These days it seems like everyone is looking for a "get rich quick" idea. A way to quickly and easily make tons of money with very little work involved. The truth is, there is no way to get rich overnight without having to invest some work or money into the venture. But with that being said, many people are making substantial amounts of money through real estate investing. As long as your money is effectively managed with the help of institutions like Evolve Bank & Trust, you can make and save money as you go.
You can find lots of websites online that offer courses, tips and suggestions to guide you through the maze of real estate investing, whether you are interested in buying a property to "flip" (fix up and resell at a profit), or in wholesaling real estate (acting as an intermediary between a buyer and a seller). A great example of this is the Homewyse Tutorial.
When you buy a property with the intention of fixing it up and reselling for a profit, you need to weigh the costs against the resale price. This includes the cost to buy the property, as well as the materials and labor for repairs before reselling. If you are handy and can do a lot of the work yourself, your expenses will naturally be lower than if you need to hire people to do the work. But the good news is that "fixer uppers" can usually be bought at bargain prices, and once they are repaired and remodeled the market value can skyrocket.
Some property flippers will even purchase a fixer upper house and live in it while they remodel and repair it. This saves them rent money and eliminates the need and expense of commuting to the property to work on it. Plus, since they are living there, they can work on it as much or as little as they want without sticking to a strict schedule.
If you don't have the money to invest in a property, you can still make money through wholesaling real estate. This is when you find a really great deal on a house, often a fixer upper, and secure a contract with the seller, then you flip that contract to a buyer for a higher price. From this you pay the seller the amount that you agreed to and keep the rest for yourself as profit. This is a common way to earn money through real estate investment without having to spend any money of your own.
The great thing about wholesaling is that it's so easy to begin and to implement. It requires no education or experience, you need no building or remodeling knowledge, and it isn't limited by location or finances. And there are no waiting periods, so you can easily receive your money within days. You don't even have to go out to do this because it can often be done online.
The biggest thing to remember is that you need to factor wholesaling fee in to your offer price. Look at the property and decide how much you think you can get for it from a buyer. Then subtract the amount you want to have as profit for yourself to determine your offer price. Like everything, the more you do it, the better you will be at it. With experience it will get easier for you to determine which properties you will be able to get the most money for.
Regardless of which investment tactic you choose to do, you can make money through real estate investment. You just need to take the leap and get started.
This is a contributed post.
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