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Top Secret Ways To Make Money In Real Estate
It is common knowledge that for an informed investor there are multiple ways to make profits in the real estate market if only you are willing to learn the various strategies of real estate investment. It is worthwhile to know a few of the secret ways to make money in the real estate market:
Renovating / renting: - This is the most widely practiced method of real estate investment. Buy a house which is in need of repairs at below market price, undertake some renovation work and sell the house when the real estate markets experience an upward swing.
Real Estate Agent – Instead of actively investing in the real estate market and running the concomitant risks, it is safer to turn into a real estate agent. Real estate agents do not invest neither buy nor sell properties but earn attractive commission amounts by helping people to buy and sell in the real estate market.
Buying wholesale - This is a secret way to make some instant profits in real estate market. To put it less charitably, you truly become the middleman by identifying a lucrative deal, enter into a contract and then advertise it for more money than you are paying. This method is considered somewhat unethical- more so, if the buyer comes to know what you are doing.
Leasing – This is indeed a wise method as you lease a property keeping the option to buy it below market value at an opportune moment. Lease optioning is practiced by many, particularly by people who do not qualify for a mortgage.
Money lending – You are nothing more than a financier or more plainly, a money lender. You lend the required amount and get paid for putting deals together. The one shortcoming is you need to have a large sum of cash at your disposal. But it is a fact that after being a successful investor in real estate investing for many years, people turn into hard money lenders.
Flipping Houses - This method can be successfully practiced if you have a sound knowledge of home prices, repair and upgrade costs. This strategy involves finding houses and reselling them to other investors on an as-is basis. Depending upon the market swings and your negotiating skills, you can flip houses faster.
Buying Land – Some real estate investors merely buy vacant land and do no construction but sell it after a couple of years when the market becomes bullish. If you are able to buy a few acres of undeveloped land and then sell it by convenient lots, you can expect a windfall profit.
Buying while under-construction – You buy properties in early stages of construction, by paying a deposit which may range from 5% to 30%. Suppose you have contracted to buy a house that is under construction and the developer raises the prices within a year, you can go ahead and sell your contract for more than what you secured it for. Or if you can afford to wait longer till construction is over, you can immediately sell the house without occupying it and also avoiding mortgage payment.
Consultation work – After being in the real estate business for a few years, people and gaining some valuable experience, it will be lucrative to turn into a consultant and offer advice to people wanting to buy or sell real estate properties. There are instances of consultants who have reaped rich dividends in the real estate market.