When it comes to real estate investment, there is a lot of competition out there. Although you may have gained some experience already and have a couple of properties under your belt, there are a few ways to help you gain a competitive edge. Here are a few top tips to elevate your real estate business.
Get a Quick Return With Fix and Flip Properties
Fix, and flip properties are considered short-term investments, and you can expect a high-profit margin and a quick return. These properties can be purchased at a reduced cost and then fixed up and sold for a handsome profit. However, this type of investment may require some hard work as the properties are usually in disrepair. If you decide to go down this route, be prepared to do your research and make sure you factor in unexpected costs. If costly surprises do pop up, the house could end up on the property market for a long time.
Purchase an Auction Property
Inexperienced real estate investors may be nervous about purchasing a property at auction. There is room to make mistakes with a lack of knowledge of the property and a huge amount of paperwork to go through. However, if you do decide to go down this unconventional route, you will find properties at a reduced price and a smaller amount of competition. With a bit of meticulous research and some real estate know-how, purchasing an auction property can be incredibly profitable.
Seek Out Pocket Listings
For pocket listings, you need to approach homeowners or agents directly. They occur when homeowners want to sell their property quickly and are seen as off-market, hidden listings. Homeowners put up pocket listings for many different reasons, from relocation and other personal circumstances to financial difficulty. These pocket listings can provide a large return as homeowners often sell below market value. Although these hidden listings are hard to find, you can try and identify them by driving through different neighborhoods and looking out for ‘For Sale by Owner’ or ‘FSBO’ signs.
Invest With a Private Lender
If your investment strategy involves purchasing an auction property, a fix and flip property, or a pocket listing, you will need some capital. You probably have one or two properties in your portfolio at this stage, and so you can opt for a real estate loan to help you out. Real estate companies, such as Sachem Capital Corp, can provide you with a loan that matches your investment needs. They offer a range of loans and can help you close your next investment opportunity quickly.
Long Term Investment Strategy
Buy and hold properties for rental are considered long-term investments. With this investment strategy, you can benefit from appreciation and long-term equity. In fact, after some time, you could end up with 100 percent profit once your debt has been paid. Buy and hold for rental properties provide you with a passive source of income with immediate returns. The only thing to look out for is depreciation of the property, issues with tenants, and the fact that the property may not always have a tenant.