3 REAL ESTATE INVESTMENT STRATEGIES THAT CAN MAKE YOU A MILLIONAIRE WITHIN A YEAR!
Thinking of investing in real estate?
Here are three strategies to help launch your career as a successful real estate investor:
RENT TO RENT:
This is a relatively new way to invest in real estate. It involves renting large properties from owners of real estate who have mostly been unable to make any rental income from them. Once the property is leased by the head tenant usually on a long-term basis, it is subsequently rented on a room by room basis to subtenants. The advantage of this strategy is that you do not need any capital to start and you can start earning your returns as soon as the properties are leased.
To make the most of this strategy, it is advisable to appoint a reliable management company to interface with the tenants and manage the property portfolio. This would usually come as a fee deductible from the rental income but you would find that it is worth it.
Many people are avid followers of TV programs that present how profitable it is to flip houses. What these programs fail to show you is that people also loose money in the process.
Flipping houses simply refers to a process where a real estate investor buys a property, renovate it and subsequently sells it for a profit. Your strategy could be purchasing a property in the growth market, holding unto to it for a short term and then selling it at a higher amount. It may also involve purchasing a dilapidated house on the best street at a bargain price, improving it and selling it on for comparative price on that street.
They are many benefits to flipping houses these include; Potential to make good profits within a short timeframe, greater flexibility, personal development (because it requires a great deal of work and knowledge on real estate issues) and it gives you an opportunity to grow your network of real estate professionals contacts including tradesmen.
To be successful adopting this approach, you have to be an active investor. You will need to be involved in every step of the way. Identifying properties, making offers for them, renovation works and the final sale process. You must love the entire value chain in order to adopt this strategy successfully. Note that if you are looking for a passive income from real estate investing, flipping houses may not be the one for you.
REAL ESTATE INVESTMENT TRUST (REITs):
The REITs involves the hand-off approach to real estate investment. This involves companies that own or finance income producing real estate across a range of property sectors. Most REITs trade on major stock exchange, and they offer a number of benefits to investors.
The main advantage of investing in REITs is that like stocks and shares it is very liquid and does not require a large capital to invest. REITs allow anyone to invest in portfolio of real estate assets the same way they invest in other industries. The stockholders of a REIT earn a share of the income produced through real estate investment without actually having to go out and buy, manage or finance property. However, the disadvantage like stock and shares it that values may go up and down without the investor having any control.
If your desire is to invest and go to sleep, then REITs is for you.
Today’s market is filled with many opportunities to become a savvy investor. By consulting with us, you will be introduced to proven strategies that can help you become a successful real estate investor.