Many ways to earn money in real estate!
Real estate is a multifaceted investment field – there are MANY different methods of making money from different niches in real estate. One or more can work for YOU!
Here’s the typical experience: “buy your own residence and sell it when it’s all been worth it and you want to retire, oh my gosh, look at all the money it’s worth.”
If THAT worked well for so many people, imagine the effect on your finances of owning another property, renting it or several!
Some people go into the business of “selling” properties, finding a good undervalued deal, and selling it at or near its “true” value.
Others buy a dilapidated property and put work (and money) into renovating the property, hoping that they will be paid well for their efforts, especially if you focus on changes that dramatically improve the property’s appearance and value.
There is a group of people who are re-zoning properties, looking to take a larger parcel and subdivide it into smaller and more valuable properties. This can take A LOT of time working (begging!) At City Hall to get your plans approved.
The principle of the highest value use of a property means that if you improve the use to a more valuable use, the value increases. An example of this would be taking a warehouse and turning it into lofts or office spaces.
Pre-construction purchases or options on the future availability of a property are time-honored methods for builders to obtain construction financing (NEED advance sales) and for you to benefit from the future value of the property once it is actually built. , sometime. in the future.
Moving a house is another opportunity – houses that are structurally good, but are about to be replaced by a new building, can be moved to an empty lot, possibly a basement added to improve value, and resold. Homes to be moved often cost $ 10,000 or less, but you have to be wary of substantial moving costs.
Foreclosures are a great opportunity to earn up to 15-18% interest on your money, or buy a home simply for the amount of back taxes. This can be a bargain, but it takes a lot of time researching properties to avoid getting the deed to a vandalized house or boggy lot.
Short sales are home purchases executed directly from the bank, which wants to be in the banking business, not the home ownership business. There are some difficult negotiating sessions to get a good deal, but it is safer than the foreclosure process, where homeowners can often trade in properties after a period of time, simply by paying you interest on your money.
In addition to these areas, there are tremendous opportunities in apartments and income properties, in shopping centers and malls, in “custom built” commercial offerings and in the purchase and retention of land.
There are pros and cons to all of this, but obviously there are MANY more opportunities than just buying your home and hoping to pay for it – keep an eye out for a few of these different areas and look for an opportunity that might work for YOU. !