You can easily become a real estate investor with one of these three strategies.
The thought of investing in real estate can be overwhelming, but it’s actually a surprisingly simple process. Today I’ll be breaking down the three primary ways you can begin investing:
1. Flipping: This is when you buy a home, fix it up, and sell it for a profit. The key to making this profitable is to buy the home at a good price. Keep in mind that the longer you keep the home, the more money you are losing. So, your goal is to remodel it and sell it as quickly as possible.
2. Renting: This involves buying a home and then renting it out. You’ll need to figure out how much you’ll rent it for and how much expenses like vacancies, repairs, and maintenance will cost. You should have at least $200 to $300 of profit coming in each month. A rental is a long-term investment, and you’ll make the most money in the future when you sell it for a higher price or leverage it to buy a multi-family property. Also, pay attention to nearby schools, tax rates, and the area’s rental history.
3. Owner finances: Not many people know about this approach, but I believe it offers the best of both worlds. With an owner finance, you buy a home with the intention of selling to someone who doesn’t qualify for a regular mortgage; the price and interest rates are typically higher, but it costs about as much as it would to rent a home anyway. Essentially, buyers get to own a house and pay the same as they would renting. Even better, you get monthly payments without being responsible for any repairs.
If you have any questions or would like more information about investing, feel free to reach out to me. I look forward to hearing from you soon.
