The Basics Of Investing In Real Estate

If you are thinking of a new way to make money

, then you should probably consider investing in real estate. Being a real estate investor is a lot of fun. You get to meet a lot of different people, as well as learn valuable skills and lessons that can help you grow as a person.

There are many modes of real estate investing, which is basically defined as the purchase, ownership, management of real estate properties for profit. The most basic of them, however, is wholesaling, rehabbing, flipping.

In the real estate business, the term wholesaling is applied to the process of placing properties under contract and then selling or assigning the said contract to another buyer. In a nutshell, a wholesaler basically finds a bargain property and then sells it to a bargain hunter. He makes profits in this business through the assignment fee he receives from the buyer of the property.

Rehabbing, on the other hand, involves the purchase, renovation, and sales of an old or undervalued property. In this type of real estate investing, the rehabber buys a house, usually at a highly discounted price, and then makes structural repairs and renovations. Once the repairs are completed, the investor will sell the rehabbed property at a much higher price, which is mostly close to the propertys market value.

The business of flipping houses has come under fire in recent years because of the negative publicity about it. This has led to many people believing that this particular type of investing in real estate is against the law. However, there is absolutely nothing wrong with buying and quickly selling properties for profit. Flipping becomes illegal only when it involves mortgage fraud.

If you want to become a real estate investor, heres what you should do to ensure your success in the business:

Find a trustworthy mentor. Having someone to guide you when making tough decisions can help prevent you from getting stuck in the middle of deals.

Find good instructional materials about investing in real estate. Before you delve into the world of real estate investing, you have to equip yourself with proper information about the business so youll know exactly what to do when a good deal comes your way.

Find profitable properties. Dont invest in houses that wont bring you profits, period.

To learn more about investing in real estate, log on to www.Rehab-Real-Estate.com, your great source of quality real estate education.

by: Daniel Mc Grey

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