Whether you’re investing in commercial, residential, or any other type of real estate, investment strategies will help you go a long way.
It is not enough to jump on any investment deal because it appears profitable. Take some time to look deeply and think of the best strategies before investing.
Both seasoned and new real estate investors would agree that there’s a rather long list of investment strategies in real estate.
Find out how you can make thousands of dollars from real estate using these investment strategies!
If you’re an experienced investor or just delving into real estate, this article will be a great foundation to help you profit from real estate investments.
The following are the most popular real estate strategies that have proven to be profitable:
The passive buy and hold investment method is one of the most straightforward strategies. It involves investing in profitable multifamily property or commercial projects, and enjoying a flow of quarterly or monthly rental income while the investment strategist takes care of operations.
With this strategy, you can get a positive cash flow as well as capital appreciation typically in the mid to long term. A passive buy and hold strategy works for real estate investors who don’t have huge capital to invest, but still want to access the positive aspects of a real estate investment. You can take advantage of tax benefits and regular dividends while your capital appreciates in a stable investment vehicle.
Buy and hold is also available as an active approach. You will be in charge of forming a syndicate, managing investors, as well as running daily operations of the property. While this can be a remunerative method for real estate investment, managing a project of this caliber on your own has its risks. It’s recommended to only proceed if you have sufficient knowledge and experience in buy and hold real estate investments.
If you’re looking for lucrative, hands-off buy-and-hold real estate investments to carry you to your financial goals, get in touch with Pinto Capital today. We educate new and seasoned investors, helping them to earn regular dividends and secure their financial future the easy way, with completely passive multifamily and commercial investments!
Also known as Traditional Rental property, the Buy and Rent investment strategy is one where you purchase income-producing properties or even an undervalued property and lease it out for rent. It is another excellent and easy investment plan that works if you generate income and still gain in the long run.
With buy and rent, your investment property becomes a rental property for a long-term basis. This way, you can receive monthly rent and generally guarantee a positive cash flow.
Another popular real estate investing strategy is the Fix and Flip investing. The fix and flip strategy involves purchasing undeveloped land or an undervalued property, fixing it to increase market value, and then reselling it at a very high price.
It is a typical commercial real estate investing strategy that most experienced investors are familiar with. It could be a profitable strategy if you’re a beginner in the real estate industry, especially if you expect to make quick cash.
The fix and flip real estate investing approach is usually more of a real estate business than an investment. With this strategy, a real estate investor can enjoy massive benefits quickly if they have enough capital and time available to buy and fix the investment properties.
Whether you’re a seasoned investor or a newbie in the real estate industry, the BRRRR investment strategy comes highly recommended. BRRRR means Buy, Remodel, Rent, Refinance, Repeat.
Here, the investor buys a property in poor conditions at a low cost, remodels it until it is up to standard, and rents the property to tenants at a reasonable rate for about six months.
Once you earn a significant cash flow, refinance the investment property with your equity and then repeat the process with a new investment property. This method works efficiently for new and seasoned real estate investors because you can leverage low-risk investment properties to build your investment portfolio.
REITs are another popular and profitable real estate investing strategy. Investing in a Real Estate Investment Trust company is a great way to earn off real estate if you’re not interested in owning physical real estate.
REIT companies usually buy and operate income-producing properties, then allow real estate investors to buy a share in their company. Hence, you own stocks with the company, bringing in quarterly and monthly dividends and capital gains in the future. Investing in a Real estate investment Trust company is perhaps the most passive asset investing strategy because you only need to invest without doing anything else.
Real estate wholesaling involves getting a property contract posing as a potential buyer, and quickly finding another buyer—the new buyer signs the property contract, including the purchase price and your return.
With this investment strategy, you act as a middleman in a real estate transaction and secure buyers for properties. Wholesaling is a common and easy investment strategy to engage in whether you’re a seasoned or budding real estate agent.
A real estate wholesaling strategy is a great way to earn without necessarily owning real estate properties.
If you want to broaden your knowledge of real estate investing without owning physical real estate, then wholesaling is perhaps the right choice to venture into.
The Real Estate Investment Group strategy is most common among private investors and newbies in the real estate sector. It involves a group of real estate professionals coming together to contribute funds to invest in real estate assets.
Unlike REITs which are legal companies, REIGs are not regulated and don’t have strict requirements. However, knowing that this type of real estate investing strategy comes with high risks is essential.
This strategy works if you’re new to the real estate world and need to work and learn with real estate professionals who are already experienced.
House hacking is one of the many real estate investment plans employed by investors. It involves purchasing a duplex, multi-family home, or any other residential yet income-producing property and leasing a part of it to tenants while you live on it simultaneously.
It is a profitable investment strategy that allows you to be a landlord while earning from your property. Employing this strategy when investing in rental properties will significantly reduce housing costs and serve as a source of passive income.
Fractional investing allows investors to buy parts of a single share in a property investment deal. It is also almost similar to REIT, but here, investors can only invest in bits of a single share, especially if purchasing the share is very expensive.
The hard money investing strategy is another way to make money off real estate investments without owning physical real estate. The target is most investors who have very little capital or bad credit. All you need to do is fix a payment plan, and you’re good to go.
Building wealth in real estate can be effortless once you know about working investment strategies. We’ve discussed ten of the most popular investment strategies alongside their benefits and pitfalls.
One common pitfall faced by investors in the modern world is a lack of time, knowledge, or capital to pull off a successful real estate investment strategy. If you want to participate in a profitable real estate investment without the fuss and excessive capital demands, get in touch with the investment experts at Pinto Capital today. We’ll guide you through every step of the process to ensure you’re making the best informed decisions about your financial future.