How To Make Money Buying And Selling Real Estate

Despite the natural rise and fall of the real estate market, over the long term it has consistently proved to be a great way to make money. People have bought properties and sold them on just a few years later for huge profits – the kind of profits you cannot generally get anywhere else. Even the stock market isn’t as easy to negotiate as the real estate market.
There are several ways to make money out of this though, and the way you choose will depend on the kind of person you are and what you want to get involved in.
So what is the easiest way to make money in real estate? Well probably the easiest way is simply to buy a property, hang onto it for a prolonged period of time and then sell it for much more than you originally paid for it. A lot of people do this and live in the property, gradually paying for it over the years as their mortgage gets smaller and the property gets more expensive.
But that isn’t exactly a quick profit, and if you want to make money more quickly than that you will have to put some short term effort into the project. I say project because you can buy a property with the view to renovating it over the space of a few weeks or months, and then sell it on for more than you paid for it.
There are lots of ways to improve a house, but you have to know what you are looking for in the first place. Some properties just need a little tender loving care inside to bring them up to standard, while others need major building work. Make sure you don’t bite off more than you can chew!
You will also have to get in other people to help you if you take on a property that needs more work than you can comfortably do yourself, which can eat into your potential profits, so this should also be borne in mind.
There is also something called vendor finance loans, which you might want to consider if you are looking to make a profit in real estate. What you do is buy a house as normal, and then offer to sell it to someone else who can’t get finance. You then finance it yourself. The idea is that you charge them enough to cover your loan payments but charge them a premium price for the actual house.
So for example if you bought the house for $350,000 you could sell it for $380,000 on your own terms. If you find a buyer that can prove they can pay the amount of money back to you, they can then go to a bank in a few years time (pre-agreed by you) and refinance it and pay you off. You’ve then made a nice profit in a short amount of time.
One word of warning here, though. Houses prices go up and down, and there is no guarantee that you will automatically make your money back on a property, let alone go into profit. It can be a risky venture and you are advised to get professional advice before entering into any kind of real estate venture, to ensure you know what you are doing and you understand everything clearly.
Before you do that, why not fill in the form below and let us know whether real estate profits are right for you? We’d love to hear your feedback!