So, what is real estate investing? Well, there are some misconceptions to what it is. Some people think that real estate investing is just giant business moguls buying up property to build malls or condos on. That’s definitely part of it, but not the whole of it.
A great way to invest in real estate is house flipping. This entails purchasing a house and renovating it, then selling it to make a profit. Oftentimes, the houses purchased are in jeopardy of foreclosure, or are purchased from an auction after being foreclosed on. The investor will scoop up these houses at a lower cost than they otherwise would on a regular market. This is how they make their profit. They are able to spend a budgeted amount on renovations, then in turn, sell the house on the regular housing market at full price.
House flipping can be extremely profitable, if you have the right market for it. You also have to make sure you have sufficient capital to purchase and renovate the houses.
There are a lot of people in my area that invest in rental properties. I remember years ago, I had a landlord that tried to interest me in investing in rental properties. Unfortunately, I did not have the available money at the time, nor the credit to get loans. But he said that he was very happy with investing in rentals and being a landlord.
There are some ups and downs with having rentals. One downside being that when repairs are needed, you, as the landlord, are responsible for them. This can be something really minor, like a broken step. But, it could also be major, like new roofing, or some such repair.
With rentals, you would purchase the home, then rent it out to people for a specified amount per month. Say you are renting a home for $600 per month. For just that one property, that is an income of $7,200 per year. Now, that doesn’t account for upkeep expenses, insurance, taxes, or any of that. So, that number would be much lower after those expenses are taken care of. But, if you have several properties that you rent out per year, then you could live very comfortably on this income.
Investing For Your Future
The above mentioned real estate investment opportunities are just a couple. There are a lot of ways to invest in real estate. This can be a lucrative income for your family, and help secure your future and legacy. There are many real estate investors out there, such as David Ebrahimzadeh, who chose real estate investment to build their future on.
If you don’t want to be on the work side of it, you can invest and hire others to do the work on the homes. You can even hire an agency to manage rental properties. There are a lot of ways you can make real estate investment work for you and your family. So what are you waiting for? Think about whether real estate investing is what you want and go for it!
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