Updated: Aug 12, 2020
Investing in real estate has been, and still is one of the top ways investors can increase their wealth. It provides investors with a broad range of opportunities and each opportunity comes with its own level of involvement. This is a double edge sword because on one hand having a large list of options gives you more freedom of choice but on the other hand, it can be difficult to identify which real estate investing strategies have a higher success rate and which of those will work best for you. But don't worry we have put together a list of the top 3 real estate investing strategies in order to help guide you along the way.
1. Investing in HUD-VASH
The first real estate investment strategy is something that is not well known, it allows investors to rent their property out to homeless veterans in exchange for at market-rate rental income paid for by the government. The greatest benefit of this strategy is that it provides investors with a more secure investment Vehicle. The HUD-VASH program can be applied to just about any property with a residential designation. Mainly, the HUD-VASH providers (Local Housing Authority) will need units for single veterans, so this will integrate seamlessly into your multi-family portfolio across the country. For those landlords looking to fill occupancy for their single-family homes, VASH could still be an option for you, you will just need to check on the needs of each provider. In the past Reunion has been able to supply housing for families of homeless or disabled veterans, there are many options working with VASH and it’s versatility is what makes it such a unique program.
2. Investing in Tertiary Markets
The second real estate investing strategy is investing in tertiary markets. The strategy works like this, you invest in a property located outside of primary and secondary markets. These markets offer investors lower market entry costs and often produce higher rates of returns. The biggest advantage of this type of real estate investing strategy is that it comes with a reduced risk in economic downturns. Due to the fact that investors can purchase properties at their lowest rates, there is a very small likelihood that investors will find themselves upside down on their investment during economic downturns. Furthermore, in the case where you do end up in a situation where your investment suffers a loss, the losses are significantly smaller than those experienced in the primary markets.
3. Investing in Military Markets
The last strategy shares some commonality with the first, This strategy involves investing in properties near military bases that are in need of off base housing and renting those properties out to active duty military members and their families. A total of 16 billion dollars is allocated in the Department of Defense or (DoD) budget for off base housing. The best things about this strategy are, each member receives a Basic Allowance for Housing or (BAH ) which is used to cover the cost of their off base housing and it provides investors with one of the most reliable forms of rental income. For this strategy, it is best to work with an investment firm that has a DoD housing contract as they have the second right of first refusal for housing military members.
The views and opinions expressed in this article are those of the authors and do not necessarily represent the views of Reunioninvestments.com Readers should not consider statements made by the author as formal recommendations and should do their due diligence before making any investment decisions.