Real estate is generally a great investment option for investors as it is rapidly growing today and is able to generate positive cash inflow.
However, since you need to gamble a huge amount of money to begin investing with this kind of industry, thus it comes with greater risks of deficit as well especially when you have no idea on what kind of strategy to use to become successful in this area.
Without further ado, let us look at the best 5 real estate investment strategies that are commonly used today. Depending on who you are, you may choose over these different investment strategies that best fit for you:
In this strategy, you are going to purchase a property and hold it for a long time. You may use it for rental business or residential for the meantime until real estate market reaches the peak where prices are high as property tends to double every 7-10 years and the demand for property is unmeasurable. This is a good long-term investment because you can get great capital growth out of it over time.
Refurbish and Flip
This kind of strategy is ideal for investors. Generally, you purchase a property, make a quick renovation to increase its value, and on sell it to make a huge profit. The profit you generate here is not as much you earn in purchase-hold scheme but you earn quickly through this strategy
Up-And-Coming Neighborhood Acquisition
This strategy will triple your investment but comes with very high risks and requires you to spare time for observation and research. You have to look for a less populated area where property prices are much lower than city properties. When numbers of people slowly moving into that neighborhood, it indicates that the area is slowly rising. As the neighborhood rises, the value of your property increases as well.
This strategy is ideal for people who have an existing properties that are not in used. Leasing a commercial property is one of the best income provider as takes 3-5 year leasing contract so you’ve got the assurance of receiving consistent income for a longer time. One of the benefits of this strategy is that you are able to reduce expenses since more expenses and all outgoings such as electricity, water, and repair and maintenance are covered by tenance. This could mean more cash inflow for you.
This is not the best investment option for you if you are planning to invest on a short-term profit-generating investment. However, if you plan to invest on a long-term investment and do not have much capital with you then you might want to consider purchasing lands and wait for its value to appreciate. You only invest a small amount of money on appreciating land. In result, you get greater capital growth as its value increases over time.
Every real estate strategy is different depending on your budget and the property you are trying to purchase. You must be prepared with all the risk because just like any other businesses, real estate requires a lot planning and implementation as it will involve huge amount of money, but if plans are executed properly there is also a huge amount of success and opportunities that lie ahead.
If you’re unsure of what strategies to use for your real estate business reach out to me. I’m a serial entrepreneur with several multimillion dollar businesses under my belt. I know what I’m doing and by the time I’m done mentoring you, you’ll know what you’re doing to. Contact me today to learn more about what I can offer your business!