Continuing the previous post, check it out if you haven’t read it yet. We saw how Investment goal/purpose drives the Investment strategy. We will look different strategies now.

What is your Investment Strategy/Investor Type?
It is an important question for every Investors to ask themselves. Like Swing traders, Momentum traders, long term investors in stock market arena, there are also different types of investors in the real estate. Investors need to figure out what type of investors they want to become before they start anything in real estate. Whether they want to Flip houses or Buy and Hold and Sell later, Wholesell or Buy and Hold as long term rental property. The answer can be found by self analyzing your investment goals and purposes as I mentioned earlier.

Buy and Hold
This is my favorite strategy. Many investors like to Buy and Hold during this uncertain period and take advantage of the rental income stream as cashflow for their investment. It’s a long term investment strategy and needs dealing with tenants. I have two rental properties in Northwest part of houston which I manage myself. It requires little bit of hard work initially but with the help of management companies and warranty companies you can reduce your burden and save time as well. Let me share about 3 common strategies famous around investors.

Flipping
Many youngsters who have more time in hand look to make quick bucks, then flipping would work well. Some investors don’t want to get stuck on home ownership, handling tenant, fixing and cleaning when every tenant moves out and so forth. They just want to find a house, fix it and sell and move to another one. For them Flipping is the way to go. But it requires cash, time to get fixing done quickly and good networking skill to market and sell the property.

Swing investors
If you want to be in the middle, you can Buy and Hold and Sell within few years like Swing traders in Stock market. It is bit tough to predict the future in this bad real estate market but holding for 3-4 years until the market gets better and sell it off wouldn’t be a bad idea. Many investors like to take this route so they can rotate their money and also make bucks on investing without taking major risk. For this type of strategy, single family might be hard target but with great location and appreciate potential neighborhoods would be big plus.

To conclude, I like to repeat it again. Follow your instinct not some guru. Try to find your investment goal if you don’t have one, create one and shoot to reach/achieve the goal by adapting a proper investment strategy. All parameters for the criteria will automatically fall in place when you choose the goal and strategy to follow.

Happy Investing!!!

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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