Investing Strategies For
Real Estate Investing

At this time, we will take a look at the most popular investing strategies. We will go into the pros and cons and end with our recommendations. Pay close attention to details and determine what is most compatible with your lifestyle.

Below are the most popular investing strategies for residential real estate, at this time. Click on each choice to get more details on that particular strategy:

1. Flipping Houses


2. Rental Property Investment


3. wholesaling


4. Passive Income. This includes: Private Money Lending, Tax Lien Certificates and Real Estate Investment Trusts.


5. Short Sales


6. Preconstruction Real Estate Investing

Notice I did not include Commercial Real Estate investing.

I am a firm believer in Commercial Real Estate. In particular, apartment buildings and complexes, though retail establishments are also great.

However, I strongly recommend you begin by mastering residential real estate first. I really mean to become an expert at it. It is the most fundamental field of real estate investing and if you cannot master it, you will die a tremendous, but fast financial death in commercial real estate investment.

Look at residential real estate as your bread and butter. It will always be there and will consistently produce income when other real estate investment markets fail. No matter what other investing strategies I am involved with, I never pass up great single family residence deals. Residential real estate is, by far, the easiest and fastest property to sell.

You will undoubtedly be in a situation where you will need a quick sale, to free up some cash. (not necessarily for negative reasons) Do you think you will be able to sell an apartment building, apartment complex or retail center quickly?

The financing process, alone, will take a minimum of 90 days....That's if your are very fortunate. Add that time to the time it will take to get a buyer to put the property under contract, in addition to inspections and appraisals and you could be talking 6 months to a year. Commercial loans are not like residential loans. Neither is the rest of the process.

I have been a fulltime real estate investor for 23 years. Within that time, I made the mistake of investing in a commercial property, before I was financially ready. I had done several successful residential deals and was confident I could handle a commercial deal. My thinking was that commercial real estate investing was like my residential investing strategies, only bigger.

I could not have been more wrong. It was the biggest mistake of my real estate investing career.

Contrary to some well known teachings, if you need to use the prorated rents, you receive at your commercial real estate closing, as part of your operating funds, you are not financially strong enough. You absolutely must have cash reserves when dealing with any form of real estate. However, this is especially true when it comes to commercial real estate.

I lost approximately $500,000, which promptly turned into a little over $900,000 after penalties, interest and other mishaps.

If it were not for my ability to continue my residential real estate investing strategies, I would have never recovered. I still get chills when thinking about that ordeal. Residential real estate investing saved me....absolutely no doubt about it.

You will know when you are ready for commercial real estate investing. There will be no question in your mind. Use Time Value Real Estate Investing as your investing strategy, to build up plenty of cash and reserves for your bigger financial opportunities.

Which is the best of the above investing strategies?

I'm sure most of you guessed it by now. Investing strategy number 2...Rental Property Investment. Otherwise known as Buying and Holding. If you use TVREI, you simply cannot go wrong with buying and holding. As you will later see in the full step-by-step instructions on purchasing a property using TVREI, you will receive a good amount of cash when buying. You will receive enough to enjoy yourself, pay some bills and put away enough for adequate reserves.

You will buy at deep discounts so you will also have a great deal of equity, which is known as "paper profits." This will create a very strong Financial Statement, showing a great Asset to Debt ratio. You will have a high Net Worth. Financial institutions love to see this.

By the way, the cash you receive from applying the TVREI investing strategies will be tax free.

Take care of your real estate over the long haul and it will take even better care of you. You will already purchase at deep discounts. However, the value increases over the years will tremendously improve your equity position. You will look back over the years in amazement at the growth of your little real estate investment.

Over time, your rents will steadily increase, though your mortgage payments will remain the same. This creates an ever growing cash flow. Before long, you will pay off your mortgages, one by one, adding significant cash flowing assets, for retirement and for your estate.

I know I mentioned this before....but the sense of accomplishment derived from paying off a mortgage is so gratifying, you will never get over it. You will be smiling to yourself, many years later.

And to boot, your paid-off property will continue to increase in value.

Rental property investment is, by far, the best of all the investing strategies. Keep your property for a minimum of 5 years and you will never want to sell it, unless it is absolutlely necessary.

The only time I will sell an investment property, I intended to keep, would be to buy many other investment properties.

This will happen from time to time. You will run across a deal so great, you will need to liquidate a few properties, to take advantage of the investment opportunity.

That is the only instance I look to sell. Otherwise, rental property investment, for the long haul, is the best of all investing strategies.


From Pt 2 - Investing Strategies on to the next series: Pt 3 - Foreclosed Homes and Other Sources of Property.