Exploring which real estate investing strategy is best suited for you? This is a really important topic because the term “real estate investing” is a vast topic that has dozens, if not hundreds of specialties.
In episode 3 I talked about the continuum that real estate investing spans. It can be heavy on the business side or lean more toward being an investment.
The most well-known method is “Flipping” houses or being a “Flipper”.
Is a business activity that allows you to earn big chunks of money. You have to be able to hire and manage contractors and has a lot of moving parts.
Buy and hold for rental income. This is where the term “investor” accurately applies. You buy, hold, and don’t sell for a long time. This is true real estate investing as you’re buying for the intrinsic value of the asset whether it be cash flow, appreciation or both
This is on the investment side of the spectrum and allows you to earn a steady stream of income over a long period of time.
There is a lesser known strategy that I call “Trading” or being a “Trader”. This is where you use your contractual interest in a property to earn an income. Typically, this earns you a pile of money. The most often discussed “Trader” strategy is wholesaling where you put a property under contract then assign or transfer your interest to a 3rd party for a fee. This requires quite a lot of legwork to find properties, make offers, get them under contract, open escrow and find cash buyers.