Real estate investment is one of the most financially stable home-based businesses. It neither requires any prior experience nor any formal education to set-up this business and to make money in real estate. Also, you do not require large initial start-up capital, fancy gadgets or a plush office space to get started. Your home, a telephone and a computer are all that you need to make money in real estate. Confidence and common sense do help, of course, and can set you up for making good earnings from real estate investments. 

Ways of making money in real estate 

There are many ways to make money in real estate. Though a lucrative proposition, the real estate business can be a high-risk market where big deals and money changes hands. You need some careful planning and expert advice if you want to make money in real estate and face minimum risk. You have to deal with a positive attitude with all kinds of people and agencies while not losing your cool. Before you buy a property, it has to be objectively appraised physically to check its market potential. 

The various ways to make money in real estate are:

1. Real estate appreciation: The value of real estate is a dependent the country's economy. Inflation, low growth rate, job layovers and loss of finances can lead to distress sale of properties. Buyer's can make decent money in real estate during these times, as it becomes a strong seller's market. This is the time to buy the property and make money in real estate. The property should have a good location, good exterior, respectable neighborhood and fairly good overall condition requiring minimal repairs. You have to be smart enough to resell it at a reasonable price in spite of a poor buyer's market. This is one of the easiest ways to make money in the real estate investment. 

2. Investing in discounted property: Thoughtful and determined deal making is another way to make money in real estate. There is a huge inventory of failing commercial and residential properties repossessed by banks and ultimately by the FDIC that underwrote them in the first instance. Then there are properties in pre-foreclosure stages that have defaulted on loan repayments. The owner wants to get it off his/her hands fast to avoid banks breathing down their neck. They come at extremely discounted prices. You have to constantly track and buy these properties for making money on the resale. Property in a low-grade area, at a bargain price is worth the risk. It can provide a reasonable profit and be a good way to make money in real estate. Solid, middle-grade properties with well-preserved exteriors and well maintained interiors may not be an immediate 'steal', but they do mature into a neat profit. Many such properties in excellent neighborhoods have appreciated considerably in a short time after acquisition. This, too, leads to good financial profit and is a good way to make money in real estate. 

3. Renting: It is the best way of making easy money in real estate investment. You have to have a long-term vision for investing in this kind of property. If it is located in a good university area, near a commercial or health center area, it attracts quite a few renters. As the property seasons and the rents rise, the debt drops off. You get the best appreciation and protection from price inflation. Taxes reduce progressively as the property gets seasoned. Renting your property is another easy way to make money in real estate investment. 

4. Housing and Construction: The next best way to make money in the real estate business is in housing and construction. Building a house, building, roads, airports, shopping centers, dams and skyscrapers requires the services of specialist construction workers. At every stage of construction, a specialist is required to give the plan a shape. Even a modest-sized building requires the skills of specialist craftsmen for plumbing, electrical work, pipefitting, air conditioning, carpet laying, glass installation, painting and garden laying. These craftsmen have a huge earning potential. A handyman working on laying roofs explained that roofing work was very risky and many folks disliked it. Their fear of heights made his job less competitive and created more market demand for his specialization in roofing. For about $250 worth of material he would charge $1,000 for roof installation in a day. Real estate investment like housing construction is an easy way to make money in real estate. 

To make money in the real estate business does not require large start-up capital or formal qualifications. There are various options to make money without substantial investment and you can get good profits in a short time.

 

Do you own real estate articles or stories and want to share with other investors? 
You have chance to win $100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:  articles@buyincomeproperties.com

 

© Copyright 2001 - 2010 by BuyIncomeProperties.com               

 

 

Visit Real Estate Forums for every real estate investing topics!  Enter Here

    

Top of Page