Like many other investment vehicles, real estate provides an opportunity for investors to generate long-term income and increase their net worth. A major benefit of real estate is that there are many different ways to invest in real estate. You can choose a strategy that best aligns with your goals and risk tolerance and still have an opportunity to succeed. By knowing several strategies for investing in real estate, you too can be prepared to create abundance for yourself and your family. 

Single Family Residential

Single-family refers to a stand-alone house or a free-standing residential building. Think about your typical home or apartment. Oftentimes in real estate, there is a large focus on owning multi-family homes. Single-family investing can be a strong strategy for many for several reasons. 

Single Family offers higher rental prices. Usually, people are willing to pay a little more for privacy and space. Single Family homes and apartments offer both. Also, tenants tend to stay longer over time in Single Family. Maintaining a long term paying tenant is very beneficial for landlords. Tenant turnover can become costly and requires work. Also, for new investors, Single Family has a lower barrier of entry and is a great place to start.

Multi-Family Residential

Multi-family residential is a classification of housing where multiple separate housing units for residential inhabitants are contained within one building or several buildings within one complex. Units are typically next to each other or stacked on top of each other. An example of a Multi-Family is an apartment building. Multi-Family residential is different from multi-family commercial. The difference comes down to the number of units within the multi-family property. Residential is classified as 2-4 units while commercial has 5 plus. 

There are many reasons to invest in Multi-Family residential. Typically there is increased cash flow. More units equal more rent for the landlord. Also, because we are talking about Multi-Family residential, this still qualifies for residential-style loans which are more affordable. Finally, Multi-Family residential is also easier to manage. 

Wholesaling

Wholesaling in real estate is when you as the wholesaler contract home with a seller and then find an interested party to buy it. Essentially the wholesaler contracts the home with a buyer at a higher price than with the seller and you get to keep the difference. 

This is a great strategy to involve very little to no money of your own. Wholesalers need to find motivated sellers and put the property under contract. By leveraging a network you develop of buyers, you can create a system for finding other real estate investors to assign the contract to. 

Fix-and-Flip 

One of the most commonly known forms of real estate investing, fix, and flip presents itself as a good opportunity for investors that are willing to get their hands dirty. The upside can be very rewarding as you can net thousands of dollars on a single deal. Real estate flippers have built successful businesses around this model. If you are hands-on and have the ability to make repairs to a home, then fix and flip may be a good place for you to start.