2007 August | Real Estate Investing Blog
Real Estate investing is one of the best tools to build long term wealth and financial security. About 70% of millionaires in the US built their fortunes in Real Estate, so it is obviously an excellent tool. There are several ways to incorporate Real Estate into one’s overall financial picture.
The first method I’ll cover to invest in Real Estate is a shorter term option called “flipping”. Basically, flipping a property is buying a property at a below market price and then selling it at a market price. The property may be purchased below market value because it needs repair, or because the sellers have a need to sell the property quickly. The advantage of flipping a property is that it creates a shorter term profit compared to holding a property. Read more
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Buying HUD (Department of Housing and Urban Development) homes isn’t necessarily a way to get rich quick. These homes are supposed to be sold at market value, after all, which would seemingly make the great deals you hear about a myth. However, there are some profit opportunities here.
One of the reasons you still find good deals on HUD homes – even though they are supposed to sell at market value – is that they are sold “as is.” These are houses that have been foreclosed on and repossessed, so the previous owner may not have had the means nor the motivation to properly care for the home. They often have enough problems to scare away most home buyers. Read more
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In Real Estate Investing 101, Part I we covered buying a house to resell for a short term profit, while minimizing risk and making it happen fast. We delved further into flipping in Real Estate Investing 201.
In Real Estate Investing 101, Part II we covered buying and holding property for long term appreciation and wealth building. We also touched on class shifting to increase value.
Real Estate Investing 202 continued on the Buy and Hold theme and offered deeper insight into making it profitable. In Real Estate Investing 203, we looked at shifting property classes for highest and best use, while increasing property value and return.
This time, we are going to look at investing from a different perspective. The previous articles have been about buying property “wholesale” and selling it “retail”. But, there is another way to buy property that may be more efficient as well as more profitable. Read more
Popularity: 7% [?]