| Real estate would be a profitable investment, | | | | buyer/tenant pays the money for acquiring the |
| when the investor makes an efficient and | | | | right for the later purchase. This strategy is |
| judicious decision in their investments. Real estate | | | | adopted when the real estate market is slow. |
| investment strategies help investors to decide | | | | • Commercial Real Estate Investment: In |
| which strategy can work for them, under their | | | | this strategy the value of the property is |
| existing situation. These strategies improve the | | | | determined by the rents incurred by them. This |
| negotiation skills of the investor and make good | | | | strategy is not preferable for the new investors. |
| business decisions about investment in real estate. | | | | Experienced investors can adopt this strategy, as |
| Strategies for Real Estate Investment | | | | an additional benefit for their investment. |
| Adopting an appropriate strategy in real estate | | | | • Wraps (Vendor Financing): Under |
| investment is, matching the real estate problem | | | | Wraps strategy the investor will purchase a |
| with the right solution. There are various | | | | property and sell it under Vendor Financing. |
| strategies in real estate investments, but it is | | | | Instead of receiving the whole amount, the |
| likely to adopt either of the following strategy. | | | | investor will receive regular payments under |
| • Buy and Hold: It is a common strategy | | | | installment basis. |
| where the investors purchase a property and | | | | • New Construction: Adopting this |
| rent it, with the intension of earning the income | | | | strategy is the simple and affordable way to |
| on their investments. It is also called as rental | | | | invest in the real estate. Here the investor starts |
| properties. | | | | construction of a home and sells it before it is |
| • Flipping: It is a fast investment | | | | completed. In case of good market for sellers, |
| strategy of real estate, where the investor will | | | | keeping two or more homes constantly under |
| not undertake the ownership. In Flipping strategy | | | | construction will earn some good profits. |
| the investor will assign a contract where the | | | | • Renovation: Investing on the old house |
| property is purchased, to sell it again and gets | | | | and getting it repaired into a good condition is the |
| commission for their services. For flipping a | | | | strategy of Renovation. It is adopted to earn |
| property, investor needs to be capable of two | | | | more profits by adding the value of the property |
| things, first need to find a good property and | | | | through improvements. It requires several |
| secondly, find a buyer in a short time. | | | | inspections while purchasing a property, to sell |
| • Lease options: Under this strategy, the | | | | after its renovation. |
| investor enables the tenant to take the property | | | | The above stated some strategies of real estate |
| on lease or rent with an option to purchase it on | | | | investments helps the investors to make good |
| a future date, and value of the property is | | | | investment decisions. |
| decided at the time of lease option is signed. Here | | | | |