Real Estate Investing – How to Make Money in Real Estate Investing
There are two ways to make money in residential real estate: become a realtor or invest in real estate. For those that prefer the latter, real estate investing can be a worthwhile financial venture. You can either choose to fix and flip properties, that is to buy, repair and re-sell a home quickly, preferably in less than 90 days from start to finish, while pocketing the quick profit. Alternatively, you can do what is termed, buy and hold. In other words, buy a house and rent it out long-term. In fact, many investors favor one or the other almost exclusively, depending on their needs.
If your goal is quick cash, to get in and get out, then a fix and flip project may be the best solution for you and your real estate investing goals. You need to ensure that you have a great real estate agent who helps you accurately analyze the market and get a low enough deal on a house that you can still turn around and quickly re-sell for a profit. You also need a reliable contractor who can easily assess any damage and repair work, estimate time and cost correctly and get the job done fast. Having a team of people behind the scenes is the best way to get things done right.
On the other hand, if your goal is to build up a steady income stream, then real estate investing for the purpose of building up a steady stream of rental income is the route you should take. Keep in mind that you do not necessarily have to act as a landlord if that hat makes you uncomfortable. You can hire a management company for a nominal monthly fee to collect rent, arrange for repairs and communicate with the tenants in your stead. To maximize your future income, try to pay off your mortgages as soon as possible with the proceeds from the monthly rental checks.
No matter which route you take, real estate investing can be stressful. You can eliminate much of the risk involved by surrounding yourself with intelligent, reliable professionals. In fact, if you are not comfortable with the thought of owning numerous properties, try just one. Pick a warm locale where you would love to retire and buy a nice home in a retirement complex. With proper management, you can have the place paid for by the time you retire. Investing in your own retirement is the best kind of investment.