Joseph Armato | What are Business Strategies?

 

What are Business Strategies

Simply put, a business strategy is a clear set of plans, actions, and goals that describe how a company will compete in a specific market or market with a product or set of products or services.

Joseph Armato said More business than investment, these strategies can generate income and replace your job. But you have to be willing to put in the initial time and effort of a startup to make it work.

1. Fix and flip

The fix-and-flip strategy involves finding properties that need repairs, carrying out repairs, and reselling them at the top price for a profit. If you've ever watched the flip shows on HGTV, here's what they do!

I used this model for most of my early years in real estate to pay bills and generate cash savings for future investments. It wasn't always easy, but the beautifully finished houses and sometimes the large sums of money were rewarding.

2. Wholesale

Wholesale is all about finding great deals on investment properties and then quickly reselling them for a small premium. The core of this business is to market and bargain well to find those great deals.

If you are good at selling, you will like wholesale. But if the idea of selling makes you cringe, I'd look for a different strategy.

I also started my real estate career using a variation of this strategy called "bird-dogging". I was looking for offers for other more experienced investors. I then got paid every time they bought an offer I found.

What is Startup Strategies?

Joseph Armato says These are my favorite and safest ways to start investing in real estate. And in some cases, with a little hard work, you can even start with a small amount of money.

3. House hack

House hacking means living in a house that also generates income, such as a duplex, triplex, quadruplex, or a house with additional rental space such as a basement, guest house, or bed and breakfasts. By renting out part of your home, you can reduce your overall housing costs.

House hacking is also an amazing strategy because you learn the craft of being a landlord while living in your rented house. And when you're done, you can move in and convert the property to a long-term rental.

4. Live, then rent

Live-In-Then-Rent is simply living in a house that eventually becomes a rental. This means that the house will later function as your home AND as an investment. But unlike house hacking, you don't rent the property while you live there.

5. Live in flip

The live-in flip is a strategy where you buy and move into a house, fix it up, and wait two or more years to resell it for a profit. If you follow the IRS rules, you pay NO tax on gains up to $250,000 for an individual or $500,000 for a couple filing jointly.

6. BRRRR investment

BRRRR stands for Buy Remodel Rent Refinance Repeat. When done carefully, it's a great way to build a rental portfolio without running out of cash early in your investing career.

Essentially, you're looking for home renovations that you can buy below full value. You use cash or short-term financing to buy the property and once it's repaired and stabilized, you refinance with a long-term mortgage. If done correctly, you can withdraw most or all of your original capital for the next trade.

Abundance creation techniques

According to Joseph Armato, The objective of these essential growing long-term financial stability procedures is to transform a little retirement fund into a lot of riches. Land speculations have for some time been an optimal vehicle for this reason.

7. Purchase and keep momentary rentals

This system includes purchasing and holding investment properties for moderately brief timeframes - maybe 1-5 years. The objective of this system is frequently to drive the property to increment in esteem (for example add esteem) through rebuilding, expanding rent, decreasing costs, or the entirety of the abovementioned.

The momentary purchase system functions admirably for multi-family home redesign projects. It additionally functions admirably for rentals in extravagant appreciation showcases that don't sink also.

8. Purchase and long-term rental

It is the strategy of owning real estate to hold it for the long term. The benefits of this slow and steady (and very successful) strategy include rental income, tax protection for depreciation expenses, loan repayments, and price increases.

I continue to use this strategy, especially with my properties in the best locations. I like to keep these properties because they attract the best tenants, and are the easiest to manage and appreciate the most over time.

9. The Rent Debt Snowball Plan

The Rent Debt Snowball Plan is one of my favorite strategies for predictably building wealth, reducing risk, and ultimately creating a steady stream of income from rental properties. It's collecting all the cash flow from your current rents and other sources and then concentrating those cash flows to pay off one mortgage debt at a time.

10. The All Cash Rental Plan

The All-Cash Rental Plan is similar to the Rent Debt Snowball Plan in that it boosts rental income for growth. But instead of using mortgages, just save money and buy a rental property with no debt.

Some finance professors like Dave Ramsey advocate this type of investment. It would be difficult to start with all cash investing in a high-priced market, but it's still a great plan in many areas.

11. Hard Money Lending

Hard money lending is the strategy of providing short-term loans to real estate investors who purchase rental properties or fixed and reversible properties. Typically, loans come with high-interest rates, points (i.e. upfront payments), and lower loan-to-value ratios.

Although the strategy can be very profitable, it also carries great risks. If you need to repossess the foreclosed property, you need to make sure you are protected.