Real Estate Investment Money Making, Part 2


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Some people question the ability to make money with real estate investment. There are countless ways to creatively make money in real estate. Last time, we looked at some of the more popular investment options. This time we’ll examine some of the lesser known ways of making money through real estate investment.

Managing Properties

Half the time, commercial properties and rented residential properties are being mismanaged. As a general rule of thumb, these properties should easily make you wealthier. Upon close examination, real estate investors can find properties at reasonable market prices. After purchase, they rework how the investment property is run. Sometimes this includes raising rents. At other times, it is simply a matter of cutting costs and expenses. This usually ends up saving thousands.

Turn Key Properties

Some real estate investors have a little more money starting out. They choose to buy a property for full price that is already profitable and produces an acceptable return on investment. Over time, the property appreciates, building cash flow and equity for the future.

Gentrification

This is a lesser known term. The concept is simple though. An investor looks for properties in hot areas or markets. He purchases a good prospect and hangs on to it. All he as to do is hang on to it. If the market trend continues to increase in the area, the property should increase cash flow for the investor and appreciate. This type of real estate investing does come with risk. There is the possibility that the property will actually lose money in the beginning, but over time it should appreciate if run properly.

Another Questionable Group

Outside of standard real estate investing, there is another category called wraps. Although they aren’t technically illegal, some people may question them. Keep a sharp eye out and keen logic at hand.

Wrap Lease Renting

Some property owners rent out properties for way less than what they are worth on the market. The idea behind wrap lease renting is to lease the property for the year upfront. Then, you sublease the property to someone else for more than what your monthly lease was worth. Your profit is the difference between the two rents.

Wrap Lease Buying

An investor leases a property with the option to purchase at a later date. Instead of moving into the property, you lease it to someone else at an increased monthly rent and sell it to them eventually at a higher price.

Wrap Around Mortgage

Some investors choose to try a wrap mortgage instead. In this investment situation, the investor buys a property at market value with financing. While the property is being paid for, the buyer sells it to someone else at the same price, but with an increased interest rate. This creates a little profit every month for the investor, but over time, the difference can really mount up.

Money can be made in many ways in real estate. Choose the best, ethical option for your real estate business. For more opportunities for real estate investment as well as real estate franchises, call or visit us at Homevestorsfranchise.com. We are the nation’s number one home buying and selling franchise, and we have what you need  to grow your real estate investment business.

 

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