Real Estate Investors

Investing in real estate can work well for both the budding entrepreneur and the experienced investor. In fact, many say that real estate is still the best investment you can make.

The first step is to choose how you’re going to make money in real estate. The techniques used to create income streams and turn a profit with investment real estate fall into five general categories:

1. Cash-flowing property

Buying income-producing property with stable cash flow is the most popular way to invest in real estate and it is a property type that investors are already familiar with. As we speak, there are literally hundreds of single-family rental homes listed for sale on LiveNashvilleTN.com to explore that could produce a steady cash flow for years to come.

2. Buy-and-hold

In markets, like Nashville, where real estate values are high, investing for future appreciation and building equity over the long-term can be a successful investment strategy.  Of course, positive cash flow is still important. But by intelligently buying and holding over the long-term, investors can reap the rewards of potential windfalls years or even decades from today.

3. Fix-and-flip

Locating off-market deals, which is an Anderson Group specialty,  is another key way to profit from real estate investing. In many cases, the reason sellers are motivated to sell off market is that they do not have the money to make needed repairs. Investors using the fix-and-flip strategy need to buy low, accurately estimate the costs of repairs, and then sell the property for more than they put into it in order to make a profit. Oftentimes, that is much easier said than done. Let us be your guide.

4. Short Term Rental Property (STRs)

STRs are defined as a residential dwelling unit, containing not more than four sleeping rooms, that is used and / or advertised for transient occupancy. Owners of Short-Term Rental Properties (STRs), are required to obtain an operating permit from the Metro Codes Administration. They are also referred to as AirBnBs. This law applies to all properties (including rooms and guest houses) rented for less than 30 consecutive days to the same occupant.  Nashville is ranked No. 18 on financial company IPX1031's "Best Cities to Invest in Airbnb" list, compiled from data made available by short-term rental analytics database AirDNA. A host can make $17,100 a year based on the average $209/night price.

5. Multifamily

A lot of real estate investors choose multifamily investing over other avenues. But why are multifamily properties a good investment?  The current crisis has forced many aspiring homeowners to delay their plans to buy homes. This means that it’s likely that more people will be renting in 2021. And since most people can’t afford to rent single-family homes, investing in multifamily homes would be a wise move. The multifamily sector has historically remained strong amid economic uncertainty along with lower vacancy risk. If you do proper due diligence before buying a multifamily home, it’s very unlikely that you’ll have a 100% vacancy no matter the economic situation. With this safety net, you are less likely to go into foreclosure. Generally, the cost of acquiring a multifamily home will be significantly higher than that of a single-family home. So you would expect that securing financing for a single-family home would be much easier. On the contrary, you are more likely to get approved for a loan to purchase a duplex or fourplex than a single-family home. They are easier to finance because the lender will be taking on less risk.

Contact us below for all of your real estate Investment Needs.