Wraps, Rent to Buy, Vendors Terms, Joint Ventures, Options Investment Strategies

updated 4th October 2016

Upsides:

These extremely creative property strategies usually combine with other property strategies we have already touched on, and are attractive for a number of reasons. Namely that they require very little or no money down, have positive cash flow and create instant equity on entry and/or exit

Downsides:

Don’t underestimate just how hard you will have to think, how hard you will have to work and the amount of time you will have to spend, firstly learning, and then executing on your chosen strategy.

To make any of these strategies work you also need to be very entrepreneurial and the fact is that entrepreneurship is not necessarily something that can be learnt.

Moreover, because these strategies are so advanced and different, you can run into significant difficulties in managing the expectations of investors, vendors, real estate agents and tenants/purchasers. These people are all important parts of your strategy and more often than not will not be familiar with these concepts. So you will have to educate not only yourself, but them as well!

You can also expect extra legal and accounting expenses if these are the types of strategies you want to pursue.

 

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