Is Property a good investment? If you have always asked yourself how to make money in real estate, this article will probably give you some ideas you didn’t know before.
Is property a good investment? This is probably one of the most common questions that usually arise among people looking for investment opportunities. As I have said it before, if you don’t make money from real estate investing, then it’s not investing – it is spending! That being said, property is a good investment as long as you know how to make money in real estate!
I guess you may now be thinking, “OK, Michelle, I get it. Show me how to make money in real estate”. If this is so, you came to the right person. I have been a real estate investor for many years now and I have been able to live off of it. Here are some of the best ways to profit from real estate investing.
1. Fix and Flip
A “how to make money in real estate” list isn’t complete without the fix and flip strategy. With fix and flip, you simply buy a property, remodel it, and then sell it. The key here is to add VALUE to the property. Let me explain. There are some remodelling projects that offer good returns and there are some that don’t. For instance, adding a bathroom to a property that only has one bathroom or remodelling the kitchen will have a favourable return on investment. On the other hand, changing the roof or building a swimming pool isn’t profitable in general.
REITs are a particular way to make money in real estate. This is because there is no actual buying of property as it is done with other methods. With REITs, you invest in real estate just like you would invest in stocks. Real Estate Investment Trusts (REITs) can be defined as large funds (some of which are publicly traded) that have as assets real estate properties. With REITs, the returns you get are dividend yields, which are usually higher than those of other assets in the markets.
Wholesaling real estate is one of the least risky ways to profit from real estate. You don’t have to buy a home. What you need are good negotiation skills since you will be connecting buyers and sellers. In short, you become the middleman.
For example, let’s say John is selling a property for £95,000. As a wholesaler, you would contact him and sign an assignment contract, which basically says that either you or anybody else can buy the property for the £95,000. Let’s say, that you contacted someone who’s interested and you offered the property for £100,000. If the deal is made, you can make $5,000 this way.
The above ways of making money are only the tip of the iceberg when it comes to real estate investing. They are a good starting point to get you going. There are many courses available out there that go more in depth on this topic. I have tried many of them and I have found out that most of them weren’t a good “bang for the buck”. However, there was one special course I tried that has made me hundreds of thousands of dollars. Plus, it has made my real estate investing career swifter since I have been able to simplify processes that took me hours upon hours in the past. This is the Intensive Property Cash Camp by Rick Otton. If you are interested in it, you can check it out by following the link below
Always remember that education is one of the building blocks of real estate investing and investing in general.