The following real estate information has been provided by Jeff Mcfalls of Londonhomesforu.com. To discuss more investment options in real estate, give his office a call at 519-667-1800.
There are many avenues you can pursue if you want to become a successful investor, but perhaps the most accessible one for people who haven't studied the stock market or business in college is real estate. There are several ways a real estate investor can turn someones home into an investment that will earn them money. If you think you might want to try your hand at real estate investing, here's an overview of some of the most popular ways to make money off the real estate market.
This is probably the smallest scale project you can do to make money off of real estate. All you have to do is purchase a property off the listings that needs some work or is having trouble selling so you can get a deal on it. Then, you take the money you saved and invest it into renovations that will make the house seem more appealing to buyers. After you've finished the work (it usually takes a month or two) you relist the house at a higher price hoping that buyers will be so impressed that they think it's worth it.
Another relatively easy way to make money off of real estate is to purchase an income property. An income property is a property that you purchase with the intent to rent or lease it out to others at a profit. It can be a house, an apartment building, or a subdivided house, or even the basement of your own house. Owning an income property means you are responsible for its upkeep, collecting rent, and finding tenants, so it's more work in the long term than flipping, but you can always hire a building super to handle things on your behalf.
If you're more business savvy and you want to have the potential to earn more than a few thousand dollars off your real estate deal, you can try you hand at being a real estate developer. To do that, you'll need to be able to get a sizeable loan, as you'll need to buy up prime lots of land and build on them. You'll get your money back in spades later (that's the theory, anyway) when you turn it into a house for sale and buyers start lining up to buy into your brand new subdivision.
If you want to reap the benefits of real estate investing but you don't want to do a lot of work yourself, bypass and find a developer who needs money. If you invest in their efforts and their work pays off, you get to share in the profits.