subject: Alternatives In Property Investment Buying [print this page] Property investment buying is a lucrative sort of business. As a result of the recession, many people invest their money in real estate hoping to produce profits incessantly. It can bring you a lot of opportunity and you need to learn the ins and outs of real estate investing in order to succeed. However, it is not an assurance that property investment buying will quickly provide a good return and never speculate that it will appreciate over time. Consider property appreciation as an additional advantage and not something that you can rely on to make more money. There are several alternatives that you can look into so you can make use of the properties you have bought.
With rent-to-own-basis, the buyer rents the property and the rights will be turned over once he's done with the installments. This will also free you from maintenance cost since the buyer, knowing that he's going to own it in the future, will do the restoration using his own funds. Choosing this mode of investment will take years before you get your return of investment but can give you a steady monthly revenue.
Rentals on the other hand will give you a regular monthly revenue when you lease the property. You still have the ownership but you will be responsible for the maintenance cost.
Boarding house is like rental but revenue is higher because you lease it per room. It is ideal if the property is close to a college institution as most college students prefer to rent their own room. The drawback if you want this alternative is the preservation cost or the upkeep since you have more tenants using the property.
Property investment buying can also be for rehabbing. It's mainly just buying a lesser value property, repair it and retail it at a higher cost. Some investors would rehab and lease it, but some would retail them. Real estate owned houses, that have already gone foreclosure is a good deal for you. There are also methods in making money through rehabbing like wholesaling and flipping.
Wholesaling is the easiest approach if you aspire to get in to real estate. All you have to do, is place the property under contract and assign it to another investor who will close the contract. You don't have ownership to the property and this does not entail you to have a license because technically you are not purchasing a house. This is less risky and will require less money and no need to get a finance from the bank if you want to get in to this business.
Flipping is akin to wholesaling but the difference is, you will buy the property and retail it to a buyer at a higher cost. This is often feared by investors to be unlawful but there's nothing wrong with it unless you commit to mortgage fraud or other prohibited activities.
You may also want to take a look at tax foreclosures. These properties have one thing in common, they are clear from any mortgage and these are the form that you ought to go after if you want to come upon motivated sellers. The time before redemption period is up is something you should watch out for if you want find good investment deals.
In property investment buying, you have to continue to educate yourself with most recent market trends in order to be successful in real estate investing.
