Real Estate Investing Strategy – What’s On Your Plan?

If real estate investing has always seemed like a good idea but you just didn’t know how to get started, take a look at some advice from those who know about real estate investing strategies – those who do this for a living.

One of the first steps should be to determine the goals with regard to investing strategies. Are you looking for a home to live in that will have a good resale value? Are you planning to buy “fixer uppers,” renovate them and resale? Do your plans focus on long or short-term investments? All these and other factors will determine the best investment strategy.

Associating with the “right” people is an important investing strategy when you’re looking for investment properties. Real estate agents often hear of property that’s going to be put on the market early. A good agent, Realtor or broker will help you sort through the real estate offerings to find properties that work with your current investing strategy. A network of others who similarly invest is also sometimes a good idea, especially if these are people who would pass on information if they couldn’t take advantage of situations themselves.

Another important aspect of successful investing strategy touted by several of the real estate pros is to diversify. Most agree that it’s not a good investment strategy to sink everything you have into a single large piece of property. Instead, go for several smaller investments. There are more people in the market for homes on small tracts of lands or lots than for large commercial tracts of land. While you may stand to make more money from a single large investment, you also stand to lose more. Buying what you can afford while leaving money for other investments is usually a safer investing strategy.

Flipping houses and buying property for renovations are good investment strategies, but only if you have what it takes to make the purchase and the renovations. Remember that it will take money to make the needed repairs. Getting half way through that project and running out of funds means that the entire venture was unsuccessful. If you can oversee the project yourself, be sure you’re prepared for that task. If you plan to hire someone to do the renovations, be sure that person has your complete trust. Flipping is a good point in an investing strategy plan.

Consider less traditional means of obtaining property as part of your real estate investment strategy. For example, look for probate or tax lien properties. Owner financed or lease-purchase properties may also be a good part of your overall investing strategy.

Another point to keep in mind is that you should have some sort of overall plan as part of your investing strategy. While a good investment strategy is fluid – it moves and changes with the situation – you should still have some structure.

Creating a good investing strategy is an important step in your bid for making money from real estate. You may be investing small – a single home that you plan to live in for a few years and then sell. Or you may have a big plan – a subdivision with a dozen or more homes. Whatever kind of real estate investing you plan to do, be sure that you have investing strategies that you’ve carefully researched and that will help you meet your goals.