Be an Investor.
The fix and flip strategy consists of buying a real estate asset at below market price, improving the property through a strategic rehab and then selling that same property for a profit
(typically, within a years-time).
Fix and flip is, generally, considered a short term investing strategy. While it may sound like an exciting strategy and
short-term gains can be tempting,
this investment strategy is not for everyone.
There is much skill, strategy and risk tolerance needed in flipping homes. It requires a strong understanding of the market, as well as a strong assessment of necessary repairs.
Buy and Hold
Buy and hold is a common strategy in the real estate world and simply means to purchase homes to hold onto for the long term, with no immediate exit strategy ( but you should always have an exit strategy just in case your life changes) .
This is generally achieved by buying an asset, rehabbing the property (if needed), and then leasing it back out to renters. Investors can make money in two ways with this strategy: through the monthly cash flow that comes from rent and or through the appreciation of the assets over the long run. It is a great way to amass wealth and generate ongoing income.
While seasoned investors are more likely to leverage these opportunities, it’s important to remember that it’s an achievable investment for anyone. If you’re looking to secure some long-term, liquid returns, then buy and hold investing is one of the smartest choices you can make.
The BRRRR Method
BRRRR stands for “buy, rehab, rent, refinance, repeat.” In other words, the smart investor’s investment cycle.
When you buy a property, fix it up, improve its value, and then refinance, you’re borrowing against the value of the property at its highest.
Done correctly, this allows you to recover more of—or sometimes all of—the money you invested in the property.