When people tell you where you ‘should’ invest your money, more often than not they will tell you that the best place to put it is bricks and mortar, and they are absolutely right. From residential investment properties and more, the biggest draw of investing in real estate is that there are so many ways in which you can make money. They say that there is more than one way to skin a cat, and that is a lesson which can most certainly be applied to real estate investment and here are just some of the ways that you can make some profits from your money.
Flipping
People who flip houses look to get in at the low end of the market buying properties which need some loo and attention. Often these properties will be picked up in an auction and the investors will focus on properties which are high in demand such as small, affordable family homes. The idea of a flipper is that they buy the property, they invest money in doing the property up and then they sell it quickly, or flip it, for a small property. Flippers make their money through the sale of multiple properties for small profits on each.
Property Income
If you pick up a residential investment property or a turnkey property then you are going to be investing in a long term asset which promises regular cash flow, which can act as an income. This is generally the most common way in which people buy properties, especially if they are using finance to do so. What happens here in most cases is that a mortgage is taken out and paid off using the money which comes in via rent, once the mortgage is paid off the property is owned by the investor giving them a 100% profit asset which they can sell if they wish, or look to collect rental on the property continuously as a salary.
Commercial
Investing in real estate is not restricted to residential properties you can also consider commercial setting such as stores and office buildings. In many environments there is much more money to be earned by investing in commercial properties and there is also a great deal more demand which you can count on. The cost of a commercial real estate property may seem high but there are many opportunities to join a fund or a consortium which will collectively purchase the property, giving you much more spending power by putting your funds together.
Ensure that whenever and wherever you are buying property that you have fully done your research before you sign or pay for anything. First time investors have to be savvy in their investments because of the high costs which are involved, which is why it is so essential that you do your homework on the market, the economy and the possibility of asset appreciation.
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