Making Money With Real Estate


Making Money With Real Estate 1

Making Money With Real Estate
The many ways of​ making money with real estate include not only the​ various types of​ property .​
Of course you can make money with land,​ apartment buildings,​ homes,​ commercial buildings and more .​
But with whatever type of​ real estate,​ there are different ways you'll make your profits .​
Some of​ those ways,​ and how to​ maximize them,​ are listed below.
1 .​
Pay-down on​ the​ loan .​
Equity builds with every payment you make .​
If you get the​ lowest interest rate you can,​ more of​ each payment will go towards the​ principal.
2 .​
Cash flow .​
Buy income property the​ right way,​ and you not only have your tenants paying all the​ costs and paying down the​ mortgage loan,​ but you also have positive cash flow .​
As a​ rule,​ just don't buy properties without cash flow.
3 .​
Value appreciation .​
Sometimes making money with real estate can be as​ simple as​ holding on​ and waiting .​
For the​ most appreciation in​ value,​ however,​ you should buy in​ an​ area where demand is​ growing faster than the​ supply.
4 .​
Tax depreciation .​
After all the​ tax law changes,​ you still get to​ declare a​ loss for depreciation that doesn't really exist .​
Saving at​ tax time,​ means more after-tax profit .​
To maximize this,​ buy property that has its value primarily in​ the​ buildings,​ because you can't depreciate the​ value of​ land.
5 .​
Get instant equity by buying low .​
Buy below market and you get instant equity that will be converted into a​ profit when you sell .​
Offer a​ reason for the​ seller to​ sell low: fast closing,​ cash,​ assume some debts or​ liabilities,​ etc .​
Alternately,​ just make a​ low offer .​
a​ seller may have his own reasons to​ sell it​ cheap.

6 .​
Selling high .​
If you clean it​ up nice,​ make it​ easy to​ buy,​ and find the​ right buyer,​ you'll get top dollar .​
The following four on​ the​ list cover ways to​ create value,​ so you'll get more when you sell .​
7 .​
Finance the​ sale .​
You'll often get substantially more for a​ property if​ you offer financing .​
This is​ especially true if​ you let someone buy it​ with little money down .​
You can also get good interest on​ the​ loan.
8 .​
Changing the​ use .​
Find a​ higher use for the​ property,​ and you can convert it​ to​ make it​ worth more to​ the​ next owner .​
This could mean making condos into apartments,​ or​ apartments into condos .​
Perhaps converting a​ home into office space will get the​ biggest return.
9 .​
Improve and repair .​
Repairing anything that needs it​ is​ obvious,​ but you need to​ look creatively and carefully to​ find improvements to​ make .​
Concentrate only on​ those that will raise the​ value several times more than what they cost you .​
10 .​
Sell it​ in​ parts .​
Sometimes in​ real estate,​ the​ parts are worth more than the​ whole .​
For example,​ splitting off an​ extra lot to​ sell for $30,​000 will rarely decrease the​ value of​ a​ home by that much,​ so you'll make more money in​ the​ end.
Look at​ the​ sources of​ profit listed here,​ and think of​ how you can use a​ few of​ them on​ your next real estate investment .​
You can get wonderfully creative making money with real estate.



Making Money With Real Estate



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