Its been a Super Long time since I wrote anything Real-Estate Related as I had shifted my focus to the stock market intermittently and realized how long its been since I addressed my Current situation in Real Estate investing. As I become more proficient in the Stock Market, I will share my findings as to similarities to real estate investing as well.,
Here it is….and here we are. So, last time, the journey was all about Buy and Hold Strategy. This is where you find a property at the best possible price and then whether its off-market, or On-Market MLS, provide offers and once its accepted, the fun begins. There is so much Due Diligence in Property selection that it deserves its own topic so we will discuss that in more depth in the future.
Where does the fun begin? So, as the due diligence process is completed, the selection of the property in terms of location has been identified, average price of rents in the area has been noted along with the Debt Service to truly come up witn Debt/Income ratio and finally the decision of management is identified. This comes down to LandLording or hiring Property Management team to handle day-to-day operations of the property or properties.
There is no right or wrong answer as to which option the investor chooses, it depends on Strengths and weaknesses. This also deserves its own highlights as well and will be discussed in more detail in future write-ups.
Lastly, the property is now ready to be fixed up for any needed repairs and listed available to Qualified renters as one of the best options for Housing in that area.
And now things change….So, after several years with steady cashflow, My Credit partners wanted to divest and go into a Different direction based on their Needs and wants at the time. So, with several meetings and discussions, it was FINALLY decided that they would be exercising their final “Exit Strategy’ of divesting and profiting (buy-out) so that my Business would be the Sole-Owner/Operator.
I chose Property management as the Primary option to handle day-to-day activities simply because the property is OOS (Out-of-State) investment property. Im a firm believer in treating a Business LIKE a business and allowing the best Team to handle what it does best.
So, now, that this changeover has taken place – another Brainstorm has taken place with another valuable team member of my Power Team and the decision was made to enter into the Fix N Flip investment niche strategy. What does Fix N Flip mean?
Fix N Flip simply means that once the due diligence has been completed, the type of property that is purchased is distressed. The Goal is to fix up the property to the top Notch level so it can be sold to an aspiring homeowner. More on this topic in the next version. Just remember, timing is everything and Fix and Flip projects are Very risky to do to say the least. This is not for the Solo entrepreneur to handle alone.
Stay tuned for more in-depth discussions on this Fix N Flip strategy.