Oct 23, 2021
Investing in the real estate market is one of the best as well as high-yielding investment channels. However, it can be made less challenging and risky if invested through wholesaling, joint ventures, and property management. These are a few ways you as an investor can earn profits by investing in real estate.
Real estate is also a highly competitive field, and you need to be a little savvy to taste success in this field. Therefore, it is crucial to become knowledgeable and educated about the real estate market before investing in it. Understanding the risks, finding the right help, such as the Real Estate lawyer, building a solid network, and investing in an accountant, are all part and parcel of being a successful real estate investor.
Therefore, to help you become a successful real estate investor, we have identified and explained some of the best investment strategies in real estate. Apply them in your real estate investment planning and develop a diversified real estate investment portfolio.
Buying an investment property with a plan to rent it out for the long term is still the easiest way to earn money through the real estate market. The most significant advantage of traditional rentals is that you, as an investor, make money both in the short and long haul. You earn rental income in the short run and real estate appreciation in the long run. In addition to this, long-term rent is a more secured and solid source of income because it requires less maintenance and management and has a lower turnover rate than short-term rent.
Short-term rental properties, such as Airbnb or vacation rentals, are another attractive real estate investment option for investors. All the points here are similar to long-term rental income, but with one difference under short-term rentals, the duration of stay is short and limited, mainly for a week or two. Therefore, to invest in short-term rental properties, you necessarily need not buy a property at first. Instead, you can start by letting the spare rooms in your primary property or renting them out when you are traveling.
Buy and hold is a simple, long-term real estate investment strategy, which means buying a real estate property and holding on to it in the long haul until the property undergoes a natural appreciation and its value significantly rises that it will yield profits if sold at that time.
However, the catch here is that you must purchase a property in a cold (buyer’s) market or below its market value, which awaits a sharp rise in the coming years.
Fix and flip real estate investment strategy means buying a property, which is in a poor or dilapidated condition, carrying out necessary repair and maintenance work on it, and once the property is restored to a brand new one, it is either sold to a homebuyer or another real estate investor.
The profit that you make will be the difference between the sale price and the purchase price plus the cost of repair and maintenance. The advantage of this strategy is that you make money fast, and you are free from owning the property in the long run. For investors, properties are like trading stock for investors using a fix and flip strategy.
Investing in a Real Estate Investment Trust or REITs is an option for investors who do not want to make real estate deals and decisions directly. An investment in REIT is similar to an investment in stocks.
Here, you must research REITs and find the best one for yourself that suits your budget and other criteria. After you have made your investments in your chosen REITs, depending on your REITs performance, you will be receiving dividend income soon.
Real estate crowdfunding is a modern version of investing in REITs. Real estate crowdfunding owes its emergence to social media and digital marketing. The platforms where real estate crowdfunding works are popularly called eREITs because the working pattern of both REIT and eREITs is similar.
eREITs platforms accumulate funds from hundreds of relatively small real estate investors and pool them to buy common commercial investment properties. The main benefit of eREIT is that you can start your investment with as low as $500.
The benefit of investing in real estate is that it offers countless strategies that help fulfill the needs and preferences of just about any investor. With the right expertise, for example, you can hire a real estate agent, plan, and focus.
As a result, you can get into suitable real estate investment options and soon reap benefits from it. However, as an investor, you must bear one thing in mind: you will benefit in the long run only if you show respect to your clients and associates and operate with complete integrity.
Jais Frank is a freelance content writer and enthusiastic blogger. He is the co-founder of