5 Basic Real Estate Investment Strategies

Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment.

Investing in a property has high returns but is considered a high risk investment. Educating yourself about the process will determine your success. Real estate values rise and decline, and can only work to your advantage if you can make wise investments. 

Taking time to study and evaluate will lead to finding the right property to invest. The best way to  identify the suitability of a property is thru Comparative Market Analysis (CMA). Comparing from sold data  plus the general market movement will  determine the current market value of the property and its profit potential.

Real Estate and Private Equity investor like David Ebrahimzadeh have the vision to find a property and expertise to maximize its potential thru investment analysis that leads to financial success.

Education is always the key in building knowledge and expertise in any field. Having the necessary diligence will help you get pass through those ‘portfolio of uncertainties”.

“Real Estate remains one of the most exciting investments out there.

You just need to know where to look, be prepared to do some extra work, and take into account changing needs. The need for great spaces and great locations is ever present, but ever changing.”

If you want to get started, Here’s the list of Real Estate Investment Strategies to consider:

1. Buy to Rent – Single Tenant Properties

Single rentals are a good investment because they’re very simple to understand, easy to set up, and, generally, straightforward to run. However, they’re unlikely to deliver very impressive rental yields, certainly not market-beating returns.

2. Flipping Houses

In very simple terms it means buying it and quickly selling it for a profit.

You may do some minor cosmetic work to the property to achieve profit. But, generally, this strategy relies more on a rising market (or buying at a great discount) as opposed to adding any real value. The idea is to get in and get out as quickly as possible, so you don’t want to be doing any expensive, time-consuming development work on the property.
 

3. Become a real estate agent, rental agent, or property manager

This is the best way to learn the industry where you can develop contacts, earn income, and build a successful business for yourself.
 
4. Invest in real estate investment trusts
 
Real estate investment Trusts are investment products where property is the underlying asset. A REIT is a company or trust that owns and operates properties, such as office blocks, apartment blocks, retail properties, and other kinds of buildings that people or businesses rent.
 
REITs can be private or public, with public REITs being traded on the major stock exchanges, just like regular shares. 
 
5. Commercial property
 
The success of commercial real estate investments hinges on having good, stable business tenants in place. Without a tenant, it’s just an empty building costing you money.
 
If you can find a good tenant, that gives you some stability and potentially lowers your risk. The longer the lease, the more value this adds to the property.
 
Overall, these are some of good long term investments to add up for cash flow diversification. The goal  to have other stream to rely on to create financial security with this type of investment is always a big opportunity.

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