Understanding Real Estate Investment Strategies

Real estate investing can be categorized into active and passive strategies, which represent different approaches to wealth building. Active strategies, such as fix and flip and wholesaling, involve hands-on work, where investors find properties, make improvements, and resell them for profit. In contrast, passive strategies focus on long-term wealth creation through buy and hold investments, where the emphasis is on generating cash flow and appreciating asset value over time. Understanding this distinction helps investors align their goals with the strategies they choose, allowing them to maximize their potential for building wealth.