December 28, 2018
 
Investing in real estate can be quite complicated but not as much when compared to stocks. The process is simple and straightforward. What you need to make sure is to thoroughly understand the ins and outs of the real estate business for you to get the most of what it has to offer.

If you put your money in real estate, your ultimate goal is to make your money work and make it grow so that you can have more money in the future. Those who have been in the business for a long time now sure do know how to invest the right way. However, if you are just starting in the business, you surely have a lot of questions and doubts.
If you are just starting in the real estate business, then you need to know the common ways to generate money.

These are the following:
  • Appreciation – The value of the property increases with time, especially with favorable changes in the real estate market such as improvements in the amenities within the property’s reach. Anything that makes the property attractive to potential buyers or renters can lead to appreciation.
  • Cash flow income – You buy a real estate property and have it rented out. That way, you will have a continuous flow of income. It would take some time for you to recover your capital but you will have a sure source of income every month for as long as there are tenants. What many investors do is they take out a loan from the bank. They only pay for the required down payment and the monthly rental fee will cover for the property’s monthly mortgage. In other words, the property pays for itself while you are benefitting from the property’s equity.
  • Fix and flip – This is one of the common methods used not only by real estate newbies but pros too. You buy a dilapidated property that is way below its market value. You make the necessary improvement and renovations so as to increase its market value. After some time, you sell the property at a much higher price to make a decent profit. Many successful real estate investors started using this method as the capital requirement is low and returns can be made in just a short timeframe.
  • Real estate related income – It is the income you make in the real estate without really investing in it such as the money you make from being a real estate broker or the money made by real estate management companies.
To know more about real estate investing, feel free to follow Dean Graziosi. He is one of the most successful real estate investors of his time. He started from the bottom and worked his way to the top. He was able to build a real estate empire out of nothing. If you want to be as successful as Dean, then you should follow his Facebook account to know him more including his activities that you can be a part of such as coming to Dean’s live events, listening to his weekly podcast, and reading real estate books.