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What are the 3 best real estate investment strategies?

There is a lot of information about real estate investment strategies. This information can sometimes be confusing, because it is never really clear what the best investment strategies are. This article focuses more on the best strategies that will work in today’s real estate market. This is a skewed market that leans more towards buyers. There are many houses for sale, however, there are very few people currently looking for a house to buy. Therefore, every investor in today’s market needs to use those strategies that are likely to be successful in this market. He or she should focus more on the strategies that are most likely to attract buyers or renters to their properties. Here are the 3 best options.

  1. Buy to hold long term: It is about buying a property with the intention of renting it for several years before selling the property. The real estate investor in the situation looks for houses that have been heavily discounted, buys these houses, and then flips them over and rents them out with positive cash flow. His goal here is to earn at least $200 a month after paying all expenses, which include paying the mortgage on the house, taxes, insurance, and any other expenses related to maintaining the property. The advantage of using this strategy is that the tenants end up paying the owner’s mortgage. The house builds equity over time and is finally free and clear ownership of the landlord after several years of renting the property. The key here is to buy the property at a discounted price and rent it cash flow positive.
  2. Buy for short-term flip: This is buying a property at a deep discount with the intention of selling it immediately for a quick profit. The investor here buys the property with at least 30% equity. He or she then turns around and sells the property to another investor leaving 10 to 20% equity for the new owner. This is called wholesale. This strategy used to be very popular a few years ago. It is still used today, but it is not as popular as it used to be. The key here is to buy the property only after you have found a buyer. The best way to do this is to build an email list of potential buyers. Another option is to borrow a list from someone else. Here is the step by step process: create an email list or locate the list owner, now locate a property with significant wealth, collect details about the property and email your list, now you close the deal and then you turn around and sell it to the ultimate buyer for a profit.
  3. Using lease buyout as an exit strategy: In this situation, you are buying a property with the intention of renting it out for a year or two before selling it. The first step here is to buy a property at a discount. He then locates a buyer/tenant who signs two agreements: the first is a 1 or 2 year lease, the second agreement is an option agreement. The buyer has the option of closing the deal within one or two years. The investor gets paid at the end of the option agreement. The advantage of using this strategy is that you get very good tenants who really take care of the property while paying higher rent than usual. Therefore, you get a positive cash flow and service the property at a large profit within a year or two. The investor also gets a good initial payment for the option agreement. So he earns money up front, over the 1-2 year lease term, ultimately making a huge profit ($25-50K on a house selling for less than $200K). This is one of the best investment strategies on the market today.

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