Studies show that the US housing market is worth about $45 trillion. If you're getting into real estate investing, tapping into this market as property investing can feel overwhelming. What's the best way to learn the many real estate investing strategies available to you?
If you're curious about buying real estate, we're here to help guide you. Read on to learn some of the best strategies for property investing.
As a note, these techniques are far from the only techniques available. You should constantly continue your research until you have the tools necessary to make the plunge into real estate investing.
Live-In Flip
One strategy that's grown in popularity is the live-in flip.
Real estate flipping is a common strategy wherein the investor buys a home that needs renovation. Once fixing up the home, they sell the property for more than it was purchased. The trick is to ensure you don't spend more purchasing and fixing the home than you can sell it for.
However, the main flaw with flipping is that you lose money for every month you haven't sold the home. With a live-in flip, you save the value by living in the home while selling it. That way, you're able to salvage the benefit of having the home until it sells.
Investment Groups
Another common strategy is to invest in investment groups. REIGs (Real Estate Investment Groups) are organizations of private investors that pool their finances and knowledge. Consider the group a large cooperative set of investors spending their money together.
There are greater resources, a higher budget, and more hands to do the work in a group. However, some prefer not to have "coworkers" in their investing life.
Debt Snowballing
Debt snowballing is a method of paying off multiple properties at once. The process is as follows:
- Buy several properties with low-interest loans
- Combine your savings from a job with all income from the rental properties
- Direct all cash to pay off the lowest rental balance
- Repeat the procedure until all debts are paid
Using this process, you can manage multiple properties without having to struggle under massive loans. Paying off one home makes it eligible to sell and pay off the next. By the end, you have significantly more than you first invested.
BRRRR Investing
A term you'll find frequently in real estate investing is BRRR investing. The term is an acronym for "buy-remodel-rent-refinance-repeat.
Look for fixer-uppers that you can buy, then finance the property. Fix it, rent it out, and then refinance the home afterward. Repeat the process for a neverending loop of investing profits.
Mastering the Real Estate Investing Strategies
There are countless real estate investing strategies that you can use to maximize your profits. Consider looking into real estate consulting to ensure you're getting the best deal possible. As you grow in the world of property investing, you'll perfect the strategies you prefer.
For more information, be sure to browse our informative blog. You can also contact us to see how we can help you in your investing journey.
