Which Investment Strategy Is Right For You?
Which Investment Strategy Is Right For You?
June 27, 2021
There are all types of investments to choose from. But which one is right for you? One of the most lucrative and commonly used investments today is real estate. With careful planning and consideration, a real estate investor can discover which investment strategy will offer the greatest opportunity for financial freedom. Read below to find out if “buy-n-holding” or “flipping” real estate is right for you.
The Buy and Hold Strategy
Buy and hold real estate involves purchasing property and holding on to it for a period of time while the value of the property appreciates in value. Investors who use this strategy must exercise a degree of patience while holding on to their investments for a longer time frame. Usually, money is made each month when tenants pay rent. And a profit can be made once the property is sold for financial gain later on. Rental properties typically require some degree of upkeep and maintenance to stay up to date and in demand. However, the benefits of this particular investment type are undeniable.
The Fix and Flip Strategy
Flipping is another type of real estate investment strategy that is commonly used to generate income. This process involves purchasing a property below its market value, repairing or rehabbing the property, then reselling the property for a substantial profit. Unlike high-risk ventures like pre-construction, where the investor is ‘betting’ that the future property will sell for a higher price once it’s built, flipping is one of the few investment strategies that are widely accepted as common practice for investors.
Whether your investment needs are low-risk, high-risk, or somewhere in between, there is quite likely a real estate investment strategy that will be appropriate for your specific needs. To learn more about your real estate investing options, visit us at www.aecominvest.com or simply call us at (888) 326-5881. You may also email us directly at [email protected] to speak with a representative.