3 SMART REAL ESTATE INVESTMENT STRATEGIES FOR 2020 

Over time, the real estate industry has constantly held its spot among the safest and most lucrative investment ventures the world has ever known, creating a lot of today’s millionaires and even billionaires. Although this fact remains true till date, the strategies for investing and amassing so much wealth have evolved from time to time. In this quick-read, you’ll learn the best ways to make money from real estate in today’s market, and hopefully soon, with a laser-focused mind, discipline, and a bit of luck, you too can join the league of the super-rich. With that said, here are 3 smart real estate investment strategies to consider in 2020.

1. Invest in Long term rentals. 

The idea of renting out homes is as old as civilization itself, however, it remains one of the best ways to make money in 2020. Even though we have more rich people today than in the previous decade, most of these people are beginning to embrace different cultures, cities, and lifestyles. The tourism industry is at an all-time high and is still growing rapidly by the day. People now travel to other countries to pursue their education and end up settling there. Besides that, not everyone will be able to afford a home as soon as they need it, and would, therefore, need a place to call their home until they can afford theirs. This particular group of people will end up renting a home for as long as they can, and this means cash flow every month for you, which adds to the equity build-up in the home. If you would like to own a rental property in Los Angeles and Orange County area, simply click here, and we will gladly recommend our top investment properties based on your interests. 

2. Invest in Short term rentals. 

This option is most suitable for those who already have a home and would love to rent it out for short term periods (anywhere from one day to three months). With companies like Airbnb, you can easily invest in short-term residential rentals, making your home available to the large crowd of people who would prefer to choose an alternative accommodation option rather than having to stay at the hotel. This is usually preferred by people traveling together as a family or a team and would not want to be separated. Short term rental units have reduced the vacancy rate of properties, and are, therefore, one of the best ways to make money in today’s economy. However, when setting up a short term residential rental property, focus on vacation cities and areas where the demand for this option is high. If you do not have a property of your own, you can search for, and team up with “Absentee owners” in your area. You can also bond and network with out-of-state landlords. This involves no capital, and you get to share the profit with the homeowner. 

3. House flipping.

To make the most of this option, you will need to need to search for motivated sellers. In real estate, there is a popular saying that goes: “You make money when you buy.” The cheaper you buy a property, the bigger your profit margin gets, and that is why you need motivated sellers. Buy the property, spend a few bucks on the renovation, and resell for profit. Note that not all repairs are necessary, and focus on the ones that will increase your chances of selling the house fast.

4. Real Estate Investment Trusts.

With different REITs coming up every day, it is easier to invest in real estate in 2020 without the unnecessary property hassle. In this list, this is the easiest to do, and unlike the rest, you can get started immediately and have your money working for you before the end of today. It saves you the process of finding the right property, buying, selling, dealing with tenants, mortgage companies, etc. There are basically three types of REITs, namely: 

1. Equity REIT (primarily invests in properties). 
2. Mortgage REIT (primarily invests in mortgages). 
3. Hybrid REIT (a combination of equity and mortgage). If you have more money than available time, this is your best bet.

*REITs are funds that are set up to invest in different mortgage instruments and real estate stocks.

*Motivated seller – This is a seller who is willing to sell his or her property at a price below the market value (as much as 10 – 40% less than the actual price), most often because he or she is going through a property related problem or financial difficulty.

If you like to learn more read our latest posts Close your real estate deal.