One of the best ways to start your real estate investment career is with real estate wholesale. The main benefit that makes this strategy especially suitable for beginners is that it requires very little startup capital. As a wholesaler, you need to find a property for sale, make a contract with the seller, identify a buyer and transfer the contract to them.
Beneficial real estate as an investment strategy
The process usually takes a few days or weeks, and you can walk out of the deal with a few thousand dollars in your pocket. The only cost you have to bear is to find a property for sale and market the property to interested buyers.
Anyone can go real estate wholesale, but this short-term investment strategy is especially beneficial for people with real estate licenses.
Why? Build a real estate network
As an agent, you will have access to far more properties for sale than a regular investor. This means you can find homes selling below market value, which will make it easier to market the property and increase your profits.
After getting a license, you can get a lot of money from property sellers, property buyers, other real estate agents, investors, etc. You start to build a real estate network. You can use this network to your advantage to identify both sellers and buyers for your real estate wholesale business.
So while wholesale can be done absolutely unlicensed, getting a real estate license to invest in will definitely make you more competitive in this strategy.
How does the fix and replace investment strategy work?
Another great way to start a career in real estate investing is trimming and transitioning. This short-term investment strategy will give you the opportunity to commit a little more to the property while still making quick money in real estate.
In repair and swap, you buy an investment property (usually in dilapidated condition) cheaply, make the necessary repairs, and eventually sell the property for a higher price. Your profit is the difference between the selling price and the purchase price, as well as the cost of the adjustments you apply.
The trick is to identify properties for sale below market value and make inexpensive repairs that will greatly increase the property’s value.
Buying and holding strategies mean
This is one of the long-term focused real estate investment strategies. When you think of real estate investment, this may be the first thing that comes to your mind. It is the best option for novice traders as it is not urgent to close the deal quickly and gives you the opportunity to make money in the long run.
Buying and holding mean you’re buying an investment property to hold for the long term until you decide it’s time to sell. As real estate values increase over time, you earn money from real estate valuation. This is known as natural appreciation and is a great way to make passive money from real estate.
What about rental properties?
The last of the beginner real estate investment strategies is the buy-and-hold type. In order to make money in the long run, instead of just holding the property and waiting for the value to appear, you can rent your property in the short term and earn money.
With rental properties, you can start earning a steady income as soon as you buy a property and find a tenant. Rental income will be the perfect complement to the commissions you earn as a real estate agent.
Also, as a real estate agent, you know the local market well and know where the demand for housing is so you can find a profitable rental property to invest in.
Choose the strategy that best suits your goals
Investing in real estate is a great way to make money, especially for real estate agents who already know the business and the local real estate market. All that remains is to choose which of the best investment strategies is right for you and start making money as a real estate investor.