VIEWS: 7 PAGES: 3 CATEGORY: Strategy POSTED ON: 11/14/2012
With real estate investments, there are different kinds of strategies or business models. Each of these strategies has their own advantages and disadvantages.
How To Choose The Right Real Estate Investing Strategy By: Curt Cloyd – Director Personal Wealth Academy, LLC How To Choose The Right Real Estate Investing Strategy By: Curt Cloyd – Director Personal Wealth Academy, LLC With real estate investments, there are different kinds of strategies or business models. Each of these strategies has their own advantages and disadvantages. But on an overall level, real estate (regardless of the strategy) is one of the best ways to increase your income, build up your asset/retirement portfolio and achieve a high level of financial freedom. The right real estate investment strategy for you is dependent upon your own skills and resources. There are some strategies that may suit you, some may turn out very risky with the current resources you have at hand. So make sure that you exercise due diligence before choosing an investment strategy that is right for you. An article I just read at CTHomesLLC.com discusses three important considerations you'll have to keep in mind when choosing the right real estate investing strategy. The 3 important considerations are: Your goals, your resources and your skills. With that said, here are the different investment strategies and how it suits different people.... 1. Rental Rental is one of the most effective long-term real estate investment strategies. Rental investments not only provide you passive recurring income each and every month but also boost your net worth significantly overtime. The properties that you hold can be used as a security for future investments and other expenses that you may encounter in the future. But the problem with rental investments is financing. Unless you have cash reserves to invest in high value properties or can get funding for these deals from other sources, I recommend that you stay away. 2. Rehab and resell The other investment strategy that you can consider is rehab and resells. Rehab and resell is often effective because you can get funding for your rehab investments easily from hard money lenders who provide short-term high interest loans. Using these loans, you can put the property under contract, renovate the home and sell it for a much higher price. You can generate a lot of cash flow every now and then using this model. The profit margins can be high too provided you successfully resell the property. 3. Wholesale If you're just starting out and have very little money, I highly recommend starting out with wholesale real estate. Wholesale real estate is about finding deeply discounted properties and selling them off in bulk to other real estate investors who might be interested in rehab and resell or rentals with the home. Whatever business model you choose, you have to ensure that your real estate business brings in CONSISTENT cash flow. Without consistent cash flow, you won't be able to attract the funding you need for all of your real estate investments regardless of your credit score. As a real estate investor, that's your first TASK - Building a successful business that generates cash flow. At Personal Wealth Academy, we specialize in teaching our real estate investors how to build a successful cash flow business. If you'd like to find out if Personal Wealth Academy can really help you build a strong cash flow business, we encourage you to take the short quiz we have for you on the right side of the page - Click here
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