Even if you’ve never set foot on a piece of commercial real estate, there are ways to make good money through that avenue. Here is the best way for newbies to start making money in real estate! Just follow these ten easy steps, and you’ll be well on your way.
1) Learn about investing in real estate! Get a bachelor’s degree in business or marketing to get a better idea of making this work for you.
2) Figure out how much money you have available for a down payment and what your credit score is like. Lenders will be more willing to give you loans with lower interest rates with a higher credit score.
3) Start looking for a property. Search online, in the newspaper, and on sites like Craigslist to find a potential investment property.
4) When you find a piece of property that interests you, check it out in person with your realtor. Before you buy, don’t be afraid to ask tough questions or run the numbers!
5) Make sure you get pre-approved for a loan. Banks and lending institutions generally require that you get approved before they’ll let you look at properties, so don’t waste time; take care of this step first!
6) Once you find a property and decide to buy it, you need to discuss the details with your realtor and lender. Your realtor will help you develop a realistic price for the property, and your lender can tell you how much money you qualify for. If the numbers don’t work out, try looking at different properties or asking the seller to lower the cost of his asking price.
7) Discuss with your realtor what kind of mortgage you should get. Many mortgages are available – fixed-rate, adjustable, balloon payment, or interest-only – so talk to your realtor and lender about what kind would work best for you.
8) Take care of the financial details with your lender. With a 20 percent down payment, you should be able to get a home loan. However, you will have to pay two types of closing costs – one at the time of sale and one at closing. These fees vary from property to property and state to state but usually total between 3 percent and 8 percent of your loan amount.
9) Spruce up the place a bit! Put some money into renovations, new flooring, paint, or landscaping to increase the property’s value. Better yet, find renters willing to pay good money for quality housing.
10) Sit back and collect your checks! If all goes well, you can have your property rented out in no time at all – ask anyone who owns an investment property. Once your rehab work is completed, you can collect rent checks and earn money through appreciation.
What Exactly Does Real Estate Investing Involve?
Investing in real estate means buying one or more properties to generate income from rent, leases, or other forms of occupancy. This is a proven method for individuals with some extra cash in the bank and a desire to earn money through investments if they choose to do it right.
Here’s how it works: You purchase a property in reasonably good condition and can be rented out for a fair price. You then find renters who will pay you good money for your property, and it may even appreciate over time (i.e., increase in value). Better yet, you can fix up the place to increase its value or rent it out before the price goes up!
Many people think that real estate investing is nothing more than buying a property, renting it out, and cashing the rent checks. While this is one way to make money in real estate, many others are. You can buy properties with the hope of reselling them later for a profit after fixing them up or adding value. For example, you can purchase land and hold it until a new housing development is planned for the area. A developer may pay you a premium price to buy your land if it is in an ideal location, creating a quick and easy profit.
>> YOU MAY ALSO LIKE : How to profit from the real estate boom without having to buy a home <<
Top Benefits of Investing in Real State
- cash flow that can help pay your mortgage, buy groceries, and even fund your retirement
- Greater financial flexibility thanks to the security of real estate assets.
- Resistance against rising inflation thanks to the rental income from properties generally increases with prices, keeping costs in line with growing revenues.
Conclusion
Are you looking for a solid way to get started in real estate and start making money? Then, buying and flipping houses is the way to go. Of course, there are other ways to make money in this industry, but this is one of the most reliable methods. With a little hard work and some education from bothands.org, you can be on your way to financial independence through real estate investing.