It’s one of the most popular and profitable ways to invest in real estate these days especially because of the onset of the global financial crisis. How to make money in real estate? Buy a house cheaply, renovate it, and resell it for an immediate profit. Sound simple? It is, but only if the property is cheap. If not, look for a better bargain.
So how do you look for bargain? How do you make money investing in real estate? Here are some advices on how to make this method work for you.
Make contacts. You can’t do it alone. You need help from experts who know their craft. Build your dream team of competent professionals such as an accountant, lawyer, banker, lender, realtor, contractor and management company. Start by finding a real estate agent you trust who has experiences working with investors. Your agent will also have business contacts and can set you up with reliable professionals.
Pick the right property. Identify a real estate property in poor or outdated condition. A savvy real estate investor can locate a house ripe for renovation in an appreciating neighborhood. Furthermore, a thorough real estate due diligence would help you identify potential drawbacks of the real estate you’re eyeing for.
Remodel carefully. End buyers, the people who purchase these fixed-up homes, are catching on to bad renovations. Do the right job, and you’ll come out ahead of your competition. Make sure you use high-quality materials and your contractor does excellent craftsmanship. Keep in mind you may need to renovate the kitchen, bathrooms, and bedrooms, and eve replace the roof to update an older home.
Find good financing. All this work can wind up costing a lot of money. Never fear. There are short term private loan products that can provide for 100 percent of the purchase and rehab costs with little money out of pocket. This is good news if you don’t want to empty your life’s savings.
Spot the scams. Don’t fall for phony promises of instant wealth. Let’s face it – getting rich in real estate doesn’t happen fast. It happens slowly because the element here is time. Be suspicious of get-rich quick schemes and anyone asking for upfront money. Remember, anything worth having doesn’t come easy. You’ve got to get out there, work hard, and make it come to you.
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