Real Estate Investment Strategies
Investing in real estate provides many different opportunities for wealth creation.
Some strategies are designed for capital growth while other strategies focus on cash flow. There are also important income tax and capital gain tax considerations.
Strategies include rehabbing and stabilizing distressed property then reselling for a profit as quickly as possible.
The properties that work best for this strategy are usually “fixer-uppers” in need of significant repairs. These are the types of properties that can be purchased at a deep discount so significant value can be added.
Strategies for cash flow include buying rental property, buying notes, and loaning money.
Rental property produces monthly cash flow and requires good management for maximum ROI and asset protection. Many investors prefer outsourcing property management to a professional company.
Buying notes allows an investor to earn interest on the loan and gives control of the property to the investor in the event of foreclosure. Investors can buy notes from lenders for a deep discount on portfolios of properties, especially on non-performing notes.
Being a money lender is like being the bank for a buyer. Loaning money to other investors can be lucrative especially if the money can be loaned short term and turned several times annually.
Exit strategies may be driven by current market conditions and tax considerations which involve a 1031 Exchange or Deferred Sales Trust.
Investor Friendly REALTOR
If you are a real estate investor, you may need an investor friendly REALTOR to help you take advantage of various strategies. Please contact me today and let me know how I can help you be successful investing in real estate in the North Metro Atlanta region.