To learn How To Be A Real Estate Investor, you must first learn the different types rental agreements.
In real estate, there is no universal â€œright wayâ€ to invest. Instead, to learn how to be a real estate investor, need to be able to change your strategy to fit the ever-changing market.
How To Be A Real Estate Investor | Adapt Your Strategy
Sometimes, if the market is on a down turn, or if it is plateauing, the best option is to do a standard fix and flip. You buy, renovate, and quickly sell the property before you loose money on it.
However, if the market is on an up swing, you might consider doing a buy and hold. The idea of a buy and hold is to let the property appreciate in value over time, and then sell it at a higher price. While you are holding onto the property, you can rent it out to make up for the ongoing costs of insurance, property taxes and maintenance.
To learn how to be a real estate investor, you should know the different ways in which you can rent out a property. Below are some simple techniques you might consider trying.
Choose A Duration For The Agreement
Depending on your plans for the future, there are many different lengths of lease agreements that you can choose from. Each has itâ€™s own benefits and ideal circumstances.
Fixed Term Lease Agreement
A fixed term lease agreement is a lease that usually lasts a year or two. The tenant is contractually obligated to pay the rent for that set amount of time, even if they decide to leave. The only exception to this rule is if you, the landlord, allow them to leave early because you want to sell the home.
The idea is that you will receive a steady profit without having to pay to advertise the property for a long time. The drawback is that, if you do want to sell and the tenant doesnâ€™t want to leave, you must wait until their term is finished.
On the other hand, a periodic lease is a monthly, if not weekly contract. This benefits you as a landlord immensely. You have the ability to evict the tenant, usually within a month, so you can sell the house if you so choose. Additionally, if youâ€™re short on cash, the periodic lease is great because the tenants have to pay the rent much more frequently.
An at-will lease has the potential to be the fastest rent arrangement. Unlike other types of leases, an at-will lease has...