Real Estate Investment Strategies
Over the past few years, the real estate market in Pensacola, Florida has given investors something to get excited about as home values continue to increase. In fact, the one year appreciation rate of a home in Pensacola is 7.1% with the national average at 6.7%. This means great things for investors, homeowners, and the community.
CM Complete Home Solutions is positioned right in the center of those great things. We are a real estate investing company in Pensacola, Florida and its surrounding areas, but we are by no means limited to just this area. Rather, we work the entire Florida Panhandle, performing a variety of real estate investment strategies.
There are 4 very basic real estate investment strategies.
Buy and Hold
This is a rent-for-profit or “turnkey” property. Generally, it is acquired through a bank loan. However, many investors will place a down payment while the tenants pay the mortgage through their lease and cash flow a certain percentage for their monthly profit.
The following strategies are a little more creative and are generally financed with cash or other creative means of lending. Hard money or private lending are common ways to finance the loans needed to implement these strategies.
This is generally a cash deal sold quickly and at a very discounted price with little of the investor’s cash involved. The wholesaler actually assigns, for a fee, his rights, responsibilities, and obligations over to another buyer.
A short-term strategy that involves a moderate amount of risk on the investor’s behalf. It is generally financed through some creative means and involves the investor purchasing a house in need of repair. The property should be bought at a price that offsets the cost to fix or update the property. Once repaired, the property is then sold on the open market for a profit. The keyword here is profit.
An alternative to purchasing a turnkey rental property, a fix-and-hold strategy involves an investor making a purchase, repairing the property, and holding it for the purpose of renting it out. The initial investment is generally funded through conventional means and is recouped over a longer period of time. However, if creative funding is used in this strategy, the investor will often refinance the property with a traditional mortgage after the purchase and repairs are complete. A fix-and-hold rental turnkey property can yield nice returns.
There are several other strategies that savvy investors use to generate profits. These are just the four basic strategies that the rest fall under.
We would also like to know what other topics interest you. Feel free to go to our contact page leave any suggestions on topics that you would like to know more about. Investment real estate is our passion. We enjoy sharing the knowledge we have acquired to others that feel the same passion as us.