INVESTMENT
STRATEGIES

You need to know what your investment objective is before you begin. Your first decision needs to be whether you want to invest short term or long term. A great example of short term real estate investing would be the fix and flip. The investor purchases property in need of repair, improves the property, and sells the property for a profit. The successful short term investor makes money on the sale of the property, and pays taxes on that profit. A long term investor holds the property until the market makes it more valuable. If the property can be rented, the investment may be even more attractive. Upon the sale of the property, the investor will have capital gains, rather than ordinary income and thus incurs less of a tax burden. Long term investors who reinvest the profits from their real estate investments for additional real estate investments can avoid taxes by use of a 1031 exchange. 1031 Exchanges >>>   Investment Analysis >>>   Property Management >>>   Separate Entity >>>   Financing >>>   Selling your Investment Property >>>   <<< Back