It is definitely possible to make decent money by investing in real estate. This can only happen if you do it correctly. Real estate investing can also be a lot of fun. Many people use real estate investing as their primary source of income and make a nice profit doing so.
Real estate investing is more of an art than a science. Like any other art it does take time to master the art of real estate investing. The main idea is to buy your property at a lower price and sell at a price high enough for you to make a profit after paying all of the costs involved in the transaction (closing costs, repairs, fees to professionals, etc.). The rest of this article will give you tips on how you can make money as a real estate investor.
1) Look for divorce settlements, public auctions, divorce and foreclosures. People that own these properties are more interested in a quick settlement than the price. You might be able to get these types of properties at a price that is much lower than the market rate. Once you have repaired the property, you should be able to sell the property at the market rate at a later time. Make sure that you do your due diligence. Be sure that the property is still worth what you paid for it.
2) Look for old listings. When you are in a slow market, you may have a lot of old listings that go unsold. These listings may provide with some profitable real estate deals. Pull up craigslist and go through some of the older listings. Contact the sellers of these properties. These sellers might have given up on anyone buying these properties. You may be able to get the property for a lower price if you negotiate with the seller.
3) Look for fixer uppers. Really old and dirty houses (otherwise known as fixer uppers) may scare other buyers away. These types of properties could be your ticket to real estate profits. Be sure to overestimate your repair budget for these types of properties because one miscalculation could put you in debt instead of make you money.
4) Team up with attorneys. Many attorneys handle property sales on behalf of clients. Maybe they are divorce attorneys. Maybe they became responsible for disposing of property as a result of the owner’s death. Attorneys usually are not equipped to manage properties. They may be looking to get rid of the properties that they become responsible for quickly and at a low price. By teaming up with an attorney, you will become the first to know when such properties become available.