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4 Ways To Make Money In Real Estate Investing
To make money in real estate, you have to be able to pinpoint the right customers. You want to try to find someone who is very motivated to sell their property and for a cheaper price than what it’s worth.
Even though you may have a million dollar home, that doesn’t mean that you have buyers lining up in your front yard. You have to let these potential buyers know that your house is available for sale.
Check out Other People’s Shortlists
There are probably a number of properties you have considered buying in the past. By following real estate agents online, you can stay up to date with the houses that come on the market in your desired area. This way, you can check if the price has come down or if the home is still on the market.
On top of that, you can give these agents a call and have a chat with them to ask more about the neighborhood.
Check out the Competition
After you have identified your target markets and found suitable targets to buy, you then need to inquire about the homes that are available in that particular neighborhood.
Online Real Estate Investing Sites
Where to Start
Once you have picked your online real estate investing site, there are 5 simple steps you can take to get started.
Get in the right mindset: This is important for success. Often times, new investors become discouraged within the first 2-3 months because they are used to the quick gratification of the stock market, or they are swallowed up in the fear of risk that is often associated with real estate investments.
The truth is that the stock market is extremely inefficient, and much less risky on average than the stock market. The reason why people are not making much money in the stock market is not because of a lack of opportunity, but a lack of taking action based on the opportunity.
Look at it this way. By using these online real estate investment sites, you are able to diversify your investment base over a large number of properties. All you need to do is follow logical and proven strategies and methods for real estate investing, and by virtue of the law of large numbers, your risk will be minimized and your returns will be maximized.
Your mind is key to your success resulting from these sites. If you believe you can do it, you can. If you believe that you cannot do it, then you wont. It is as simple as that.
Lease With an Option to Buy
My goal is to teach others how I am able to make a full-time income with my real estate investing business. However, it might not earn a full-time income for you.
Entrepreneurship is not for everyone, meaning your results may vary. Regardless, if you are willing to put in the legwork and dedicate yourself you should be able to start earning a full-time income from real estate investing. While you may need to start off with a side hustle to build your income, this may not be the best strategy since it will take longer to see results and will make it harder to make it your full-time job.
Instead, try to find a way you can generate cash flow for your real estate investing mission while you are working a full-time job.
Here is the strategy I currently use:
Lease with an option to buy. Because I don’t have enough money to buy properties outright, this is the best way for me to generate a fixed monthly income for my real estate investing business.
If you are employed, this is the easiest way to get started and generate the cash flow you need to purchase properties. It takes a bit more effort and work to find the right properties. However, if you find the right one, it can be incredibly lucrative.
Option a Property
Buying option on a property, allows you to buy the right to buy the property at a later date in the future. The property owner will sell the option to a investor. Once the investor buys the option, they will need a number of different things, including the following: A Good Neighborhood, A Good Home, and a Good Price. This will give you the right to control the property. The more you are willing to pay for the option, the more control you will have over the property.
If you don’t want to manage the property yourself but you’re an investor looking for income, wholesale properties are a great way to make some money. A great deal is when you can buy a property considerably below what a motivated seller would be willing to accept. Whether you’re looking to buy with a partner or for your own portfolio, wholesaling can be a great strategy.
The most important part of wholesaling is being able to find motivated sellers and finance. The best way to do this is by forming relationships with wholesale real estate brokerages. Once you form relationships with them, you can identify the opportunities. Sometimes, though, you’ll need to get creative.
For example, if you can’t find a seller who’s motivated, you can use a small loophole in the law. If a distressed homeowner is behind on their home mortgage you can buy the property from the bank at the sheriff’s sale and then offer the seller to buy the home back for the same price. At that point the home is no longer in a distressed status and you’ve found a motivated seller.
What’s the Best way to Make Money in Real Estate?
Have you ever wanted to make money in real estate? Who hasn’t? If you’re reading this book, I assume you.
Although there are a few people who are just blessed with a knack for spotting undervalued real estate, most of us don’t have a gift like that. So where do you start? The answer to that question depends on what you’re willing to do to make money in real estate, where you’re willing to invest your money, and what’s reasonable for you to do in the time you have available.
A lot of people start investing in real estate because they want to make money. And that’s a great goal. If you want large profits, you’ve got to be willing to make big investments and take risks.
A lot of people come to me with the goal of making lots of money in real estate. But what I see is that most of them have the wrong goal.
They want money first, and they want real estate second.
They don’t realize that they can make lots of money in real estate without having to devote a lot of time to it.
There are many different ways to make money investing in real estate.
Some people have made a million dollars out of a fixer upper. Some people make a building and then sell the units as apartments. Finding the right way to make money will depend on your skills and your confidence.
My favorite right now is the fast track method. Basically, I find the undervalued properties, rehabilitate them, and then quickly resell them for a profit.
Toward the end of this guide, I’ll share some tips for finding these undervalued properties and recovering from the various problems that you may encounter during the rest of your path to success.
About the Author
Andy S. had an interest in real estate investing for many years. However, due to his other professional commitments, he did not have the time or energy to dedicate to real estate investing. He started managing other people’s real estate portfolios but soon grew frustrated with these repeatable tasks, no matter how much he charged.
During the course of managing real estate portfolios, he noticed a major problem. It seemed like everyone was clicking the ads on Google and getting excited about making money. At this point, they were about to jump in with both feet – draining their savings and overextending themselves.
Most of these “investors” found out too late that there were other options for funding these real estate flips. Only a few were successful in getting around these problems and making the money they wanted. These are the people who Andy wanted to help.
Andy wanted to create a way to help people connect with deals that could make them a lot of money without risking their own money or getting in over their heads. After much trial and error, he found a way to do just that. This method does not result in “textbook flips,” but instead requires an understanding of the local market.
Andy specializes in flipping houses in small towns but has trained individuals to do this in every major city in the United States.