602: How to Choose the Right Real Estate Investing Strategy for You

March 4, 2022bmanasseroUncategorizedNo comments

SHOW NOTES FOR EPISODE 602: HOW TO CHOOSE THE RIGHT REAL ESTATE INVESTING STRATEGY FOR YOU

Choosing the right real estate investing strategy is critical for your long term success. Nothing is worse than spending countless time and money on an REI strategy only to find that you hate what you’re doing. In today’s podcast, Bill provides a way to better assess the multiple strategies available and he shows how you can sort through and select the best strategy for you.

Previous episodes of our 10 Steps to Real Estate Investing Success series have thus far included:

How to Choose the Right Real Estate Investing Strategy for You

Introduction

In Episode 592 of our 10 Steps to Real Estate Investing Success series, I talked about various real estate investing strategies. And there are A LOT of them – a lot of ways to invest in real estate. It may seem overwhelming if you look at all of them but, in today’s podcast, I’ve tried to separate the various strategies in categories that might be helpful to help you sort through and decide what works best for you.

When I first sought out real estate investing because I needed to generate monthly cash flow. I was leaving the mission field and I had no other source of income outside of a small monthly Social Security payment. So, Cash Flow was my priority. Or, as we say here on the Old Dawg’s Network – cash flow is king!

Whether you are a newbie or an experienced investor, you can still look at all these various strategies to consider now or in the future. If you are an experienced investor, you may hear about a strategy that might work better than your current strategy or can be an add on to what you are already doing in the future.

When trying to access what strategy is best for you, there are certain factors you need to consider:

How much time do you have?
How much money do you have?
The location of the properties (if you are not buying in your own city or state)
Does it have tax advantages?
Do you need to learn new skills to do the strategy?

You also need to carefully avoid the “Shiny Object Syndrome”

The “Shiny Object Syndrome” is when every strategy looks good and you want to pursue all or multiple strategies
You heard a great pitch on a YouTube video
Got caught up in an emotional appeal or special “one-time” offers at seminar, webinar or boot camp
And before you know it, you’re enrolled in programs, have purchased home study packages and have spent $1,000s of dollars

You need to do this scientifically. Really study the strategies that fit YOUR needs and dig deep. Don’t be distracted by the “shiny object.” Do your due diligence before you spend a cent!

Buying a Property That Generates Monthly Cash Flow

Single Family Homes
Small multis: Duplexes/Triplexes/Quads
House Hacking
Section 121 – Live-in-Then-Rent
Condos and Townhomes
Multifamily
- Small Apartments
- Large Apartments
Short Term Rentals: AirBNB & VRBO
Mobile Home Parks
Billboards
Commercial
- Office Buildings
- Hotels
- Self-Storage
- Industrial
- Retail
  - Large malls
  - Strip malls
  - NNN

Buying a Property that doesn’t generate monthly cash flow

Ground-up Development
Raw land (buy ‘n hold or flipping)
Houses, multifamily, commercial (buy ‘n hold or flipping)
Wholesaling
Fix ‘n Flip
Live-in-Flip

Pros and Cons of the above strategies

Pros: Can generate large amounts of cash quick
Cons: Can require a lot of time and upfront money
Cons: tax hit can be big with Capital Gains Tax
Comments: Many start in this area to find the purchase of rental properties to grow a portfolio

Strictly Investing in Property without Controlling the Investment

Private Money Lender
Hard Money Lending
Syndication
REITS
Crowdfunding
Discounted Deeds
Liens

No or Low Money Down Strategies

Or maybe your top requirement is that you don’t have much money to invest and you want to look at strategies where you can get in for no or low money down:

Wholesaling
Flipping with hard money financing
Seller financing deals
Crowdfunding

Truly Passive Strategies Requiring Little or No Work Required

Or if money is not an issue but you can’t devote much time or would rather not work. Then you would look at more passive strategies like:

Syndication investing
REITS
Crowdfunding
Private Money Lender

Once you zero in on a strategy that fits your needs, then you may want to find a niche. A niche is a specific area of specialization within a strategy

The Difference Between a Strategy & a Niche

Rental Property (the strategy)
- Niche: ADUs
- Niche: Student Housing
- Niche: Section 8 or Special Needs/Agency tenants
Multifamily Investing (the strategy
- Niche: Low-Income Housing
- Niche: Military housing
- Niche: Student Housing
Single Family Rental Homes (the strategy)
- Niche: Rent-to-own/lease options
- Niche: Short-Term Rentals (Airbnb or VRBO)

Your choice of a niche will depend first of all on your unique circumstances, skills, and interests. But it will also depend on the market opportunities in the place and time you choose to invest.

Basically, to identify a strategy and a niche, you need to ask yourself and answer three questions.

Which niche …

interests and excites me?
uses my existing skills, strengths, or expertise?
meets a clear need in my target marketplace?

If you want to dig deeper on any of these strategies or niches, just do a search on the Old Dawg’s website (type in, for example, the word REITs) and there will be lots of articles and podcasts – all for free – to reference and to dig deeper to see what they are all about

Well, I hope that helps you. Picking the right strategy and niche can save you years of heartache and expense

Well that’s it for today!

Other podcast episodes to reference:

IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes, Stitcher, GooglePlay, iHeartRADIO and Spotify and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.

Check out our other podcasts at olddawgsreinetwork.com.

Get a FREE copy of our 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.

Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com

bmanassero

Previous post How to Get a 25% Annual Return on a Real Estate Investment Next post 603: Unintentional Real Estate Tycoon