R. E. Investment Basics

Hey guys! Here are for the first week of our Real Estate Investing Series. This week is Investment basics, we will be discussing the basics of real estate investing. The most basic idea in any investment is to "buy low and sell high". We will talk more about that in subsequent weeks but for now we will cover the basic strategies, basic terms to give you a better understanding.

There are a couple of investment strategies that people hear commonly. One is "Buy and Hold" and it's pretty self explanatory. That strategy is to buy a property and to hold that property. There are 2 ways to hold property, you can hold it to "cash flow" every month or hold it until the property increases in value to a point above the acquisition cost(what was paid for the property). So here you have 1 strategy with 2 different approaches.

The other strategy is the "Fix and Flip" or "Flipping" which is purchasing a property that needs repair, making the repairs and then selling that property to make a profit. With this strategy as with the "Buy and Hold" strategy there are potential pitfalls to be aware of. Additionally there are different ways or approaches to this strategy as well. In an effort to provide as much useful information as possible without each post going on forever I won't delve to deep into these 2 strategies in this post. I will dedicate a post to each of these to give them the attention to details that they deserve.

For this week I want to introduce those strategies/terms to you and we will get into these in more details. Keep in mind that there are multiple approaches to these 2 strategies. Put on your seat belts because this is gonna be a fun ride through the real estate investing world!

Next week: Buy and Hold

James Johnson
The Broker
CalBRE #01368706

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