When people hear of real estate investors, the image of a wealthy person with millions of dollars on hand probably comes to mind. But remember, all investors had to start out with their first property. There are many types of real estate investors, and various avenues to consider. All investors fall into two main categories, short-term and long-term.
Some short-term investment strategies include, rehabbing, foreclosure aquistions , and wholesaling . Investors who concentrate on these areas have fine tuned methods of seeking properties that are in distress. They often have a contractor or fix-up crew on call, and are able to complete projects within a 60 day period. Once a project is complete, the repaired home is ready for the open market.
Long-term investment strategies include land-lording, condo conversions, commercial leasing, and subject-to . These methods are attractive because they offer cash flow and income over an extended period of time. Also, the opportunity is present to take advantage of leverage to acquire other properties.
According to the National Association of Realtors, investors make up 25% of the homebuying population. That means one out of every four buyers is an investor. These are people who have recognized the value of having real estate as a part of their investment portfolio.
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