How Much Can You Actually Make with Property Investments?
If you’re thinking about breaking into the investment world, primarily investing in real estate to make money, you need first to determine all of your financial goals.
Are you looking to make money quickly? How about investing for your children’s future college fund, or building wealth for your retirement? Once your financial goals are determined, you need to decide which type of investing strategy works best for you.
There is a re-occurring emotional theme with every investment strategy -patience. You must stay the course until a significant investment comes flying at you. Think of yourself like Barry Bonds, you know you have the capabilities to, but you don’t need to swing at every ball. Just wait until the right one comes and smash it out of the park!
The Strategy of Fast Cash
First, find a local real estate investment club. Here you will be able to find investors willing to buy from you. A real estate club is also a great space to find property deals at a discount. If funds are low, get started by finding a cheaper house and selling the contract to another real estate investor. Foreclosed homes are usually the most affordable on the market.
The Strategy of Property Income
If you’re looking to raise your monthly income, you must start by looking for an income property that will return a positive net income every month. An excellent place to start is single-family homes. Doing this will take most of your time, looking for a bargain that’s below market value. Do a few quick and easy renovations to the house to generate top rental income and allow the renters to feel like they’re safe and secure in a brand new home.
QUICK TIP: Find a house that people will rent for more than what your mortgage payment costs.
Don’t expect to find all of your investment properties within living distance to you. Those that will be beneficial may be in a specific area that supports this type of return on your money. For example, you can’t pay $500,000 for a home with a mortgage of $3,500 that only rents for $3,000. Just remember, you’ll need a good credit score to get a loan with reasonable interest rates. In a short few years, your rental income should increase. Copious amounts of real estate investors enjoy hundreds of thousands of dollars each month, generated only by rental income property.
Obviously with property investment comes the need to deal with tenants, which opens up one last avenue of earning money within real estate.
The Strategy of Property Investments
You may solely dedicate yourself to focusing on profits and don’t want to deal with the repetitive nature of complaining tenants while also hoping they don’t aesthetically change your property. It’s best to look for a property that you can upgrade and sell or a home that will appreciate significantly over time. Simply put, BUY, FLIP, and SELL. Always take the time to examine your financial progress, along with your long term goals and achievements. You can first get started by buying and flipping property. Then when you are ready, move onto income properties. Finally, when you have a surplus of cash, you can move onto investment properties and make more substantial returns. You might even try a combination of all three strategies to make money investing in real estate. Take control of your life and your income.