Earning a profitable return on investment is important to all real estate investors, whether you’re renting out a single property or an entire portfolio. If you’re wondering when you’ll really start to make some money, the answer is: it depends.
We know that isn’t what you’re hoping to hear, but if you’re working with a team of experts who can help you maximize what you earn quickly, you’ll start to notice some pretty serious investment benefits right away.
The timeline for earnings depends on your investment goals, the properties you own, and whether or not they’re being professionally managed. We have a few indicators that can help you set and manage investment and ROI expectations.
Short Term versus Long Term Returns with Columbus Investments
You’ll have short-term gains through your rental income. This cash flow will be positive when you’ve structured your financing strategically and you’re earning enough rent to cover the expenses associated with your investment. This happens for some owners within months of renting out a home. For others, it takes a bit longer, especially if you have a high mortgage payment or the rental rates are low.
The long term returns are often much more robust than the short term gains, but they will take longer to realize. They often depend on the performance of the rental market as well as the real estate sales market. Typically, the longer you hold onto your investment, the more you stand to earn. But, you have to be willing to wait.
Real Estate Investing Strategies: Flip vs. Buy and Hold
If you want to make fast money off your real estate investment, you’ll have to know exactly what kind of opportunities to look for, and you’ll have to be smart about what you buy. Many investors enjoy buying inexpensive properties that need a lot of work. They’ll invest some money into renovating and rehabilitating them, and then they’ll sell at a profit. This will obviously make you money faster than holding onto an investment. You’ll realize your gains a lot faster. There’s also risk, though. You may spend more than you expected flipping a property, and who knows where the market will be when you’re finally done with the work that’s required.
The buy and hold strategy is safer, ultimately more profitable, and also requires patience. You won’t realize your profits or collect all your ROI for years. For some investors, the profits are worth the wait. This is especially true when you consider the tax benefits and cash flow involved in renting out a Columbus investment property.
Acquiring Off-Market Opportunities
Smart investors surround themselves with experienced real estate brokers, sales agents, and professional property managers. This allows you to take advantage of opportunities that are easy to miss. Off-market properties, for example, can help you earn ROI almost immediately after you close the deal. They’re defined as properties that are in the process of selling or have been sold already without any public knowledge and advertising. Off-market investment properties aren't found on the MLS, and most agents won’t have access to the listings. You’ll need to have the right partnerships in place.
We can help you with your short term and long term ROI. If you’d like to make more money faster, contact our team at Solutions for Real Estate. We’ll talk about your investment goals and how to succeed with Columbus real estate.