By: Kyle Spearin
Investing in real estate is often considered to be the gift that keeps on giving. Since the majority of us are partial to having a place to live, there is an ongoing need for homes and personal properties. Making the decision to invest in real estate
can help you to hold onto the property and increase its value to ensure that you make the most money from it. In this post, we will discuss three creative strategies that make investing easy and more likely to yield a solid return.
Why Should I get Creative?
You might be wondering why you should consider a more creative strategy. Isn’t simply buying a property enough? The answer is: yes and no. While older and more traditional investment strategies can work, being more creative can help you to get better results. These approaches
help you to get an edge on the competition so that you can make the best investment possible.
BRRRR (Buy, Rehab, Rent, Refinance, Repeat)
This popular investment strategy is a little more complicated than some traditional options, but it can offer some truly wonderful value in the long run.
For this approach, you will begin by purchasing a home. The idea is to invest in a home that is going for a good market value at an affordable price, but that isn’t the only focus. When buying a home, make sure that you can see the home as a future investment.
This will help you to make more money down the line. Be aware that you don’t have to buy the home in cash for this strategy to work.
After you have obtained the home, it is time to get to work. Find out how you can improve the home to add the most value. It might mean putting in new floors or appliances, or adding fun amenities like smart features or a swimming pool. Ultimately, the goal is to make the property more desirable so you can ask for more money later.
Now that you have dressed up the property, it is time to find a good renter or tenant. Renters will be how you begin to make money on the property. Take the time to find good renters who understand that the property must be cared for and kept in good order.
Once the home is upgraded and occupied, it is time to have the home appraised for the refinance step. The home should have increased in value due to the changes, so you can refinance it and make a little extra money at the same time.
Since you have already completed the process successfully once, it is time to do it again. Focus on keeping tenants in the home and then use your knowledge to start again with a new property. In no time, you can be a successful property manager.
This unusual investment strategy allows you to maximize your available resources. A lot of people want to get into real estate investing but aren’t sure where to start or how to get the money to do so. House Hacking is a direct solution to these problems. The best part is that anyone can do it.
House Hacking focuses on taking your existing property and monetizing it. Even if you don’t own your home outright, you can get started with this immediately. In order to do so, you will need to be open to renting out space on your property. For some,
this means renting out a portion of their home, like the basement or a spare room. For others, it might mean renting out a guest house.
The best part about House Hacking is how quickly it can take you towards your financial goals. It means that you can have a portion of your mortgage covered by someone else, as well as other living expenses like electricity or plumbing. You can pay
down your home quickly and begin to understand what it feels like to be a property manager. This is a great first step for those who want to get started.
For new homeowners, this is a truly great real estate investment option. Live-In Flipping allows you to live in a nice home and make money while you do it. To do this, you will begin by finding a nice and affordable property. In order to be successful, you want to get a good property that can be improved upon with a little effort.
After you purchase the home, you will move into the property.
While you are living in the home, you will begin to improve it.
This might mean renovating a bathroom or finishing the basement. It might be painting the home or adding new carpet. If you are handy and know how to renovate, you can improve the property value for a very low investment cost.
After you have spent some time in the home and improved it, it is time to sell it. You should be able to sell the home for a higher amount than you paid for it, allowing you to make a good amount on the sale. When this is done, you can use some of
the money to purchase a new home and complete the process. Ideally, you will make enough improvements and choose a good time to sell that allows you to maximize your income. For those who like to constantly move to new places, this can be a great
investment strategy that allows you to travel every couple of years.
You don’t need to be a real estate expert to make money on real estate investments. Every day, more and more people are learning how to make money by investing in property.
There will always be a need for homes and living spaces, so why not try your hand at making money on your property investments?
If you are looking to break into real estate investing, these creative solutions can help you to get started. Remember to always read the fine print and understand the local real estate laws in your area!