Making Money with Real Estate

If youre looking for ways to make money with real estate, there are many different ways. You need to find something that fits your personality, and personal circumstances. For instance, you shouldn't start off investing in real estate by showing up at a foreclosure auction if you have no money and no idea what to bid or do.

First way to invest in real estate, is known as the hold for long-term appreciation and rent it out. That method is the most common and has been used for many years to create wealth.

Or you can buy fixer uppers or distressed properties, fix it up and resell quickly for a profit. These people are called "rehabbers."

Third method is called "Flipping" real estate. Another way to do real estate deals that is ideal for beginners and those with no money is to make some fast cash by finding properties that are under priced then tie it up in a contract and assign the contract to another investor for $3,000-10,000 depending on how good a deal it is. The key to finding under priced properties is to look for distressed owners, such as owners in foreclosures, divorce, probate, vacant properties, evictions, vandalism, etc. These owners are more willing to sell at a discount just so they can move on with their lives.

The fourth way to make money with real estate is by doing something called a lease option. A lease option is also known as a rent to own.

To do a lease option, first you convince an owner to rent a place to you for 2-3 years with an option to buy. You give them some money as little as $10-100 known as an option deposit for the right to buy that property at a certain price at a later time.

Then put a classified ad in the homes for rent and homes for sale section. You need to put in the ad that they dont need good credit, they need a certain option deposit such as $5-10k, and what the monthly rental amount is such as $1200-1800 and what the rent credit is $200-300. And put rent to own, lock in the price.

How you make money is this, from the spread. For instance, if the contract below you and the actual owner is $1200 a month rent and $150,000 to buy the house in 2 years you will need to create a spread. Create a new contract with the person that you're leasing it out to on rent to own terms. The new contract would be $1400 a month in rent, and $175,000 to buy in 2 years. So you make $200 a month in positive cash flow and you also make $25,000 in 2 years if they buy. But if they don't you should have already made $4,000-10,000 in option deposit that you collect initially for the chance to buy this house and that option deposit is non-refundable.

You need tools and resources to succeed in real estate. I recommend that you read more articles about real estate investing if this is something you would like to do.

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