Posted 5 months ago

What is Hybrid Real Estate Investing?

Hybrid real estate investing is a ‘hybrid’ of the tried and true models of Buy & Hold and Fix & Flip. Investors get the high returns of an active investor plus the tax benefits, cash flow, and appreciation of a passive investor. It’s a short-term (1-3 year) investing strategy where people who want to buy a home and cannot currently get traditional financing are thoroughly screened for eligibility. If they qualify, they choose a home, and an investor (or group of investors) buys it. The tenant-buyer pays rent to the investor and lives in the property until they are eligible to get a traditional loan and buy the home from the investor (rent-to-own aka lease option). Another option is to sell on a Contract for Deed (seller finance aka land contract).



Comments (2)

  1. This sounds pretty awesome! So could you basically do multiple deals every couple years then this way?


    1. Totally! For round numbers say that instead of putting down 20% for an investor loan per property and locking up that money, the investor gets money up front from the tenant-buyer before closing. If they bring 10% then the investor only has to bring 10% net. Which allows them to do twice the amount of deals. Then when they purchase in 1 to 3 years the investor can do it again and get money up front, cash flow and a back end pay day when they sell at the appreciated agreed upon price. Rinse and repeat.