Rich Dad Education – Real Estate Blog

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Real Estate Investing Strategies

Real Estate Investing

Real Estate Investing Strategies: Which Strategy to Choose?

Rich Dad Education’s elite trainings cover numerous real estate investing strategies.  The course material covered in these elite trainings prepare Rich Dad Education students to enter the world of real estate investing from the first day they leave the elite training. Each of the strategies taught in these elite trainings can be used to help students pursue their goal of obtaining financial freedom and escaping the Rat Race. Some real estate investors choose to use multiple strategies in their day-to-day real estate dealings, while other investors focus on one or two strategies that work well within specific real estate markets.

Identifying and understanding the nuances of your targeted real estate market is an important first step in determining which strategies to initially learn and master. Identifying the markets that you may want to invest in can give you a sense of what Rich Dad Education elite trainings may work best for you. Your knowledge of the real estate market goes far beyond simply helping you select which Rich Dad Education elite training is optimal. Understanding the dynamics of your targeted market will give you valuable information and data to help determine revenue projections, estimate rental figures, and calculate expenses. There are far too many advantages to not take the time to understand the specific market you are going to invest in.

Choosing Your Initial Strategy

Ideally you want to have numerous real estate investing strategies at your disposal. This will give you tremendous flexibility when approaching potential deals, as you attempt to find solutions that work for all parties involved. It will also allow you to maximize the return on your investment. For example, you might find a distressed property owned by a motivated seller that has fallen behind on their payments. You may be able to work out a short sale with the owner and their bank, use your knowledge of rehabbing to fix up the property, and then use your knowledge of lease options as an exit strategy. The only downside to learning multiple strategies is the time it takes to study and learn them. The upside offered makes this investment of time well worth the effort.

Understanding how multiple investing strategies work should be one of your educational goals. However, if you are new to real estate investing, or are thinking about pursuing a real estate investing career, this might feel like an overwhelming task. If this is the case, then initially focus on a strategy or two that is both appealing to you and one that you feel will work well in the market you have chosen to invest in. If the market you are considering currently has a very high foreclosure rate, then it might behoove you to investigate that particular strategy. If there are a high percentage of renters in that market, and becoming a landlord is appealing to you, then investigating property management might be a good place to start. If rehabbing has always sparked your interest, and there are numerous distressed properties in your targeted market, then it may be wise to start there.

As time goes on you can, and should, add to your real estate investing playbook by increasing your knowledge in various real estate investing strategies and techniques. Even if you find a go to strategy that you enjoy and are successful at, being diversified in your real estate investing approach can help you finalize deals that you might not be able to do otherwise.  If you feel overwhelmed as a new real estate investor, then take a moment to realize that all successful real estate investors had a beginning point. If you take the time to investing potential markets and identify strategies that will work in those areas, this simple step can catapult you from your beginning point into a successful real estate investing career.

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10 responses to “Real Estate Investing Strategies

  1. A. Lowe July 18, 2013 at 4:26 pm

    I would like to know where and how to title the buys so they are asset protected. That would seem only right to do so the property is protected.

  2. lostinjewelry July 18, 2013 at 4:29 pm

    I would like to know about the strategy to asset protection. I would think that would be the first to teach to give buyers encouragement to build an empire that would not be able to be attacked for the equity in this great opportunity.

  3. Rich Burton July 23, 2013 at 2:35 am

    We are having a challenge working our real estate strategies here in California. The challenge has to do with finding properties to pursue. Reading the newspapers and talking with other investors, the consensus is that much of the foreclosure properties are being bought by private equity firms and hedge funds, who outbid investors. In turn, these purchased properties are rehabbed by these groups and then rented out. To what degree this apparent phenomenon is prevalent is the question. We hear that this phenomenon is taking place across the country. How are investors like us who have been trained by Tigrent/Rich Dad education are to be effected? We have been advised to work the Absentee Owner market which we have but we have found that these owners know that there is a seller’s market and that there property can be sold very quickly by a Realtor. We welcome a another point of view.

    • Rich Dad Education July 23, 2013 at 3:32 pm

      There are a lot of hot markets right now. What you need to do is focus on the sellers who are motivated to sell that don’t have a traditional home for example, properties that need a little bit of work. What advertising and marketing are you doing other than the Absentee Owner Market?

      • Rich Burton July 26, 2013 at 12:51 am

        Thank you for your reply. I do agree on finding sellers with properties which need work. We have done such marketing, and will continue. We have placed ads through The Craigslist marketing engine, door to door inquiries, bandit signs, we are preparing to launch a post card campaign, as well as actually seeking leads off of Craigslist. One challenge that we are having is locating the actual property owner. In fact it has been down right difficult especially with accurate phone numbers. Hey look, we get it! we know what we need to do. Please share where some of the hot markets are. We’ll pursue them. Also yes we do seek markets out of California. We are optimistic but not getting a lot of traction at the moment. I guess we could use a bit of encouragement. Very grateful, thank you.

      • Rich Dad Education July 26, 2013 at 9:40 am

        Hi Rich,
        One of our mentors, Scott Wilson, has left a comment to give more ideas.
        http://blog.richdadeducation.com/2013/07/18/real-estate-investing-strategies/

      • Rich Dad Education July 26, 2013 at 3:33 pm

        Investing in Real Estate takes a lot of dedication and from what you have said you are doing, you have that. You need to remember that you are going to get told no more often than you are going to be told yes. When I first started in real estate, I remember one of my trainers explaining to me that I needed to celebrate each time I was told no because statistically it meant I was one step closer to a yes. If you are consistent and keep looking, you will find the opportunities. Scott Wilson posted a lot of ideas for you on how to find motivated sellers. Remember to focus on the people who are motivated. If a seller isn’t motivated, then they have no reason to negotiate on the price. Also, make sure that you are getting accurate ARV’s on the properties.

  4. Scott Wilson July 25, 2013 at 5:56 pm

    Hey Rich, YOUR MENTOR Scott WIlson here. I just did a Rich Dad teleconference on “Uncovering the Hidden Market” 2 days ago … this very topic. Good stuff _ maybe we can get the recorded playback link posted here for those who missed it.
    Persistance with your marketing is the key word right now. I have been ALL OVER this country this year and we are seeing these HOT markets almost everywhere, more so in the West. Remember my “30 Ways to Find Deals” ?

    1. Newspaper
    2. Internet
    3. MLS (Realtors)
    4. Networking (REIA Clubs, Chamber of Commerce, City/Town Council Meetings)
    5. FSBO’S
    6. For Rent/ For Lease
    7. Moving/Garage/Estate Sales
    8. Driving for $’s
    9. Section 8 Listings
    10. Code Enforcement
    11. I Buy Guys (Other Investors)
    12. Foreclosure (pre foreclosures, auction, REO)
    13. Bird Dogs
    14. Probate (attorney + appraiser) SEND CONFIDENTIAL LETTERS
    15. Divorce (attorney + appraiser) SEND CONFIDENTIAL LETTERS
    16. Bankruptcy (attorney + appraiser) SEND CONFIDENTIAL LETTERS
    17. Bankruptcy Court
    18. Private Money Lenders
    19. Hard Money Lenders
    20. Title Companies/Escrow
    21. Mortgage Companies
    22. Investors Club
    23. Bail Bondsmen
    24. Churches & Schools
    25. Health and Senior Services
    26. Biohazard (mold, lead base paint, meth, death)
    27. Expired Listings
    28. Door to Door
    29. Dispossessory filings
    30. Wedding Announcements
    31. Local Moving Companies
    32. Handymen
    33. Property Management Companies
    34. HOA Meetings

    This is the time where we need to be EXTREMELY AGRESSIVE with our marketing and uncovering the “Hidden Market” Finding the people that are in a “situatiuon” because “Circumstance Creates the Need” – Yes its tough out there right now but its all part of a cycle and we’ve seen it before. As little as 3 years ago there was more inventory than we knew what to do with! As far as those hedge funds and private equity firms … you are right! They are doing just that and buying up bank owned properties in bulk and renting them out. Are most of us looking to buy in bulk? I wish we could, however, those “BIG SHOTS” shouldn’t effect what we do at all. We are looking for the indviduals who are in need of liquidating their properties now not the shadow inventory of 2, 3 or 4 years ago. People who are behind on payments now! Utilize the “30 Ways to Find Deals” – There are MANY people/properties that can’t be sold through a realtor because of circumstances. Someone once said “You Need to Dig through a lot of dirt to find Diamonds” and that is particularly true now. Marketing is the key and being proactive with your marketing by making calls from your local newspapers, Craigs List, Backpage, Zillow, Z buyer etc. Make those 3 to 5 (or more) calls/contacts a day combined with your postcards, yellow letters, bandit signs, newspaper ads etc. and you will find deals. PERSISTANCE and LOTS OF IT!
    Hope that helps,
    Scott Wilson, USA Real Estate Mentor
    Rich Dad Education

    • Rich Burton July 26, 2013 at 1:51 pm

      Hi Scott, good to here from you. Your reply really helped to confirm what you taught us. Got it were on it! I guess we needed a bit of encouragement. Our energy level is full once again. grateful thanks! Rich

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