Can anyone explain how real estate investment work. name some investment you you can make money of. Finally what is the process of foreclosure steps to make money and how does work. 10 points for the top answer.
I’ll give you a ‘top answer’ for 500 points, not 10.
Buy and sell of foreclosure properties can be an honest way to earn money when done the right way. You just need to know how to properly do it. IT takes a lot of patience and some common sense to make a profit in this business.
Rent or lease out property that you have purchased instead of re-selling immediately. If you can rent out the property and cover the costs of the mortgage, real estate taxes and property insurance, you can still make money over the long term as the property appreciates in value (usually about 3 percent per year).
Real estate is a great way to make a good living - if you do it wisely. But, the basics are quite simple and in this buyers market - much simpler. Buy cheap, rent until the market recovers and sell for a profit.
In today’s mortgage market, getting bank financing can be a real trip. So your first step is to get pre-qualified for a loan. Don’t even start shopping for investments until you have done this. Pre-approval will (1) tell you how much you can buy and (2) it will make it more likely a seller will accept your offer and (3) the closing is much quicker.
Once you have that, now find a discounted property (i.e. pre-foreclosure, foreclosure, short sale) that is in good condition in an area with good rental demand. The foreclosure market is an excellent way to find cheap property. I would highly recommend getting a home inspection before you buy a property. Write that as a contingency in your offer.
After you have your investment property, rent the property to create a positive cash flow which allows you to reinvest. Then be patient until the market recovers and you can sell the property for a higher price. From there you take that profit and re-invest.
It might also help to have several foreclosure deals at any one time, once you have mastered the process. This enables you to have a steady flow of cash coming in throughout the year and keeps you from being wholly dependent on the sale or lease of any one property.