While you don’t have to be an idiot to benefit from the advice in the guide, even if you were you could probably make money from real estate. In fact, it is not rocket science, and all you have to do is make the right decisions at the correct time to end up in profit. Something you can find out more about in the post below.
Buy and flip
The first method of making money from real estate is something called a flip. Now, this is a pretty well-known method as there are a lot of TV shows dedicated to this process. Some of them make it look easy to make a quick buck and others show the disasters that can befall you if you don’t consider your purchase and the work you do to it carefully.
However, don’t let the disaster stories put you off because as long as you get an excellent survey, and have modest goals for remodeling and the decoration you will do, there is money to be made here.
Of course, it all comes down to balancing the figures, so you need to get an accurate estimate of not only what the work and resources will cost before you go for this option, but also how long the work will take. The reason being that this can affect the price you can sell for, especially if the market is volatile in the location in which you are selling.
Buy and lease
Buying and leasing a property can be a fantastic way to make money from real estate. In fact, there are two options, both of which can be profitable. The first is to put up the value of a mortgage and then rent the place out to cover your monthly payments. Then when you do sell, you will own a more significant share of the property and so make more money if it goes for a profit.
The second option is to buy a property outright and lease it out on a monthly basis. Of course, this is a double whammy because not only are you making money now, but you could be in for a significant windfall when you do choose to sell.
The great thing about this is that you can get a property management company to deal with all the administration, paperwork, and even repairs for you. Something that means you will be making money with minimal effort beyond the original purchase.
Buy and hold
The next possibility is to buy a property and then hold on to it. The idea is that its value will appreciate over time. Now, the concept of purchasing property and leaving it empty is somewhat controversial, so you may choose to make it your primary residence and lease out your old place instead.
Alternatively, you can just let it sit there, but a much better approach is to the buy to lease method, as it can make you money while you wait for the value of the home to rise. Something that you will find advice on above.