The next popular strategy with investors is the long-term rental strategy. A slower, more gradual plan in the investment industry, but still very effective. As a landlord, investors can find properties that are ready to go and can start earning rental income as soon as they find a tenant. This strategy is more scalable and much less intensive than their hands-on rehab work. Investors that don’t want to deal with rehab costs and manual labor typically favor the long-term rental strategy. With a number of units in their portfolio, the long-term rental stream can be lucrative if patience is displayed.
Lenders all over the country are looking to tailor their loan programs to investors’ needs. Always talk with your local or preferred lender to see what they have to offer. Programs such as ground-up construction, short-term vacation rentals (AirBnB), and multifamily loan programs are usually all available depending on what route investors want to take. Fix and flips and long-term rentals are certainly the most popular, but not the only way to achieve success.
Building a reliable network
For an investor, one of the most impactful benefits is making connections in the industry. Being able to build out a network before, during, and after the investment process is vital to sustaining success. There are a number of other professions within the investment space that investors can rely on to help them thrive in the industry.
The first contact that any investor would want to meet is a local realtor or real estate agent in the market they are interested in. For investors, having a working relationship with a realtor can be so beneficial. They’ll be able to alert investors when houses are going on the market and act as a valuable lead source. An investor that can get their eyes on a property first and put a bid in is one that is putting themselves in a position to succeed. Realtors also have a contact list of potential renters and buyers. Investors with long-term rentals or fix and flip properties can leverage these realtors’ contacts to fill their properties at a much faster rate.
Speaking of fix and flips, a general contractor should be the next relationship that an investor seeks out. Once investors secure a property, finishing the renovation projects in a timely and cost-efficient manner is a must. With general contractors, investors have workers ready to go that want to get the job done and get paid. If they are aware of an investor’s strategy and wants and needs, they can set up their schedule to match that of an investor’s. If they’re guaranteed work throughout the course of the year, they’ll be very amenable to an investor’s needs and prioritize their jobs over anything else.