Connected Investors estimates that there are over 3 million real estate investors in the United States.
If you want to join this elite class of business professionals, you must first identify the real estate investing strategies that are right for you.
We're discussing five of them in the guide to real estate and property investment success, so read on.
1. Long-Term Rentals
Buying rental real estate is one of the most common property investment methods out there. It's also flexible, with two models landlords can choose from. One of these models is long-term rental investing.
Long-term rental investing means buying a property and renting it out via a regular lease, which may last one to three or more years.
This real estate investment strategy can offer steady monthly profits, but it also means you'll need to manage tenants yourself or hire a property manager.
2. Short-Term Rentals
The second type of property rental investment is the short-term rental. Short-term renting has become more and more popular thanks to the rise of apps like Airbnb and Vrbo.
Short-term rental investing means buying a property and renting it out for a few days, weeks, or months.
This strategy can earn landlords increased profits, but it comes with more marketing efforts and higher risks, like the potential for high vacancy rates.
3. House Flips
House flips involve buying a home, renovating it, and then placing it back on the market. The whole process typically takes place in six months or less.
Flipping a home requires significant investment in both the property itself and the labor and materials needed to renovate it.
Prospective house flippers must understand how to re-market the flipped home. Successful investing in and flipping a home also requires knowledge of home valuation to identify undervalued homes that will turn the best profit.
4. Real Estate Investment Trusts
Real estate investment trusts (REITs) are not real estate properties. Instead, they are investment vehicles where investors pool their funds together to purchase property jointly.
REITs are managed by corporations and are a lot like investing in the stock market. The biggest benefit to this property investment strategy is that investors don't have to manage or maintain the property to profit.
5. Commercial Properties
Commercial properties include apartment buildings, retail strip centers, and industrial warehouses.
Investing in commercial property takes a lot of capital. However, when done successfully, this property investment method can also offer significant profits.
There are many commercial real estate investing strategies to learn about if this type of investment interests you, including buy and hold, value-add, and opportunistic strategies.
These Real Estate Investing Strategies Can Make You Money
These five real estate investing strategies are a great place to start when you're new to the industry. Each method offers its own unique benefits and drawbacks to help you identify the right strategy for you.
Need help managing your real estate investment portfolio in Atlanta, Georgia? PMI Northeast Atlanta has been helping Sugar Hill investors make their tenants- and wallets- happier for nearly 20 years.
Contact PMI Northeast Atlanta today to learn how we can help you profit, too.
