3 Super Smart Investing Strategies Working Right Now
All the recent real estate market news is very positive. Rental demand is very strong, prices are way up in most markets right now and distressed inventory levels are low. It is now easy to rent a house to excellent tenants and easy to sell a good house at the right price! Are all of these market indicators actually positive for real estate investors looking to capitalize on today’s opportunities?
Savvy investors know the importance of having a variety of investment strategies available to create cash flow and equity; but some investors are stuck spinning their wheels trying to do only what has worked in the past.
Here are 3 wicked smart strategies that are working great in today’s changing marketplace (so you wont feel like your spinning your wheels like the guy in the photo above 🙂
- Income Creation Strategy – There is not enough distress inventory to keep up with the demand of all the real estate investors. Cash sales on houses have risen dramatically as lots of new investors, hedge fund buyers and foreign investors are buying a lot of houses. Most cash buyers are still trying to rely on the MLS inventory and they are bidding against each other to get the limited supply of good deals. They are bidding too high in many cases and are really cutting their profit margins! Some are becoming pure speculators and expecting prices to continue to continue to jump!
How can savvy investors use this market change to their advantage?
The answer is to ramp up your lead generation marketing, connect with motivated sellers and start wholesaling houses to assist those cash buyers looking for houses. Right now the market is ripe for quality wholesalers who can find great deals and who want to create transaction income right now. You make money in the middle of finding a motivated seller and an investor who wants a deal.
Want to learn about wholesaling? Click here to learn now
Anothe great way to create income is to fix and flip houses. You find the worst house in a nice area, negotiate to buy it for the right price and then fix it up beautifully and sell it retail. When done right it can be a great source of income.
Want to learn about fix and flipping houses? Click here to learn about fixing and flipping.
- Cash Flow Strategy – Savvy investors are already changing from the fix/flip income streams and moving more into buy/hold investing models. They realize that the markets are getting stronger, rental demand is strong and they know now is great time to create monthly cash flow and long-term net-worth by investing. Millenials graduating from college right now are faced with enormous student loan and debt and are not qualifying for new mortgages because of their debt to income ratios.
The market shift for those looking to create cash flow and equity without having a big vault of cash for deals is the re-emergence of true creative real estate. Investors are once again having to rely on creative finance, seller financing and joint ventures to structure deals without relying on banks or brokers. This is a very positive by-product of an improved marketplace.
The most successful investors of today have invested in themselves to learn these more advanced strategies and are actively creating deals on houses that all the other cash buyers never know exist.
- Passive Investing – With the improved markets comes a whole new breed of investor. This is the investor who would love to capitalize on all the positive market news, but this type of investor has no experience investing so they cannot do it on their own. The new breed of passive investor has cash for investing available for investing; they understand financials, the importance of returns and how to manage investing risk. The way they are capitalizing is by investing passively as a silent funding partner in an active investors business, participating as joint venture partner or a true private money lender.
They get to participate in real estate deals, create cash flow and equity without needing to fully understand how to source deals, negotiate, manage rehabs and tenants. They understand the power of compound interest on a portfolio of rental property and are going to enjoy the returns created in our improving markets.
This is really the sweet spot and the best place for casual investors to maximize their returns! They get all the benefits of investing without doing any of the heavy lifting. They essentially set it and get it in the form of true mailbox money!
The investors who are capitalizing are the ones who are nimble and are able to change with the markets. They understand there are a lot of strategies that can be employed and they don’t rely only on buying houses from brokers and financing their investments with their local banker.
We have a great opportunity to change with the markets, but we must be willing to learn and implement new strategies to do it. The good news is that you can be successful creating both income streams for today and long-term wealth and cash flow for the future.
What are your thoughts on the new opportunities created by our improving real estate markets?
Leave me your comments, thoughts on strategies and ideas for capitalizing on today’s marketplace.
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