What is your real estate investment style?
There are as many reasons for investing in real estate as there are states to invest in. The big question here is what is YOUR real estate investment style? First lets take a look at three key real estate investment types: Real Estate Investing for Cash Flow, Real Estate Investing for Growth or Investing in Your favorite Locations. When you consider investing in real estate, the first thing you should ask is "what is my investment style?". Choosing a type of investment is where many people get tripped up. With 100s of people selling information on the different types of investing, it is no wonder even seasoned investors are getting confused.
Here are some real estate investment "words of wisdom" we have heard:
- Single Family Homes are the best because resale is open to the largest audience when it is time to sell and there are less management headaches
- Condos or town homes are best because you have very little to worry about in the area of the building and the land - no lawn to care for or snow to worry about
- Mutli Family are best because you have economies of scale, less management headaches and larger returns when you sell
- Short sales and Reos are best for investing in as you get better acquisition prices, making for better returns
- Flipping is best investment as you get quick returns
- Buy and hold is best because you get sustained growth over time and your tenants actually pay for you investments
Truth be told, every one of these investments have merit (when you subscribe to my blog you will enjoy learning the pros and cons for all these investment). Your first mission when investing in Real Estate is to establish what YOUR investment style is and WHY you are investing BEFORE you can possibly do any justice to your investment portfolio.
Please do not be one of these people who say I will invest in anything that makes sense. Trust me. You will NOT invest and you will not make any money if you do not have your criteria established. Once you know what you want to invest in, you need to find the Location that is best suited to accomplish those Goals.
Now it gets exciting! Now that you know what your real estate investment style is, you need to know why you are investing. Let us take a look at the top three categories of why people invest. Real Estate Investing for Cash Flow, Real Estate Investing for Growth or Investing in Your favorite Locations (these are typically people looking to accomplish a lifestyle, like water front or golf course or attractions they want to spend time in).
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