I am starting to work on a series of class that I will be teaching for paying subscribers to the substack.
The above is one of the slides.
It discusses the primary ways I categorize different real estate investing strategies like the ones shown below.
I believe that each strategy can be categorized with two different sets of grouping criteria: a primary categorization set of attributes and a secondary categorization set of attributes.
For the primary categorization, I think we’re most concerned with:
How we enter the deal… specifically… how we find the deals (channel) and how we finance the deal (financing). For example, with Buy and Hold, we might usually find them in the MLS… although we can find them in lots of other places like FSBO, foreclosure auctions, etc. And, we might usually finance traditional Buy and Hold properties with traditional financing.
How we hold the deal… specifically… whether holding the property is mostly active or passive and how long we hold it for. For example, with fix and flips, it is a very active holding strategy and relatively short duration… maybe 3 to 9 months for most flips.
How we exit the deal… specifically… how we sell the deal and how the buyer finances the deal. For example, with lease-options we often will sell the deal by advertising it as a rent-to-own to a tenant-buyer and then “finance” it by renting it to them for a year or two or three and then they usually come in with traditional bank financing to exit the deal.
Those are the primary ways we categorize real estate investing strategies.
But, I have a secondary categorization method of the less common—but often more important—components.
These consist of things like:
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