The Real Estate Crash Course
This real estate crash course will give you the knowledge you need know to know in order to become a successful investor. Real estate is one of the oldest investments in man’s history. Since the beginning of civilization, property owners have been receiving rents in some form.
It is no wonder so many people consider real estate the best investment strategy to follow. Below are 3 common real estate tactics that can get you started investing today.
Rentals
This is the oldest form of real estate investment. In past cultures, people would work the land to pay their rent. The currency has changed but the strategy is still the same.
Rental properties can be great investments if done correctly. The right tent will keep your property in great shape and their rental payments can go to your mortgage. Eventually, you will own the property free and clear. Rental properties are one of the best forms of passive income.
The downside to this strategy is finding the right tenant. Your tenant determines the value of your property. This means your commercial building will sell for more money if your tenant is a bank vs. a clothing store.
Many states have laws protecting tenets from eviction for months. This can make your investment sour. One bad tenant can eat the profit on many rental properties.
You should always do your research on your renter. Make sure your rental contract has all the clauses you require.
The best thing about this strategy is the equity you get in your rental properties as your tenant pays your mortgage. This equity can be borrowed against.
You can use this equity to get the down payment for another rental property. The end goal is to duplicate this process until your passive income becomes sufficient to sustain your lifestyle.
Flipping Houses
This strategy requires a construction team, real estate agents, and investors. Flipping houses is a great way to put your money to work for you. This strategy can put you on the relieving end of some large checks. A basic flipping house strategy would consist of a few key components.
The first piece of the puzzle is a hot market. You don’t want to flip a house in an area that nobody is looking at. You are looking for a property that is in a prime location.
The ideal property for this scenario would be a home that needs to be updated. You would purchase the property for a discounted rate due to the repairs needed. Then you would renovate the home.
You want to make the property optimal for sale. It ‘s not unusual for a flipper to spend $40,000 on a remodel.
The key to this technique is knowing the market and how much value each upgrade adds. You are trying to end up in the high market value sector. This can involve kitchen and bathroom remodel, painting, flooring, leak repairs, and curb appeal.
It is recommended to avoid properties that require major repairs such as leaky basements. These larger repairs can put a delay in your ROI (return on investment). This technique requires many people working in unison.
The process starts when the flipper gets a property from their wholesaler. Then the flipper remodels the property and resells it at a higher cost.
You can make some serious money flipping houses. It is called flipping because once your team is in place you will be remodeling and reselling properties so quick it will feel like you flipped them.
Lease Options
A lease option strategy can get you into properties that may be otherwise inaccessible to you because of financial reasons like bad credit or lack of down payment. This technique revolves around the motivational level of the seller.
This style of the transaction does not require a bank or credit because the property is not officially changing ownership until the lease option is fulfilled.
You are looking for people who are being caused discomfort from owning their property. A motivated seller can get you into your investment for less.
A lease option is an agreement that states you will buy the property on a given date or you will make payments on the property until an agreed amount is achieved.
The advantage of this technique is it allows you to gain control without ownership of a property. Once this strategy is mastered, you will have the ability obtain property for no money down.
Having the right to sublet and resell can make your investment even sweeter. This strategy can be an inexpensive way to start making real estate money.
There are hundreds of ways to make money in real estate. This crash course gives you a brief overview of 3 of the most popular strategies seen today.
You should do the proper research to understand your market if you want to be successful in real estate development. Start learning today!
