WHAT IS THE BEST REAL ESTATE INVESTING STRATEGY?
“When I am getting started in my investing business, what real estate strategy should I use?” It is one of the questions that I am asked most by new Real Estate Investors when they are trying to start their journey.
When you are first starting out, you need to know your options so that when an opportunity comes along, you can choose the strategy that best matches the circumstances of the deal that’s on the table. Your strategy choices, if well thought out, will allow you to capitalize on every opportunity that comes your way. Let’s take a quick look at four of the strategies that I use in my business. When reviewing them, know that you don’t need to commit to just one. In other words, you will want to master all four of them to properly utilize them when the time is right.
- Wholesaling or a quick flip, generates fast cash. This is where you lock into a contract with a seller and upsell immediately to another buyer. None of your cash is used for this.
- Creative Investing is an advanced strategy that really requires experience. I don’t recommend these as a starting strategy unless you have an experienced investor, attorney, or paid coach guiding you. Some of these strategies are:
- Subject to purchase
- Mortgage wraps
- Lease to own
- Seller financing
(Check out the links below for more information on all of these options and for other valuable real estate investing information.)
The second two strategies require that you invest some money:
- Fix and Flip requires that you put some money into the deal to force equity into the property. You buy the property at a discount, fix it up, and sell it for a profit.
- Buy and Hold is a strategy you use to put properties into your rental portfolio to generate passive income. Most often, you will need to bring cash to the table to do this and use traditional banks for financing the deal.
The diagram above is designed to show you strategy options that will give you a foundation from which to build your business and meet your investing goals. If I had understood these at the start of my business, I would have captured many more opportunities that I overlooked. Now that I have mastered them, I have leveraged these strategies to build a large real estate rental portfolio and to scale my real estate flip business to over 160 plus flips in the past five years.
The beauty is, you can master them too, and I invite you to dig deeper into these strategies to help you achieve your real estate investing goals. I discuss them in a little more detail and diagram them in this easy to follow video:
If you want even more in-depth training on how I went from being a broke college student living at home with maxed out credit cards to building a multi-million dollar flip business and rental portfolio, sign up for my free webinar training here.
In this training you will learn how I made six figures flipping houses my first year with none of my own money. In just one hour, I will show you definitive techniques to master real estate investing that took me years to acquire!
Don’t forget to drop any questions you have below or be sure to comment which strategy you like best and plan to use in your business.
Until next time, I’ll see you on the flip side!