Which real estate investing strategy is right for you?
By RBD Ventures, Inc.
If you are going to be a successful real estate investor we suggest focusing on just one strategy out the gate. Learn that one and do it over and over again until you get good at it before you move on to the next strategy. We’re not saying you shouldn’t have multiple exit strategies, but you need to have a clear vision of what your goals are and focus on a strategy that will help get you there. Here are a few types of strategies that can get you on your way to success in real estate investing.
Wholesaling: Is great because you don’t need any money to get started. What you do need is the gusto to be able to go out there and talk to agents and/or homeowners, get a property locked up under contract and offer that contract to a cash buyer who will buy it to hold it or buy it to fix and flip it. This strategy provides immediate cash and can be done without any of your own money. It is very popular with beginning real estate investors. This strategy has the lowest risk associated with it compared to the next two.
Fix and Flip: You really can fix and flip a property without any of your own money as with the wholesale strategy but in addition to analyzing the deal and rehab cost you will have to be able to manage the construction as well. This is something that unless you are a contractor or have project management experience you might not want to take on as a beginning real estate investor. By fixing and flipping you can make a lot more money per deal than by wholesaling but you are also taking on more risk if you don’t know what you are doing.
Buy-and-hold: This strategy is really for the real estate investor that doesn’t need the money right way and maybe doesn’t necessarily want be hands-on, but is looking for long term appreciation more than anything. This is usually for the investor who doesn’t want to make real estate their fulltime job but wants to secure assets that provide cash flow.
Regardless of which strategy you choose for your individual circumstances and goals we would suggest getting the education you need to accelerate your path to profits while reducing potential for risk.
RBD Ventures will be holding a two-day real estate investing workshop in November in San Diego, focused on acquisitions and marketing. For more information CLICK HERE.