In this module, we will explore the fundamental strategies that most investors rely on when purchasing real estate.
5 min
When investing in real estate, the owner must typically decide which of the two main strategies to follow, or in simpler terms, how they will make money: through rental income or property resale.
The rental strategy involves acquiring property with the aim of generating income through tenant payments. This approach ties up capital for an extended period but allows for the creation of a stable cash flow.
On the other hand, the resale strategy is based on the simple idea of "buy low, sell high." This approach has the potential to yield significant profits over any distance, often surpassing rental payments over the same period.
To maximize profits, one can combine the purchase for resale and rental strategies. By acquiring property for a few years, it can be temporarily leased to tenants who not only cover expenses and taxes but also ensure a stable cash flow.
