and helps you get good returns from your investment.