Chicago Real Estate Investors Changing Strategies

If you’re an investor in the Chicago real estate market, you probably remember the days when you could buy a home, fix it up a little, and flip it for a nice profit. This “strategy” was used by many investors and homes were selling like hotcakes. Of course, before the market collapse, demand was high and loans were plentiful. Part of that demand was created by people transitioning from renting to owning.

Anyone reading real estate headlines today knows that this scenario doesn’t really hold true today. On the Equifax Personal Finance Blog, real estate investor and RealtyJoin.com co-founder Andy Heller discusses the need for today’s investors to change tactics. His article, “Prepare Your Real Estate Strategy Before You Buy,” examines how the market has changed and how to be successful even in today’s economy.

According to Heller, more people are looking to rent than own. In fact, he reports seeing projections of up to 5 million new renters within five years. Because of this shift, Heller suggests that investors become landlords. If the thought of dealing with tenants sounds like a persistent headache, lease options may be the way to go. With lease options, there are several advantages, including the potential for the renter to buy the home after a set time period.

Because these types of agreements put the responsibilities of upkeep and repairs on the renter, playing landlord may not be as bad as you think. Plus, the potential for homeownership means your renters may take those responsibilities more seriously.

To read more of Heller’s thoughts on real estate investment, visit the Equifax Personal Finance Blog.