Real Estate Investor · Agoura Hills, CA · Member since 2010 · 55 posts · 66 votes
There are many strategies that people on this site employ: fix & flip, buy & hold, or buying paper instead of property. Giving this uncertain economy, which strategy are you using and how did you decide which would be best for your and your group (if any). :lol:
I know several people working each one of these strategies in California. It really depends on the area they plan to invest and what their personality type is. Some people LOVE working with sellers direct. Some people like negotiating short sales. Some people just love the cut and dry business of vacant REOs.
I know several people working each one of these strategies in California. It really depends on the area they plan to invest and what their personality type is. Some people LOVE working with sellers direct. Some people like negotiating short sales. Some people just love the cut and dry business of vacant REOs.
It really depends on the area they plan to invest and what their personality type is.
I agree with this statement. Here in the Phoenix market. There are certain areas(pockets) that support different strategies better.
Some like south Scottsdale are prime for rentals(buy & hold) because the area is desirable for renters and investors are able to pick up great properties with little work needed and cash flow immediately.
In summary, I do believe it depends more on your local market as opposed to the economy as a whole.
I continue to fix and flip, buy and hold does not work where I am at and I am a tired out of area landlord.
I have also started investing in notes, have 2 already and working on the third. I like this because it is passive-profitable and I have multiple strategies inside it, I can hold the paper or flip it.
Although finding the right deals for fix and flip is tougher, I continue to pursue it as it is well worth the efforts.
Though I am not a fan buy and hold is with out a doubt the best strategy for this market. This is the perfect time to buy and though there is a chance values will continue to decrease, there is an even greater chance it will appreciate. I say buy and hold! If you can that is.
I generally can't make sense of a buy & hold strategy because of the difficulty in securing financing. It is interesting to read these insights because they reflect the range of personal investing styles that are available.
Strategies change as conditions change. Initally I was flipping but ended up with two houses I could not sell so I switched to lease/option which covers my holding costs and the option is at a price just below what I expect the value to be at the end of the lease.
If you are in or near a major city I would highly recommend buying and holding on at this juncture.
In many major metropolitan areas now you can lock in tremendous yields for the rest of your life; with the option to liquidate at a later point in time if circumstances warrant.
For this strategy depending on how many properties you want to buy in the near term - you will definetely need sufficient capital, fairly high income and prepared to deal with any issues that arise.