3 Successful Ways of Making Money in Real Estate

You are ready to invest your hard-earned money in real estate. So,it’s understandable why you want a quick and definite return. But it’s not that simple to get on the right track if you don’t have any prior experience or guidance.

Lucky for you, today I’m going to share3 proven and successful ways with you so you can start making money the pro way.

Long Term Rental

A common, but successful way of making money in real estate is leveraging long-term buy-&-hold residential rentals. We will always need a place to live, it’s as simple as that.

You’ll need to do the right amount of due diligence to source the property and keep 3 things on your mind. First location, second location, and last but not the least, location. Yes, location is everything.

Remember, the location of the property is important, even more than the actual state of that property. As a matter of fact, run-down houses in good locations are the best place for your investment.

If there is a profitable cash flow in the residential rentals then they can be great investments. However, you won’t find it that easy unless the property owner is in a mess and wants some instant cash. So watch out for those.

Lease Option

Leasing is a great way to be involved in real estate without needing to have a big capital. You are leasing with the option to buy the property and this tends to work very well when the market is climbing up because you are creating the pre-set rate you can purchase the same property at.

For example, if the market of your property climbs in value substantially, you will be able to buy the property at a discount rate. Besides, you can always turn around and sell the rights to your property and let someone else buy it.

Home Renovations

The fix-&-flip culture for a property has exploded. We are now seeing a massive boom in our traditional renovation market, thanks to the massive popularity of house renovation shows.

While there is certainly a great deal of possible return, at first, it can be tricky for someone who is new and hasn’t gotten the hang of it yet.

If you ask any experienced investor in this line, they will advise you to get the ugliest houses in the best neighborhoods. This is the place where the real value is.

But the real difficulty here is not finding these kinds of properties, and not understanding what the after-repair value is. You’ll have to ask yourself, how much the property will it be worth after you are done repairing and renovating.

To get the accurate answer, you’ll have to ensure a strong relationship with the general contractor. You should also tour the property by yourself as buying an unseen site at an auction is reckless, unless you know what you are getting yourself into. But getting a return on a house-renovation flip is very simple as long as you can understand the potential value and the underlying cost.

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