Tips for Creating Your Real Estate Investment Strategy

As you develop your real estate investment strategy, be sure to consider the key fundamentals for success which include, acquiring attractive properties in strong market locations, determining optimal cash flow, and identifying a financial lender that understands the investment property business and can be a valuable partner along the way.

 

Another important consideration in developing your strategy is determining the types of properties you will acquire, and your investment approach for each property. For example, will you include residential and/or commercial real estate? Will your strategy include fix-and-flip and/or buy-and-hold for rental? Our belief is that the healthiest real estate investment business will include a mixture of property types, contributing to diversification and a strong foundation.

 

To learn more about important decisions involved in real estate investing, download How to Invest in Real Estate: A Step-by-Step Guide for the First-Time Investor.

 

Tips for Success

 

 1) Choosing Attractive Properties: Be sure to consider the current demographic in the area. Are there new companies moving in with diverse employees? Will apartments or single-family homes be needed to house the influx of people? Determine the class of the investments you would like to pursue. Want to know more about how properties are classified? Watch this brief video.

 

 2) Strong Market Locations: Determine the city and state you want to invest in. According to Business Insider, Dallas, TX is currently the number one market for rental properties. Do the research to see where your city and state rank, to help determine if market conditions are positive for investing.

 

 3) Optimal Cash Flow: Determining optimal cash flow for your business should be worked on with your financial advisor. Use tools to track expenses and income and closely manage your cash flow statement along with your income statement and balance sheet. Having documentation and analysis of your ROI will empower more strategic decisions as more investments are added to your portfolio.

 

 4) Choosing the Right Lender: Finding a lender to help fund your property investments will be key to building your business. Hard money lenders, such as Anchor Loans, not only help you fund your property deals, but can also offer expert advice. Learn more about Anchor’s lending options.