Are you tired of barely keeping up with inflation and stagnant savings accounts? Investing in real estate might be the solution for you! But with so many options out there, it can be overwhelming to know where to start. Fear not, newbie investors! In this blog post, we’ll highlight the top 5 real estate investment strategies that will help you jumpstart your portfolio and set yourself up for success in 2023. So grab a cup of coffee, take some notes, and get ready to make your money work harder than ever before!
Wholesaling
Wholesaling is one of the most popular real estate investment strategies for newbies. It involves finding a property, negotiating a purchase price with the seller, and then finding a buyer who is willing to pay more than the purchase price. The difference between the two prices is the wholesale profit.
To be successful at wholesaling, you need to be good at finding properties that are likely to sell quickly and for a good profit. You also need to be good at negotiating with sellers. If you can find properties that meet these criteria and successfully negotiate with sellers, then wholesaling can be a great way to make money in real estate.
Fix and flips
If you’re looking to get into the real estate game, one of the best ways to do it is by fix and flipping houses. This involves buying a property, fixing it up, and then selling it for a profit.
To be successful with this strategy, you need to have a good eye for properties that have potential and are in need of some TLC. You also need to be able to work quickly and efficiently so that you can turn the property around and sell it as soon as possible.
If you’re new to fix and flipping, it’s important to start small and gradually work your way up. Don’t try to bite off more than you can chew by taking on too many projects at once. And always make sure you have the financial backing in place before taking on any project.
Buy and hold
If you’re new to investing in real estate, the buy and hold strategy may be the best option for you. With this strategy, you purchase a property and then hold onto it for a period of time, usually several years. During that time, you may rent out the property to tenants or make any necessary repairs or improvements. When you’re ready to sell, you can do so at a profit and pocket the difference.
There are a few things to keep in mind if you’re considering the buy and hold strategy. First, it’s important to find a property that is likely to appreciate in value over time. You’ll also want to make sure you can afford the mortgage payments and other associated costs (such as repairs and maintenance) while you own the property. And finally, it’s important to have a solid exit strategy in place so that you know when the right time to sell is.
If done correctly, the buy and hold strategy can be a great way to build long-term wealth through real estate investing.
BRRRR strategy
One popular real estate investment strategy is the BRRRR strategy. This involves purchasing a property, making renovations to increase its value, and then refinancing the property to get your initial investment back out plus additional cash. You can then use that cash to buy more properties and repeat the process.
The BRRRR strategy can be a great way to quickly build up a portfolio of rental properties. It can also be a good option if you’re looking to fix-and-flip properties, as you can get your money back out of the deal quickly and then use it to fund your next project.
There are a few things to keep in mind if you’re considering using the BRRRR strategy. First, you need to make sure that you have enough cash on hand to cover the costs of renovations. Second, you need to be confident that you can increase the value of the property enough to justify taking out a new loan. And finally, you need to make sure that you understand all of the terms of your refinancing agreement so that you don’t get stuck with a higher interest rate or monthly payment than you expected.
House hacking
Assuming you’re new to real estate investing, house hacking is probably the best strategy to get started with. Not only does it allow you to live for free or close to it, but it also helps you build equity in a property and learn the ropes of being a landlord.
To hack a house, you simply buy a property with more units than you need and rent out the extra units. For example, if you buy a duplex, you can live in one unit and rent out the other. Or if you buy a fourplex, you can live in one unit and rent out the other three.
Not only will this reduce your living expenses, but it will also give you experience in managing tenants and maintaining rental property. And as your tenants pay down your mortgage, you’ll be building equity in the property.
If you’re thinking of getting into real estate investing, house hacking is a great way to start.
