Four Rock-Solid Property Investment Strategies
In order to make the most out of real estate business, there are only 3 requirements which are:
a) The right mindset
b) Adequate Capital
c) Proper Real Estate Investment Strategies
Having the right investment mindset is to understand that the purpose of property investment is to make money. It also means thinking for yourself rather than letting others to think for you. This type of mindset will help you to be more strategic about your property investment activities.
In order to be able to build or buy investment property, you must have adequate capital. These days there are many options for raising this money for instance, you can take a bank loan and pay back the full amount plus some interest over a period of time, use your savings seek donation from family and friends or partner with investment firms and angel investors. All these options if selected individually or combined can raise you sufficient capital to venture in commercial or rental property.
Proper Investment Strategies
In fact this is the most critical investment vehicle among the three requirements. Property investment is more complicated than simply acquiring and selling homes as most people think. In order to succeed in this business, one needs to put in place effective strategies that will help them reap maximum profits in this market. The following are some rock-solid strategies that any beginner can choose from depending on what works for him/her;
Buying and Holding
This is what many people refer to as buying rental properties. Becoming a landlord is very easy, all you have to do is acquire a residential property, advertise it as “To Let”, wait for tenants to contact you then sign a contract with new occupants. The best way to buy property for less is to go for homes that need renovation, upgrade them then let in tenants. These properties often sell BMV (below market value).You could also go for HMO (houses in multiple occupation) which are also a cheap option. HMOs are residential properties with ‘common areas’ that are shared by many households.
This is where you buy real property below market value and sell it at a higher price without actually taking possession. In this situation, you will need to work with agents and allow them to sell the property on your behalf for a small commission. All you need to do is find an attractive property within a prime area which has the potential to sell fast, then look for an agent who is capable to flip it within the shortest duration in most cases a couple of weeks to a month. Once you are successful, you simply transfer the title to the buyer and recover your money plus profit and look for another similar property.
If you lack adequate capital to buy ready investment properties, you can build your own from scratch. In fact this is the easiest as well as the most affordable strategy for this trade. All you have to do is acquire land at a cheap rate and start construction according to the way you want the property to look (design).However, you need to be very careful where you buy land for building. Only select an area whose value has got the potential to increase in the coming days. Once construction is over, advertise and let tenants come in, then start collecting free money (rent).