I’m new to real estate investing and looking for the effective ways to get more profit from it. Can you share some of your strategies or tips? I will be thankful for your advice.
Hi Kate. If you want maximum profits from real estate investment, you can either purchase a foreclosed property and sell it at a higher price or you can put the house on rent. Buying a foreclosed property can be a great deal. However, post buying the property, you must be ready to invest in property preservation. After property maintenance, you can put the house on sale at higher price. On the other hand, renting a property is also a great deal. Make sure that the house is properly maintained and all the utilities are in working condition.
Good luck!
One way to get ahead quickly in real estate is to add value to the properties you buy.
You should know Mistakes Of a New Real Estate Investor
Mistakes to Avoid When Investing in Real Estate.
This is a good idea and helpful. Thanks.
Okay, Kate…
The effective way to get more money, is to find better deals. You’ll get better at this as you gain experience. At this point, effectively making more profit is tantamount to actually making ‘any’ profit whatsoever.
Otherwise, ‘more profit’ is a relative term.
Go find better and better deals. That’s how you effectively get more profit.
In order to start investing, you first have to determine the amount of capital, time, and risk you are willing to devote to an investment. If you are willing to take on more risk in a shorter time span, I would recommend value-add deals.
Value-add deals can produce high rates of returns. Investors in these deals look for under-utilized properties that have the potential to be improved. They then improve or repurpose the property to increase the value.
I would also recommend reading the book Investing in Real Estate Private Equity by Sean Cook in order to gain a fundamental understanding of real estate investing.
A good tip that is pretty fool proof and will help a new investor is look for a 2bed 2bath house with a higher sq footage like 1200+. Find one with an extra “bonus room” “sun room” etc. These aren’t counted as a br and its dirt cheap to add a closet to it and then you have yourself a 3br which will usually go for more $$$.
Kate, you want profit and strategies and tips. How much money do you want to make and when? Then do reverse and what do you need to do and what is your timeframe of earning?
Your post is a little vague. Most profit is rehabbing imho. :cool
I’m also new to the real estate investing and glad to see some beautiful people here. I hope to get some better knowledge about investing.
What is the best way to real estate investment? The location is a fact for this, I mean we need to care about the location at the time of investment.
This ‘is’ dirt cheap and also illegal. What you have is an un-permitted addition. It will continue to appraise as a 2/2, and not a 3/2.
In order to avoid hiccups, you need to go to the city and get a permit to add a closet, and legally and technically re-permit the house as a 3/2. This will require a set of drawings showing the modification to the house.
The cost of a permit can be from a few hundred dollars to a few thousand, not including the fee to submit drawings.
So, before you start screwing around with remodeling additions, you should consult the codes administration, planning office, or whatever office supervises and issues permits.
Otherwise, you could end up creating an expensive mess for yourself.
That said, any remodeling contractor will be familiar with the process, and can give you an estimate to accomplish what you want.
I agree with BEE_TEE. The first step is to define your goals, distinguishing between income and wealth in REI, and then look for ways to achieve these goals through real estate. From wholesaling, brokering, note investing, turnkey, flipping, property managing, rental property investing, commercial leasing, etc., there are so many avenues to profit through real estate. Apart from the profit of one avenue versus another, you should also look for what caters to your interests, your target locations, and the people you are surrounded by. You may just want to work with individuals in some of these avenues and learn what you like through experience.
Best of luck!
That’s really very nice you must learn different strategies.
When you are new to investing you need to spend significant time researching the different facets of Real Estate to narrow your focus. Once you have a strategy for which RE avenue you are going down then learn how to market for deals. Where many people get tripped up is they try to do a little bit of this, try this tactic over here, and do a little there. Be hyper focused on your strategy and become the expert at one marketing technique. Once you do this then you can stack.
Adam - We Buy Houses Fast in Dallas
The best tip that I can share would be to attend your local REI Club and try to connect with other investors that are doing deals using no cash and no credit. Learn as much as you can from them by offering to work for free.
All the best,
Russell Hudson
Drive for dollars, find vacant houses, skip trace the owners, call or mail , ask if they would like to sell that crappy house, negotiate a price, purchase and flip or wholesale to a local investor that buys with cash, repeat, over and over and over!
Please dont hesitate to ask any questions, and remember…TAKE ACTION! You will be surprised as to what will happen when you start taking action.
Bret Arrington