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How To Choose The Best Real Estate Investing Strategy

Published on Thursday - April 07, 2011

There is no question that real estate investing offers perhaps the best and fastest way to become a millionaire, but there are many ways to get started. So how do you choose the best real estate investing strategy that suits you?

There are real estate short sales, foreclosures, HUD homes, commercial real estate and even private money lending to choose from. However the 3 main types of real estate investing strategy to begin with are really wholesaling, rehabbing and building a portfolio of rental properties for ongoing income. What’s right for you?

In order to select the best real estate investing strategy you need to consider the following factors:

  • Your ultimate goals both in terms of income and lifestyle
  • Your tolerance for risk
  • What resources you have on hand
  • How much time you can put in
  • How quickly you need to see returns

Becoming a landlord and developing a large portfolio of rental properties can be an extremely attractive option for those seeking a real estate investing strategy that provides steady, regular income. Certainly now is a great time for this as the combination of low home prices and mortgage interest rates allows investors to lock into incredible levels of cash flow. However it also requires a lot of your own time and could easily become a full time job. Plus this method of real estate investing demands a good amount of reserves on hand and means waiting for large lump sum returns.

Buying, rehabbing and flipping real estate can definitely produce some handsome returns, and a lot faster than renting. However this form of real estate investing can require a sizable cash investment and a little more intricate knowledge of home improvements. Rehabbing is great, though perhaps better something to grow into as you gain a little more experience.

In contrast choosing wholesaling as your initial real estate investing strategy offers an easy way to get into the game that requires little to no investment and yields incredible ROI in ridiculously short periods of time.

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