When talking about investing in the real estate industry, most people are likely to decline. It isn’t because they lack the interest, but simply because they think that it would be an overwhelming dream to catch. Only a few did take the risk to learn how to make money in real estate.
If you are one of the few who want to learn the basic ways to earn in real estate, then you are on the right track. Read on and find out.
1 – House or contract flipping
As real estate may be a complicated industry that requires you to have a great amount of money as capital, there are some people who have managed to enter and flourish in the industry without risking too much. Just take Invest Four More as an example; you will see that the company started out as flippers.
With great skills in prejudging homes and neighborhood locations, one can undoubtedly flip a home and sell it for profit. Only that, you need to be more careful to estimate the property’s market value after fixes. Using an investment property calculator can be a big help.
If there is house flipping, there is also what we call a contract flipping. Now, you might want to ask how to make money in real estate through contract flipping? Well, this kind of income generation strategy involves finding a distressed seller and a ready buyer, and bring them together after you’ve entered a contract.
2 – Short sales
Short sales may be risky at the same time, as they take too long for a surefire success. However, the profit you can earn with this type of investment can be worth the wait. Most short sales are done by current homeowners who are behind on their mortgage but haven’t yet entered into a foreclosure list.
The property is then sold less than the amount owed on the existing mortgages. This is an excellent opportunity to make a profit without spending much for a renovation. If you are into short sales, you need the skills needed for acquiring and selling assets. Learning the basic steps to becoming a real estate agent can start here, too, as you might need some connections in the industry to become successful in this field.
3 – Lease with the option to purchase
Another great way to start in the real estate industry is through lease options. While you are slowly gaining answers to your question, “How to make money in real estate?”, lease-with-the-option-to-buy is a contract which you and the property owner have agreed upon. In this contract, the tenant is given the option to buy the property after a specified rental period.
When the property market climbs, you can have your rights on the property be sold to someone else, thus creating a profit.
4 – Residential rentals
Residential rentals are for long-term profit generation, thus require a substantial amount of capital. They are also a common method of making money in the real estate industry. Being in this type of business, you need to make sure that your location is best for leasing.
It doesn’t only mean an increase of property value over time, but an excellent way to prevent unit vacancy period. That means that you can be sure that your apartment units are always occupied.
Having mentioned the four ways to start earning in real estate, you too can be a successful start-up. Is real estate a good investment? Of course, it is! Read our blog at https://investfourmore.com/2013/10/10/the-top-nine-ways-to-make-money-investing-in-real-estate/.