Thursday, July 10, 2008
The various real estate market investment strategies are:
Pre-Foreclosure Properties This is a method whereby you buy properties where the owners are in default on their mortgages and the foreclosure process notified.
Post-Foreclosure Properties These are properties that have been formally foreclosed and confiscated by the mortgage lender or the lending banks.
Distressed Properties Distressed properties that are below market valuation are available in the market. Be knowledgeable about your market prices and work out the real costs of financing, repairs, holding and selling costs before you venture into this type of transaction.
New Development Buying This is an early bird strategy that involves buying homes in the first phase of a new housing development. Once again this strategy will work to your advantage only if you are in a market with rapid real estate appreciation.
Buying Land for construction This method needs financial resilience and knowledge you can make handsome gains by buying land and then building a home. One of the best scenarios is to buy enough land to build and sell finished houses or apartments.
Buy and Hold Buying homes or multi-units and holding it for a sufficiently long period are assured profit-making strategy. But you need to analyze all the implications of financing, holding costs, vacancy factors, taxes, property management, maintenance etc.
Flip Strategy Buying home for a quick flip is also a regular strategy. With this method you have a little more flexibility on the financial side since you will not be holding the property for a long period of time.
Pre-Foreclosure Properties This is a method whereby you buy properties where the owners are in default on their mortgages and the foreclosure process notified.
Post-Foreclosure Properties These are properties that have been formally foreclosed and confiscated by the mortgage lender or the lending banks.
Distressed Properties Distressed properties that are below market valuation are available in the market. Be knowledgeable about your market prices and work out the real costs of financing, repairs, holding and selling costs before you venture into this type of transaction.
New Development Buying This is an early bird strategy that involves buying homes in the first phase of a new housing development. Once again this strategy will work to your advantage only if you are in a market with rapid real estate appreciation.
Buying Land for construction This method needs financial resilience and knowledge you can make handsome gains by buying land and then building a home. One of the best scenarios is to buy enough land to build and sell finished houses or apartments.
Buy and Hold Buying homes or multi-units and holding it for a sufficiently long period are assured profit-making strategy. But you need to analyze all the implications of financing, holding costs, vacancy factors, taxes, property management, maintenance etc.
Flip Strategy Buying home for a quick flip is also a regular strategy. With this method you have a little more flexibility on the financial side since you will not be holding the property for a long period of time.
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