Ever want to increase your personal wealth and thought real estate would be the way to go? Then the very next thought being what do I do?
Well you have come to the right place. I have bought and sold real estate and belong to a club of investors who all combined own over 8000 properties. Before getting into the meat of this lens let's go over the many different ways of making money in real estate.
Buy your own home: This is obviously the most common, but not really investing yet still gives you equity over time. That equity can help you buy other properties.
Buy and rent: Quite often called buy and hold. This is the most common way to buy investment property. No matter what the market does as long as you can hold on to the property you will make money over time. In 20 years if you had just 3 of these you would most likely beat out another form of retirement income. Imagine 3 properties giving you $1500 per month each, that's $4500 per month or $54K per year. At 10% interest you would need at least $540K in investments to make that, and at 5% you would need over a million. So this is a good strategy. Problem being that if you are 50 years old this may not work for you.
The next strategy is actually the same one but more aggressive. So instead of 3 properties paid for over 20 years. You go out and buy 20 properties and in 3-8 years, depending on the market, you sell 10-15 of these properties. Now you have 5-10 properties paid for in only 3-8 years. This gives you some great passive income to retire or at least have some freedom. If you only ended up with 5 properties in 8 years paid for you now have about $7500 monthly cash flow. Much more and much faster. And as soon as you have your land-lording skills down this is easy to do. Of course to be able to do this you will need lots of money, and very good credit. What if you don't have either? Then you need to learn the next step. That is buying property with creative financing.
Kelly Kramer owns a plumbing company and buy and sells real estate, if you liked this article you can learn more at http://www.edmontons-business-directory.com/Edmonton_Real_Estate.html
Article Source: http://EzineArticles.com/?expert=Kelly_P_Kramer
Well you have come to the right place. I have bought and sold real estate and belong to a club of investors who all combined own over 8000 properties. Before getting into the meat of this lens let's go over the many different ways of making money in real estate.
Buy your own home: This is obviously the most common, but not really investing yet still gives you equity over time. That equity can help you buy other properties.
Buy and rent: Quite often called buy and hold. This is the most common way to buy investment property. No matter what the market does as long as you can hold on to the property you will make money over time. In 20 years if you had just 3 of these you would most likely beat out another form of retirement income. Imagine 3 properties giving you $1500 per month each, that's $4500 per month or $54K per year. At 10% interest you would need at least $540K in investments to make that, and at 5% you would need over a million. So this is a good strategy. Problem being that if you are 50 years old this may not work for you.
The next strategy is actually the same one but more aggressive. So instead of 3 properties paid for over 20 years. You go out and buy 20 properties and in 3-8 years, depending on the market, you sell 10-15 of these properties. Now you have 5-10 properties paid for in only 3-8 years. This gives you some great passive income to retire or at least have some freedom. If you only ended up with 5 properties in 8 years paid for you now have about $7500 monthly cash flow. Much more and much faster. And as soon as you have your land-lording skills down this is easy to do. Of course to be able to do this you will need lots of money, and very good credit. What if you don't have either? Then you need to learn the next step. That is buying property with creative financing.
Kelly Kramer owns a plumbing company and buy and sells real estate, if you liked this article you can learn more at http://www.edmontons-business-directory.com/Edmonton_Real_Estate.html
Article Source: http://EzineArticles.com/?expert=Kelly_P_Kramer
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