subject: Tried and Tested Ways to Make Money in Real Estate [print this page] Tried and Tested Ways to Make Money in Real Estate
Did you know that investing in real estate is one of the fastest ways to gain financial freedom? Yup, you heard it right. Over the years, the housing sector has made more millionaires that any other industries. There's popular real estate mogul Donald Trump, Steve Wynn, and Harry Macklowe among others. And despite the ongoing housing crisis, many big-time and small-time investors find it easy to make money in real estate.
Investing in properties, however, is not that easy. It can be quite risky and if you don't play your cards right, you may lose huge amounts of money. Therefore, it is important for you to have a wide knowledge of the real estate market before making any investments.
There are many ways to make money as property investor. In creative real estate investing alone, there are numerous strategies that you can use to gain financial freedom. Listed below are some of them:
Flipping. Flipping is simply defined as the process of buying real estate with the intent to sell it for profit. Most flippers purchase investment properties at a lower price then quickly sells, or flip, it at a much higher price to make a quick buck. One of the secrets to becoming a successful flipper of properties is having strong buyer's and seller's lists, which can help you find good sources of houses to flip and move properties easily.
Rehabbing. Also known as fix and flip, rehabbing homes is another great way to make money in real estate. In this method of investing in real estate, the rehabber repairs and renovates an old property before selling it at a price close to the house's full market value. While it is true that rehabbing houses can bring you bigger profits as compared to flipping, the former is more labor intensive and it usually takes about three months or more to complete a rehab project.
"Landlording". Instead of flipping a rehabbed home, most real estate investors prefer to rent out such a property to generate continuous cash flow. However, being a landlord entails a lot of responsibility. You have to ensure that your rental units are in good condition or run the risk of losing good tenants.
There are many tried and tested ways to make money in real estate. You just have to choose which real estate investing method suit your skills and capabilities. For more information on real estate investing, visit www.REIWired.com.
