People will always need somewhere to live. Which means there’s money to be made. We take a look at 5 proven methods of how to make money in real estate.
In 2017, about 5.51 million existing homes were sold in the U.S. Homes are the one thing that you can’t do without. People always need somewhere to live, right?
Perhaps you’re looking to make some money on the side or you’re looking for an income in general. Getting into real estate is one way to do either.
If you’re wondering how to make money in real estate, now is the time to find out! Take a look below at 5 ways to make money in real estate.
How to Make Money in Real Estate
Everyone knows that to show a turn-key house for sale, it has to be in top condition. You don’t always buy it that way, so you might have to put a little TLC into flipping that house around.
Once you’ve got those rules down pat, here are some other tips you need to know if you want to know how to make money in real estate.
Stay on Top of the Game
The best real estate websites are going to keep you the best informed on things you need to know to be a competitor in the game.
Stay connected to investors, properties, and homes throughout the U.S. when you use Investor Mint as a resource. Anything that you could have a question about and more is available to you with the information you can find there.
Real estate is a perfect investment because it goes up in value as the years go on. Short-term fluctuations might keep you on edge, but because of the scarcity of land, the value of land always is going to go up in the long run.
When you invest in real estate, you’re guaranteed that your property is going to appreciate in value, which inherently makes you money.
People who invest in real estate pay the least in taxes of any other for-profit group. They’re given a reduction on earned income through deducting depreciation against the house. And when you sell the house, you can use a 1031 tax exchange.
This is the name of the game when it comes to how to make money in real estate. Equity capture is when you purchase a home for less than the home is worth.
This means that you bought a house in a $500k value area, but you bought the house for $300k. That’s because it needs fixing up. But say that fixing up only costs $50k.
That’s a $150k profit for you, and you’ve bought a property with equity.
When you buy real estate, you want to make sure the rental income is going to provide you with more money than you pay for monthly expenses.
Say that you pay $1,500 for monthly expenses on your property, but your tenants pay $2,000 in rent. That’s $500 that you get every month, which is called a passive income.
Keep Your Edge
Investing in real estate and making a passive income can launch you on your way to financial freedom. Learn how to make money in real estate, and you’ll be able to live more freely.
Even if you’re selling your house, learning the ins and outs of the real estate game can still greatly benefit you and earn you money in the end.
To stay ahead of the game, you’ve got to keep constantly researching and keeping your advantage on the other people in the game. That way, you’ve got a tool that gives you the edge that no one else does.