Types of Real Estate Investing

Real estate sounds like a good idea, right? Of course, it does! Especially after you realize just how many different types of investment opportunities exist for you.

Most common opportunities are:

Buy and hold

  • You buy a property, you rent it out, and you hold onto it for a long period of time.
  • Monthly cash flow and equity growth are the goals here. Someone else pays down your mortgage and you benefit from the property increasing in equity over time.

Flips

  • You buy a property that needs some attention and fixing up. You do the work and place it back on the market for a higher price.
  • Sale price is the goal here. You want to sell it for more than what you bought it for plus your renovation expenses. Everything over and above that is profitable to you. Funds can then be used towards the next property.

BRRRS

  • Similar to a flip but here your goal is to refinance the property to get your initial investment back, and potentially more, along with monthly cash flow by keeping the property and renting it.
  • Purchase price and well-planned renovations are important. You want to do them quickly put properly so they bring in the best bang for your buck

Private Lending

  • Become a lender. 
  • If you prefer a more hands-off approach, perhaps loaning your money to others to facilitate any of the above ideas may be of interest to you. 
  • This is a great way to have your money earn you money based on your defined loan agreements (i..e your terms and conditions)

More complex Opportunities exist with:

  • Rent to own
  • Assignments
  • Wholesaling
  • Joint Venture Partnerships 

Each opportunity comes with its own sets of risks and rewards. It’s important that we review your investment financial plan together so that we can align your strategy with your risk tolerance, goals, and time commitments.

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