• Buy and Hold Strategies for Investors Buy and Hold Strategies for Investors

    0 comments / Posted on by Minion Made Collaborator

    Buy and Hold Strategies for Investors

    Buying properties to hold for investment purposes may not be as straightforward as you think. People often think that a rental property is forever – but many factors go into how long an investor holds an income-producing property. Market conditions – including sales and rental performance, financing and the goals and objectives of the individual investor all play an important part.

    How Long to Hold that Rental Property?

    If you were to take a poll, most would probably believe buy and hold properties are meant to be owned forever, passing on only in death. And for most investors who kind of dabble in real estate – purchasing a property here and there, this may be true.

    However, professional investors are aware that not every buy and hold property is forever…

    There are some properties that indeed will stick with you forever, but there are others you may only own for a few months or a few years.

    Let’s take a look at the various buy and hold strategies employed by real estate investors and when to use each once.

    Short and Mid-Term Investment Property Strategies

    Seller Financed and Subject-To Rentals

    Seller financing is a fairly common strategy employed by investors to acquire rentals. Many times you will stumble across a homeowner who doesn’t really need the lump sum a cash sale will bring but is ready and willing to get rid of an unwanted property. You can often negotiate with these sellers to take...

    Buying properties to hold for investment purposes may not be as straightforward as you think. People often think that a rental property is forever – but many factors go into how long an investor holds an income-producing property. Market conditions – including sales and rental performance, financing and the goals and objectives of the individual investor all play an important part.

    How Long to Hold that Rental Property?

    If you were to take a poll, most would probably believe buy and hold properties are meant to be owned forever, passing on only in death. And for most investors who kind of dabble in real estate – purchasing a property here and there, this may be true.

    However, professional investors are aware that not every buy and hold property is forever…

    There are some properties that indeed will stick with you forever, but there are others you may only own for a few months or a few years.

    Let’s take a look at the various buy and hold strategies employed by real estate investors and when to use each once.

    Short and Mid-Term Investment Property Strategies

    Seller Financed and Subject-To Rentals

    Seller financing is a fairly common strategy employed by investors to acquire rentals. Many times you will stumble across a homeowner who doesn’t really need the lump sum a cash sale will bring but is ready and willing to get rid of an unwanted property. You can often negotiate with these sellers to take...

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  • Why You Should Be Investing in Multi-Family Homes in 2020 Why You Should Be Investing in Multi-Family Homes in 2020

    1 comment / Posted on by Rosemary Rivera

    Why You Should Be Investing in Multi-Family Homes in 2020

    Multi family homes proved to be quite the investment in 2019, and this trend is continuing into the new year. If you’ve been hearing a lot of buzz around investing in multi family homes, it’s all for good reason. Any investor looking for some serious cash flow and a more diversified portfolio in 2020 will definitely find these as a multi family real estate investor.

    Why Investing in Multi Family Real Estate Has It's Benefits

    Over the years, experts have promoted multi family investing as the best way to invest money. Now it might not be the right strategy for just anyone, but the fact still remains- investing in multi family homes definitely has its benefits. Here are a couple.

    Growing Your Investment Portfolio

    The best investment property for your portfolio is one that generates bigger returns faster. Multi family homes are the best type of income properties for building wealth. For instance, investing in a duplex or triplex is much quicker than going with a single family rental in which you would have to allocate your time and energy for each separate unit.

    Financing

    Investing in multi family homes may require a larger start-up capital, but getting approved for mortgage loans is actually much easier for commercial multi family properties. Lenders are more comfortable approving loans for a multi-unit property, in which there will be multiple tenants. This is because multi family housing lessens the dependency of cash flow on just one tenant. There’s just less risk involved from a lender’s point of view.

    ...

    Multi family homes proved to be quite the investment in 2019, and this trend is continuing into the new year. If you’ve been hearing a lot of buzz around investing in multi family homes, it’s all for good reason. Any investor looking for some serious cash flow and a more diversified portfolio in 2020 will definitely find these as a multi family real estate investor.

    Why Investing in Multi Family Real Estate Has It's Benefits

    Over the years, experts have promoted multi family investing as the best way to invest money. Now it might not be the right strategy for just anyone, but the fact still remains- investing in multi family homes definitely has its benefits. Here are a couple.

    Growing Your Investment Portfolio

    The best investment property for your portfolio is one that generates bigger returns faster. Multi family homes are the best type of income properties for building wealth. For instance, investing in a duplex or triplex is much quicker than going with a single family rental in which you would have to allocate your time and energy for each separate unit.

    Financing

    Investing in multi family homes may require a larger start-up capital, but getting approved for mortgage loans is actually much easier for commercial multi family properties. Lenders are more comfortable approving loans for a multi-unit property, in which there will be multiple tenants. This is because multi family housing lessens the dependency of cash flow on just one tenant. There’s just less risk involved from a lender’s point of view.

    ...

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  • Commercial Property Investing - Tips for the Beginner Commercial Property Investing - Tips for the Beginner

    0 comments / Posted on by Steven Rivera

    Commercial Property Investing - Tips for the Beginner

    Commercial real estate properties typically refer to retail, industrial, office, warehouses, mixed-use, and apartment buildings. Did you know that investing in commercial real estate offers numerous advantages and potential benefits to the savvy investor? These advantages include: steady cash flow, readily available tenants, lower vacancy risks, and higher income potential.

    However, before simply buying any commercial property, investors must complete due diligence, to ensure the property aligns with your investment strategy.

    Determine if Commercial Property Investing is the Right Strategy for You

    Like residential real estate, investing in commercial properties will require your own due diligence. These complex real estate transactions will help you first understand if the potential property fits the right investment strategy for your financial needs and goals.

    Cash Flow

    As its name suggests, a cash flow strategy involves understanding and managing your expectations. Before you move forward on this type of strategy, ask yourself the following types of questions.

    • If the property has a lower monthly cash flow, does that mean it’s not as good of a deal?
    • If the property has a higher monthly cash flow, but has other risks, does this mean that it is a good choice for my portfolio?

    As you answer these questions, keep in mind that the strategies will be different for each property. Identify your expectations, manage those expectations, and then with an unbiased view, determine if the property will meet these expectations and thus reach your financial goals. Finally, the goal of cash flow properties is...

    Commercial real estate properties typically refer to retail, industrial, office, warehouses, mixed-use, and apartment buildings. Did you know that investing in commercial real estate offers numerous advantages and potential benefits to the savvy investor? These advantages include: steady cash flow, readily available tenants, lower vacancy risks, and higher income potential.

    However, before simply buying any commercial property, investors must complete due diligence, to ensure the property aligns with your investment strategy.

    Determine if Commercial Property Investing is the Right Strategy for You

    Like residential real estate, investing in commercial properties will require your own due diligence. These complex real estate transactions will help you first understand if the potential property fits the right investment strategy for your financial needs and goals.

    Cash Flow

    As its name suggests, a cash flow strategy involves understanding and managing your expectations. Before you move forward on this type of strategy, ask yourself the following types of questions.

    • If the property has a lower monthly cash flow, does that mean it’s not as good of a deal?
    • If the property has a higher monthly cash flow, but has other risks, does this mean that it is a good choice for my portfolio?

    As you answer these questions, keep in mind that the strategies will be different for each property. Identify your expectations, manage those expectations, and then with an unbiased view, determine if the property will meet these expectations and thus reach your financial goals. Finally, the goal of cash flow properties is...

    Read more

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