The 98 Best Real Estate Investing Strategies: Real Estate Investing, #5

By Jim Pellerin

There are a lot of real estate investing strategies available for you to choose from. It's good to know what's available. To help, we compiled this list of 98 of the best real estate investing strategies you should pay attention to and consider.

 

Of course, you don't want to try and use all of them. You can, however, combine some of them. For example, "Buy, Rent and Hoid" could be combined with "Seller Financing" or "Subject-To". Also, some of these strategies are sub-strategies of other strategies.

 

• Language: English
• Publisher: Jim Pellerin
• Release date: Apr 23, 2023
• ISBN: 9798223536703

Jim Pellerin

Jim Pellerin has been investing in Real Estate for over 25 years. During that time, he has conducted over $30M worth of real estate transactions. He was the founder of several Real Estate businesses with the latest, Peller Media, focusing on providing digital marketing services for real estate professionals such as real estate agents and mortgage brokers and investors. He has read over 700 books on subjects such as real estate investing, self development, education, cognitive psychology, marketing and sales. He has a degree in Computer Science which he received from the University of New Brunswick in Fredericton, New Brunswick, Canada.

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Introduction

There are a lot of real estate investing strategies available for you to choose from. It’s good to know what’s available. To help, we compiled this list of 98 of the best real estate investing strategies you should pay attention to and consider.

Of course, you don’t want to try and use all of them. You can, however, combine some of them. For example, Buy, Rent and Hoid could be combined with Seller Financing or Subject-To. Also, some of these strategies are sub-strategies of other strategies.

1. CORE REAL ESTATE INVESTING STRATEGIES

1. Buy, Rent, and Hold Real Estate Investing

Buy, Rent and Hold Investing

Buy, Rent and Hold Investing - Photo by OleksandrPidvalnyi

The buy, rent, and hold strategy in real estate involves buying a property to rent out and keeping it for a while to make money without actively working. This approach aims to generate income and increase the property's value over time.

Pros

Investors love the buy, rent, and hold strategy. It provides a steady rental income, tax benefits, and property value appreciation over time. It's also a reliable source of income that can balance out other investment risks or market fluctuations.

Cons

Before buying a property, it's important to do your research. There are risks involved such as vacancies, property damage, and maintenance issues. You may also face legal or regulatory challenges. To minimize these risks, carefully examine the property and the market. It's also helpful to work with experienced property managers who can assist you in managing the property.

2. Fix and Flip Real Estate Investing

fix and flip

Fixer Upper - uncredited

Fix and flip investing is a great way to make money in real estate. It involves buying a property that needs work, fixing it up, and selling it for more money. This is a popular strategy for investors who want to make money fast.

The fix and flip strategy has a few important steps. First, find a property that needs work and is priced lower than usual. Then, get money to buy and fix it up. Next, make the necessary repairs to make the property more valuable. Finally, sell the property for a profit.

Pros

Real estate investing offers the opportunity for fast profits, control over the renovation process to increase property value, and the chance to establish a successful reputation as an investor.

Cons

Renovating a property can come with unexpected costs, delays, and the risk of not selling for the desired price.

3. Wholesale Real Estate Investing

Wholesale Investing

Agreement - Photo by geralt

Wholesale investing is a way to make money in real estate. You put properties under contract for a lower price than what they're worth and then assign them to other people for a fee. You don't have to fix up the properties before selling them. The idea is to find good deals and assign them quickly for a profit.

To be successful in wholesale investing, you need to have a good network of contacts in the real estate industry, such as agents, investors, and other wholesalers. You need to be able to find undervalued or distressed properties and negotiate a lower price with the seller. After you have put the property under contract, you'll have to market it to potential buyers and try to sell it for a profit before the closing date.

Pros

The possibility of making fast money and earning income without needing any money or committing to any management or long-term financial obligations.

Cons

There are three possible problems when wholesaling a property: legal or regulatory issues, difficulty finding a buyer, and disagreements with the seller or others involved in the sale.

4. Lease Option Real Estate Investing

hand, key, house keys, Lease Option Investing

Lease Signing - Photo by geralt

Lease option investing is a way to invest in real estate by leasing a property and having the option to buy it later. This is a popular strategy for investors who don't have the money to buy the property.

A lease option is when an investor rents a property from the owner for 1-3 years and has the option to buy it at the end of the lease. The investor pays a fee upfront, which is a percentage of the purchase price, to secure the option to buy. They also make regular lease payments and may have to do maintenance and repairs while occupying the property.

If the investor wants to buy the property during the leasing period, they may be given the option fee as a credit towards the purchase price. If they don't want to buy it, they can just leave at the end of the lease.

Pros

Benefits of leasing a property include:

- Not having to finance the purchase at the start

- The possibility of the property's value increasing during the lease term

- The opportunity to try out the property before making a full purchase commitment.

Cons

There may be disagreements with the owner about the lease conditions, and there is a chance that getting a loan to buy the property when the lease ends could be difficult.

5. Land Development

Land Development, bulldozer, crawler, earth-moving

Land Development - Photo by MemoryCatcher

Land development investing involves investing in undeveloped land with the goal of turning it