A question often raised by brand new real estate investors, and those who would like to be, is “How does real estate investing work?” I will attempt to provide you with a brief overview in this article, and hopefully you will have a better understanding of real estate investing and how you might become involved.
First of all, when answering the question, “How does real estate investing work?” it’s important to begin by stating that there are almost as many different types of investing as there are investors.
You could become involved in commercial real estate investing. This would include many different kinds of property and types of investing, from strip malls to mobile home parks, from malls to apartment complexes. You could buy commercial property at bargain prices, and sell for immediate gain, or you could buy income property and hold for the long term. You could also combine the two, and realize income from both the increase in value and the month-to-month rent. Commercial property is an important consideration when answering the question, “How does real estate investing work?”
You could also get involved in any of a number of different strategies involving residential property, from single family homes, duplexes, small apartment houses, even mobile homes. When it comes to answering the question, “How does real estate investing work?” the possibilities are limited only by your imagination.
If you’re the type of person who enjoys projects, you might enjoy buying “fixer-uppers” and rehabbing them. You could become a wholesaler or a bird-dog and find deals for other, more experienced investors, some of whom have already worked out the answer to the question, “How does real estate investing work?”
Maybe you like helping people? If so, working with buyers and sellers to solve their credit or payment problems will provide you with ample opportunity to profit from their dilemmas. You could also negotiate directly with the mortgage lender to buy houses, either in foreclosure or “short sale” investing. A little investigation of these terms will give you a clearer picture of the answer to the question, “How does real estate investing work?”
Alternatively, you may have money to invest, but little or no time. You may find that investing as part of a group, or “trust” is a good fit for you. These trusts can be very lucrative, and a good option for the less hands-on investor. Even very busy professionals find REIT’s (Real Estate Investment Trusts) a good choice when deciding for themselves, “How does real estate investing work?”
Hopefully, you’re curiosity has been piqued by this brief introduction to the question, “How does real estate investing work?”
Now, go make more offers!