If you are starting out in the real estate business to build up your investment career, then you have to the right place.
Real estate is a vast market involving so many elements that people who are beginning this journey might not be familiar with it. Real estate investments have a lot to do with coming up with effective strategies that will make significant profits for investors.
So, shall we dive into the details and tell you about 6 effective strategies for your investment career?
1- House Hacking
House Hacking refers to the simple idea of hacking the house. Simple isn’t it? Well, let us elaborate it a little further for you.
House Hacking means that you buy a house, live in one part of the house, and rent out the other half. This way, you will enjoy living in the house and get rent from the tenants at the same time. Most of the landlords offer their basements for rental.
This strategy works great for people who are just starting out in the real estate business and are new landlords.
One of the benefits of house hacking is that it helps landlords in paying monthly mortgage installments. Another benefit is that house hacking can be done in any form of real estate; whether it is a single family home, duplex, or multiplex.
2- Wholesaling Properties in Real Estate
Another strategy that works great for real estate investors is Wholesaling. In this strategy, you become an agent and find a property that will strike a good deal between a buyer and a seller.
All you have to do is to negotiate a wholesale deal between buyer and seller and you can keep the profit from the difference between the seller’s price and the price that buyer pays.
Sometimes property is readily available because of contacts or common knowledge. But sometimes you will have to look for property that has the potential of making great profit.
It can be a promising strategy for people with sales and marketing skills. However, if you lack these skills, this strategy might not be the best for you. But if you are willing to develop these skills, then feel free to be part of real estate business.
3- BRRRR Strategy
David Mason Greene wrote a book called, ‘The BRRRR, Rental Property Investment Strategy Made Simple.’ In this book, he explained that BRRRR refers to buy, rehab, rent, refinance, and repeat.
With this strategy, you have to look for a property that has the potential to transform into something new. Then you have to invest in that property to make it better looking by furnishing, developing floors, maintaining house facilities, and having vibrant paint.
After making the property go through rehab, you have to rent it out, then refinance to secure your mortgage amount, and then repeat the process.
It is a good strategy if you possess a keen eye for properties that others may have overlooked. Also, it is a profitable strategy in quite less time.
4- Flipping Properties in Real Estate
This strategy is much like BRRRR but there is a slight difference. In the BRRRR strategy, you rent out a property after making it better. But in the flipping properties strategy, you actually sell the property instead of renting it out.
What we suggest is, you look for properties with below market value rates and refurnish them accordingly to make them appealing to buyers, and then you simply sell the property to buyers.
Improvements will increase the property’s value and you will get profits more quickly. But remember, do not wait long in selling the property. This strategy involves quick decision-making skills because if you wait longer, then you will have to pay more mortgage and taxes.
5- Working with Other Investors
This strategy is also known as syndication. According to this strategy, you have to join hands with other investors in making a property deal and earning profits from it.
You can get involved in all the decision-making processes but you also have to a choice to just hand over the funds to syndicators and let them deal with buying and selling of properties. In the end, you will get a profit.
Investors will locate good properties and make a deal with other investors. All they require is funding, which you will provide, and then wait for the profitable results.
However, syndication requires immense trust and teamwork. If you plan on using this strategy, then choose partners carefully whom you can trust completely with your money and time,
6- Live-n-Then-Rent
If you have made up your mind that you want to make investments in rental strategies, then this one is for you.
As the name suggests, this strategy refers to the idea of living in a single-family home and renting it out once you move out.
This strategy is different from house hacking and flipping properties because the other strategies allow you to rent the house while you are living in the same house. But the live and then rent technique allows the landlords to rent out a property without living in it at the same time.
It is a great technique for people who do not wish to live with their tenants for privacy reasons or just prefer living alone.
Conclusion
The world of real estate is immensely vast and anyone looking for an investment career can join this business.
However, one needs in-depth knowledge of the market, properties, dealings, investors, and marketing techniques before getting into the real estate business.
There are several different strategies you can use to build an investment career in the real estate world, such as; house hacking, renting properties, house flipping, BRRRR, wholesaling, and syndication.
Just find a strategy that works best for you and matches your investment taste, and then apply it in the real estate market.
Did you already select a real estate investment strategy? Well, do tell us about it on our page.
