Create Your Real Estate Empire with these Three Basic Ideas
July 29, 2008
Creative real estate investing can put money in your pocket. It can also be a lot of fun. Historically home values have always increased even through other rough housing markets. Investing in real estate in the current market is a terrific idea. If you wish to start investing in real estate think about using a three prong approach.
Think long term strategy. Many people want to invest, but in reality only want to look at investment properties. They have no real clue as to what they should do. In fact they have no plan. Like any business you need a plan.
There are several approaches to investing in houses, and one of the main ones is buying and holding for the long term. They rent them out to well qualified tenants. Those renters pay down the landlords mortgage every month year after year.
A real estate agents market knowledge and experience can make them a great partner in your investment career. Finding homes that are in the right price range and in good condition will really boost your real estate investments. In later years long term rentals will provide a good income stream.
The middle term technique I like is re-habbing a home. It is often easier to get the capital to do this type of investing. While you must do your due diligence, you can earn consistent decent money by rehabilitating a run down property.
Flipping is just buying a house on one side and then flipping it over to a buyer on the other side. All that dough in the middle is your hard work. Repairing a run down home and selling it is one way to get more money to invest. If the numbers worked out you could always pull out some of the money with a refinance and turn it into a rental property.
Do you need to earn money to invest? Many of us do and a great technique for doing that is wholesaling. Basically you find a great deal and get it under contract. You can then assign the contract to an investor or retail buyer. When they close they pay your fee. The idea is simple really.
With this approach your not really in the deal and have no risk, other than losing your fee, if the deal falls through. It is a great technique to build up your investing capital so you can use one of the other techniques. There are many investors who simply do wholesale.
If you think long term and short term and use these three approaches you can do quite well for yourself. Your equity and holdings should grow steadily over the long term. Be steady and consistent and you will win with these investment techniques when others do not.
Comments
Got something to say?