4 Strategies Real Estate Investors Should Know About

The real estate investing market isn’t static and unchanging, it moves with the times and behavioral trends. As an investor, noticing the shifts is the key to protecting …

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The real estate investing market isn’t static and unchanging, it moves with the times and behavioral trends. As an investor, noticing the shifts is the key to protecting your assets and maintaining your profitability. New models are born all the time, seemingly coming out of nowhere, and models that used to be mainstream also start to become less popular. For example, there was a time where fix and flips were the most popular way for investors to make money, but now because the costs don’t make sense, and the current market isn’t designed for short-term holds, people are favoring other methods.

Smart investors don’t insist upon forcing a method, they observe the market, see what’s working and then pivot to that. In the last 12 months, we’ve seen many changes in the real estate market. Many cities are suffering from a historically low inventory, coupled with low interest rates, making it a really competitive market to buy property for both residential buyers and investors.

It’s not the end of the world though, here are 4 investing models that you can employ right now to set yourself up for a great future.

Zoom Towns

A boom town is a city or locale that sees a rapid explosion of population and economic growth because of oil or gold. In the wake of the pandemic, something entirely new has sprung up, Zoom towns. With people working from home and not needing to commute to the office, people decided to move into the outskirts of the city or even into the rural areas, where they can have more space and more affordable accomodation, while still getting an internet connection so they can work. It’s created a market for desirable places to live outside of big cities.

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This has led to the rise of Zoom towns, places where people have moved to escape the crowded city and experience a higher quality of life. As a result, in these towns, property prices have increased significantly because of this new demand. As an investor, you can easily get a piece of the action by buying property in these areas, and equipping them with good internet and great amenities so people can come and have a long and comfortable stay. If you can snap up a good piece of property, it can produce a ton of income for you.

The great thing about this strategy is that it can be applied to every price point, even in the luxury market, it can be incredibly lucrative. According to Bay Area Luxe Homes, “The popularity of Zoomtowns, however, are also creating an opportunity for Bay Area real estate to thrive.”

Residential Assisted Living

An area in the housing market that’s often neglected and overlooked are the senior citizens who don’t want to stay in full-on nursing homes, but also still need care and support. This has led to the rise of what’s known as residential assisted living, a service that allows them to stay in their homes while also still getting the care and attention they need. These people have equity in their homes and need cash, so as an investor, you can give them the opportunity to stay in their homes, give them access to some much needed capital, and solve a pain point for an underserved demographic.

House Hacking

How does a real estate investor live in a multi-million dollar home paying only $1000 a month? Through a strategy known as house hacking. With househacking, an investor buys a home and then subdivides it to create multiple dwellings for different tenants.

These tenants pay the rent and it’s a win for the investor because it reduces their mortgage payment. It’s even better to do this strategy with a multi-family dwelling because it allows you to really maximize . If you want to buy a home, reduce costs, pay it off quickly, house hacking is what you might be looking for.

Buy and Hold

Buy-and-hold is certainly not a new investing strategy but in the last few years, it has become less popular than strategies like fix and flips and wholesaling. Most people think they need to flip a home for profit as soon as possible, but right now that’s the last thing you want to be doing. Part of your investing portfolio has to include properties you want to hold in the long run. With these properties, you can be assured that your investment is going to be protected from market volatility while guaranteeing appreciation and a growth in your investment.

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