Real estate investors have the luxury of many investing options, such as Foreclosure Short Sales, Bank Real Estate Owned (REOs), Bankruptcies, For Sale By Owners (FISBOs), Wholesaling, Rehabbing, Buy & Hold, Lease-Options, Bank Financing, Private Lenders, Hard Money, Commercial Real Estate, Single Family Homes, Multi-Units…the list goes on.  Guru after guru will pitch the latest and greatest way to make millions in real estate, but every investor must eventually chose their own path.  All things being equal, one strategy may not be better than another, but different strategies may be better fits for different investors. 

So which strategy should you choose?  This decision can cripple beginning investors, as their heads spin each time they hear about another money making strategy.  Constant learning of diverse real estate investment options is important, but what is more important is to pick a strategy you understand and then start taking action.  There are a few basic considerations to make when weighing possible investment options, such as how much time you have available, capital requirements, and credit history; But with a little creativity none of these are completely limiting factors.  The main thing is that you feel comfortable enough with your game plan to take action and make it happen.  Good investors turn into great investors over time by continuing to master their chosen strategy through repetition and experience.  Nobody is an expert in everything, so sticking to a strategy that you understand and then constantly working to perfect your business plan is key to building your core investment business. 

Once you have one strategy down, you can learn new strategies to complement your “bread and butter” strategy.  Complementing strategies become important for long term investors, as different strategies can work better depending on the situation of the deal and what is happening in your business as well as the larger real estate and economic cycles.  For example, if you are a buy & hold specialist, you may work the occasional wholesale deal to give your business a capital injection needed for continued growth.  Or if you are really good at buying, rehabbing, and selling houses, you may also start to buy and hold some properties for cash flow in the event that the retail market slows (sound familiar?).  Having the ability to creatively adapt to changing business factors is what keeps long term investors in business during good times and bad. 

Please note that this column reflects the opinion of Chris Knoppe.  Comments or questions can be directed to Chris.Knoppe@OhioRehabLoans.com. For more information about Ohio Rehab Loans visit www.OhioRehabLoans.com or call 614-433-0570.