It’s pretty late in the year, so some of you probably already have a good handle on this year’s market. If you’re in that boat, we hope that you’re making a killing.
If you aren’t too familiar with some of this year’s most popular real estate strategies, don’t worry. We want you to make a killing as a well.
Which is why we have plans of educating you about this year’s top strategies.
We’re going to be going over everything from online marketing to flipping homes with you, so sit tight as we drop our knowledge on you.
1. Online Marketing
The internet has become rather all-encompassing. There isn’t much business that we can do without it. Even if there is some business we can do without it, we’ll arguably be much less successful if we don’t.
This is true with real estate. Yes, your property exists in the physical realm, but you need to make a digital case for it if you want someone to buy. People should have no problem finding your property online.
Luckily, there are already several sites which allow property owners to put their property on display. Some of these are even free, so there is no reason not to take advantage of them.
When advertising your property online, how you present it matters. Real estate is more visual than not, which means that people want to see your property. There should be tons of pictures of the property that you’re trying to rent or sell.
If you really want to take things a step further, virtual tours are becoming a big thing. They practically allow potential renters or buyers to walk through your home without actually visiting.
And, as hilarious as that sounds, it’s a pretty good strategy if you want people to eventually tour the building.
2. Buy and Hold
Buying and holding is one of those real estate strategies that some would consider risky. This is because doing so requires that you know the market well and that you have confidence that no drastic changes will occur while you’re holding the property.
In other words, you’re making a long-term investment on the property.
Buying property and holding it require that you perform a lot of market research. You need details about everything from the property-related expenses to the neighborhood the property is located in.
If done correctly, this strategy is profitable in the long run. The property that you hold provides you with a steady stream of cash, and you can use that income to invest in other property.
Further still, holding on to your property for a long time could mean that you gain some appreciation. This makes the initial investment that much better for you.
Out of the five real estate strategies on our list, we’d like to think that this one is pretty controversial. After all, Airbnb has been butting heads with hotels and landlords for a while now.
It’s worth mentioning that the service has also been butting heads with tenants. They’ve found that some of the renters can get a bit unruly at times.
Despite that fact, there is no denying that investors can make money by using Airbnb to their advantage, and it’s completely legal to do so until someone says otherwise.
That said, investors can hold certain properties and rent them to vacationers via Airbnb. These properties can be used solely for this purpose to minimize risk to property that you wish to use for other purposes.
You must, however, have some type of insurance. While you should already have landlord insurance, we strongly recommend that you at least consider the “Host Protection Insurance” that Airbnb offers.
We also suggest that you carefully vet the people who rent your property. As we mentioned before, some renters have rubbed tenants in buildings the wrong way, so much so that there is some debate about whether or not Airbnb should be allowed in some cities.
4. Flip That Home
Flipping homes is still one of the more popular real estate strategies. We can attribute this to the fact that doing so is quick and allows investors to make money quickly.
Unlike buying and holding, flipping is a short-term investment. This means that you don’t want to hold on to the property for very long. In fact, you want to get rid of the property as fast as you can.
Why? Because the property becomes more expensive the longer you hold it. You’re not trying to pay to maintain it; you just want to sell it.
When looking for homes to flip, it’s important that you select homes that are actually “flippable.” That is to say, you want the property to be in decent enough condition for the repairs you make to be negligible in the end.
One good way of doing this is by buying homes that the owners were losing anyway. These homes usually aren’t in terrible condition, so you can easily flip these houses to make them more appealing to buyers.
5. Commercial Real Estate
Residential real estate is popular because people will always need homes. Even so, there is just as much money, if not more, in commercial real estate.
There is almost always some start-up that needs to rent space in a commercial building. You could even rent your property to larger businesses if it’s prime property.
Here’s the catch, though: This is absolutely not a strategy for beginners.
You have to be confident in your ability to hold and maintain the property. Because the property is commercial, you might have to deal with longer vacancies. Furthermore, you might have to work harder to market this property to keep it occupied.
Looking For More Real Estate Strategies?
If you’re looking for more real estate strategies, have a look around our blog. We love sharing information about real estate with you, so we’re charmed whenever you get any value out of our content.
Real estate strategy isn’t the only thing that we dedicate our time to. We also help investors with their insurance needs. Having said this, please have a word with us if you want to inquire about insurance or have any other questions.