subject: How To Make Money In Real Estate The Happy Way [print this page] If you know how to make money in real estate you can start your own real estate investment company. You will be able to work for yourself and kiss your job and your boss goodbye. But until then you have to study the real estate markets and invest in good real estate courses.
If you do not have a real estate license, no problem. The only real advantage to having a real estate license for the investor is access to the MLS.
The MLS, multiple listing service, provides the comparison prices of the homes in your target market. This is invaluable information when you are negotiating sales and purchases. If you do not have license or plan on getting one, make friends with a real estate agent who will allow you to access his MLS.
But if you want to make good money in the real estate market you will want to make friends with people who have money to invest in the market with you, these are called private money lenders.
There are several ways to obtain money to purchase real estate. You can of course apply for a conventional loan through a bank but this process is very time consuming to say the least and if you do not have the proper credit report or income, you will have trouble getting a good interest rate or might be denied outright.
If you do not have the credit score or the good paying job, you can try a hard money lender. He is less concerned about your credit history or your job but expect him to charge you at least double and sometimes triple the prime interest rate. He also will expect you to pay the loan back much faster than a conventional loan payment term.
The conventional loan is not a loan against the property but a loan against your income. And of course if you default on the payments you will have your property foreclosed.
House flipping investors buy houses at a discount and then sell them on the retail market or to other investors after they rehab the house. The difference between what they pay for the house and the cost to rehab it and their selling price is their profit.
If you plan to have the house for only the time it takes you to resell it then a hard money loan might work. But make sure you have an exit strategy in place if you need to sell it quickly to pay off the loan.
But the best way to obtain money for your real estate ventures is to make business relationships with private money lenders. These are people who have money in retirement accounts or certificate of deposits. They might be earning only two to three percent interest on their accounts but they want to earn more. You can help them earn ten to fifteen percent on their money when they invest with your real estate investment business.
You have to let them know that no investment is risk free. But their money is secured by the property you are using their money to invest in. Each area has its own laws regarding private investors. Learn the laws then go out and get private lenders to help build your real estate investment business.
