3 Sure-Fire Real Estate Investment Strategies

Posted on: November 20, 2008 Posted by: Real Estate We Blog Comments: 0

3 Sure-Fire Real Estate Investment Strategies

Most real estate articles published online are very vague and don’t go into specific detail. When I first started out learning about investing, I struggled to find articles or blogs I could actually take action with. This problem still exists today so any gem I find it worth promoting.

Recently I was looking for some new interesting real estate investing sites and came across one by John T. Reed. He’s a seasoned real estate investment author and veteran (20+ years) who provides free articles and advice to beginners. I like the fact that he even includes his previous investment properties (addresses and all) on his site.

His site covers all aspects of real estate investing but I’m specifically going to talk about his “Suggestions for beginning real estate investors” section.

In this section, John talks about three broad categories of investment strategy which are the following:

  1. Bargain purchase – the purchase of real estate for at least 20% below current market value.
  2. Increase value – you buy select properties for its current market value with some unrealized potential
  3. Double-digit cap rate – buy the building on terms that it has a capitalization rate of 10% or more

He then goes on to talk about holding periods (long-term vs flip), time available, cash available, aptitudes, people skills, and ethics as well as listing several bargain-purchase technique articles from back issues of his monthly real estate investor newsletter.

Real estate investment advice is the only field I know where the worst material available is also the most expensive.

-John T. Reed

Check out his site and let me know what you think. Take some time to read through his articles since it’s not often you find free articles like this with such valuable information. You can also subscribe to his newsletter ($125/year) or purchase his books which are only available on his web site (not on Amazon.com or in book stores). I haven’t read any of his books so I can’t personally recommend them however, he knows quite a bit about real estate investing and his web site is very informative.

John T. Reed is an author and self-publisher of several books on real estate investment. He was a real estate investor for 23 years and worked as a real estate agent and property manager.