4 Ways To Become A Successful Real Estate Investor

Real estate can be a great investment. However, one needs to undertake extensive research and time to know what to look for when building your real estate portfolio or whether you should hire a professional to manage it for you. In addition, the market changes as well as laws governing this kind of investment. There are several ways of how one can become a successful real estate investor. However, there’s no “one size fits all” formula, and each inherent strategy is different in its own way. Here are four ways to become a successful real estate investor:

1)  Buy and Hold (Passive Investing)

The most popular method of investment is the buy-and-hold method. The primary objective of this strategy is to acquire properties with long-term goals. A passive strategy for investing doesn’t require a constant hands-on approach and allows you to benefit from the property without concern for management headaches. This technique can be profitable when house prices rise with inflation (meaning that your costs increase with their income). However, unlike active investing, you will always face some risks.

2)  Renting to Own

The rent-to-own approach is for people who are in desperate need of a house or property. Renting to own allows you to purchase a home through rental payments instead of paying rent towards your landlord’s mortgage every month. The primary idea behind such a technique is that two separate transactions occur simultaneously. However, most tenants are not aware that they are making double payments when renting to own, so they have no concerns about buying the house they already live in. When considering renting to own, make sure you consult with a real estate professional beforehand (contact Us page) to get more information on how it works and if it will benefit you in any way.

3)  Fix and Flip

The fix and flip strategy is used by those looking to acquire multiple properties as quickly as possible. This technique requires a significant amount of capital, and depending on the current market, it can be extremely profitable or not as attractive as investing in real estate. Homes damaged beyond repair make great candidates for this investment style; they often sell at bargain prices and require extensive renovations to suit potential buyers.

 As with other types of real estate investing, there’s always an element of risk involved which you must always consider before carrying through with any deals (contact Us). Despite that, house flipping has become a very popular way for many people to make money in the real estate market. House flippers purchase houses that they can easily renovate before selling them for a profit.

 Becoming a house flipper

To become a house flipper, you’ll need to find a property with potential and get it at a good price. The four best ways of finding houses to flip are:

(i) Research buying opportunities – There is no lack of foreclosures or bank-owned homes on the market. You will be compelled to employ your discretion when deciding which ones have the most potential for renovation. Stay alert and approach any promising properties you see quickly before other buyers snap them up. Once you’ve identified an opportunity, take these steps:

(ii) Make an offer – Ensure you offer the best price that you can, but remember that this might not be the final offer. However, after one has made an offer, there is no set time frame to accept it. Keep track of your offers, and don’t get discouraged if they are rejected. Continue to pursue your opportunities until you find one that works out.

(iii)  Perform due diligence – Before making an offer on a property, you should research its condition and location. You will want to know if it will require major renovations or repairs before you buy so that you can establish what work needs to be done and whether or not it’s worth purchasing at all!

(iv) Network – When buying a property with the potential for renovation, finding labor costs can be expensive or impossible, especially if major jobs need to be done. Working with established contractors can help you complete the job on time and within budget.

4)  Wholesaling

Wholesaling is a great way to buy and sell properties, but there’s a trap: you can’t put any capital into the deals other than fees that you spend on marketing materials. Wholesaling starts by finding motivated sellers who are at a point where they’d rather sell their property than continue to pay for upkeep. This strategy has little risk involved because you’re not putting any money into the transaction itself. Further, wholesale deals often do not require much time, so it’s ideal for those who have a full-time job and need to make some extra funds from home (contact Us).

In conclusion, being successful in real estate investment depends on how serious you are about becoming an investor and your unique situation. If you’re willing to take the time and consider your options, you can be sure that one of these strategies will help you become a successful real estate investor. 

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.