Mar 032014
 

bigstock_Stock_Market_Financial_Dice_Ro_3524204

Speak with fellow real estate. It is helpful to get the advice of investors who are more experienced than you. It can be helpful to have contacts who know a lot about investing in real estate investing. You can easily find a community of investors online. Join a few forums and make an effort to meet some of the users.

We are at a fantastic time in the real estate cycle to be executing real estate value investment strategies. It’s time to get off the sidelines and get in the game. There are 8 value creation strategies you can use to generate big profits in today’s favorable market for real estate value investors.

Learning about real estate costs in the way of time and sometimes extra money. It may be that you just sacrifice some of your time to pick up the basics. Learn all the things you can right now in order to make money in real estate.

While cash flow is important to an investment, the real big kahuna that pulls the heavy weight to making money in the value investing space is equity build-up. We are value creators. We take undervalued real estate assets and find entrepreneurial ways to make money – real money, sometimes in a very short period of time.

Remember two things when your negotiating on any real estate transaction. First and foremost, listen more than you talk.Your primary concern is to protect your interests and increase your net worth.

With property values drastically down in many markets across the country, it’s time to capitalize on this amazing “once in a lifetime” buying opportunity.

Don’t overextend your efforts in real estate.It is better to start small than to invest to much right out of the gate. You don’t want all of your savings to be taken up. Your investment should supplement not replace your existing plans. Once you’ve realized success, you could reevaluate your plans.

Through research and analysis, we can uncover value creation opportunities by identifying inefficient markets. Question: Where have prices fallen below their intrinsic value that offer great value creation opportunities? Once you have uncovered a value opportunity where you can create value, you will use one of these 8 value creation strategies to capitalize on an inefficient market.

Come up with a solid plan when you are investing in real estate investing. Have a good plan for your property before you invest.Figure out if you’re going to buy and hold, rent, flip or buy and hold the property. It is easier to choose an investment property when you have clear goals in

8 Value Creation Investment Strategies

1. Buy Real Estate Below Replacement Cost

2. Buy Lower Class Properties and Reposition Them to Higher Class Properties

3. Buy and Revitalize Underperforming Properties

4. Buy Properties in Rebounding High Growth Markets

5. Convert Properties to Other Higher and Better Uses

6. Buy Distressed Troubled Loans and Notes

7. Buy and Add Additional Square Footage to Existing Property

8. Buy Property and Reposition to Target Niche Tenant Base

Some strategies are easier to use while others are more advanced. Some strategies are better used early in the real estate cycle recovery while others may be better to use well into the growth period of a real estate cycle. Mix two or three strategies together and really boost the profit potential of your deal.