Real estate investing strategies are so numerous it’s hard to “pick” one.
the problem with “picking” a real estate investment strategy is they’re not like mutual funds.
to be a real estate investor, you’ve got think like a businessman. a businessman or entrepreneur, is a control freak - they want to figure everything out and have the satisfaction of control.
real estate investment strategies do not match the modern-day “investor”…people with 401k’s who “pick” a portfolio are not investors. heck, the portfolio managers are not entrepreneurs, they’re employees of a HUGE company and they manage these gigantic funds with so many different companies, it’s no wonder there’s no money in mutual funds.
real estate investment strategies involve looking at CASH FLOW. CASH IS KING! approach your learning experience diligently and you’ll be surprised what you can learn in 3 to 6 months - what’s 6 months in a lifetime? give yourself that much time to learn about being an entrepreneur and figure out what real estate investment strategy or strategies, are best for you…
I’ve found it difficult to focus on one real estate strategy. I’m asuming it is due to the size of my market–population of 30K, a relatively small number of houses for sale, and lots of rei competition.
I have been educating myself about rei since Nov. 05 and see lots of potential. My problem, like lots of other people, is that I want things to happen faster than they do and I don’t want to work so hard at it. My experience has been that it takes lots of work, time, and patience.
My primary focus has been on sfh that I rent for the long term. However, these deals have been difficult to find. I currently have 2 rentals.
I am also looking for a house to sell on contract to a young man that approached me and heard that I have been buying houses.
I am about to close on another deal that was going into foreclosure. I will be buying the house then selling back to the current owner for a profit. I’m working with one of the best real estate attorneys in my state on this deal so I feel confident it will work for me.
So, I’ve found it difficult to focus on one method.
real estate investment strategies involve looking at CASH FLOW.
What about the “greater fool” strategy? Cash flow isn’t necessary as long as you can find someone a little dumber then you! These buyers would be the ones who opted out of the initial learning phase…
Focus is definetly an issue with REI. I think however that people look at it the wrong way. People tend to think they have to choose ONE PATH and stick to it but I don’t think thats the case. I look at REI just like anything else: You have to set your goals and plan for success.
When I first read into REI i wanted to do rehabs but soon realized I couldn’t afford it ($0 bank account). Then I thought about Wholesaling (again $0 bank account). Then I looked at Sub-2 (a bit easier but still $0 bank account). After getting discouraged I listed ALL the facets of REI and stared at them for like an hour. I then figured it would be best to put them in order and see where it goes. My plan now looks like this (roughly):
1)Bird-Dog for funds-Finished
2)Obtain funds for Sub-2-Finished
3)Assign contracts for Sub-2-finished
4)Save funds for Buy/Hold (landlording)-In the process
5)Use equity from Buy/Hold to Wholesale
6)use profits from wholesale to rehab
7)rehab and “flip”
8 )rehab to Hold
Of course everyones strategy & goals are much much different, it DEFINETLY helps to prioritize. You can’t figure out where you want to be until you know how to get there. Find out whats in your way, and move it.
Learn as much as you can about what you need to know NOW, and supplement it with bits and pieces of what you’d like to know. You’ll be suprised at how much you’ll remember when you get to the point where the supplemented info is now NECESSARY info.