On of the most rewarding businesses with fabulous return on investment is Investing in real estate. With creative real estate techniques, people have made large fortunes by, believe it or not, investing no money down or even a minimal amount. They use different techniques such as bird dogging, wholesaling, rehabbing, retailing, subject to deeds, lease options, pre-foreclosures to make use of any chance that came by to make a quick profit without actually investing much capital. So do not be daunted if you have a modest sum to begin investing in real estate. Many are they who have begun with almost no money yet who have achieved success investing in real estate.
Some Tips For Investing In Real Estate
The most important factor investing in real estate will be to ensure that you have a consistent supply of motivated sellers as well as interested trustworthy buyers who will help you get rich. This will require you to have a good marketing plan as well as good communication skills whereby you earn the trust of both the motivated seller as well as the potential rehabber or any other investor.
Some people investing in real estate prefer single-owner homes, flipping them, or using a lease option where you option to buy a property with perhaps a deposit as little as $200 or so and in between find a buyer who will pay you much more than you had optioned. So by just depositing $200, you could have a profit of $5,000 to $20,000 on a single transaction, investing in real estate. The single-owner property is rather a crowded area with tough competition, so the deals that will come your way may be limited. It can be an ideal area to start your career of investing in real estate. Once you have mastered the skills, you could try the highly profitable commercial as well as residential apartment properties. You could try the same flipping, pre-foreclosure, retailing, rehabbing, lease option, subject to deeds strategies with apartment blocks, too.
If you come across a triple net lease apartment, it is recommended that you retain ownership, as all you will have to worry about will be how to spend the rent that the tenants are going to pay for you. The tenants are responsible for all operational expenses, taxes, and insurance, as well as overall maintenance. This way, you will have cash flow as well as be secure in the knowledge that the land value will only appreciate, promising you future gains should you choose to sell it.
Investing In Multi Tenant Properties
If you like investing in multi-tenant properties but are not keen on actually managing the properties yourself, there are reputable management companies to do the job for you. They have to be certified and be well recommended. A good, certified manager has to be hired to boost your income from investing real estate. Management services charge between 6 and 10% of the gross rent collected. This arrangement will save you the headache of owning the buildings and taking care of the maintenance, giving you ample time to indulge in other businesses. A good management firm has to be selected, and you will have to monitor them periodically to ensure they are doing their job and not taking you to the cleaners. This is just another aspect of investing in real estate.
Thus, owning multi-tenant properties and investing in them can be very productive investment. Though the risks are there, if you choose wisely you can invest in multi-tenant properties and expect great rewards. It is very advantageous as even if one tenant was to vacate, the rent paid by the others will take care of the expenses and leave some more for you to reinvest if you choose to. If it were a single-owner home, you could lose out on a whole year¡¯s profit if the tenant were to vacate. Investing in real estate has its dangers as well.
Some people are of the opinion that rather than investing in real estate, you can have great return on investment if you invest in multi-tenant properties. It need not be large multi-tenant property but small 3- to 4-family apartments. Go slowly if you start buying them or if you do not like to own any particular property, you can flip them for a commendable profit. It is extremely important that you have good marketing skills in order to ensure that motivated sellers trust you enough to deal with you as well as good financial resources in hand to buy properties that you like. It can be frustrating if you come across a property that you like but cannot buy it on account of funds shortage. Flipping requires you to have lots of contacts such as interested buyers and investors to ensure the flip is possible.
Investing in real estate is thus one of the most lucrative businesses with great potentials for profit, if you are going to indulge in creative real estate techniques where you invest little or no money of your own.
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