The U.S. real estate industry has always been very dynamic. In fact, some would say it’s like a stomach-churning roller coaster ride, with plenty of ups and downs. But those who have stuck around for the ride will tell you that it can also present profitable opportunities for home buyers and sellers.
Like any investment, there are always risks involved, but knowledge is power. So before you whip out your checkbook and make plans, be sure that you have thoroughly done your homework. By learning everything there is to know about the subject before diving in head first, you’ll minimize your risk.
At OfferClimb, we’ve been advising clients interested in buying and selling a home since 2015 and have closed millions of dollars of deals. To help home purchasers understand the options, we’ve identified 4 Real Estate Investment Strategies For New Investors as follows.
1. The “Lipstick” Flip
This is where you scout for a house that can be fixed up within the $5K range, mostly ones with minor cosmetic issues such as dirty sidings, broken fences, or stained or worn flooring. These improvements are easy to do which means you can market and resell quickly.
This strategy yields small profits fast, but you do have to have your financing lined up and a good network of connections.
2. Buy and Hold
Ideal for generating passive income, this entails buying properties for leasing through financing. While it is OK to look at all property types, make sure to get ones that are in good condition.
You will have to seek out and recognize viable deals, do some repairs, and secure tenants. Acquisition typically falls within 30-45 days.
Popularly known as “flipping contracts,” this is another way to get paid fast with minimal risk. The process involves finding underpriced properties, usually the distressed ones, and securing the contract to a buyer.
The aim is to buy low and sell low, fast.
Buy, Renovate, Rent, Refinance & Repeat. This process takes a bit longer, around 60 days with refinancing, but yields short- and long-term gains. It is also a replicable model. Here you’ll need to target gentrifying areas where property values are climbing fast.
For an exact formula on how to compute for these strategies, as well as other helpful real estate guides, visit the Sell Your House Fast Houston Offer Climb and Sell Your House Fast Phoenix Offer Climb blog.
Editor’s note: Adam Winters is a principal in OfferClimb, a Houston-based firm that helps consumers buy and sell homes.