Investors Overview

Investors Overview

Investments Strategies

Like the housing market, the most popular real estate investment strategy changes from year to year. What worked for investors last year may not be indicative of what they should be doing in the future. Investors are, therefore, not advised to practice a reactive business strategy, but rather implement a proactive one. Don’t, for one second, think that mimicking the successful strategies of last year will pave the way to success this year; shifts in the market will see to it that such efforts fall short. Instead, it is important to stay ahead of the curve and use strategies that are specifically tailored to today’s market conditions. Before you make your first move, consider which real estate investment strategy will compliment your bottom line.

If you hope to maintain an edge over the competition, make sure your current method of investing, including your real estate investment portfolio is in line with what the market is currently dictating.

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Investing In Secondary Cities

In what may very well be the best real estate investment strategy this year, many entrepreneurs are trading the large spreads of gateway cities in for less competitive secondary markets. 

For what it’s worth, recent success of spillover markets including Pierce, Snohomish, and Kitsap Counties  are indicators that investors are starting to notice similar trends in secondary cities across the country. Secondary and spill over markets include college towns where there is always a steady pool of students and professors.

Those looking for promising real estate investing strategies should strongly consider expanding their search criteria to include secondary cities outside of those that may be saturated with investor activity. If you are new to a city, it couldn’t hurt to look into the local real estate auction process; these events can result in some great deals. The relative opportunities provided in smaller markets should offset what are likely to be smaller spreads. However, perhaps even more importantly, secondary cities are expected to experience a boom of their own. Demand should increase as more investors shift their attention away from gateway cities. Those that start investing in secondary cities sooner rather than later may be rewarded for being at the forefront of what could end up being a popular real estate investment strategy.

Buy & Hold Investment Properties

Maybe the best real estate investment strategy for you deals with rental properties. Again, the real estate market is firing on all cylinders. Impressive appreciation rates have seen home values soar. What’s more, real estate is in a better position than many initially expected. Even first time homebuyers are getting in on the action. However, those looking for a viable real estate investment strategy may have a hard time seeing the value in rehabs; if it costs more to acquire a home, spreads are essentially diminished.

Fortunately, a viable real estate exit strategy exists in every market: good or bad. When home prices drop, investors are advised to consider rehabbing, but when prices are as high as they are today, one real estate investing strategy trumps them all: buy and hold investment properties.

Rental properties are entirely capable of offsetting today’s high prices with attractive leasing rates. If for nothing else, rental prices are high enough to warrant the acquisition of a relatively expensive property in the right market. Since profits are not solely dependent on selling the property immediately, investors can capitalize on today’s high rents before they sell in the future. While returns may not be immediate, they have the potential to be much higher than a standard flip. So while you end up paying the high price up front, as dictated by the market, you make up for the extra expenditure over the course of renting the property out.

Which investment strategy would you most like to implement?
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