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).