money as a way to invest more, which leads to increased income.
Obviously, there isn’t a bunch of people out there willing to just hand over their cash so you can invest. This is when having a solid network is important. You’ve got to be clear on whom you access for help and how to best use the help they give you. It’s also to your advantage to have a high credit score. Why does this matter in this business? First, you’ll get more access to working capital, but you’ll also have lower interest rates if you do take out mortgages or loans, which can lead to significant savings versus people with “so-so” or low scores.
Types of real estate investment: Active and Passive
Active real estate investment: Active Real Estate Investment involves hands-on involvement in property acquisition, management, and operations. This approach requires proactive decision-making, direct engagement with tenants or property managers, and active oversight of property maintenance and financial performance. Active investors typically seek to maximize returns through value-added strategies such as property renovations, redevelopments, or strategic asset management. While active investment demands a higher level of time, effort, and expertise, it also offers greater control over investment outcomes and potential for higher returns. Examples of active real estate investment strategies include: • Fix-and-Flip: Purchasing distressed properties, renovating them to increase value, and selling them for a profit within a relatively short time frame. • Buy-and-Hold: Acquiring rental properties with the intention of generating ongoing rental income and long- term appreciation. Active investors manage tenant relationships, property maintenance, and financial
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