1 Make Money With Real Estate Investment
Are you losing money in all types of speculative instruments like stock, bonds and currency trading and wondering what asset class youre investing in? Why not consider real estate investment with a traditionally higher return than to leave your money in your bank account. This article will highlight four common strategies that real estate investors use to make money in real estate investments.
Money Making Method 1 Buy run down property and spruce up it
This method involves finding a property in a good area that you think has promised for resale and sprucing it up as some of the shows where people make an extreme makeover on the property. Bring a good engineering engineer or architect when looking for such features to ensure that the renovations you need to do will not be so extensive that it will not be worth taking you to buy the property. Since the property may be quite down, you have to renovate and repair it and then you can sell this property at a much higher price. The most important consideration when you invest in this type of real estate is to keep your renovation costs low but make sure that the basic tools like electricity, water and gas pipes are in good condition. Thus, this buys undervalued and upgrades the real investment strategy requires good valuation for investment properties and the ability to keep costs low.
Money Making Method 2 Find places with high rents
Find areas with traditionally high rental yields that exceed the national average and then spend time searching for them and earning money from the rents. Here in this area of real estate investment, you spend time finding property investment which is a good buy is a good idea so you can get better return on investment.
Some people do not seem to make high rent rentals important for a real estate investor and think that most of their customers would pay something to get a winter residence. I was recently at a real estate exhibition and spoke to a Spanish real estate agent and when I asked her what the return on the investment was on a piece of Bulgarian property that she sold. Not only could she not even understand the ROI concept, but she also laughed at the question of rental yield when I asked her. Im sure shes not alone in her mistaken belief that people just buy because they like the property. Thus, rental return or return on investment is crucial when deciding what type of real estate investment property to buy.
Money Making Method 3 Buy Shielded Property
Most will know that shielded property usually retrieve a lower price than market value because banks are often keen to sell at a price that covers their mortgages or sometimes they just want to liquidate the property. Such features tend to be auctioned and you can then sell them to a higher value later. But beware of hidden shortcomings in auction properties and always arrange a visit down to the property just to check it out.
Two people you should take when you decide for a real estate investment is your professional engineer and your contractor. You want to check out hidden defects in your property investment to avoid buying a defective property that would cost a lot of money just to repair. Thus, purchasing real estate can be profitable if you find a real find for your property portfolio.
Money Making Method 4 Cash Flow Investment
Robert T. Kiyosaki in his book explains this real estate investment strategy. He argues that the best investment you get is when you find a property at a bargain and buy it with as much debt as possible and then generate a cash flow from the difference between the monthly rent and the mortgage loan. This method is very interesting and requires that you really spend time looking for such real estate investment that fits into those criteria.
Keep in mind that property investment is dependent on rent and the higher the suggested rent, the better is your monthly cash flow. You can also buy the property at a lower price, which would mean that your monthly cash flow would be improved. Note that when your property is partially paid up, you can refinance your loan and extract some money and buy another property and so on. Soon you would have multiple flows of income from the purchase of a real estate investment property.
In summary, there are many ways to earn money from real estate investments and whats missing is massive action on your part. Take massive action and start looking for your ideal real estate investment property today and start making big profits for real estate investments.