Most property investors when they are starting out, struggle to know which strategy to choose…
In fact, even experienced property investors can often lose sight of which strategy will create the most bang for their buck.
In 2005, I can remember choosing the Buy, Reno, Sell strategy because that’s all I could get my head around…”
…subdivision and development just looked too scary for me to even contemplate in the early days.
When I look back though, I can see clearly (hindsight is a wonderful thing!) that had I taken a step back and had a proper look at what I wanted to achieve, my outcomes could have been far more fruitful.
So today I want to take all the guess work out of choosing the right property investing strategy so you can get crystal clear on which path is going to serve you best.
First of all I want to narrow the potential strategies down to just 4… of course there are many more ways to create profit in property but…
… having too many options is the exact reason most investors fail to even make a start.
Choose Your Own Strategy
The Big 4 most investors choose are:
- Buy & Hold (and hope!)
- Renovation (to sell or rent)
- Subdivision (to manufacture chunks of cash or positive cashflow)
- Development (to manufacture chunks of cash or positive cashflow and sometimes both)
Like I said there are many more ways to profit from residential property deals including: Call options, Strata Titling, Vendor Finance, Lease Options, Joint Venturing, Money partnering, Land banking and the list goes on…
In fact you’ll find many multiples of these options when you start dovetailing some of them together!
Whatever property investing strategy you choose, there are certain critical components that need to be assessed:
- Cash (For deposits and funding the add value strategy)
- Project Length (How long you and your money are going to be in the deal)
- Time required (How much of your time you’ll need to invest to extract a profit)
- Skill (Have you got the skill to make this strategy work?)
- Risk (Are you going to be able to sleep at night while the project continues?)
- ROI (Return on Investment which includes time and money invested)
Ok that’s a lot of parameters to consider and it’s easy to see how investors can get off track before they even start.
To help you pull all this information together I’ve created a Strategy Matrix to help you achieve a realistic overview of what’s going to be expected of you and your skills and resources.