All You Need to Know About Real Estate Investing
Investing in real estate is an enjoyable and exciting way to make money, especially if you are getting tired of your usual nine-to-five job. It provides great opportunities for hard working people and unlike most high-paying jobs, you don't need a doctorate from some prestigious universities to make it big in this business.
There are three popular ways to make a living through real estate investing. The first one, which is probably one of the most widely used term in the housing business, is flipping houses. In real estate, flipping is mainly the process of buying and quickly selling properties for profit. Investors involved in this business usually purchase undervalued homes before selling them at a higher price.
There is nothing wrong with flipping houses for a living. Contrary to what most people believe, this type of real estate investing is not against the law. It is considered illegal only when it involves mortgage fraud.
The second one is by rehabbing properties. In this method, a rehabber basically buys and fixes a distressed property before selling it a higher price. The main formula in this business is that all the repairs made on the property should significantly raise the latter's market value. Most rehabbers pick investment properties that require fewer repairs because such a move helps them save more funds. There are also others who prefer 'ugly' houses but have great location since these properties can be sold easily.
The third method is called wholesaling houses. In real estate, wholesaling refers to the process of placing a property under contract and then assigning the said contract to an end buyer, who will close the transaction. Many investors prefer this particular type of real estate investing because they get to earn money without having to spend a single dollar on investment properties. Because they are not really buying houses per se, they don't have to obtain loans or face big risks.
When investing in real estate, meanwhile, one of the things you should take into consideration is the property's location. A property's proximity to important facilities and commercial establishments can boost its marketability. Therefore, as much as possible, obtain investment properties that are located in the best part of a neighborhood.
In addition, to ensure your success in this business, never stop learning new things about real estate investing. Read educational materials or watch instructional videos. You can also visit REIWired.com, a website that contains quality real estate articles, audio files and videos. If you want to learn from the likes of Preston Ely or Tim Mai, visit www.REIWired.com.
About the Author:
The RehabList.com real estate investing program was formed to bring together the wholesale finders of single family homes in need of repair, Realtors, independent "finders or birddogs" and home sellers with the rehab customer.Author: James Gossette