There are many ways to make money in real estate.
I will focus on the best and fastest ways to legitimately make money in today’s real estate market.
I agree with the old real estate cliche that you “make money in real estate when you buy”.
The disciplined hunt, for discount properties in your market is the core of making money in real estate.
The method of finding greatly discounted properties will depend on how you monetize them.
Common strategies include, buying and holding (renting), creative financing (lease option investing), rehabbing and wholesaling.
Finding Discount Properties To Make Money In Real Estate
They can be broken down into two main categories, shot gun advertising and sniper advertising. In many ways real estate investing is similar to hunting.
Examples of shotgun advertising include bandit signs, radio, news paper ads and fliers. These tactics put their message out to a large group of people with the hopes of their message causing a small percentage to take action.
Sniper advertising, is targeting a specific population and putting your message in front of them. Such as cold calling expired listings and mailing probates.
I specialize in using Google to bring me motivated sellers. If you are interested in learning how you can easily use Google to get motivated sellers calling you email me at firstname.lastname@example.org
They both get results and can make you a ton of money. Click here to learn more about how to find motivated sellers.
Creative Financing To Make Money In Real Estate
Creative financing is when you purchase a house using alternative methods of financing. Such as lease options, owner financing and mortgage assumptions.
Click here to learn more about lease option investing.
Rehabbing To Make Money In Real Estate
If you are handy and think you can handle a rehabbing crew, rehabbing can be very profitable. For your first rehab I suggest you buy a house which you will live in. Then over the course of a year invest money and time into it and get it ready to sell. This strategy has proven to be very profitable for many people. The key to rehabbing is to find a distressed property which you can buy at a severely discounted price.
People buy homes everyday. In order to be successful in rehabbing you have to understand what the buyers are looking for and give it to them. Most buyers in today’s market are willing to purchase a home if it is a deal which they cannot pass up. You have to present the property in a way which makes it appealing to the deal seekers.
For more information checkout rehabbing properties.
Wholesaling To Make Money In Real Estate
Wholesaling real estate is the art of finding dirt cheap properties and selling them to an end investor before you close on them.
There are many methods you can use to find wholesale deals, click here to learn wholesaling real estate.
The variety available in wholesaling is endless. There are so many ways you can go about finding properties to buy and sell.
I find the easiest and cheapest method to achieve both of these is to use the search engines to get the buyers and sellers to call you and targeted direct mail, which has response rates of 15%+. If done properly both of these methods have minimal initial set up costs. These are some of the cheapest leads you can get.
Make Money In Real Estate – Buying and Holding
The profits one can make when buying and holding a house has greatly increased after the burst of the housing bubble. Profits are up on rentals because of the sharp decrease of housing prices while the rent people pay have not decreased.
Experienced investors show the greatest return when purchasing rental properties in distressed areas. Purchasing properties in these areas come with a greater risk thus the greater returns.
Investors who are less experienced and have limited capital should focus on purchasing homes in better areas. This will provide you with easier tenants.
If you are interested in seeing larger returns, that of 20+% you should send me an email at email@example.com and I will point you to some helpful resources.
Most people who make money in real estate do so through appreciation. In the mid to late 80’s and the during the most recent bubble which burst in 2008, the majority of people who sold before the bubble burst made a good amount of money through appreciation. This is a long term, buy and hold strategy which for the immediate future should be considered dead.