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Classic formula of purchasing fixer homes at sub-market rates and reselling them on the retail markets for profit. Usually involves homes that need remodeling and repairs or those with “functional obsolescence” due to outdated / undesirable features & design.
Using the help from a construction / builder company working with the investors and real estate brokerage to find best land / construction projects for new properties OR ADU housing projects and Room Additions to increase the value appreciation and then reselling them at retail pricing.
These investment properties don’t have to be “fixer homes” where there is a substantial renovation expense. Instead, this new formula involves installing Solar Energy Efficiency. It was derived from the principle of investing to “boost” clean energy efficiency while increasing the value & price.
Unlike Fix & Flip properties, these can even be acquired at a fair market value price. That is because it becomes a “Rental Income” buy & hold property with tenants. Then, after 1-2 or more years, it would get resold at a markup to another rental investor or syndicate OR to the occupants.
This strategy is normally used by more savvy real estate investors who know exactly how to “bridge” or CONNECT one property equity earnings / cashout into the next property acquisition to cover for the marginal difference in price while balancing out the investment holdings to secure it by real property as bridge capital with more purchase power and certain tax incentives being a re-investor.
Among the easiest ways of breaking through real estate markets by purchasing a home with cash or purchase loan and then reselling it at the right time at the highest value cash-out with capital gains tax incentives. Under this formula, Occupant-Owner has to live on property for at least 2 years.
Involves mainly REO properties in auctions OR or shortsale / foreclosures. These are typically bank-owned and HUD REOs / REPOs. Bid & Flip also applies to ANY low priced distressed property that’s in competition with other buyers/investors due to a desirable location and property condition.
Common way to invest by becoming a Private Money Lender Investor who’d form a trust deed via a private loan provided in exchange for equity secured by real property holdings. It is geared toward non-owner-occupied investment properties under a 2 years term of interest only payments with the balloon payment due upon the sale of property OR interest & principal due upon sale.
New affordable REI formula of cleaning, trimming, removing & staging in order to make the property more appealing in value. AKA: Trim & Flip – considered to be a subtractive method of real estate investing where “less is MORE” – for instance, if high quality carpets & modern cabinets are filthy and don’t need to be replaced, they’d be cleaned thoroughly without major costs of remodels.
For those who wish to sell their primary residence home of high property value “to split” the equity cashout to pay for a lower priced primary residence while the remainder pays for the non-owner occupied investment property. It’s as if splitting 1 home into 2 homes with 1 or more becoming a REI income property. This also applies to sub-divisions of bigger properties and ADUs.