Entrepreneurs have made money buying and selling real estate for hundreds of years. Some keep the property portfolio sacred and pass it down to their children, but others change property holdings frequently as the whim dictates. Although many people believe you need a tremendous amount of starting capital to secure properties, that isn’t true. You do need to understand the investment property, how financing words, and when to sell. If you want to begin making money using real estate investments, here are some simple tricks you can use.
- Fix and Flip Houses
If you can find a nice neighborhood with a rundown house that needs very little in the way of cosmetic improvements, you can make a good amount of money fixing and flipping houses. However, don’t try to do the work yourself because the amount of time it takes to turn the house around is where the money is. Find a contractor with a knowledgeable crew before you make the investment, or you could lose your money.
- Building New Homes
Millions of families move out of cities and into rural areas each year so that they can enjoy the American dream of owning a home. Roger O’steen of Jacksonville is a property developer that understands that housing dream, and he has made a fortune based on residential property. With home construction on the rise, there is still a shortage of new homes available in many areas. If you can find a property located in a choice area, and if you know a contractor you can trust, you may be able to make money by building new homes.
- Purchase Residential Rentals
Long term residential rentals have been the basics of making money in property investments for centuries. As the GenZ population reaches over 90 million, there is a high demand for housing. All you have to do is locate a building that meets your criteria, purchase the house, and turn the management over to a property company.
- Buy Short Sales
When a homebuyer is close to losing their home to foreclosure, they often try to force a sale using short sales. The trick is to make a deal with all concerned parties because a short sale requires a purchase price of less than is due to the mortgage holder. This may require a cash purchase, but the profit margins can be exceptional.
- Short-Term Lending
If you have an available cash supply, making short-term loans to individuals that otherwise would not qualify at banks or other lending institutions can be a lucrative property venture. With high-interest rates and very limited loan times, you can make a good deal of money in a short time. By backing only loans for property, and with a default set to allow you rights to the property, you can generate a profit even if the borrower defaults on his or her loan.
- Acquire Commercial Property
While people like Roger O’steen Jacksonville build and sell private homes, there are groups that focus only on commercial property. If you aren’t fortunate enough to inherit warehouses or office buildings from your parents, you can still pick them up by joining a REIT group. Since each REIT has a particular type of commercial property it invests in, make sure you understand what the group buys before you purchase shares in the company.
There will always be a need for private homes, office spaces, and warehouses. That means no matter what area of real estate you choose to invest it, if you do it wisely, you can make a good deal of money. You don’t have to buy a high-rise building or shopping mall for your first investment, instead, think small and make lots of cash.