With all of the ways to make money in real estate, which way do the big money makers use?
Buy 80 acres of real estate in Manhattan for 1.9 billion, and sell it 6 years later for $5.4 billion.
wow, well thats one way to do it
There are many ways to make money in real estate. You have long term holds (rentals ) which will provide you with small cashflow of about 200-800 per month per deal on avg if buying SFH-4Plex in many markets, commerical (apt buildings or retail) will bring in much more monthly cashflow but higher downpayments required and more time on your part.
Land banking is great. Buy a piece of land and let it sit (see post above).
Also buying land with a low zoning, like Arigucultural and then having it rezoned to a higher land use which can increase its value by 10times in some markets. Maybe your in an area or have contacts where they is still vacant old farm land or just pasture and retail or residental coming in, buy it low, rezone it and sell in 1 to 3yrs for major profits.
Also holding rentals depsite low cashflow, if you can hold it for 15+ yr and using a fixed rate mortgage you will have alot of equity when its done and can resell and make more money.
Also rehabs are great for fast cash. Many rehabbers get in and out within 4months in todays market and profits can be 10K to 200K depending on market. (I have done rehabs bring me 10K profits but highest was 230K profit on 1 deal that took 4 1/2months to rehab and sell)
Wholesaling is great to learn. You never have to worry about using your credit to buy since you get the contract and sell if it off fast. Assignment fees run from 2K to 15+K depending on market and price of home.
Buy and selling notes are profitable as well as becoming a private HML if you have the cash since you can have a 12-18% return on your money guarenteed or you get a property with equity on a default.
Just some ways there…take your pic
Thanks, thats some great info.
One question on buying and selling notes - I would assume this is where you offer cash for a mortgage and collect the fee between transaction of the mortgage broker and customer?
I 2nd that good info yrush
Here’s how to make 35 Mil in one year.
http://www.sptimes.com/2006/10/20/Business/Price_rockets_up_for_.shtml
You misunderstood the article. The buyer bought Rockefeller Center for 1.9 Bill 6 years ago, not this property.
The wierd thing about this sale is that all the apartments are “rent controlled” which means that people are living in those apartments for dirt cheap. The city of new york controls how much the landlord can charge. The landlords have been trying for years to get the laws changed to no avail.
Buying notes is when the seller wants to get rid of the note. The buyers generally get them for 40-60cents on the dollar which is a deep discount. Then you have note brokers who charge a fee like an assignment fee on real estate investments and collect a fee by getting the seller and buyer together.
Very good money but you need to learn it. I do not do it so can not really tell you the ins and out of it. I know the basic concept and terms to a point, but it is always important to structure your real estate notes right so they can be sold with ease to experienced buyers.
I sell alot of my rehabs now with 10-20% seconds and down the road I may want to sell the notes so I know if i sell i will take a loss on the note.
Which is another thing…If you have a good rehab, you may want to consider carrying a 2nd on it which you can later sell or hope you collect in full…