An overwhelmingly vast number of people make their first investment in residential real estate when they purchase their first home. Most of these people do not really concern themselves with the investment aspects of the deal. Instead, they are looking to develop roots in their community and provide a solid and respectable foundation for themselves and their family. The day does come, however, when many of these homeowners realize that their investment in life has turned out to be a particularly good financial investment as well.
For these savvy investors, residential real estate investing has become identified as a way for them to make their money work for them. To this end, some hope to “buy and flip,” others “buy and hold “ and yet others, first trust deed investing to maximize their earnings while eliminating most of the work.
Buy and Hold
The traditional method of residential real estate investing is as old as the adage, “Buy Low and Sell High.” There are some significant advantages to this method as Donald Trump and other successful developers will attest. Still, it takes a patient hand and a watchful eye to reap the rewards of this method. Windfalls are rare. In fact, most real estate empires are built over multiple generations.
Buy and Flip
Another great way to get rich and then broke is by buying and flipping properties. It’s great while it lasts but those poor guys at the end holding the “hot potato” are often times ruined when all is said and done. There is a lot of expertise, experience and, yes, insider knowledge that goes into a successful buy and flip strategy. If you’re not in the loop, this strategy is a crapshoot at best.
First Trust Deed Investing
A far more certain foray into residential real estate investing involves hard money loans and first trust deed investing. These investments yield in the ten percent range and higher, are extremely versatile in meeting the investor’s financial goals and are as safe as the traditional mortgages issued by the finest financial institutions in the country.
Anyone interested in availing themselves of the opportunities in the current residential real estate market should investigate the possibilities of private money loans guaranteed by first trust deeds. They are simply the best route to residential real estate investing available today.