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Real Estate Investing 101

Real Estate Investing 101: Types of Real Estate Investing

 

Real estate investing 101: includes a variety of strategies, and no one specific strategy is the ideal one. You have to take consider the experience, aptitude and interests of the investor. However, under general circumstances, these are the guidelines to look at when deciding which strategy to choose.

New Real Estate Investors:

Real Estate Investing 101. Lowering risk is key for a new real estate investor: Experience and education will come with time.  There are a variety of problems that can arise for new real estate investors. Which may scare an inexperienced real estate investor away. For these reasons, choosing the lowest risk strategy is beneficial for a new real estate investor. Wholesaling property (flipping as is) with transactional funding, using none of your money or credit is one of the best strategies for new investors. Lease options to purchase & subject to’s are also good strategies for a new real estate investor. Last but not least, if you’d like to start learning about real estate, without actually buying property. Consider becoming a real estate bird dog. Bird dogging, is the art of finding distressed properties for wholesalers, and investors. While Wholesaling property is more profitable, bird dogging is a great way to get started with real estate investing!

Experienced Real Estate Investors:

Experienced real estate investors can try more challenging strategies like foreclosure auctions, tax auctions, tax liens, commercial real estate investing, buy and hold (rental property), and bulk REO trading.

Rehabbing with the goal of restoring properties purchased for either retail sales or buy and hold can also be advantageous and yield higher profits in the short (retail sale) or long term (buy and hold) via appreciation. However there are more potential risks as well: dealing with contractors, inspections, financing and budget control.

There are also more sophisticated ways that the experienced real estate investor will master to make money, like using discounted notes, private money syndication and government grants. It is usually a good idea to choose no more than 2 strategies or techniques, and become an expert at each, before moving to new ones.

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