Monday, August 3, 2020

Make Money In Real Estate

Back in the 90s, I remember my parents buying properties in certain areas in the provinces and they said it was an “investment.” They said they could sell it at a higher price after 5 or 10 years, which is true actually. Some properties they were able to sell at a higher value, but there are some properties that they sold without earning any profits.

According to an article from The Balance, real estate investing for the beginner can really be as conceptually simple as playing Monopoly once you understand the basic factors of the investment, economics, and risk. To win, you buy properties, avoid bankruptcy, and generate rent so that you can buy even more properties.

Proven Ways to Make Money In Real Estate

Here are some effective ways to earn in real estate investments:

1.Long-term residential rentals

People will always look for a place to live be it long term or short term so getting involved in rental properties has its benefits. The only challenge you have to face in investing for rental properties is… location! This is very true. I myself was looking for a place to rent a few years ago and the first thing on my list is the location of the property from my work. It has to be either walking distance from my office or just one ride away at most. So if you plan to invest on a rental property, location is very important. It can be within a developing city, near universities, or near techno parks where there are a lot of workers.

2. Lease options

Leasing your property (e.g. land) can be profitable. I remember one time I was having an interview with one of Manila’s leading gas corporations. The interviewer asked me if I was willing to answer calls from lease owners who are following up with their monthly payment. Well, my job offer was another story, but the point is that’s the time I got the idea that there are indeed land owners who place their lands on lease for gas stations to build on. Then the gas station will simply pay their monthly due to the land owners. Sounds like a great passive income idea to me and a great real estate investment

3. Short sales

Short sales occur when the current owner of their home is behind on their mortgage but the property hasn't yet entered into foreclosure. In order for this to happen, all parties have to agree to the transaction since the property is being sold off for less than is owed on the existing mortgages. This can be a great opportunity to make a quick profit without investing into lengthy renovations. I think this is also where real estate wholesaling (or nowadays it's called virtual wholesaling for remote users) comes in where you find a distressed seller and you also find a different buyer, then you offer a higher price to the buyer than the original price that the buyer has offered you.

I hope this post has been educational. I’m no money expert myself, but we can learn by reading form the articles from the real experts.

Stay safe, everyone!

No comments:

Post a Comment

Popular Posts