If you aspire to be as rich as real estate tycoons like Than Merrill or Donald Trump then you might be wondering exactly what is the best way to make money?
Real estate investing has many different areas, and in order to give yourself the best possible chance of success you must pick something that you are interested in and understand completely
With this in mind, here are 3 ways to make money in real estate investing:
Long term rentals
Quite possibly the most popular form of investing in real estate is long term rentals. This is where you buy a property and then rent it out to tenants on a long term basis, with the goal of making a return on your investment with the monthly rental income.
The main downsides to this method is that getting a bad tenant can actually end up costing you money, as well as the fact that you are usually liable for repairs that need to be carried out around the property.
Fix and flip
When you don’t want to tie up your money in a long term rental, and you just want to see some quick cash in your bank account, then a good old fashioned “fix and flip” is the way to go.
This is where you buy a property cheaply that requires a bit of work, fix it up, and then put it back on the market at a price that gives you a nice profit. It really doesn’t need to be anymore complicated than that, as this is the exact formula that many people have followed to become millionaires.
The main problem with fixing and flipping is finding a reliable contractor that will get the job done for you at a reasonable price.
Real estate investment trusts
For people who don’t like the idea of actually buying properties, investing in real estate investment trusts, or REITs for short, is a proven way to see a return on your money. This is a bit like investing in stocks and mutual funds, and is something that can be done from the comfort of your own home on a computer or laptop.
Just make sure that you fully understand what you are doing before parting with any money, because this kind of investing is a fast moving world where your money can quickly be lost in a few minutes and it’s all too easy to go completely broke and wonder what just happened.