Real Estate

REAL ESTATE

There are many methods to invest in real estate, but the two most popular are: direct physical real estate investments, such as land, homes, and businesses; and indirect real estate investments, such as REITs and crowdfunding platforms.

 

The three real estate investing methods outlined below might help you identify which single-family rentals (SFRs) would be the best fit for you. Please get in touch with us if you require links for setting up a buy box and viewing these types of properties for each technique on some real estate marketplaces.

 

APPRECIATION

Since investors who invest in appreciation typically make their money when they sell real estate, this is thought of as a longer-term strategy. Investors with sufficient capital who don’t require rapid cash flow and those who wish to leave real estate to their heirs may find it appealing.

  • Potential growth in annual rent
  • There are other exit options, including cash-out refinancing.
  • Possibly a successful plan for transferring riches to future generations.
  • Low post-acquisition cash flow with a high acquisition cost
    smaller renter pool and competition with buyers who are owner-occupants
  • Real estate appreciation is difficult to anticipate or time.
  • View investment properties Create a buy gratitude box.

BALANCE

This strategy combines cash flow with appreciation, with investors giving up some present cash flow in exchange for the prospect for future price growth and equity gain.

  • Possibility of a small amount of immediate cash flow
  • Moderate cost of buying
  • Moderate eviction rate
  • Highly desired properties
  • Method of competitive bidding
  • Inventory of older homes
  • View symmetrical elements Create an equitable buy box.

CASH FLOW

A positive cash flow means that the rent earned is greater than the costs associated with owning the property, which could speed up the process of reaching your financial objectives.

  • Lower cost of purchase
  • Large pool of tenants
  • Meaningful return on cash
  • More managerially demanding
  • Slower rate of growth
  • Lower rate of housing price growth

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