4 Simple Real Estate Investment Strategies to Get Started Today

Getting started in real estate investment is no small feat.

Investing in real estate can be incredibly lucrative, but only if you do it the right way. Understanding the work that goes into finding and developing a property that will make you back your investment and then some is the first step.

Today, we're going to give you some simple real estate investment strategies that can help you get started. Entering any field without experience is difficult, but real estate investment and development are especially competitive. Follow these our tips, however, and you'll be well on your way.

1. Look for Rental Properties

Buying property with the intention of renting out to tenants, business or residential, is a great long-term investment strategy. You won't break even for a while, but once you do, you'll have a steady income from the property for as long as you own it.

The other good thing about rentals is that they're immediately paying you back. Unless the house or office space needs large-scale repairs, you can find a tenant and start collecting rent.

2. Fix and Flip

HGTV has popularized the "house flipping" business model, making it look a lot easier than it actually is. Buying up cheap property, tearing it apart, and selling it again can be highly profitable, but it requires an immense amount of work and skill.

If you're able to make the repairs yourself, you can fix it up on the cheap. Most people have to hire subcontractors to handle all of the nitty-gritty stuff, which ends up costing a good deal of money. 

You can really get on a roll with house flipping, so a lot of beginner real estate investors start here. The key to your fortune will be finding a housing market poised to boom, like in Detroit or Greensboro. 

3. Investment Groups

Joining an investment group gives you the opportunity to get in on high-potential properties without having to manage them. The idea is that you pay into the group, someone else (usually a company) handles the maintenance, advertising, and managing the units.

This is another popular choice for beginners because it's relatively low risk. The only issue is that because you're not directly involved in how the property is run, you might run into vacancies. For that reason, it's important to understand how vacancy effects you.

4. Buy and Hold

Buy and hold real estate investment is when you purchase an inexpensive property and hang on to it until it's worth much more. You don't have to do anything hands-on or manage tenants in any way, you just let the market do the work for you.

When you enact this strategy, you can either keep the property well-maintained and wait for the best time to sell or you can rent it out. We highly recommend renting because you'll make a lot more money that way, with only a fraction more of the work.

Find Your Own Real Estate Investment Strategies

These are great real estate investment strategies to begin with, but in all likelihood, you'll find ways to tweak them to suit your needs. You don't need to follow a certain model to succeed in real estate, but it helps to know how others have done it before you. 

To start your property buying enterprise today, look to The Command Team at Keller Williams of Greensboro. We're a team of experienced agents that can help you get investing the right way.