Real Estate Investing 203 – Shifting Classes or Uses

Back in Real Estate Investing 101, I briefly mentioned “Shifting Classes” after the Buy & Hold strategy. There are a few different ways to shift classes and uses that can build value for investors.

Residential to Commercial

One of the most common ways to increase value while shifting classes or use is to have a property re-zoned from residential to commercial usage. A property that is located on a busy street would be a prime example. The busy street lowers the value for a residential property because of the noise and associated traffic. It is even more true of a corner lot. So, this busy location is a detriment. Continue reading Real Estate Investing 203 – Shifting Classes or Uses

Real Estate Investing 202 – Buy and Hold Strategies

Digging a little deeper in Buy and Hold strategies

In Real Estate Investing 101, Part II, we covered buying and holding property for long term appreciation and wealth building. This is by no means a get rich quick scheme, but is one of the most proven ways to build wealth over time.

Finding an appropriate property

Just like with flipping, property is a required ingredient. In fact, the same sources will work for buy and hold strategies as for flipping. The primary difference is that buy and hold strategies are generally a little less stringent on cost control, as well as condition. One can be in the property for a little more money because there isn’t a short term margin to mind. REOs (bank owned property), pre-foreclosure, short sales, older homes needing updating and strong but ugly properties are still the best options. Continue reading Real Estate Investing 202 – Buy and Hold Strategies

Real Estate Investing 201

Digging a little deeper into Flipping. In Real Estate Investing 101, Part I, we covered buying a house to resell for a short term profit. In this lesson, we’re going to delve a little deeper into flipping, run a scenario, and examine ways to maximize profit, while minimizing risk and making it happen fast.

Finding an appropriate property

Obviously the first ingredient in a profitable flip is the property. Despite what one may see on TV, it takes a little while to find good candidates. The various types of properties that may make good flip candidates are foreclosures or REO (bank owned properties), fixer-uppers, older homes that need updating, and ugly properties that are otherwise in good shape. Cost is obviously important, but condition is also very important. Continue reading Real Estate Investing 201

Real Estate Investing 101

Real Estate investing is one of the best tools to build long term wealth and financial security. About 70% of millionaires in the US built their fortunes in Real Estate, so it is obviously an excellent tool. There are several ways to incorporate Real Estate into one’s overall financial picture.

Flipping

The first method I’ll cover to invest in Real Estate is a shorter term option called “flipping”. Basically, flipping a property is buying a property at a below market price and then selling it at a market price. The property may be purchased below market value because it needs repair, or because the sellers have a need to sell the property quickly. The advantage of flipping a property is that it creates a shorter term profit compared to holding a property. Continue reading Real Estate Investing 101

Real Estate Investing 301 – Advanced Strategies

In Real Estate Investing 101, Part I we covered buying a house to resell for a short term profit, while minimizing risk and making it happen fast. We delved further into flipping in Real Estate Investing 201.

In Real Estate Investing 101, Part II we covered buying and holding property for long term appreciation and wealth building. We also touched on class shifting to increase value.

Real Estate Investing 202 continued on the Buy and Hold theme and offered deeper insight into making it profitable. In Real Estate Investing 203, we looked at shifting property classes for highest and best use, while increasing property value and return.

This time, we are going to look at investing from a different perspective. The previous articles have been about buying property “wholesale” and selling it “retail”. But, there is another way to buy property that may be more efficient as well as more profitable. Continue reading Real Estate Investing 301 – Advanced Strategies