If you’re like many people, you want to build a real estate empire – but where do you even begin? This guide can give you the basics on getting started investing in real estate so you can start researching more on your own.

Getting Started Investing in Real Estate in Midland

First things first: You should learn everything you can about real estate and the Midland real estate market before you decide that real estate investing is for you. Real estate can be complex, and it pays to know more before you take a big leap. The more you know, the better decisions you can make – and the more money you can earn when you get started.

As you build your real estate education, you should familiarize yourself with these common real estate investing strategies:

  1. Long-term buy and hold
  2. Short-term buy and hold
  3. Wholesaling
  4. BRRR
  5. Flipping

Here’s a closer look at each.

Strategy #1 for Getting Started Investing in Real Estate: Long-Term Buy and Hold

Long-term buy and hold is a real estate investing strategy that involves you buying a property and finding a tenant. You rent the property to that tenant (or other tenants) for several years. You can eventually sell the property if you’d like, or you can hold on to it and make repairs and upgrades as necessary.

Related: 5 things an HOA can’t do to you

Strategy #2 for Getting Started Investing in Real Estate: Short-Term Buy and Hold

Short-term buy and hold is a real estate investing strategy that people often use when they buy fixer-uppers. The investor purchases a property that needs some TLC, makes the repairs, rents out the property and sells it after a year (or even after five years).

Strategy #3 for Getting Started Investing in Real Estate: Wholesaling

Wholesaling is a real estate investing strategy that involves you getting under contract on a home at a rock-bottom price, then finding someone who wants to purchase the property at a higher price.

Strategy #4 for Getting Started Investing in Real Estate: BRRR

BRRR is short for buy, rehab, rent and refinance. In this strategy, you buy a property that needs work, make the repairs, then find a tenant. Then, you refinance the home to get more funds to invest elsewhere.

Related: How much of your income should go toward a mortgage payment?

Strategy #5 for Getting Started Investing in Real Estate: Flipping

Flipping is a common strategy for first-time investors, but it’s not always a smart choice. To flip a house, you have to find a great deal, know the right people to work on it, have the cash to make repairs, and have a REALTOR® on your team to help you sell it for a profit. Often, this is a better strategy for more experienced (and well-funded) investors than it is for new investors.

Are You Buying or Selling a Home in Midland, Texas?

Use our site to search homes for sale in Midland and all of our surrounding areas. Unlike the “big name” sites out there, our site is directly connected to our local MLS and is updated faster. By creating a property manager account you can stay on top of the newest homes for sale and get price change alerts so you can stay ahead of other buyers and beat them to the best deals!

In the meantime, check out these 1-click searches:

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