by Brian
I just had a nice conversation with a local Real Estate investor, Natasha. She is looking to Buy homes and rent them for cash flow. One of the many ways to invest in Real Estate, and one of the most recommended.
I thought it was time I include some entries on the subject of investing. Information purposes only. Should you decide to invest, it is recommended that you consult with your attorney, tax adviser and/or financial adviser as to the appropriate course of action. Of course, having me represent your interests will be advisable as well.
For this discussion I'll briefly go over a couple of the arenas of Real Estate investing. What are some ways that we can make money investing in Real Estate? This will be a general discussion.
Fix-up and Sell: Otherwise known as flipping. This strategy involves finding distressed properties at a discount.You will then need to oversee the renovation and repairs, or do them yourself. If you like fixing up houses and have a source for funding the acquisition and repairs, this may be the strategy for you.
Wholesaling: Here, you find a house, any house, preferably at or below market value, and get it under contract. You then find a willing and able Buyer and assign the contract to them for a fee. For example, you may find a distressed property that needs a lot of work and decide that right now is not the best time for you to get involved in a long drawn out re-hab. You simply find another investor who is willing to take on the work and wholesale it to them. If you have little or no money and a lot of time to look at houses, this may be the strategy for you.
Buy and Hold: This strategy would involve becoming a landlord and renting to tenants, or structuring a lease with option to buy for a qualified tenant. You would look for properties that match your criteria as a good rental property. Then you find qualified renters to pay you each month to live in the house. If you have excellent money and management skills this may be the strategy for you.
Buy, Fix-up and Hold: Similar to the Buy and Hold strategy above except that the house may need a lot of work before it is acceptable to potential renters. Excellent cash flow management and project management skills would come in handy if you elect to pursue this kind of investment strategy.
Certainly there are many other ways to make money in Real Estate investing, but these are four basic methods that comprise the majority of investment strategies. In future articles I will expand on the individual methods above, as well as, discuss other relevant real estate information.
Should you, or anyone you know, wish to pursue investing in Real Estate feel free to have them contact me and I will be happy to listen to what their objectives are and help structure a plan of action that best meet their needs.
Investing in Real Estate can be very rewarding. Be smart and get the professionals on your team.
